Types of Decisions:



Strategic High resources, high risk set up overall directions.
Tactical.
Operational.
Types of Decisions:
Sno. Decision Term
Type
1
Strategic
2
Tactical
3
Operational
Long
Risk Resources
Level
Used
High
Medium Medium
Short
Low
Detail
Many
Most important; Set the overall direction of the
organization.
Fewer
Implementing the Strategies.
Few
Most Detailed and concern activities over a short
term.

Mission –a statement to give the overall aims of the organization.

Corporate strategy –which shows how a diversified corporation will achieve its mission.

Business strategy –which shows how each business within a diversified corporation, will contribute to the
corporate strategy.

Functional strategies –which describe the strategic direction of each function, including logistics.
Mission:
The statement that gives an overall aim to an Organization’s existence.
Corporate Strategy:
The strategy taken by a diversified corporation in order to complete its mission.
Business Strategy:
This strategy shows how each business within a diversified corporation will contribute to its corporate strategy.
Functional strategy:
Shows the strategic direction of each function.
Logistics Strategy:
All the long terms decisions related to the logistics form Logistics Strategy. Logistics strategy of an organization consist of
all the strategies, plans, polices, decisions and culture related to the management of its supply chains.
Focus of Logistics Strategy:
Product, Price, Place, Promotion, cost, Customer Service, Quality, Time, Product Flexibility, volume Flexibility, Location,
Technology.
Cost:
Customer Service: Stock levels, Delivery times, speed of response long-term competitive advantage.
Timing:
Quality:
Product Flexibility:
Volume Flexibility:
Technology: communications, sorting parcel, tracking loads, recording stock movement. Rfid, barcode.
Location:
Strategy Options:
Cost leadership:
Product differentiation: usp
Lean logistics strategy:
Value, value stream, value flow, pull, aim for perfection
Quality, poor process, stock, wrong production level or capacity, movement, Waiting
Agile Strategy:
Aims to provide high customer service by providing speedy and quick response to the changing circumstances.
Lean
Agile
Definition
Objective / Focus
Method
Constraints
Work
Control
Measures of
Performance
Rate of Change
-
-
Efficient operations
Lean
Customer service
Uniform standardized
Formal planned cycles
Flexibility in order to meet demands
Customer service
Cost
Variable, more local input
less structured by empowered staff
productivity utilization
Lead time level of service
long term stability
fast reaction to the changing circumstances
Procurement:
Procurement can be defined as a process of obtaining goods or services or both, in right quality and right quantity while
agreeing to a certain number of terms and conditions, from a third party vendor or an external source through:
 Direct Purchasing or
 Competitive bidding or
 Tendering.
The procurement process ensures that the acquired goods or services of of right quality and in right quantity. It ensures
to meet the internal needs of an organization by effectively and efficiently through purchasing, outsourcing, hiring or even
leasing:
Procurement activities:
1. Identification of Needs.
2. Sourcing
3. Selection
4. Negotiating
5. Ordering
6. Receiving
7. Payment
Procurement Process:
1. Identification of requirement.
2. Determination of the specific.
3. Sourcing
4. Negotiation and finalization of Price and Terms.
5. Purchase Requisition and Purchase Order.
6. Delivery of the purchase order
7. Expediting
8. Receive and Inspection
9. Payment Process
10. Record keeping and review
Rfi
RFx
Goal To get vendor information
Status of
not clearly defined
Solution
Key
to get supplier information
deliverables
Rfp
Rfq
to select best options
to get best prices
overview understood but project details still
Clearly defined
need to be identified determined and defined
To get statement of work and scope of
price part
project.