What are the concepts of logistics?

The logistics of physical items usually involves the integration of information flow,
materials handling, production, packaging, inventory, transportation, warehousing, and
often security.
Types of Logistics
 Logistics Fields.
 Procurement Logistics: Procuring Raw Materials and Parts.
 Production Logistics: Materials Management, Distribution in Factories, Product
Management, Shipping.
 Sales Logistics: Delivery from Warehouse to Wholesalers, Retailers, and Consumers.

7 R's in Logistics Management Services

 Right Product. A company who offers this kind of service must first know the kind of
products that they are going to handle and transport. ...
 Right Place. The right product must be delivered to the right place. ...
 Right Price. ...
 Right Customer. ...
 Right Condition. ...
 Right Time. ...
 Right Quantity.
Logistics System. A logistics system (LS) is a network of organizations, people, activities,
information, and resources involved in the physical flow of products from supplier to customer.
Logistics management activities typically include inbound and outbound transportation
management, fleet management, warehousing, materials handling, order
fulfillment, logistics network design, inventory control, supply/demand planning and
management of third-party logistics services providers
Logistics management consists of the process of planning, implementing and controlling the
efficient flow of raw-materials, work-in-progress and finished goods and related information-from
point of origin to point of consumption; with a view to providing satisfaction to the customer.
EXPERIENCE
New York, NY
SENIOR GLOBAL LOGISTICS MANAGER
07/2016 – present

 Coordinates and controls the strategy and tactics that impact order cycle and associated
information systems
 Cross-functional liaison between Starbucks business units and supply chain operations
(Demand / Supply - Planning, IT, Finance, Procurement and Manufacturing)
 Develops and implements reporting processes to communicate project status to project teams
and other stakeholders
 Ensure organizational priorities are communicated to Supply Chain field partners in a timely
and effective manner
 Identifies and manages both innovation and optimization (eg : value added service)
opportunities (including service / cost improvement initiatives throughout global logistics)
 Lead in continuously improving performance across the total supply chain
 Leads design and implementation of common distribution processes and systems across the
Starbucks network. Ensures that processes and systems improve service, gain efficiencies,
increase capacity and reduce costs
 Boston, MA
MANAGER GLOBAL LOGISTICS
12/2010 – 03/2016

 Leads design and implementation of common transportation processes across the Starbucks
network. Ensures that processes improve service, gain efficiencies, increase capacity and
reduce costs
 Influences the process for evaluating bids, negotiating contracts and monitoring performance
of third party logistics and carriers
 Oversee the implementation and execution of internal and external supply chain processes
that direct and disseminate flow of transportation related information while producing
economic and efficiency benefits to all business partners
 Oversees training and development of partners directly and indirectly managed and makes
effective staffing decisions
 Partners with Tax and Customs partners to design, implement and manage processes to
ensure compliance with customs regulations around the world. Assists with customs audits
 Manages the process for evaluating bids, negotiating contracts and monitoring performance
of third party logistics and carriers
 Provides coaching, direction and leadership support to team members in order to achieve
partners, business and customer results

Dallas, TX
GLOBAL LOGISTICS MANAGER
02/2005 – 10/2010

 Lead cross-functional global projects and change initiatives through completion by

developing, coaching, and leading virtual teams
 LEAN training is a plus
 Familiar with managing Suppliers relationship development, performance management and
business reviews
 Negotiate current and new carrier contracts leveraging industry expertise and combined
global spend to drive higher level of service and lower costs
 LSP management (service levels, pricing and relationship development
 A contemporary role in a globally crossfunctional dynamic organization requiring a culture
of strong collaboration
 Drive continuous improvement across the SRM program

EDUCATION
Bachelor’s Degree in Business
PEPPERDINE UNIVERSITY

SKILLS
  Strong leadership skills, with the ability to coach and mentor others
 Familiarity with American Institute of Baking (AIB), Good Manufacturing Practices (GMP),
and Hazard Analysis and Critical Control Points (HACCP) standards
 Ability to provide technical leadership
 Ability to work independently
 Ability to communicate clearly and concisely, both orally and in writing
 Ability to build an organization to support growth
 Ability to build relationships
 Ability to recommend and implement solutions
 Ability to form and develop effective leadership teams
 Problem-solving skills

There are five elements of logistics:

 Storage, warehousing and materials handling.
 Packaging and unitisation.
 Inventory.
 Transport.
 Information and control.

