logistics management lecture i

8/2/2019 Logistics Management Lecture i

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LOGISTICS MANAGEMENT


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What is Logistics?

Logistics is the . . . process of planning,implementing, and controlling the efficient,effective flow and storage of goods,services, and related information from pointof origin to point of consumption for thepurpose of conforming to customerrequirements.

Council of Logistics Management


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Logistics management includes the design

and administration of systems to control theflow of materials, work in progress and

finished goods inventory to support

business unit strategy.

By Bowersox and Closs


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Scope of logistics

This speed & reliability in distribution of products &

services contribute to a great extent in the growth of acountry`s domestic & international trade . Logistic cost as a

percentage of GDP across the world is shown in the

following table

Country Logistic cost as a percentage of GDP

Korea 16

China 15

Japan 14India 13

France 12

UK 11

USA 10


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Logistics Functions

Purchasing /

Procurement

Inventory Control

Warehousing

Materials Handling

Facility Location /

Network Design

Transportation

Customer Service

Order Processing


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Factors affecting logistics functions

Lack of Standardisation

Too close tolerances and high finishes

Efficiency of production functions

Effectivness of PPC


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Objective of Logistics Management

Highest level customer satisfaction

Min. Operating cost

Reduced lead time

Add value

Reduce and control Inventory

Improve Communication

Just In Time (JIT)Right goods or services, to the Right place, at theRight time, in the Right condition and at the Rightcost.


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ServicesIn bound

logistics

O

pe

r

a

t

i

o

n

s

Out bond

Logistics

operations

S & M

Customer Value

HRM&MTechnology

A&F

Infrastructure


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A List of Approaches in Log. Mgmt.

Just in Time Inventory

Vendor Managed

Inventory Quick Response

Collaborative Planning,Forecasting, andReplenishment

Outsourcing / 3PLs

Flow Through Centers

Build to Order

SC Visibility Software

Internet Collaborative

TransportationManagement

In - Transit

Partnerships / Alliances


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Logistics Experience will be

different from one sector to anotherTextiles speed and variety due to seasonality concerns

Retailing (FMCG)

prevents stores from having empty shelves or shelves withoverstocks

Frozen storage and transportation

Health

hygienic, have limited shelf life, require special storage

conditions and entertain high inventory risksAutomotive

just in time (JIT), delivering parts from thousands of kilometers,special packaging

Fuel and Petroleum Transportation

very special tanker security systems


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Vehicle Logistics

Vehicle logistics services include:

Vehicle Transportation

Marine Transportation (RO-RO)

Ship Loading and Unloading

Storage and Parking Lot Services

Dealer Distributions

Information Systems and Reporting


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What is Milk Run Distribution?

It is the combination of shipments from

multiple vendors in close geographic

proximity into one shipment received bythe customer,

normally done for a defined route on a recurring

basis.


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What is Milk Run Distribution?...


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Marketing

orientation(competitive

advantage)

Time and

place utility

Efficient

movement to

customer

Proprietary

asset

Natural resources

(land, facilities,and equipments)

Human resources

Financial resources

Information

resources

Management actions

Planning Implementation Control

Logistics Activities

Customer Service

Demandforecasting

Distributioncommunications

Inventory controlMaterial handling

Order Processing

Parts and servicesupport

Plant andwarehouse siteselection

Procurement

Packaging

Return goodshandling

Salvage and scrapdisposal

Traffic and

transportationWarehousing and

Raw

materials

In-process

inventory

Finished

goods

Inputs into logistics

SuppliersLogistics management

Customers

Outputs of

logistics

Components of

logistics management :


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Production

Plantsactivity Materialsmanipulation Quality

controlMaintenance

Interface

Productplanning Plantlocation Purchasing

Logistics

Transport InventorymanagementWarehousing

Interface

Customerservice Packaging Distributionchannels

Informationflow

Marketing

Promotion Marketresearch Productmix

Price

logistics management lecture i

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