Final Logistics Presentation
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O G I S TO G I S TC SC SO G I SO G I SC SC SO G I SO G I SC SC S
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I N T R O D U C T I O NN T R O D U C T I O NT OO
LOGOG IS TICSICS
I N T R O D U C T I O NN T R O D U C T I O NT OO
LOGOG IS TICSICS
I N T R O D U C T I O NN T R O D U C T I O NT OO
LOGOG IS TICSICS
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O G I S TO G I S TC SC S h i n g s b e g a n c h a n g i n gh i n g s b e g a n c h a n g i n gi t hi t h d v a n c e m e n t i nd v a n c e m e n t i nr a n s p o r t a t i o nr a n s p o r t a t i o n S y s t e my s t e m
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O G I S TO G I S TC SC S
opulation moving fromopulation moving fromural to Urbanural to Urban reas and to businessreas and to businesscentresentres
O G I S TO G I S TC SC S
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O G I S TO G I S TC SC S o l o n g e r d i do l o n g e r d i de o p l e l i v e n e a re o p l e l i v e n e a r
r o d u c t i o nr o d u c t i o nc e n t r e se n t r e s , or, ori d p r o d u c t i o ni d p r o d u c t i o n
ake placeake placee a re a r
e s i d e n c e c e n t r e se s i d e n c e c e n t r e s
O G I S TO G I S TC SC S
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O G I S TO G I S TC SC S hat led to an increase inhat led to an increase in eographical Distanceeographical Distance etween Production Point aetween Production Point a
onsumption Point andonsumption Point andLOGISTICSOGISTICS gimportancemportance
O G I S TO G I S TC SC S
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O G I SO G I SI C SI C S general idea about logisticsgeneral idea about logisticsss ovement of Goodsovement of Goods
arrow conceptarrow concept ogistics support isogistics support isuch moreuch more , uchuch iderider nd involvesnd involvesultifarious activitiesultifarious activities han mere handling ofhan mere handling ofroducts or goodsroducts or goods
O G I SO G I SI C SI C S
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O G I SO G I SI C SI C SO G I SO G I SI C SI C S :ogistics is Management of ost effective flow ofost effective flow ofoods and servicesoods and services
romrom oint of Originoint of Originoo oint of Consumptionoint of Consumption
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O G I SO G I SI C SI C S
GLOBALIZATILOBALIZATIONN REEREEMARKETARKET COMPETTIONOMPETTION
7 R s
O G I SO G I SI C SI C S
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O G I SI C SEVEN R s
he right,roduct in he right,uantity and
he right,ondition at he right ,laceat
EVEN R sO G I SI C SO G I SO G I SI C SI C S
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O G I SO G I SI C SI C Somponents of Integrated Logisticomponents of Integrated Logistic( ) :ystem ILS are( ) :ystem ILS are xternal Suppliersxternal Suppliers (InbounnbounLogisticsogistics ) nternalnternal
/perations functionsperations functions hysical Distributionhysical Distribution( utbound Logisticsutbound Logistics )External
Suppliers
(Inbound Log)
InternalOperations/
Functions
ExternalDistributors
(OutboundLog)
INFORMATION
O G I SO G I SI C SI C S
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O G I SO G I SI C SI C S ogistics has receivedogistics has receivedncreasedncreased anagement Attentionanagement Attention
orporations are usingorporations are usingogistics as aogistics as a ompetitve weaponompetitve weapon o meet o meethallengeshallenges &f Global competition &f Global competitionurbulenturbulent usiness environmentusiness environment ogistics has not only beeogistics has not only beeecognized asecognized as roup of importantroup of important
functionsunctions ut hasut has mportantmportant
O G I SO G I SI C SI C S
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ome of theome of the merging trendsmerging trends:n Logistics are:n Logistics are
ncreased awareness ofncreased awareness of trategictrategicenefits of ILSenefits of ILS lobal supply chainlobal supply chain & 4 Party& 4 Party ogistics servicesogistics services ustust n timen time logisticsogistics vailability ofvailability of informationnformation Environmentalnvironmentalsensitivitysensitivity Collaborationollaboration ndnd Visibilityisibility
O G I SO G I SI C SI C SO G I SO G I SI C SI C S
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asic Conceptsf LOGISTICS
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LogisticsLogistics is the management of the flow ofgoods and services between the point of
origin and the point of consumption in
order to meet the requirements of the.customers
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ctivities inLogistics .Facility location and its layout .Purchasing and procurement / .Planning manufacturing .Forecasting and order management . Ware housing
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ctivities inLogistics .Inventory management Transportation / supply chain.
Material handling and protective packaging.
Integration of information about maintenance andflow of goods.