The logistics system consists of the following components: Customer service,

Inventory management, Transportation, Storage and materials handling, Packaging,
Information processing, Demand forecasting, Production planning, Purchasing, Facility
location and other activities.

The Eight Components of Supply Chain Management

 Planning. This is one of the most important stages. ...
 Information. The world today is dominated by a continuous flow of information. ...
 Source. Suppliers play a very crucial role in supply chain management systems. ...
 Inventory. ...
 Production. ...
 Location. ...
 Transportation. ...
 Return of goods.
What is a logistical plan?
 According to the Council of Supply Chain Management Professionals (previously
the Council of Logistics Management), logistics is the process of planning,
 implementing and controlling procedures for the efficient and effective
transportation and storage of goods including services and related information
from the point ...

What is logistics management?

According to the Council of Logistics Management, logistics can be defined as “that
part of supply chain process that plans, implements and controls the efficient, effective
flow and storage of goods, services and related information from the point of origin to the
point of consumption”. Logistics Management is an all-inclusive term that encompasses
both planning and execution of four key aspects of logistics, i.e. transportation,
distribution, warehousing and purchasing. Another pertinent factor that logistics
management takes into account is the flow of goods in forward and reverse order.

Role of logistics management

Active since point of origin and going on to the point of consumption, logistics
management is a key component of the supply chain process that facilitates the tripod of
strategy, planning and implementation thereby reducing cost significantly and enhancing
customer satisfaction.

There are 6 key functional areas of logistics management, namely:

1. Inventory Planning and Management

2. Warehousing

3. Procurement of Goods and Services

4. Packaging and Storage

5. Transportation

6. Customer service

Efficient logistics management

According to Paul Myerson’s book “Introduction to Supply Chain and Logistics
Management Made Easy” there are five tactical characteristics of logistics management –
reliability, responsiveness, agility, cost and assets. Hence, there should be greater
emphasis on accuracy of data collected. Even though there are innovative and world-class
technological processes that are used in logistics, it must be considered that data input is
different from information processing. Hence, a lot depends on timely and regular data
feeding and updation. The basic information should be based on real-time flow of goods
and only then can logistics management be utilized to maximize customer satisfaction
and reduce costs.

Another important aspect for stronger supply chain and efficient logistics management
and eventually, effective logistics, is that one should think beyond point of consumption.
The reverse flow of goods has to be considered while planning for logistics by the
distributors, retailers or manufacturers.

Elimination of prospective setbacks by

thorough planning
In logistics management, multiple issues may arise due to drawback in a single process.
For instance, failed deliveries can lead to customer dissatisfaction or damage of goods
leading to incurring of losses. For overcoming such obstacles, planning the processes
including risk management is very important. The advantages of planning are:

 Elimination of delays and reduction of losses

 Controlling and managing inbound and outbound flow of goods

 Enhancement of supplier-vendor relationship

 Mobilizing smooth supply chain process

 Maximization of customer satisfaction

Thus, one needs to devote time and resources to planning the steps and ways of logistics
management in order to maximize efficiency. Some key aspects of planning are:

 Selection of vendors

 Selection of transportation modes and routes

 Choosing effective delivery mode

 Manage and operate processes through technology and innovation

Reputed logistics solutions companies take into account the complete chain of logistics
management. One such company is India’s leading express distribution giant, Gati, that
offers total supply chain solutions along with important services after-sales support and
reverse logistics.

