Conversion Logistics

The term is used for describing logistic processes within an industry. The purpose of conversion (also called production) logistics is to plan and schedule the supply and operation of each machine and workstation of the business, plus inputs and deliveries of manufacturing service providers (MSP) and Original Design Manufacturers (ODM).

The issue is to control the flow through the value adding processes and eliminate non-value adding ones. Conversion logistics is applied in existing as well as new factories or distribution facilities (for final packaging), but in an existing factory it is a constantly changing process. Machines are exchanged and new ones added, which gives the opportunity to improve the conversion logistics system accordingly and so achieve improved customer response and capital efficiency.

--
Last updated Tuesday May 22nd, 2007 by Pieter Nagel