Concept of logistics planning

A corporate mission is a statement setting out long range goals unique to each organization elucidating the business the company wants to be in, who its customers are its basic beliefs about business, and its goals of survival growth and profitability. Objectives and goals sets the targets which are to be achieved in the long term in order to fulfill the mission of the firms in order to achieve the long term objectives and goals, alternatives strategies or actions plans need to be evaluated in the context of the environment faced by the firm from these alternatives, specific  strategies must be selected for implementation in order to meet the objectives and goals that will fulfill the mission of the firm hence business strategy is a long range game plan of an organization and provides a road map of how to achieve the corporate mission. The strategic or long term plans for the firm and developed at the highest level of management of the firm.

The strategic planning for each of the functions of the firm, such as marketing, operations, logistics, etc.that are derived from the firms strategic plans, are developed at the highest level of the concerned function. The strategic plan within the function need to be detailed in the form of tactical and operational plans at the tactical and operational levels of management in the respective function. The operational level og management of a function in affirm plans the operational activities in order to meet the tactical and strategic plans of the function and control the activities during implementation on order to meet the operational plans.

According to the planning level illustrates the logical flow of the planning process across the organization. The activity flows in the logistic function bring out the sequence of activities from order receipt to procurement to customer delivery. Strategic plans determine the capacity plans by defining the internal capacity limitations in manufacturing, warehousing, and transportation as well as human resources.

Planning and operations process:

The strategic plans developed for the firm lead to the development of strategic plans for the logistics functions. These in turn generates the tactical and operational logistical plans. For eg; the objectives of cost reductions for a firm would less to strategies to reduce total logistics cost reduction for a firm would lead to strategies to reduce total strategies costs. These strategic plans could take the form of, for e.g. reducing the number of warehouses, transportation consolidation, or purchase of new software for logistic information management next ,the tactical plans are developed to implement the stetegic plans . Tactical plans out line the steps or procedure that are required to execute strategic plans. For eg; in order to reduce the number of warehouses one can plan to centralize the ware housing at a  few locations by increasing the capacity of these warehouses which are not economical.

At the operational level, operational plans are developed in order to perform and control the activities to accomplish the tactical plans thus operational plans need to be developed for performing the logistics activities from the fewer warehouses as decided in the tactical plans.

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