Conclusion
Thus, logistics management is the key to seamless and integrated supply chain involving
efficient flow of various processes, from freight forwarding and inventory management to
packaging and delivery of goods, by utilizing information, technology and human
resources to attain company’s objectives.
Principles Of Logistics Management
1. 1. Principles of Logistics Management<br />Diploma in Logistics Management<br />
2. 2. Principles of Logistics Management<br />Chapter 1<br />The Role of Logistics in the <br />
Economy and Organization<br />
3. 3. Why study Business Logistics?<br />Wide career prospect（前景）<br />Manufacturing & trading
firms<br />Service firms e.g. 3PL（第三方物流）, freight forwards<br />Learning institutions（制
度）<br />Government agencies<br />Other service institutions（机构） e.g. restaurants, hospitals,
etc<br />
4. 4. Logistics Management<br />The process of planning, implementing（执行）and controlling the
efficient, effective flow and storage of goods, services, and related information from point of origin to
point of consumption（消耗） for the purpose of conforming to customer requirements.<br
/>Council（委员会） of Logistics Management <br />a leading organization for logistics
professionals<br />
5. 5. Logistics Managementmany names including:<br />Business logistics<br />Channel
management<br />Distribution<br />Industrial logistics<br />Logistical management<br />Materials
management<br />Physical distribution<br />Quick-response systems<br />Supply chain
management<br />Supply management<br />
6. 6. Components of Logistics Management构成因素<br />
7. 7. Systems Approach/Integration<br />Logistics is, in itself, a system<br />It is a Network of
activities with the purpose of managing the orderly flow of materials and personnel within the
logistics channel.<br />
8. 8. The system approach<br />All functions or activities need to be understood in terms of how they
affect, and are affected by, other activities.<br />The sum, or outcome of a series of activities, is
greater than its individual parts.<br />Eg. High inventory level good or bad?<br />-Bad: warehouse
cost, obsolete, cash flow, insurance, currency fluctuation（货币波动）<br />-Good: support
demand<br />
9. 9. Logistics role in the Economy<br />Logistics is an important component of GDP<br />Adds value
by creating TIME and Place Utility(value)<br />
10. 10. Logistics role in the Organization<br />Supports Marketing<br />“Marketing management
philosophy（哲学） holds that achieving organizational goals depends on determing the needs and
wants of target markets and delivering the desired （渴望的）satisfactions more effectively（有效的
，实际上的） and efficiently than competitors.”<br />
11. 11. Marketing/Logistics Management Concept<br />CustomerSatisfaction<br />1.Suppliers<br
/>2.Intermediate customers<br />3.Final customers<br />Integrated Effort<br />1.Product<br
/>2.Price<br />3.Promotion<br />4.Place(distribution)<br />Company Profit<br />1.Maximize long-
term profitability<br />2.Lowest total costs given an acceptable level of customer service<br />
12. 12. 4 P’s of the Marketing Mix<br />Products- the set of utilities or characteristics a customer receives
as a result of a purchase<br /> (quality, features, customer service, warranty)<br />Price- the amount
of money a customer pay for a product or service<br /> (discount, rebates, customers)<br
/>Promotion- a product or service encompasses both personal selling and advertising<br />Place-
component of the marketing mix support the levels of customer service provided by the
organization<br />
13. 13. Cost Trade-offs Required in Marketing and Logistics<br />
14. 14. Role of logistics in the Organization<br />Logistics Types of Utility<br />Form utility<br
/>Manufacture – Production or Operations process<br />The value of making materials available in a
completed state<br />— Possession（所有/持有） utility<br />Value added to a product allow the
customer take ownership<br />
15. 15. Role of Logistics in the Organization<br />Logistics Types of Utility<br /> Time utility<br />
value created by making product or service availability when it is needed<br />Place utility<br />
value created or added to product or service availability where it is needed<br />
16. 16. Role of Logistics in the Organization<br />One way of viewing the Major Costs of Doing
Business<br />Profit $0.04<br />Logistics Costs $0.21 = Time& Place utility<br />Marketing Costs
$0.27 = Possession utility<br />Manufacturing Costs $0.48 = Form utility<br />
17. 17. Role of Logistics in the Organization<br />Profit Leverage provided by Logistics Cost
Reduction<br />If net profit on the sales dollar is 2% then<br />A Savings of is Equivalent to a Sales
increase<br />$0.02 $1.00<br />$2.00 $100.00<br />$200.00 $10,000.00<br />$2,000.00
$100,000.00<br />$20,000.00 $1,000,000.00<br />
18. 18. Logistics role in the Organization<br />Logistics is a Proprietary（私有） Asset（资产）<br />It
is similar to a tangible（明确的） asset on a firm’s books<br />It cannot be readily（欣然地）
duplicated（复制出） by the firm’s competitors（竞争者）<br />If a company can provide its
customers with products quickly and at low cost, it can gain market share advantages over
competitors<br />
19. 19. Logistics allows efficient movement to the customers<br />7 Rights of Logistics <br />Move the
Right Materials/Products<br />In the Right Quantity<br />In the Right Condition<br />At the Right
Time<br />To the Right Place<br />At the Right Cost<br />To the Right Customers, Associates,
Suppliers and Stockholders.<br />
20. 20. The Logistics Evolution<br />Fragmentation1960<br />Evolving Integration 1980<br />Total
Integration2000<br />
21. 21. Factors Impacting the Development of Logistics<br />Advances in Computer Technology<br
/>Quantitative（数量上的） techniques<br />Development of the systems approach<br />Total cost
analysis concept<br />Recognition（酬劳/认出） of logistics role<br />Erosion（腐蚀） of firm’s
profits<br />Profit leverage<br />Economic condition（状况，地位）<br />
22. 22. Key Logistics Activities<br />Customer Service<br />Demand forecasting planning<br
/>Inventory management<br />Logistics Communications<br />Material handling<br />Order
processing<br />Packaging<br /><ul><li>Parts & Service Support
23. 23. Plant & warehouse site selection
24. 24. Procurement（获得）
25. 25. Return goods handling
26. 26. Reverse logistics
27. 27. Traffic & transportation
28. 28. Warehousing & storage</li></li></ul><li>Key Logistics Activities<br />Customer Service<br />-
Customer oriented（导向的） philosophy（哲学、人生观）<br />-Optimum（最适宜的，最有利
的） cost-service mix<br />-Output of logistics system<br />-Customer satisfaction<br />
Recommended
 The budget officer is responsible for verifying how the funds are being spent, ensuring that the
company's plans that require funding are possible within the budget limits and that the annual
report for the company is created with truthful and reliable figures.
What are the duties of a budget officer?
The Budget Officer implements budgeting and financial record keeping procedures to ensure
efficient coordination of various departmental, grant, and designated accounts, maintains
accurate information regarding the financial status of the cost center, advises the immediate
supervisor regarding financial decisions, .