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Supply Chain
Supply chain is the Logistics Network of Suppliers
Manufacturers
Warehouses Distribution centers
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Business Logistics
Business logistics is defined as a businessplanning framework for the management of
material, service, information and capital flows
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Military Logistics
The science of planning and carrying out themovement and maintenance of forces.
In military science, maintaining one's supplylines
while disrupting those of the enemy is a crucial
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Third-Party Logistics
Third-party logistics (3PL) involves usingexternal organizations to execute logistics
activities that have traditionally been performed
within an organization itself.
Third party logistics includes any form of
outsourcing of logistics activities
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Reverse Logistics
Goods or products returned from the consumerpoint to the original supply point, for variousreasons.
Bad delivery, over-supply, damage, expiry, failinginspection tests at the customer point, goodsunsold etc.
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ogisticogistic/lanning Supportlanning SupportFunctionsunctions
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ey Perametersey Perameters
Spportabilitypportability Readinesseadiness
here two key Parameters whichhere two key Parameters which:-re:-re
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upport functionsupport functions
aintenance Planningaintenance Planning anpower and personnelanpower and personnel
here are ten elements ofhere are ten elements of:-ogistics support include:-ogistics support include
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upport functionsupport functions . . . .ont d. . . .ont d upply Supportupply Support upport equipmentupport equipment
echnical Dataechnical Data
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upport functionsupport functions . . . .ont d. . . .ont d raining and Training Supportraining and Training Support omputer Resource Supportomputer Resource Support Facilitiesacilities
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upport functionsupport functions . . . .ont d. . . .ont d . ,ackinging Handling Storage and,ackinging Handling Storage andTransportransport
esign Interfaceesign Interface
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ain objectivesain objectivesff ogisticogisticupply Chainupply Chain
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. . . . .bjectives are. . . . .bjectives arehree main objectiveshree main objectives
ost Reductionost Reduction
ervice Improvementervice Improvement apital Reductionapital Reduction
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Containerized Shipping
: Where to locate production facility( , )Storage Centers retail outlets
Heavy industries require large amount
.of spaceLight industries are located near to
.customer
Containerized shipping had eased the
.job of location
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Supply Chain Security
Supply chain security is the.responsibility of all parties
Marketing authorization is responsible.for safe and effective product
Brand owner seek innovative approaches
that will improve product quality and.reduce cost
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Supply chain Security
Supply chain challenges can beovercome by addressing three
:following areas
.1 .Supply Chain Visibility
.2 .Supply Chain Control
.3
.Supply Chain Collaboration
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Supply Chain Visibility
-As brand owners outsource non core,competencies they have lost control.over quality
For Example Boeing
Brand owner must receive parts from.supplier after inspection
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Supply Chain Control
Complexity of supply chain has led tothe loss of control over full
.manufacturing process
Company must define a critical.criteria that supplier must meet
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Supply Chain Collaboration ,In today s global environment
.isolation is not an option
Companies must consider suppliers as
business partners and should createan environment where information is
.shared
Sharing of information involves to,define requirements specifications
.and results
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/Internet Communication
Internet has led to quick solutions to.complex problems of globalization
Growth of global trades over the yearsis due to internet and improvement in.logistics
Access to timely information is very.important in global logistics
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Rising Cost of Fuel
International business is deeply.linked with oil and diesel prices
Declining of fossil based oil is.boosting transportation cost
Low wages and lesser regulatory
advantage are being offset by cost of.shipping
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Counterfeit Goods and PiratedSoftware
Pirated software is a global issue.these days
- %15 20 of all goods in China are.counterfeit
There is a saying in China
We can copy everything except youmother
Need regulatory measure to protect the
.interest of brand manufactures
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Regulatory Measures
.Regional trade associations: , ,For example ASEAN SAFTA NAFTA
The associations had led to increasing.harmonization of standards
Products can move easily across
.national boundaries
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Customers Satisfaction
