BPK3B LOGISTICS AND SUPPLY CHAIN MANAGEMENT … · BPK3B - LOGISTICS AND SUPPLY CHAIN MANAGEMENT...
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BPK3B - Logistics and supply chain management
•Origin and definition
•Concepts of logistics
•Evolution
•Components of logistics
•Competitive advantage of logistics
•Functions of logistics
•Logistics network
•Integrated logistics system
•Supply chain management
•Outsourcing
•3PLs and 4PLs
•Supply chain relationship
•Customer service
Unit I - Syllabus
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Origin and Definition
Logistics means organizing movement, equipment, activity,
accommodation of Goods.
Logistikas' were assigned the duties of providing services
related to supply and distribution of resources.
It is point of Origin to point of Consumption
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Production concepts
build-to-order, build-to-stock, flexible order production, including inbound
consolidation centre’s close to production locations
Inventory concepts
regional distribution centre’s, rapid fulfillment depots and market stock
points in particular countries
Transportation concepts
direct deliveries and cross-docking operations to consolidate, sort and
distribute shipments in central or regional hub operations
CONCEPTS IN LOGISTICS
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FUNCTIONS OF LOGISTICS
Order Processing
Transportation
InformationMaterial
Handling Storage
Inventory ControlWarehousing
Logistical Packaging
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Integrated logistics system
https://youtu.be/023c6W-82ks
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Supply chain management
Supply chain management (SCM), the management of the flow of
goods and services, involves the movement and storage of raw materials,
of work-in-process inventory, and of finished goods from point of origin to
point of consumption.
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In business, outsourcing is "an agreement in which one company
contracts-out a part of their existing internal activity to another company”.
It involves the contracting out of a business process (e.g. payroll
processing, claims processing) and operational, and/or non-core
functions (e.g. manufacturing, facility management, call center support)
to another party (see also business process outsourcing). The concept
"outsourcing" came from the American Glossary 'outside resourcing' and
it dates back to at least 1981.Outsourcing sometimes, though not
always, involves transferring employees and assets from one firm to
another. Outsourcing is also the practice of handing over control of public
services to private enterprise
Outsourcing
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Third-party logistics (abbreviated 3PL, or sometimes TPL)
in logistics and supply chain management is a company's use of third-
party businesses to outsource elements of the
company's distributionand fulfillment services.
Third-party logistics providers typically specialize in integrated
operation, warehousing and transportation services which can be scaled
and customized to customers' needs based on market conditions, such as
the demands and delivery service requirements for their products and
materials
Third party logistics (3PL)
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The concept of a 4PL provider is an integrator that accumulates
resources, capabilities and technologies to run complete supply
chain solutions. Main Difference between 3PLs and 4PLs. The
3PL targets a single function, whereas the 4PL manages the
entire process. A 4PLmay manage the 3PL.
Fourth party logistics
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Managing those relationships strategically versus tactically can make a
huge difference in the viability and reliability of each company's supply
chain. The first ingredient to successful supply chain relationship
management is having the ability to measure a supply chain partner's
performance.
Supply chain relationship
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Customer service is the provision
of service to customers before, during and
after a purchase. The perception of success of
such interactions is dependent on employees
"who can adjust themselves to the personality
of the guest".[1] Customer service concerns
the priority an organization assigns to
customer service relative to components such
as product innovation and pricing. In this
sense, an organization that values good
customer service may spend more money in
training employees than the average
organization or may proactively interview
customers for feedback.
Customer service
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•Elements of logistics and supply chain
management
•Inventory carrying
•Ware housing
•Material handling
•Order processing
•Transportation
•Demand forecasting
•Impact of forecasts on logistics and supply
chain management
•Performance measurements
Unit II - syllabus
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Elements of logistics and
supply chain management
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Ware housing
A warehouse is a commercial building for storage of
goods. Warehouses are used by manufacturers,
importers, exporters, wholesalers, transport
businesses, customs, etc. They are usually large
plain buildings in industrial areas of cities, towns and
villages.
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It uses a wide range of manual, semi-automated, and automated
equipment and includes consideration of the protection, storage, and
control of materials throughout their manufacturing, warehousing,
distribution, consumption, and disposal.
Material handling
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Order processing Order processing is the process or work-flow associated with the
picking, packing and delivery of the packed items to a shipping
carrier. Order processing is a key element oforder fulfillment. Order
processing operations or facilities are commonly called "distribution
centers".
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Transportation
Transport or transportation is the movement of humans, animals and goods
from one location to another. Modes of transport include air, land (rail and road),
water, cable, pipeline and space. The field can be divided into infrastructure,
vehicles and operations.
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A forecast is a projection or prediction of the volume or number of units
that is likely to be produced, shipped or sold. The forecast may be
specified in terms of units or value.
Demand forecasting
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Impact of forecasts on logistics
and supply chain management
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•Transportation
•Position of transportation in LSCM
•Road transport
•Rail transport
•Ocean transport
•Air transport
•Multi model transportation
•Containerization
•CFS
•ICDS
•Selection of transportation mode
•Transportation network and design
•Insurance aspects of logistics
Unit III - syllabus
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Transportation
Transport or transportation is the movement of humans, animals and goods
from one location to another. Modes of transport include air, land (rail and road),
water, cable, pipeline and space. The field can be divided into infrastructure,
vehicles and operations.
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Road transport (British English) or road transportation(American
English) is the transport of passengers or goods on roads.
This transport method can be via bike or automobiles or by animal such
as horse or oxen.
Road transport
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Cargo may be transported by trucking companies, while passengers
may be transported via mass transit. Commonly defined features of
modern roads include defined lanes and signage. Within the United
States, roads between regions are connected via the Interstate
Highway System.