The following types of budgets are commonly used by businesses:

 Master Budget. A master budget is an aggregate of a company's
individual budgets designed to present a complete picture of its financial activity and
health. ...
 Operating Budget. ...
 Cash Flow Budget. ...
 Financial Budget. ...
 Static Budget.
Sep 8, 2015
 What are the types of budgets in accounting?
The most common budget types include the following:
 master budget.
 operating budget.
 financial budget.
 cash budget.
 static budget.
 flexible budget.
 capital expenditure budget, and.
 program budget.
What are the 4 phases of the budget cycle?
A budget cycle is the life of a budget from creation or preparation, to evaluation.
Most small businesses don't use the term “budget cycle” but they use
the process and go through each of its four phases — preparation, approval,
execution and evaluation.Jan 25, 2019
What is budgetary cycle?
The budget cycle refers to the life of a budget from creation to evaluation. ... The four
segments of the budget cycle diagram — preparation and submission, approval,
execution and audit, and evaluation — provide the framework for creating one of the
most important tools a business needs to succeed.
What are the major steps in budgeting process?
APPROACHES TO BUDGETING PROCESS
1. Top-Down Budget. In the top-down budgeting process, the primary input is made by the
top-level executives of the business. ...
2. Bottom-Up Budget. ...
3. Sales Budget. ...
4. Production Budget. ...
5. Direct Material Purchases Budget. ...
6. Labor, Overhead, and SG&A Budget. ...
7. Cash Budget. ...
8. Budgeted Financial Statements.
The budgeting process requires essentially five steps:
 Step 1: Determining the Flow of Information.
 Step 2: Deciding What You're Going to Measure. Imagine you work for Lie Dharma's
Sporting Goods. ...
 Step 3: Gathering Historic Data.
 Step 4: Making Projections.
General Budget is abover
Type of budget
GVM Budget
 what is difference between cash and accrual basis?

