importance of logistics management and emerging trends
DESCRIPTION
The ppt showcases the increased importance of logistics management and the new emerging trends in this field.TRANSCRIPT
LOGISTICS MANAGEMENT AND EMERGING TRENDS
By
Kritika – 47
Madhujith T.H – 49
XIME, Bangalore
Batch 2008-10
Logistics is that part of the supply chain process that plans, implements and controls the effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet the customer’s requirements.
Elements
Transportation – air, water, land Warehousing Inventory Management Packing and Utilization Information and communication
Importance of Logistics Management
Transportation costs Large retailers, low distribution costs –
eg. Metro Cash and Carry Deregulation – e.g. Fiat – Tata Changing strategies – eg Toyota Way Technology – eg. Wal-Mart, DELL Globalization
0% fuel 0% technology 0% investment 0% dispute 99.9999 % performance 100% customer satisfaction
THE WONDER OF MUMBAI DABBAWALAS
‘The Show must go on’
What is NMTBSA??
Nutan Mumbai tiffin box supply Association.
It started in 1880 – british raj Total area coverage is 60 kms. 5000 employees Each person working is a share holder 4,00,000 transactions per day Time taken – 3hrs.
Six sigma performance ISO 2000 certified Error rate 1 in 16 million transactions. Technological backup: Nil Cost of service: Rs. 200/month
How do they do it??
Organisational structure
Logistic management
Executive committee
(5 members)
Team of 20 to 25 people headed by a
group leader
Individual dabawalas=30
tiffins/day
Logistic Management
9.30 am
The “pick up” people pick up the tiffin boxes from house wives
10.34 – 11.20 am
This period is actually the journey time.
Dabbawalas load the wooden crates filled with tiffin box in the luggage and goods compartment.
11.20 to 12.30 pm
The unloading takes place at the destination station.
The “delivery” people unload the boxes from the train
And re-arrangement of tiffin boxes are done as per the coding.
12.30 to 1.00 – lunch time
Coding
The coding indicates
the originating rail station
the destination station
the building name
the floor number of delivery POKA-YOKE techbique- color indicates
the group responsible for collecting dabba at particular point.
1.15 to 2.00 pm
Here begins the collection process.
The dabawalas collect the tiffin from the offices where they have delivered almost an hour back.
2.00 to 2.30 pm
the return journey
The group members meet at the segregation as per the destination.
2.48 to 3.30 pm
The return journey by train
Group finally meets up after the day’s routine of dispatching and collecting from various destination offices.
3.30 to 4.20pm
Here the final sorting and dispatching takes place.
The group finally meets up at the origin station
The tiffins are finally sorted out as per their original areas. This is again done through the coding process.
Latest Trend
The Web site (www.mydabbawala.com) – online booking
on line poll
Booking through SMS
The royal visit
Prince of Wales
Sir Richard Branson, chairman of Virgin
Atlantic Airlines.
CASE STUDY
Every day Amul collects 447,000 litres of milk from 2.12 million farmers, converts the milk into branded, packaged products, and delivers goods worth Rs 6
crore (Rs 60 million) to over 500,000 retail outlets across the country
GCMMF
Gujarat Cooperative Milk Marketing Federation (GCMMF) is the largest food product marketing organization of India.
aims to provide good returns to the farmers and also to fulfil the requirements of consumers by giving them quality products
has 42 regional distribution centers in India, serves over 500,000 retail outlets and exports to more than 15 countries
Problems to be addressed: Logistics in collection of:
6 lts of milk everyday
from 10600 separate villages
Logistics in co ordination of :
storing ,processing and delivering the milk.
Suppliers Logistics:
Weighing the milk
Determining the fat content
Calculation of purchase price
The Need
formulate an IT plan
Integrate its existing applications with ICT tools
Connect its regional and field offices through e-media
Implementation
Amul started implementing ERP in phases.
Automatic milk collection system units (AMCSU) at village societies were installed to automate milk producers logistics.
At milk collection counter
- farmer drops the card
- milk is weighed
- calculates amount due to farmer
- value of milk is printed
Amul connected its zonal and regional offices through VSATs.
Amul is also using GIS (geographic information system) for business planning and collection process.
IIM-A provided Amul with a software-Dairy information system kiosk(DISK) to facilitate data analysis and decision support in improving milk collection.
Indian Railways
Largest network under management Revenues: 12 billion $ Passengers: 14 million/day (approx) Freight: 2 million tons/day (approx) Manpower: 1.4 million
Indian Railways Contd…. Track – 63000 km
Around 7000 – 8000 stations
Freight: 2 million tons/day (approx)
Long Range Decision Support Systems
Used to manage and plan strategies for IR
Implemented in 1998 Public – private partnership
World bank + IR personnel + overseas consultants
Powerful tool for pre-feasibility investment analysis for networks
Long Range Decision Support Systems Contd….
Based on traffic projections over the next two decades
Uses- Simulation Models Optimization tools GIS based interface Develop ‘what if scenarios’ Demand and supply side
PROJECT IDENTIFICATION
FACILITYPERFORMANCE
TRAFFIC FORECASTING
MARKET ANALYSIS
TRAFFIC ASSIGNMENT
COST BENEFIT ANALYSIS
FINANCIAL FORECASTING
LRDSS MODEL
SUPPLY ANALYSIS DEMAND ANALYSIS
Solutions Providers
New Needs, New Players Solutions Providers – with the
increased importance of logistics management, a new market opened and there are companies that solve the logistics management problems.OracleInfosysFedEx – case studyDHL etc
Solutions Providers
Oracle – Transportation Management Systems
It integrates and streamlines - transportation planning, execution,
freight payment, and business process automation
Single application
Oracle – Transportation Management Systems
Oracle Transportation Management - Lowers transportation costs Improves customer service and asset
utilization
Solutions Providers
Infosys – Master Data ManagementEnables Logistics Service Providers (LSPs)
to efficiently manage revenues, expenditure, shipment, and large ERP implementations.
IBM – RFID later case study
Emerging Trends
1.Case Study: FedEX started Virtual Order – Online B2B site.
Shippers can setup an online catalog of goods that consumers can order from.
FedEx setup Express Distribution Centres like Dubai, Philipines.
FedEX systems are fully integrated with that of the shippers
Customer places the order.
Shippers notified
Order Enters into FedEx network.
Order collected from a variety of shippers.
Within 48 hours delivery to customer
Mainly for High Value, low weight goods like electronic and medical goods
Case Study:
Emerging Trends
2. Two Dimensional Bar Codes
1D BarCode
2D BarCode
2. Two Dimensional Bar Codes
1D barcode contains only vertical lines 2d barcodes contain both horizontal and
vertical lines Can store information of an entire
freight Uses laser scanners to read. Currently
not available.
3. Going Green
Use software that minimizes carbon emissions and cost savings
Eg – by incorporating algorithms that include data about location and date to consolidate shipments by size, product compatibility and trailer types
3. Going Green
Case Study:
DHL’s green initiative by implementing multi site ISO 14001
Bought 1.3 billion Euros worth of new fleet― Planes quieter, more fuel efficient Reduced carbon dioxide emissions by 6.864
tons Improved waste management
Over 53% general solid waste recycled
4. RFID
Two types: Active – contains battery and transmits
signals Passive – no battery, requires external
source Famous example :Wal – Mart
RFID Services
Integrate real-time data capture with business processes to reduce time to market
Track mobile assets to reduce loss and theft
Optimally manage work in process and logistics networks
Build a secure, responsive and flexible supply chain—to ultimately deliver value to your end customers