ELEMENTS OF LOGISTICS & SUPPLY CHAIN MANAGEMENT

INTRODUCTORY PART

Definition

Process of Planning-:

“The Process of Planning, implementing and controlling the efficient effective flow and storages of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.”

THE SCOPE OF LOGISTICS ACTIVITIES

Stand-alone solutions

Integrated firms in pairs

Integrated supply networks have been predicted by several researchers.

ACTIVITIES INVOLVED IN LOGISTICS MANAGEMENT

Order processing

Inventory management

Materials planning

Warehousing

Transportation

OBJECTIVES OF LOGISTICS

Meeting standards of customer service

Reducing total distribution costs

Reducing cycle time

Freight forwarders

Brokers

Evaluating the Major Alternatives

Outbound distribution-Moving products form the factory to customers, and

Inbound distribution- Moving products and materials form suppliers to the factory.

GOALS OF THE SYSTEM OF LOGISTICS

INVENTORY

MATERIALS PLANNING

WAREHOUSE

TRANSPORTATION

MODES OF TRANSPORTATION

MILITARY ORIGIN FOR LOGISTICS

MILLITARY ORGANIZATION

Shared situation awareness

Better decisions support

More effective collaboration and coordination

Self-synchronization capabilities

Faster speed of execution

Dynamism

TOTAL COST APPROACH IN LOGISTICS

Customer service Demand forecasting Documentation flow Interplant movements Inventory management Order processing Packaging Parts and service support Plant and warehouse site selection Production scheduling Purchasing Returned Products Salvage Scrap recycling and disposal Traffic management Warehouse and distribution centre management

NEW DIRECTION FOR LOGISTICS

Involving channel partnership, inter-organization logistics alliances, more direct interface with suppliers and customer.

Logistics as a competitive weapon to secure and maintain customer loyalty by providing more responsive and flexible service.

Professional discipline, specialized skill and knowledge cost, globalization, and time trends

(A)Objectives:-

Customer satisfaction

Understanding the customer

Managing the uncertainty

Responding to Globalization

Information flow

Cost reduction and improving profits

(B) Logistics Careers

The job of Logistics Head

Inventory Control

Warehousing/operations

Administrative

Administrative analyst/Planner

Transportation

(C) Logistics and Competitive Strategy

Matter of existence Areas of Logistics strategy

Vision/ Mission Development

Transportation

Vender Development

Logistics System

Competition

Human Resources

Network Design for information flow

Supply Chain

Information

Option Analysis

Strategy Review

Communication Direction of Logistics

(D) Logistic Management:

Location

Staff and Service

Taxation and Government rules

Faster development of new products

Efficient development of suppliers

Packaging

Transportation

Order Fulfillment

Inventory

Customer Management

(E) Logistics Planning

Performance measure and goals

Process

System requirements,

Organization requirements for customer services and order processing

Inventory planning and management

Supply

Transportation and distribution

(F) Third Party Logistics(3PL)

Value proposition

Selection

(G) Fourth Party Logistics(4PL)

2 PL

3 PL

4 PL

1 PL

System Integration

Multiple

Single

Service Officer

Low HighLevel of International Cross linking

(H) 3Cs Customer, Competition, change:

Change

CompetitionCustomer

Issues For Global logistics

Movement of product The flow of information Time / Service Cost competitiveness Integration Different culture

Main Features of Logistics

A fragmented logistics Optimization of physical operations Economical perspectives Skills & dimensions

THE MODEL OF GOBAL LOGISTICS●Cross-docking, setting up warehouse●Informational flows through ERP- Enterprises Resource Planning●APS-Advanced Planning and Scheduling System● CRM- Customer Relation Management●The following areas of integration:●Factory Functions●In the field Functions●Customization●Warehouse●Transportation●Information Technology●Process Strategy

Prepared by

Amit Sanjay Kulkarni. M.Com(A/C’s), M.B.A.(Fin.,HRM),D.L.L.