logistics overview 1. session objectives definition of logistics logistics & supply chain...

Logistics Overview

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Session Object ives

Defi n i t ion o f l og is t i cs Log is t i cs & supp ly cha in management d iff erent ia t ion Ob ject ives o f l og i s t i cs management

Logistics Overview

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Logist ics Origin

The word log i s t i cs t races i t s o r ig in to the Greek word log i s t ikos and the Lat in word log is t i cus ,

mean ing the sc ience o f comput ing and ca lcu la t ing .

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Logist ics History

Great Pyramid o f G iza [2700 BC] S team Eng ine [1800] Wor ld War I [1914-18] Invent ion o f Sea Conta iner [1956 - Ma lcom P Mc lean] Kanban & J IT concepts [1970-1980]

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Logist ics Defi nit ion

“P lann ing , implement ing and cont ro l l ing the phys ica l fl ows o f mater ia l s and fi n ished goods f rom po int o f o r ig in to po in t o f use to meet the customer ’s needs

a t a profi t . ”

[ P h i l i p Ko t l e r ]

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“The p rocess o f p l ann ing , imp lement i ng and con t ro l l i ng the effi c ien t , cos t eff ec t i ve fl ow and s to rage o f r aw mate r i a l s , i n -p rocess i nven to ry , fi n i shed goods and re l a ted i n f o rmat i on f rom po in t o f o r i g i n t o po in t o f

consumpt i on f o r t he pu rpose o f confi rm ing to cus tomers ’ requ i rements . ”

[ T h e A m e r i c a n C o u n c i l o f L o g i s t i c s M a n a g e m e n t ]

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Log is t i cs Defi n i t ion

“ Lo g i s t i c s i s e s s e n t i a l l y a p l a n n i n g p ro c e s s a n d a n i n f o rm a t i o n - b a s e d a c t i v i t y. ”

[ M a r t i n C h r i s t o p h e r ]

“ T h e c o r p o r a t e t r a ffi c c o p , ” w h i c h d i re c t s t h e fl o w o f m a t e r i a l f r o m t h e s o u rc e t h ro u g h t h e p ro d u c t i o n a n d

d i s t r i b u t i o n t o t h e fi n a l c u s t o m e r.

[ P h i l i p s c a r y ]

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Log is t i cs vs . Phys ica l D i s t r ibut ion

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P e r v a s i v e n e s s o f l o g i s t i c s [ E x a m p l e - 1 ]

L o g i c i n L o g i s t i c s f o r 3 0 - m i n u t e P i z z a

O r d e r r e g i s t r a t i o n : 1 m i n u t eM a k e l i n e : 2 m i n u t e sO v e n t i m e : 5 m i n u t e s

I n s p e c t i o n , q u a l i t y c h e c k & p a c k i n g : 1 m i n u t eR o u t e c h e c k i n g & fi n a l c o n fi r m a t i o n : 1 m i n u t e

O u t o f d o o r t i m e : 1 0 - 1 2 m i n u t e sP u n c h i n t i m e : o n r e t u r n

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Pe r v a s i v e n e s s o f l o g i s t i c s [ E x a m p l e - 1 ]

L o g i c i n L o g i s t i c s f o r 3 0 - m i n u t e P i z z a

I m p o r t a n c e :

P r o c e s s S e q u e n c i n g , J u s t - i n -T i m e i n v e n t o r y a v a i l a b i l i t y a n d t i m e m a n a g e m e n t f o r s u c c e s s i n t h i s s e r v i c e o p e r a t i o n s l o g i s t i c s .

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2 4 H o u r A T M

L o g i s t i c s a s p e c t s : A v a i l a b i l i t y a n d c o n t i n u o u s s u p p l y o f c u r r e n c y n o t e s I n f o r m a t i o n a v a i l a b i l i t y t o c u s t o m e r s o n c r e d i t l i m i t s a v a i l a b l e a t t i m e o f w i t h d r a w a l D a t a m i n i n g w i t h a u t o m a t i c u p d a t i n g f o r r e a l - t i m e i n f o r m a t i o n o n c r e d i t w o r t h i n e s s E - b u s i n e s s s o l u t i o n s t a k e s c a r e o f t h e c o m p l e x t r a n s a c t i o n p r o c e s s i n v o l v e d i n A T M o p e r a t i o n s

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D a b b a w a l a ’ s o f M u m b a i

