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INTRODUCTION

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HISTORY

The word logistics has originated from the

Greek word logistikos and the Latin word

logisticus, meaning the science of

computing and calculating. In ancient times

it was used more in connection with the artof moving armies and supplies of food and

armaments to the war front.

so we can say that logistics is the art andscience of managing and controlling the

flow of goods, energy, information, other

resources.

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Contind

1. Early 1960s physical distribution

management(PDM)

2. Late 1970s logistics and total logistics3. Early 1990s logistics and business

process re-engineering(BPR)

4. Last 20 years supply chainmanagement(SCM) and its optimization

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Introduction of logistics

It is the management of all activities whichfacilitate movement and the co-ordination

of supply and demand in the creation of

time and place utility. Logistics is the branch of military science

having to do with procuring, maintaining

and transporting material, personnel. Logistics is the process of getting products

and services where they are required and

when they desired.

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Contind.

Since the modern days customers expect theproducts to be available at all times and

with the maximum freshness(in case of

perishable goods), companies need toensure that their logistics process matches

the highest standards.

Global companies operate in an intensivelycompetitive environment and hence, they

try to offer customers the best of products

and services with a competitive advantage.

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DEFINITON

The process of planning, implementing, and

controlling the efficient, cost-effective flow

and storage of goods, services, and relatedinformation, from point of origin to point of

consumption, for the purpose of conforming

to customer requirements.

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Components of logistics

Components of an Integrated Logistics

System

External Supply: links suppliers to operations

processInternal Operations: manages in-process

material flow

Physical Distribution: links operations processto customers

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Internal operations

Vary by industry & firm, but might include:

Processing

Purchasing

Production Planning & Control

Quality Assurance

Shipping

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Physical Distribution

Getting the right material to the right place at

the right time in the right quantity:

Traffic Management:

The selection, scheduling & control of carriers (e.g.:

trucks & rail) for both incoming & outgoing

materials & products

Distribution Management: The packaging, storing & handling of products in

transit to the end-user.

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External Suppliers

External suppliers provide the necessary raw materials,services, and component parts.

Purchased materials & services frequently represent 50%(or more) of the costs of goods sold.

Suppliers are frequently members of several supply chainsoften in different roles.

Tier one suppliers: Directly supplies materials orservices to the firm that does business with the finalcustomer

Tier two suppliers: Provides materials or services totier one suppliers

Tier three suppliers: Providers materials or services totier two suppliers

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Marketing

orientation

(competitive

advantage)

Time and

place utility

Efficient

movement to

customer

Proprietaryasset

Natural resources

(land, facilities, and

equipments)

Human resources

Financial resources

Information

resources

Management actions

Planning Implementation Control

Logistics Activities

Customer ServiceDemand forecasting

Distributioncommunications

Inventory control

Material handlingOrder Processing

Parts and servicesupport

Plant and warehouse siteselection

Procurement

Packaging

Return goods handling

Salvage and scrapdisposal

Traffic andtransportation

Warehousing and storage

Raw

materials

In-process

inventory

Finished

goods

Inputs into logistics

Suppliers

Logistics management

Customers

Outputs of

logistics

Components of

logistics management :

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Logistics as a part of supply

chain management

Logistics is the management of the flow of

goods, information and other resources

between the point of origin and the point of

consumption in order to meet therequirements of consumers frequently and

originally.

It involves the integration of information ,transportation, inventory, warehousing,

material handling and packaging, and

occasionally security.

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Contind. Logistics is a channel of supply chain which

adds the value of time and place utility.

Different definition-

logistics means having the right thing, at theright place, at the right time.

Logistics is defined as a business planningframework for the management of material,service, information and capital flows. It

includes the increasingly complex information,communication and control systems required intodays business environment.(Businessdefinition)

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Logistics - Science of managing (controlling) the movement and

storage ofgoods (or people) from acquisition to consumption.

Goods: Raw MaterialsFinal products, and everything in between.

Logistics for services & people similar to goods logistics.

Ex. Police, fire, ambulance, passenger airlines, taxi cabs, etc.

Movement = Transportation (between locations).

Storage = Inventory, Warehousing (at locations).

Difference between acquisition and consumption is a matter of space

and time.

NOTE: Logistics does not dealwith Technology of Production, such

as the design of machines and vehicles and the design of finished

products.

Focus: Best way to overcome space and time that separates acquisitionand consumption.