The difference between cash and accrual accounting lies in the timing of when
sales and purchases are recorded in your accounts. Cash accounting recognizes
revenue and expenses only when money changes hands, but accrual
accounting recognizes revenue when it's earned, and expenses when they're
billed (but not paid).Feb 14, 2018Contents

 The difference between cash and accrual

 Cash basis accounting
 Accrual basis accounting
 What it means to "record transactions"
 Diagram comparing accrual and cash accounting
 The effects of cash and accrual accounting
 The effect on cash flow
 The effect on taxes
 Should a small business use cash or accrual accounting?

Tired of doing your own books?

Try Bench.

The difference between cash and accrual

The difference between cash and accrual accounting lies in the timing of when sales and
purchases are recorded in your accounts. Cash accounting recognizes revenue and expenses only
when money changes hands, but accrual accounting recognizes revenue when it’s earned, and
expenses when they’re billed (but not paid).

We’ll look at both methods in detail, and how each one would affect your business.

Cash basis accounting

The cash basis of accounting recognizes revenues when cash is received,
and expenses when they are paid. This method does not recognize accounts
receivable or accounts payable.

Many small businesses opt to use the cash basis of accounting because it is
simple to maintain. It’s easy to determine when a transaction has occurred
(the money is in the bank or out of the bank) and there is no need to track
receivables or payables.

The cash method is also beneficial in terms of tracking how much cash the
business actually has at any given time; you can look at your bank balance
and understand the exact resources at your disposal.

Also, since transactions aren’t recorded until the cash is received or paid, the
business’s income isn’t taxed until it’s in the bank.

Accrual basis accounting

Accrual accounting is a method of accounting where revenues and expenses
are recorded when they are earned, regardless of when the money is actually
received or paid. For example, you would record revenue when a project is
complete, rather than when you get paid. This method is more commonly
used than the cash method.

The upside is that the accrual basis gives a more realistic idea of income and
expenses during a period of time, therefore providing a long-term picture of
the business that cash accounting can’t provide.

The downside is that accrual accounting doesn’t provide any awareness of

cash flow; a business can appear to be very profitable while in reality it has
empty bank accounts. Accrual basis accounting without careful monitoring
of cash flow can have potentially devastating consequences.

What it means to “record transactions”

We’ve talked a lot so far about recording transactions in your books, and how
cash and accrual dictates “when” you do that.

But what does it mean to record a transaction?

Every business has to record all its financial transactions in a ledger—

otherwise known as bookkeeping. You’ll need to do this if you want to claim
tax deductions at the end of the year. And you’ll need one central place to add
up all your income and expenses (you’ll need this info to file your taxes).

There are some good DIY bookkeeping options out there. Or if you’d rather
have someone else do your bookkeeping for you, check out Bench.

Diagram comparing accrual and cash accounting

Cash accounting Accrual accounting
Recognizes revenue when cash has been Recognizes revenue when it’s earned (eg. when the
received project is complete)
Recognizes expenses when they’re billed (eg. when
Recognizes expenses when cash has been spent
you’ve received an invoice)
Taxes are not paid on money that hasn’t been
Taxes paid on money that you’re still owed
received yet
Mostly used by small businesses and sole
Required for businesses with revenue over $5 million
proprietors with no inventory

Cash basis accounting

The cash basis of accounting recognizes revenues when cash is received,
and expenses when they are paid. This method does not recognize accounts
receivable or accounts payable.

Many small businesses opt to use the cash basis of accounting because it is
simple to maintain. It’s easy to determine when a transaction has occurred
(the money is in the bank or out of the bank) and there is no need to track
receivables or payables.

The cash method is also beneficial in terms of tracking how much cash the
business actually has at any given time; you can look at your bank balance
and understand the exact resources at your disposal.

Also, since transactions aren’t recorded until the cash is received or paid, the
business’s income isn’t taxed until it’s in the bank.
Accrual basis accounting
Accrual accounting is a method of accounting where revenues and expenses
are recorded when they are earned, regardless of when the money is actually
received or paid. For example, you would record revenue when a project is
complete, rather than when you get paid. This method is more commonly
used than the cash method.

The upside is that the accrual basis gives a more realistic idea of income and
expenses during a period of time, therefore providing a long-term picture of
the business that cash accounting can’t provide.