O v e r 2 , 0 0 , 0 0 0 o ffi c e e m p l o y e e s a r e c a t e r e d t o d a i l y 5 0 0 0 m e n & w o m e n ( m o s t l y i l l i t e r a t e ) o p e r a t e i n a s s i g n e d a r e a s i n M u m b a i E a c h h a n d l e s a n o p t i m u m l o t s i z e o f 2 5 - 3 0 t i ffi n b o x e s D a b b a s c o l l e c t e d f r o m h o u s e s a n d p u t i n t i ffi n r a c k s a t a n e t w o r k o f 9 6 r a i l w a y s t a t i o n s a c r o s s M u m b a i U s e o f c o l o u r c o d e s y s t e m o n d a b b a s t o i d e n t i f y c o l l e c t i o n a n d d e l i v e r y p o i n t s A f t e r l u n c h t i m e o p e r a t i o n w o r k s i n r e v e r s e d i r e c t i o n

Logistics Overview

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D a b b a w a l a ’ s o f M u m b a i

L o g i s t i c s a s p e c t s :

T i m e l y c o l l e c t i o n s a n d d e l i v e r i e s E r r o r f r e e d e l i v e r i e s a n d p i c k - u p s S m o o t h w o r k i n g a g a i n s t o d d s o f r a i n s , s c o r c h i n g h e a t , s t r i k e s e t c P r e c i s i o n o f s i x s i g m a a c c u r a c y

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L a u n d r y S e r v i c e i n F i v e S t a r H o t e l sL o g i s t i c o p e r a t i o n s : C o l l e c t i n g l a u n d r y f r o m 2 1 0 r o o m s T h r e e p a r t s : s t a ff u n i f o r m s , r o o m l a u n d r y ( b e d s h e e t s , p i l l o w c o v e r s ) a n d g u e s t c l o t h e s S p e c i a l a t t e n t i o n g i v e n t o g u e s t c l o t h e s f o r e x p r e s s o r s a m e d a y d e l i v e r y I d e n t i fi c a t i o n c o d e , a n d t h e p u n c h i n g i n t o t h e c o m p u t e r f o r t r a c k i n g , p r o c e s s i n g a n d fi n a l d e l i v e r y H a n d o v e r t o t h e l a u n d r y s e r v i c e s u p p l i e r , w h o d e l i v e r s i t i n t h e e v e n i n g t o t h e h o u s e k e e p i n g d e p a r t m e n t

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O b j e c t i v e s – Lo g i s t i c s M a n a g e m e n t

T h e p r i m a r y o b j e c t i v e o f a l o g i s t i c s s y s t e m i s t o m o v e t h e i n v e n t o r y i n a s u p p l y c h a i n e ff e c t i v e l y a n d e ffi c i e n t l y t o e x t e n d t h e d e s i r e d l e v e l o f

c u s t o m e r s e r v i c e a t t h e l e a s t c o s t .

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O b j e c t i v e s – L o g i s t i c s M a n a g e m e n t

B a s e d o n M a n u f a c t u r e r ’ s v i e w p o i n t

M i n i m i s e t r a n s p o r t a t i o n c o s t f o r r a w m a t e r i a l s R e d u c e i n v e n t o r y c o s t F r e i g h t r e d u c t i o n s [ C o n s o l i d a t i o n s , L o a d u n i t i s i n g ] P r o p e r P l a n n i n g & R o u t i n g o f t r a n s p o r t a t i o n f r o m t h e i r w a r e h o u s e t o d e s t i n a t i o n E l i m i n a t e w a r e h o u s i n g c h a r g e s P r o p e r s c h e d u l i n g t o r e d u c e m a t e r i a l - h a n d l i n g c o s t s

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B a s e d o n L o g i s t i c i a n ’ s v i e w p o i n t

S c h e d u l i n g t r a n s p o r t a t i o n m o d e s f o r g o o d t i m e m a n a g e m e n t O ff e r c o m p e t i t i v e r a t e s t o c l i e n t s P r o v i d i n g g o o d s e r v i c e l e v e l s A c t i n g a s r e p r e s e n t a t i v e s f o r Tr a d e r s i n I n t e r n a t i o n a l Tr a d e

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B a s e d o n C u s t o m e r ’ s v i e w p o i n t

T i m e l y D e l i v e r i e s E r r o r f r e e d o c u m e n t a t i o n S a f e d e l i v e r i e s o f t h e i r s h i p m e n t s / M i n i m u m p r o d u c t d a m a g e s P e r f e c t s t o c k m a i n t e n a n c e L o w d i s t r i b u t i o n c o s t s f o r c o m p e t i t i v e a d v a n t a g e R e l i a b l e & c o n s i s t e n t d e l i v e r y p e r f o r m a n c e

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