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Logistics embodies the effort to deliver:the right product

in the right quantity

in the right conditionto the right place

at the right time

for the right customerat the right cost

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Objectives of logistics Cost reduction (variable costs)

Capital reduction (investment, fixed costs)

Service Improvement (may be at odds with

the above two objectives).

Inventory reduction

Reliable and consistent performance Minimum product damages

Quick responses

Delivering customer services-

(a)Customers must be given more importance than thegoods and services that have to be delivered.

(b)Product and services are of significance to the customers

only when they are available to them exactly when

customers need them.

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Contind..(c) Organizations should focus more on profitability

than on sales volumes. The number of transactionsis a better measure of profitability than the volume

of sale.

Reducing the total distribution costs

Reducing the cycle time

Rapid response

Minimum variance Movement consolidation

Quality improvement

Life cycle support

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Decisions in logistics

The various decisions in logistics

management that need examination for anintegrated system are-

Product design

Plant location Choice of markets/ sources

Production structure

Distribution/ dealer network design

Location of warehouses

Plant layout

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Contind..

Allocation decisions

Production planning

Inventory management-stoking levels

Transportation mode choice, shipment sizeand routing decisions and transportcontracting

Packaging

Material handling

Warehouse operations

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Classification of logistics

logistics can be classified on the basis ofdifferent dimensions:-

Inbound and outbound logistics

Private vs. public Single vs. multiple plants

Nature of the product

Made to stock vs. made to order

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Contind.

1. Inbound and outbound logistics- Most of the organization have to mange

their outbound logistics( that is, physically

distributing the products to the customersfrom the factory)

Whereas inbound logistics are limited to

the purchasing function. the logistics ofpurchased products are generally managed

by the vendors.

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Contind

There are exceptions to this, like the steelindustry which is backward integrated,thereby managing their inbound (rawmaterial) logistics also. managing inbound

logistics to some extent has got otherbenefits such as better control of productionplanning and reducing uncertainties.

A further advantage of managing bothinbound and outbound logistics is the costsavings possible when the two movementsare coordinated.

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The Increased Importance of Logistics

A Reduction in Economic Regulation

Recognition by Prominent Non-Logisticians

Technological Advances

The Growing Power of Retailers Globalization of Trade

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Logistics cost

The performance of a supply chain can be

illustrated with the help of total logistics cost.

To define the logistics cost, one must define the

desired outputs from the logistics system and then

seek to identify the costs associated withproviding those outputs.

The manager must understand how the behavior

of one cost differs from the behavior of another

cost and for running a logistics system requiresthe manager to understand and use a variety of

cost information.

The cost of logistics varies from industry to

industry.

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Contind.

Cost can be divided in many ways: Fixed,variable and semi-variable, Cash and non cash,

direct and indirect. Each of these costs may

reveal important and information for making

logistics decisions.

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The important elements of logistics

cost are:- Product inventory at source

Pipeline inventory

Product inventory at warehouses and dealers

Transit losses/ insurance

storage losses/ insurance

Handling and warehouses operations

Packaging Transportation

Customers shopping

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Transport Cost Characteristics

Rail

High fixed costs, low variable costs

High volumes result in lower per unit (variable) costs

Highway

Lower fixed costs (dont need to own or maintain roads)

Higher unit costs than rail due to lower capacity per truck

Terminal expenses and line-haul expenses Water

High terminal (port) costs and high equipment costs (both fixed)

Very low unit costs

Air

Substantial fixed costs Variable costs depend highly on distance traveled

Pipeline

Highest proportion of fixed cost of any mode due to pipelineownership and maintenance and extremely low variable costs

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Logistics functions

Logistics is not a single term actually it is ablend of number of activities or functions:-

Order processing

Inventory managementWarehousing transportation

Material handling

Logistical packaging

Information

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Contind.

1. Order processing- This activity consists of the

following steps: Order checking for any deviations in agreed or negotiated

firms.

Prices, payments and delivery terms.

Checking the availability of materials in stocks

Production and material scheduling for shortages

Acknowledging the order, indicating deviations, if any.

C ti d

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Contind2. Inventory management- IM maintaining the requisite inventory stocks to meet customer

requirements while simultaneously ensuring that its carrying cost is aslow as possible.

The inventory is the greatest culprit in the overall supply chain of the

firm because of its huge carrying cost, which indirectly eat away the

profits. It consists of the cost of financing the inventory, insurance, storage,

losses, damages.