Road transport
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Rail transport is a means of transferring of passengers and
goods on wheeled vehicles running on rails, also known as tracks.
It is also commonly referred to astrain transport. In contrast to road
transport, where vehicles run on a prepared flat surface, rail
vehicles (rolling stock) are directionally guided by the tracks on
which they run. Tracks usually consist of steel rails, installed
on ties (sleepers) and ballast, on which the rolling stock, usually
fitted with metal wheels, moves. Other variations are also possible,
such as slab track, where the rails are fastened to a concrete
foundation resting on a prepared subsurface.
Rail transport
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Containerization is a system of intermodal freight transport
using intermodal containers (also called shipping containers
and ISO containers). The containers have standardized
dimensions.
They can be loaded and unloaded, stacked, transported
efficiently over long distances, and transferred from one mode
of transport to another—container ships, rail transport flatcars,
and semi-trailer trucks—without being opened. The handling
system is completely mechanized so that all handling is done
with cranes and special forklift trucks. All containers are
numbered and tracked using computerized systems.
Containerization
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CFS Container Freight Station
A facility where freight shipments are consolidated or de-consolidated
and staged between transport legs. A CFS is typically located in
proximity to an ocean, port, or airport, where cargocontainers are
transported to and from. The term CFS at loading port means the
location designated by carriers for the receiving of cargo to be loaded
into containers by the carrier. Atdischarge or destination ports, the term
CFS means the bonded location designated by carriers
for devanning of containerized cargo.
CFS
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ICD means Inland Container Depot situated at inland points away from sea
ports. ICD is a term used in India in the field of Imports and Export of sea
shipments. ICD is formed to help importers and exporters to handle their
shipments near their place of location. If the sea port is away from the places of
importers and exporters Inland Container Depot (ICD) helps them to save time
and money in the procedures and formalities. In Inland Container Depot (ICD), a
combination of services of sea custodian, customs department, carriers, freight
forwarders, customs brokers etc. are carried out to facilitate exporters and
importers for smooth handling of cargo.
ICD is also act as Dry port or CFS in many countries.
ICDS
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There are many different ways of structuring a set of transit routes into a network to
provide transit service to a given area. These might include any combination of:
Radial services, focusing on collecting passengers from outlying areas and bringing
them into a major trip attractor (e.g., a downtown area, major employment center, or
other significant destination);
Cross-town or grid-like routes, focusing on connecting passengers across the area,
perhaps between radial services or among several smaller trip generators; and,
Direct connections, focusing on moving passengers between major trip generators
(e.g., between downtown and a high-density residential area, or between a major
employer and downtown).
Circulators, focusing on collecting and distributing passengers in smaller sub-areas.
Transportation network and
design
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•Logistics information system
•Integrated IT solution for LSCM
•Emerging technologies in LSCM
•Ocean transport
•Measurement of capacity of ships
•Shipping information
Unit IV - syllabus
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Ship measurements
Ship measurements consist of a multitude of terms and
definitions specifically related to ships and measuring or
defining their characteristics.
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•Multi model transportation
•Role of containerization
•The Indian carriage of Goods by Sea Act, 1925
•Multi model transportation of Goods Act, 1993
•Bill of lading
•Infrastructure development
•Air transport
•Advantages of air transport
Unit V - syllabus
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Containerization is a system of intermodal freight transport using
intermodal containers (also called shipping containers and ISO
containers). The containers have standardized dimensions. ... It
displaced many thousands of dock workers who formerly handled break
bulk cargo.
Role of containerization
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The Indian carriage of
Goods by Sea Act, 1925
The Indian Carriage of Goods by Sea Act was enacted on 21st
September 1925. The Act extends to whole of India. Provisions made
under this Act are referred as “Rules” and such rules shall have effect in
connection with carriage of goods by sea in ships, which are carried
from one port of India to foreign ports(outside India). Act covers various
definitions like “Carrier, Contract of Carriage, Carriage of goods, Goods
and Ship”.
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The Multimodal Transportation of Goods Act, 1993 (MMTG) provides for the
regulation of Multimodal Transportation of Goods from any place in India to any
place outside India involving two or more modes of Transport on the basis of a
single Multimodal Transport Contract. This act came into force from 2.4.1993 and
it provides for Registration of a person a Multimodal Transport operator and
Multimodal Transportation can be carried out only by persons registered as MTO
under MMTG Act, 1993. The Director General of Shipping has been notified as
the competent authority to perform functions under the Act including registration
of MTOs. The MTO registration is valid for period of 1 year and may be renewed
for further period of one year from time to time. The Director General of Shipping
has, after obtaining the prior approval of Ministry of Surface Transport, prescribed
the Multimodal Transport Document under Rule 3 of Multimodal Transport
Document Rules, 1994.
Multi model transportation
of Goods Act, 1993
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A bill of lading is a legal document between the shipper of goods and
the carrier detailing the type, quantity and destination of the goods
being carried. The bill of lading also serves as a receipt of shipment
when the goods are delivered at the predetermined destination. This
document must accompany the shipped goods, no matter the form of
transportation, and must be signed by an authorized representative
from the carrier, shipper and receiver.
Bill of Lading
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Infrastructure sector is a key driver for the Indian economy. The
sector is highly responsible for propelling India’s overall development
and enjoys intense focus from Government for initiating policies that
would ensure time-bound creation of world class infrastructure in the
country. Infrastructure sector includes power, bridges, dams, roads
and urban infrastructure development. In 2016, India jumped 19
places in World Bank's Logistics Performance Index (LPI) 2016, to
rank 35th amongst 160 countries.
Infrastructure development
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