Availability of required parts where.needed
.On time performance
-Meeting and exceeding end userexpectations is an important
competitive .advantages
Customer satisfaction can increase.revenue and improves retention
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HALLENGES OF FUTUHALLENGES OF FUTU& ANALYSISNALYSIS
aheed Mali
REAKTHROUGHREAKTHROUGH&TRATEGIC CHOICESTRATEGIC CHOICES
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hallenges of Futurehallenges of Future& Analysis Analysis
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ogistic planner cannot continueogistic planner cannot continueo operateo operate upplyupply hain andhain andogisticsogistics rocesses in arocesses in aistorical Wayistorical Way ffanufacturing and deliveringanufacturing and deliveringhe productshe products lobalization of worldlobalization of world conomies andconomies and mergencemergence
f business from recessionf business from recession as asutut dditional pressure ondditional pressure onupply Chainupply Chain Managementanagement nd ndogistic Applicationsogistic Applications
hallenges of Futurehallenges of Future& Analysis Analysis
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scaricty hallenges of Futurehallenges of Future& Analysis Analysis
lobal Impactlobal Impact uppliers will be increasinglyulnerable toovt Regulations hus eading toigher omponent and EnergyCost
he fact that Companies need to
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s the dynamics of manufacturings the dynamics of manufacturingn modern dayn modern day ,hange,hange randrandwnerswners re becoming more andre becoming more and oreoreependent onependent on ,utsourced Globalutsourced Globaluppliersuppliers & ontract ontract
Manufacturersanufacturers o reduce cost o reduce cost ependence on Global Supplyependence on Global Supply,hain,hain ntroduces greater risk ofntroduces greater risk of
hallenges of Futurehallenges of Future& Analysis Analysislobal Supply Chainlobal Supply Chain
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ing
lobal Supply Chain will be atlobal Supply Chain will be at iskiskrom increasingrom increasing ntensity ofntensity of ajorajor torms and Floodingtorms and Flooding
igh Sea levelsigh Sea levels rom meltingrom melting-olar ice -olar ice roblems atroblems at ea Portsea Ports
nvironmental Screeningnvironmental Screening hallenges of Futurehallenges of Future& Analysis Analysis
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isruptive eventsisruptive events ikeikeruption ofruption of celandiccelandic olcanoolcano,010,010 ncreased ncreased ecurityecurityconcernsoncerns& ndustrialndustrial actionsctionsll over the world havell over the world have ushedushedore Companies to turn toore Companies to turn toITT
nderstanding ofnderstanding of
&nges of Future Ana&nges of Future Ana hallenges of Futurehallenges of Future& Analysis Analysis nvironmentalnvironmentalScreeningcreening
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vailability ofvailability of nternetnternet & upplyupplyhainhain ndnd ogisticsogistics -mprovement -mprovementontainerized Shippingontainerized Shipping hus Companies canhus Companies can locateocate ny whereny wherend worknd work ithith ultiple partnersultiple partners ooerve market needserve market needs ompanies to handlesompanies to handles &igors &igorshallengeshallenges ff oing businessoing businessverseas and how best canverseas and how best can
hallenges of Futurehallenges of Future& Analysis Analysisnformation Availabilitynformation Availability
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Eepaffect on
ogistics today has become aogistics today has become apecialist functionpecialist function
eed to have propereed to have proper rainedrainedanpower withanpower with technologyechnology upportupporto make logisticso make logistics uccess inuccess inhe businesshe business
&raining Trained&raining TrainedManpoweranpower hallenges of Futurehallenges of Future& Analysis Analysis
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s hallenges of Futurehallenges of Future& Analysis Analysisil Pricesil Prices
conomic activity is deeply linkedconomic activity is deeply linkedithith olatile oilolatile oil pricesrices ncreasingncreasing scarcitycarcity f fossilf fossil
ased fuel ased fuel oostingoosting ransportationransportation ostsosts significantlyignificantly ow wagesow wages ndnd esser regulatoryesser regulatoryadvantagesdvantages rere eing offset byeing offset byost of shippingost of shipping epletedepleted tocks of oil in Chinatocks of oil in Chinaoupled withoupled with river sriver s risisrisis ndnd
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s
eed toeed to dentify and measuredentify and measureustomerustomer requirementequirement ustomer service is realistic andustomer service is realistic and%hen reaches 95%hen reaches 95 - ost increasesost increasesexponentiallyxponentially etting customer service right isetting customer service right is- nderstanding nderstanding hat customerhat customerneedseeds ndnd owow t is delivered andt is delivered and
hallenges of Futurehallenges of Future& Analysis Analysisustomer Needsustomer Needs
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s
ost of theost of the salesales nd customernd customer/oftware Hardwareoftware Hardware transfersransfers rereandledandled lectronicallylectronically hroughhrough/ &arketing sales &arketing sales evelopmentevelopmentofficesffices
nsure that no product arensure that no product arehipped tohipped to erroristerrorist countriesountries R toR toompetitors companiesompetitors companies rr individualsndividualso as Not to Looseo as Not to Looseompetitive Advantage inompetitive Advantage in