The average cost of inventory carrying varies from 10-25% of the total

inventory per year, depending on the products.

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3. Warehousing- the major decisions in warehousing are asfollows:

Location of warehouses

Number of warehouses

Size of the warehouse

Warehouse layout design of the building of warehouse Ownership of the warehouse

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4.Transportation-

After the order is placed, the transportation is not complete till thegoods are physically moved to the customers place.

The physical movements of goods through various transportation

modes.

5. Material handling and Storage system- The speed of inventory movement across the supply chain depends

on the material handling methods.

The choice of storage system is important in maximizing space

utilization in the warehouse.

The material handling system should support the shortage system

for speedy movement of goods in and out of the warehouse.

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6. Logistical packaging-

Logistical or industrial packaging is a critical element in the

physical distribution of the product, which influences theefficiency of the logistical system.

It differs from product packaging, which is based on marketing

objectives.

The utilization of load has a major bearing on logisticalpackaging with regard to packaging costs.

7. Information-

Logistics is basically an information, based activity of inventory

movement across the supply chain. The use if IT tools for information identification, access, storage,

analysis, retrieval and decision support in logistics is helping

business firms to enhance their competitveness.

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Models in logistics management

Various quantitative models from operationsresearch literature can be used to address thedecisions areas in logistics.

1. Forecasting models- these models allowprediction of demand based on past data or other

parameters that are independently available. Theyenable better planning, given the lead timenecessary for response.

2. Mathematical programming models- under

this model, there are three models. Location model

Allocation model

Distribution network design models

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Contind..

(a) Location model- these models help in planning the optimal

location of plants or warehouses,

considering the inbound and outboundtransportation costs and infrastructure cost

at the locations.

Such models can be solved as an integerprogramme or sometimes as a linear

programme.

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Contind(b) Allocation models-

these models help in optimally allocating

commodities from sources to destinations in a

multi-source multi-destination environment.

For ex- a product that is manufactured in 15 plantsand distributed through 30 warehouses could use

such a model for optimal allocation.

The costs considered for optimization are

production costs, transportation costs andwarehousing costs. The constraints considered can

be due to demand, capacity, route restriction etc.

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Contind..

(c) Distribution network design models- These models are usually comprehensive in nature,

deciding between a two, three or even four stage

distribution network, location of warehouses and

break bulk points, and sometimes even the

transportation mode choice.

The models optimize total distribution costs

including transportation, warehousing andhandling, and inventory.

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contind.

3. Inventory models-the inventories that aredirectly

affected due to outbound logistics are:(a) buffer stocks to take care of uncertainties at finished

goods, warehouse and retail

(b) Shipment and batching inventories at finished goods,

warehouse and retail

Pipeline inventory (primary and secondary)Trade-offs between inventory and other decisions in

logistics would be: Inventory vs. transportation cost

Inventory vs. stockout cost

Inventory vs. spoilage and material handling cost

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Contind.Issues like

(i) Shipment size(ii) Supplying to one or many points in one shipment

(iii) Single location vs. multiple location stocking directly

relate to inventory and transportation cost4. Routing model-

These models allow optimal routing on a

transportation network from a given source to

destination.

The simplest model is called the shortest path problem.

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Contind

Decision support system (DSS) that interactively

use the expertise of the decision maker by

providing graphical support through a map are

also very useful in such decisions.

5.Scheduling model-

These models enable allocation of resources to

particular activities.

Depending on the criteria of interest and number

of resources, the models help evaluate

appropriate rules for allocation.

Five Business Systems Tightly Interconnected

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Five Business Systems - Tightly Interconnected

Within The Organization

Measurement

Decisions

Management

Systems

Reward

Decisions

Strategic

Decisions

TransportationDecisions

Sourcing

Decisions

Inventory

Decisions

LogisticsSystems{Price

DecisionsPromotion

DecisionsMarketing

Systems

Product

Decisions

Place (How,

where, how

much) }ProductionScheduling

Decisions

Production

Capacity

Decisions

Shop Floor

Decisions

ManufacturingSystems}

Product

Design

Decisions

Process

Design

Decisions Engineering

Systems}

Copyright 2000 - All Rights Reserved

Logistics Planning

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Logistics Planning

Decide what, when, how in three levels:

