Logistics Budgeting
A logistics system can only work if well-trained and efficient staff place orders, move boxes, and provides goods to clients. Health programs must be organized to provide the appropriate resources (for example, supervision authority and technical knowledge) to complete logistics activities. Organization and staffing, therefore, are an important part of the cycle. Logistics staff must make the six rights a top priority for a logistics system to work properly. 2.14.2 Budget Budgeting affects product selection, the quantity of products procured, the amount of storage space available, and the number of staff working in logistics. Logistics activities must receive sufficient funding in the budget if the whole …show more content…
Supervision of the logistics system keeps it running smoothly and helps anticipate needed changes. Effective supervision helps avoid problems or resolves them quickly before they grow into crises. 2.14.4 Evaluation Evaluation of the logistics system can help demonstrate the impact of the system on other elements. 2.15 Alternate systems of Health Commodities …show more content…
Furthermore, supply chains must be adaptable and cost-effective, and have financial integrity to sustain good outcomes. The four aspects of supply chain performance are geographic access, availability, affordability, and quality. According to Anderson, Britt, and Favre (1997), Supply chain management addresses the following problems: first distribution Network Configuration including number, location and network missions of suppliers, production facilities, distribution centers, warehouses, cross-docks and customers. Second, Distribution Strategy: questions of operating control (centralized, decentralized or shared); delivery scheme and transportation. Third Trade-Offs in Logistical Activities: The above activities must be well coordinated in order to achieve the lowest total logistics cost. Trade-offs may increase the total cost if only one of the activities is optimized. Forth, Information: Integration of processes through the supply chain to share valuable information, including demand signals, forecasts, inventory, transportation, potential collaboration, Inventory Management: Quantity and location of inventory, including raw materials, work-in-process (WIP) and finished goods. Lastly, Cash-Flow: Arranging the payment terms and methodologies for exchanging funds across entities within the supply
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