Summary and make a Slide.

Logistical Operations The internal operational scope of integrated logistics operations is illustrated by the shaded area of Figure 3.2. Information from and about customers flows through the enter- prise as a result of sales activity, supply chain collaborations forecasts, and orders. Vital information is refined into specific manufacturing, merchandising, and purchasing plans. As products and materials are procured, a value-added inventory flow is initiated, which ultimately results in ownership transfer of finished products to customers. Thus, the logis- tical process is viewed in terms of two interrelated flows: inventory and information. While internal process integration is important to success, a firm must also align and integrate information across the supply chain. To be fully effective in today's competitive environ- ment, firms must extend their enterprise integration to incorporate customers and suppli- ers. This collaborative extension reflects the position of logistics in the broader perspective of supply chain management. Supply chain integration is discussed later in this chapter (see Supply Chain Synchronization), Inventory Flow The operational management of logistics is concerned with movement and storage of inven- tory in the form of materials, work-in-process, and finished products. Logistical operations start with the initial shipment of materials or component parts from a supplier and are finalized when a manufactured or processed product is delivered to a customer. Inventory flow Enterprise Suppliers Procurement Manufacturing Customer accommodation Customers Information flow FIGURE 3.2 Logistical Integration