Strategic long range > 1 year

Tactical - < 1 year horizon

Operational frequently on hourly or daily basis

Examples of Decisions

Type Strategic Tactical Operational

Location

Transportation

Order Processing(CS)

#Facilities, size,location

Mode

Selecting order entrysystem

Inventory positioning

Seasonal Service Mix

Priority rules forcustomers

Routing

Replenishment Qtyand timing

Expediting orders

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Routes of Goods

Goods atshippers

Freightforwarderwarehous

e

Airtermina

l

planeair

Freight

forwarderwarehous

e

Goods at

consignees

Container

terminal vessel

sea Maychangetranspor-tationmodes

truck

landrailway

land barge

mid-streampier

bulk goodssea

let us guess

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Vehicle Routing

Find best vehicle route(s) to serve a set of orders fromcustomers.

Best route may be

minimum cost, minimum distance, or

minimum travel time.

Orders may be Delivery from depot to customer.

Pickup at customer and return to depot.

Pickup at one place and deliver to another place.

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Bullwhip Effect

The bullwhip effect is the uncertainty

caused from distorted information flowing

up and down the supply chain.

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Who is affected?

Who is affected? Nearly all industries are

affected! Firms that experience largevariations in demand are at risk. Firms that

depend on suppliers upstream or

distributors and retailers downstream maybe at risk.

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Results of the bullwhip effect :

Results of the bullwhip effect Excess

inventories Problems with quality Increased

raw material costs Overtime expenses

Increased shipping costs

Results of the bullwhip effect - continued.

Lost customer service Lengthened lead time

Lost sales Unnecessary adjusted capacity

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Causes of the bullwhip effect :

Causes of the bullwhip effect Un-forecasted

sales promotions Sales incentives Lack ofcustomer confidence Customers turning

back sales orders Freight incentives

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Moral of the story :

Moral of the story Distorted information

along the supply chain caused inventory

levels to increase along the supply chainwhich may result in increased inventory

costs, poor customer service, adjusted

capacity and many other problemsassociated with the bullwhip effect.

W h t

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Warehouse management

Introduction

Warehousing is the function of storing goods to

bridge the time gap between their production and

demand and thus, leads to time and place utility. As a part of marketing strategy, warehousing offers

better customer service than competitors who rely

on price competition.

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Definition

As per Bombay warehouse act, 1959

Warehouse means any building, structure or other

protected enclosure, which is used for the purposeof storing goods on behalf of the depositors but

does include cloakroom attached to hotels, railway

station and the premises of other public carrier

alike.

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Need for warehousing

Warehousing necessary due to the following reasons:

i. Seasonal production

ii. Seasonal demand

iii.Large-scale production

iv.Quick supply

v. Continuous production

vi.Price stabilization

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Function of warehousing

There are following functions:

a) Storage of goods

b) Protection of goods

c) Risk bearing

d) financing

e) Processing

f) Grading and branding

g) Transportation

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Types of warehouses

In order to meet their requirement, various types ofwarehouses came into existence, which may be

classified as follows:

I. Private warehouses

II.Public warehouses

III.Government warehouses

IV.Bonded warehouses

V.Co-operative warehouses

Characteristics of Ideal

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Characteristics of Ideal

warehousesAny warehouse is said to be an ideal warehouse, if itpossesses certain characteristics, which are given below:

It should be located at a convenient place.

Mechanical appliances should be used because thisreduces the wastages in handling and also minimizes

handling cost.

Adequate space should be available in order to keep the

goods in proper order.

It should have cold storage facilities.

Ex-parishable items

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Contind.

Proper arrangements should be there to protect the goods

from sunlight, rain, wind, dust, moisture and pests.

Security should be there to avoid the theft of goods.

The building should be fitted with latest fire fitting

equipment to avoid loss of goods to fire.

Sufficient parking space should be there inside the

premises.

Importance/ benefits of

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Importance/ benefits of

warehousing

1. Economic benefits

Consolidation

Break bulk and cross dock Processing/ postponement

stockpiling

2. Service benefits-In this we consider the timeand place capability of the overall logisticssystem.

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Warehouse operating principles

There are three principles which are revelent:

1. Design criteria

2. Handling technology3. Storage plan

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Planning the warehouse layout

When a new warehouse layout is proposed, a detailedplanning process should be followed to ensure thesuccess of the project.

this process should include the following six steps:

a. Define objectives

b. Collect information

c. Analysis

d. Create plan

e. Implementation

f. Post implementation

Di t ib ti t

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Distribution management

Introduction

A vital element of supply chain management is the

management and monitoring of the distribution channels.