hallenges of Futurehallenges of Future& Analysis Analysis/hreat Challenges of/hreat Challenges ofRivalsivals
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s
/ost per item case in terms of/ost per item case in terms ofotal Supply Chainotal Supply Chain ost must beost must bevisibleisible upply Chainupply Chain ,ost,ost n boundn bound ,ost,ostStoragetorage ,ost,ost Deliveryelivery ost andost andariation betweenariation between roductroduct rouproup andnd
ustomergroupustomergroup ocation Analysisocation Analysis rucial rucialdecisionecision
ocation Analysisocation Analysis hallenges of Futurehallenges of Future& Analysis Analysis
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s
/pecialized 3PL 4PL can/pecialized 3PL 4PL can mprovemproveusinessusiness processesrocesses ,y streamlinin,y streamlininhehe ositioning andositioning and distributionistribution f f pares around the worldpares around the world /PL 4PL lead to cut cost by/PL 4PL lead to cut cost byaximizingaximizing nventorynventory levelsevels ndndreatingreating ransportation efficienciesransportation efficiencies elp strengthenelp strengthen ustomerustomer
hallenges of Futurehallenges of Future& Analysis Analysis/PL 4 PL/PL 4 PL
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ome of theome of the reakthrough strategicreakthrough strategicchoiceshoices o improve logisticso improve logistics:peration are :peration are
reatereate nique supply chainnique supply chainconfigurationsonfigurations hat alignhat align/ ith business company s strategic/ ith business company s strategicobjectivesbjectives
&reakthrough Strategic&reakthrough Strategicchoiceshoices
Operations
Strategy
Outsourcing
Strategy
ChannelStrategy
CustomerService
Strategy
AssetNetwork
ReduceUncertaint
y
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iew the Supply chain as aiew the Supply chain as atrategic Assettrategic Asset nd and aDifferentiatorifferentiator y y
.. Forecastingorecasting
.. Collaboratingollaborating.. Integratingntegrating- al Mart sal Mart s artnership withartnership with
&roctor Gamble&roctor Gamble ooutomatically replenishutomatically replenish inventoryinventoryell sell s nnovativennovative - -irect to- -irect to
ustomer salesustomer sales uild to orderuild to order
&reakthrough Strategic&reakthrough Strategicchoiceshoices
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rand owners must embracerand owners must embraceechniques and technologiesechniques and technologies hathatllow them tollow them to collaborateollaborate ithithheirheir uppliers and contractuppliers and contractmanufacturesanufactures nd give themnd give them
&reakthrough Strategic&reakthrough Strategicchoiceshoices
reakthrough Strategic
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Chinahina here world shere world sanufacturing isanufacturing is utsourced isutsourced isecomingecoming oncerned withoncerned withnvironmentalnvironmental degradingegrading
apitalize on thosepportunities hile stayingomplaint that the logistics andupply chain re not egradinghe environment nd stay to height side of the regulatory
requirements
&reakthrough Strategic&choiceshoices
reakthrough Strategic
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evelop and make suppliers ofaterial and ,ervices ware toork and respond as a link nogistics including everseLogistics nformation flow -s crux
ake logistics IT asedoperation
&reakthrough Strategic&choiceshoices
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,rain develop and maintainteam of ogistics expertsnd make it a art oftrategy developer & D o continue educingeliance on people , hereeasible and same beeplaced by functions oftechnolog
&reakthrough Strategic&reakthrough Strategicchoiceshoices
reakthrough Strategicreakthrough Strategic
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ission critical serviceolution must rovide trategicnventory Management ndxpediting ,arts DeploymentControl and Visibility ithocused Customer Satisfaction& ervice Profitability eed to focus on are House ,Inventory nd ransportationCost or overall eduction in
&&choiceshoices
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roduction facilities uste ocated close o uppliers/ ,f Raw Resources Supplieskilled &abourransportation to Customers
ogistics System must have Reliability Flexibility aleable and customizedservice upport uninterrupted
&reakthrough Strategic&reakthrough Strategicchoiceshoices
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o one enterpriseo one enterpriseontrols the entireupply Chain usiness unit eeds aollaborative Environmento affect improvement inhe ogistics Operations ndPractices
ecoming ore innovative
&reakthrough Strategic&reakthrough Strategicchoiceshoices
TODAY S MARKET PLACE REQUIRESTODAY S MARKET PLACE REQUIRES
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TODAY S MARKET PLACE REQUIRESTODAY S MARKET PLACE REQUIRES
PERSONALIIZED &contents services&contents services
for customersfor customers
COLLABORATIVE PLANNING with designwith design,partners,partners &distributors suppliers&distributors suppliers
-REAL TIME COMMITMENTS ,for design,for design
,production,production &inventory transportation&inventory transportationcapacitycapacity
FLEXIBLE LOGISTIC OPTIONS to ensureto ensuretimelytimely fulfilment of requirementfulfilment of requirement
ORDER TRACKING AND REPORTINGacrossacross
multiplemultiple vendors and carriersvendors and carriers
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O G I SI C SEVEN R s he right,roduct in he right,uantity and he right,ondition at he right ,lace
EVEN R sO G I SI C S
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