The downside is that accrual accounting doesn’t provide any awareness of

cash flow; a business can appear to be very profitable while in reality it has
empty bank accounts. Accrual basis accounting without careful monitoring
of cash flow can have potentially devastating consequences.

What it means to “record transactions”

We’ve talked a lot so far about recording transactions in your books, and how
cash and accrual dictates “when” you do that.

But what does it mean to record a transaction?

Every business has to record all its financial transactions in a ledger—

otherwise known as bookkeeping. You’ll need to do this if you want to claim tax
deductions at the end of the year. And you’ll need one central place to add up
all your income and expenses (you’ll need this info to file your taxes).

There are some good DIY bookkeeping options out there. Or if you’d rather
have someone else do your bookkeeping for you, check out Bench.

Diagram comparing accrual and cash accounting

Cash accounting Accrual accounting

Recognizes revenue when cash has been Recognizes revenue when it’s earned (eg. when the
received project is complete)

Recognizes expenses when they’re billed (eg. when

Recognizes expenses when cash has been spent
you’ve received an invoice)
Cash accounting Accrual accounting

Taxes are not paid on money that hasn’t been

Taxes paid on money that you’re still owed
received yet

Mostly used by small businesses and sole

Required for businesses with revenue over $5 million
proprietors with no inventory

The effects of cash and accrual accounting

Understanding the difference between cash and accrual accounting is
important, but it’s also necessary to put this into context by looking at the
direct effects of each method.

Let’s look at an example of how cash and accrual accounting affect the
bottom line differently.

Imagine you perform the following transactions in a month of business:

1. Sent out an invoice for $5,000 for a web design project completed this
month
2. Received a bill for $1,000 in developer fees for work done this month
3. Paid $75 in fees for a bill you received last month
4. Received $1,000 from a client for a project that was invoiced last month

The effect on cash flow

Using the cash basis method, the profit for this month would be $925
($1,000 in income minus $75 in fees).

Using the accrual method, the profit for this month would be $4,000 ($5,000
in income minus $1,000 in developer fees).

This example displays how the appearance of income stream and cash flow
can be affected by the accounting process that is used.

The effect on taxes

Now imagine that the above example took place between November and
December of 2017. One of the differences between cash and accrual
accounting is that they affect which tax year income and expenses are
recorded in.
Using cash basis accounting, income is recorded when you receive it,
whereas with the accrual method, income is recorded when you earn it.

Following the above example, using accrual accounting, if you invoice a

client for $5,000 in December of 2017, you would record that transaction as a
part of your 2017 income (and thus pay taxes on it), even if you end up
receiving the payment in January of 2018.

The effect on cash flow

Using the cash basis method, the profit for this month would be $925 ($1,000
in income minus $75 in fees).

Using the accrual method, the profit for this month would be $4,000 ($5,000 in
income minus $1,000 in developer fees).

This example displays how the appearance of income stream and cash flow
can be affected by the accounting process that is used.

The effect on taxes

Now imagine that the above example took place between November and
December of 2017. One of the differences between cash and accrual
accounting is that they affect which tax year income and expenses are
recorded in.

Using cash basis accounting, income is recorded when you receive it,
whereas with the accrual method, income is recorded when you earn it.

Following the above example, using accrual accounting, if you invoice a client
for $5,000 in December of 2017, you would record that transaction as a part of
your 2017 income (and thus pay taxes on it), even if you end up receiving the
payment in January of 2018.

Further Reading: A Small Business Tax Checklist

Don't want to think about bookkeeping anymore?
Try a free trial with Bench. We'll take bookkeeping off your hands, pairing you with your own
bookkeeper, and intuitive software to track your finances.

Learn More

Should a small business use cash or accrual

accounting?
If your business is a corporation (other than an S corp) that averages more
than $25 million in gross receipts each year, the IRS requires you to use the
accrual method.

If your business doesn’t hit those criteria, you’re welcome to use the cash
method.

That being said, the cash method usually works better for smaller businesses
that don’t carry inventory. If you’re an inventory-heavy business, your
accountant will probably recommend you go with the accrual method.

To change accounting methods, you need to file Form 3115 to get approval
from the IRS.