In fact, the vast majority of product manufactures are

unable to sell directly to customers, as it would be way toocostly for them.

The bigger the producer, the more intermediaries should

be used in order to have a cost effective operation.

The distribution centre is a new idea at the advent of

logistics and supply chain management, referring to

dynamic, full service warehouse primarily related to the

market.

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Definition of Distribution centre

The movements of goods rather than their

storage and other customer orientedlogistical services such as sales, market

intelligence, documentation called the

distribution centre.

L l f h l di t ib ti

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Levels of channel distribution

membership

There are three levels of channel distribution:

1. Intensive- A large majority of resellers are

stocking the product.2. Selective- This is a normal pattern, only suitable

resellers are selling the product.

3. Exclusive- In this only selected resellers are

permitted to sell the product( this is usually one

seller per geographical region)

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Purchasing and Vendor

Management

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Introduction

The new attention given to purchasing begun in themid-1970s, when firms such as chemical

manufactures experienced serious commodity

shortages. Hence in the global competitive

scenario, there has been a dramatic increase in theattention of the top management in the purchasing

and sourcing management because outsourcing of

materials have become need of the hour for

sustainable growth and competitive effectiveness.

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Purchasing

Purchasing is the procurement of the

materials, supplies, machines, tools and

operation of a manufacturing plant.

Alford & Beatty

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Basic concepts

Purchasing refers to a business or organization

attempting for acquiring goods or services to

accomplish the goals of the enterprises.

The word purchasing is not used interchangeably

with the word procurement, since procurement

typically includes expediting(promptness), supplier

quality and logistics in addition to purchasing.

Obj ti f h i

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Objectives of purchasing

Maintaining

continuity of

supply

Maintenance

standardsquality

Avoidance of

duplication waste

and obsolesce

Maintenance

of companys

good image

Developing

alternativesources of

supply

Maintenance of

companys

competitive

position

Factors influencing purchase

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Factors influencing purchase

decision

1. Alternatives

2. Quality

3. Price4. After sales service

5. Availability of spare parts

I t f h i

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Importance of purchasing

Efficient

administr

ation

The quality

of final

product

Increasing inprofitability

Optimumutilization

of capital

Delivery

in time

Centralized vs Decentralized

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Centralized vs. Decentralized

purchasing

Introduction

This topic basically deals with decisions aboutthe purchasing policies defining the purchasing

authorities and the resultant responsibilities.

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Centralized purchasing

Centralized purchasing is a method of procurement of all

types of materials, supplies and equipments etc.through a

single departments under the direct control and

superintendence of one responsible person.

He/ she is directly accountable to the top management for

all the duties falling within the broad area of purchasefunction.

Contind

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Contind

A company has to follow the centralized

purchasing of materials for ensuring proper

materials control as well as efficient store

keeping.

Under this system, the purchasing departmentpurchases the required materials for all the

departments and branches of the company

In such organizations sometimes regional orbranch purchasing agents are employed to make

purchases in the local markets.

C ti d

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Contind

Under this policy of centralized purchasing all types ofpurchase in a single-plant organization are made by the

central buying section, who are authorized to decide on

the source of supply, negotiate scattered plant locations,

all purchases are made by the central buying section ofthe head office.

They are doing so under the superintendence and thecontrol of the centralized purchasing departments.

Advantages of CP

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Advantages of CP Cost will be less and managed efficiently

Tap the advantage of the skills of buying staff Take the advantage of quantity discount (Bulk quantity)

Direct contact with supplier will eliminate the

intermediaries

Develop and maintain the good relation with the suppliers

It will reduce the inventory carrying cost

The receiving of large supply through consolidated orders

reduces the transportation cost per unit The cost of order processing are reduced substantially due

to the few orders of large quantities

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The service of an efficient , specialized and

experienced purchase executive can be obtained. Transportation costs can be reduced because bulk

quantity of materials purchased.

Centralized purchasing discourages duplications ofefforts.

Centralized purchasing helps to maintain uniformity

in purchasing policies. Centralized purchasing helps to minimize the

investment on inventory.

Di d f CP

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Disadvantages of CP

Centralized standards procedures may result in delays in

receiving the materials.

It may be the case that centralized purchasing staff maynot be specialized in buying technical items.

In case of multi plants unit located at distant places, it

may not be possible to tap the local resources.

D t li d h i

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Decentralized purchasing

Decentralized purchasing refers to purchasing materials byall departments and branches independently to fulfill their

needs.

Such a purchasing occurs when departments and branches

purchase separately and individually. Under this purchasing, there is no one purchasing manger

who has the right to purchase materials for all

departments and divisions.

This type of purchasing can overcome the defects of

centralized purchasing because it helps to purchase the

materials immediately in case of an urgent situation.

Ad t f DP

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Advantages of DP

Materials can be purchased by each department locally

as and when required

Materials are purchased in right quantity of right quality

for each department easily

No heavy investment is required initially

Purchase orders can be placed quickly

The replacement of defective materials takes little time

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Disadvantages of DP

Organization losses the benefit of a bulk purchase.

Specialized knowledge may be lacking in purchasing

staff.

There is a chance of over and under purchasing of

materials.

Less chances of effective control of materials.

Lack of proper co-ordination and co-operation among

various departments.

Purchasing policies

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g p

The purchasing function is influenced by certain policies:

the policies are-

1. Ancillary development

2. Make or buy decision

3. Speculative buying

4. Vendor rating

5. Ethics in purchasing

6. Reciprocity7. Purchasing for employees

8. Gifts

9. Value analysis

Functions of purchase department

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p p

Checking of requisition

Procurements of stores

Selection of suppliers

Issuing tenders and obtaining quotations

Negotiating contracts

Checking legal conditions of the contracts

Verification and passing of suppliers

Maintenance of purchase records

Maintenance of vendor performance records

Developments of reliable and alternate sources of supply.

Vendor management

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Ve do ge e In todays competitive market place, many companies

have moved from a single vendor to a multi-vendorplatform.

Managing the numerous individuals and companies you

do business with is crucial for developing valuable

relationships.

Two major points of vendor management:

a) To improve the vendor management process, it is

important to track and evaluate vendors on a regular basis.b) It will also allow you to proactively take measures to

seize opportunities.

Vendor selection process

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Vendor selection process

Step 1- Analyze the business requirementsStep 2- Vendor search

Step 3- Request for proposal and Request for

quotationStep 4- Proposal evaluation and vendor selection

Step 5- Contract negotiation strategies

Step 6- Contract negotiation mistakes

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Single vendor concept

Why do some organizations adopt a singlevendor approach while others are morecomfortable with multiple vendors?

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Their decision to have a single vendor or multiple onesdepends on the concerned areas of operations, services or

procurement.

For some of the products and services (for example,

hardware AMC and facilities management), companies

have the policy of appointing a single vendor

But, at the same time, there are those who follow the multi-

vendor approach in majority of areas like hardwareprocurement, software development, and other services.

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T G Dhandapani, CIO, Sundaram-Clayton Ltd (SCL)Adaptive & TVS Motors said, We generally prefer to

move with a single (strategic) vendor concept and follow

it for many of the product procurement and services. It

helps in building strategic relationship with the vendorthat will pay in the long run.

Further commenting on this, Madhusudhan Mendu R,

(WT01-CIO Office & Operations) Wipro said, We

follow both single vendor as well as multi-vendor

(mostly dual) strategies.

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There are some fundamental principles that generallygovern the vendor selection and management policy.

1. Firstly, the company needs to decide the specific areas

where they should adopt a single or a multi-vendor

approach before engaging new vendors.

2. Secondly, rating of the performance and success of any

particular project is a must.

3. Thirdly, the decision-makers should try to see what canbring some amount of innovation and value addition

through the vendors they work with.

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We evaluate the vendors on technical parameters first,

where price does not figure at all and then

subsequently, only the proposals of technically

qualified vendors are further evaluated on commercial

terms"

- Shubhojit Roy

IT-Head, SBI Mutual Fund

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We generally prefer to move with single (strategic)vendor concept and follow it for many of the product

procurement and services. It helps in building strategic

relationship with the vendor that will pay in the long

run"- T G Dhandapani

CIO, Sundaram-Clayton Ltd (SCL) Adapative &

TVS Motors

P f i l d lti l

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Pros of single and multiple

vendors A single vendor helps in standardization,

less transactions and reduces operations

overhead. On the other hand, multiple vendors build

competitiveness and is meant forspecific

business requirements

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