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Introduction To Logistic Management

The document discusses key concepts in logistics and supply chain management. It defines logistics as planning and controlling the efficient flow of materials and information, and supply chain management as integrating activities across firms to deliver value to customers. The document outlines several logistics functions like transportation, warehousing, and inventory management. It also discusses concepts like electronic data interchange, total logistics cost, customer service, and reverse logistics.

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abhishek ladhani
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95 views

Introduction To Logistic Management

The document discusses key concepts in logistics and supply chain management. It defines logistics as planning and controlling the efficient flow of materials and information, and supply chain management as integrating activities across firms to deliver value to customers. The document outlines several logistics functions like transportation, warehousing, and inventory management. It also discusses concepts like electronic data interchange, total logistics cost, customer service, and reverse logistics.

Uploaded by

abhishek ladhani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Logistics

Dr. Anurag Tiwari


SIBM Nagpur
Supply Chain Overview

Transportation Transportation Customers


Warehousing

Information
flows
Factory

Transportation

Vendors/plants/ports
Warehousing Transportation
Logistics vs Supply Chain Management

 “Logistics is the process of planning, implementing and controlling the efficient, cost-
effective flow and storage of raw materials, in-process inventory, finished goods and
related information from the point of origin to point of consumption for the purpose of
conforming to customer requirements.”
 SCM is the integration of all activities associated with the flow and transformation of
goods from raw materials through to end user, as well as information flows, through
improved supply chain relationships, to achieve a sustainable competitive advantage.
Common Contemporary Logistics Terms
 Value stream/logistics process
 Quick response and flexible manufacturing
 Mass customization
 Supply chain management/ collaborative logistics
 Reverse logistics
 Service logistics
 Continuous replenishment
 Lean logistics
 Integrated logistics

 => IT people have to deal with any related automation anyway


The Logistics/SCM Mission
 Getting the right goods or services to the right place, at the right time, and in the desired
condition at the lowest cost and highest return on investment.

 Product / Service Utility


 Possession Utility - the value or usefulness that comes from a customer being able to
take possession of a product
 Form Utility - in a form that can be used by the customer and is of value to the
customer
 Place Utility - available where they are needed by customers
 Time Utility - available when they are needed by customers
 Logistics obviously help time and place utility
Evolution of Supply Chain Management
Activity fragmentation to 1960 Activity Integration 1960 to 2000 2000+

Demand forecasting

Purchasing

Requirements planning
Purchasing/
Production planning Materials
Management
Manufacturing inventory

Warehousing
Logistics
Material handling

Packaging

Finished goods inventory Supply Chain


Physical Supply Chain
Management
Distribution Management
Distribution planning

Order processing

Transportation

Customer service

Strategic planning

Information services

Marketing/sales

Finance
SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS
MANAGEMENT

 Relating marketing Channels, Logistics, and Supply Chain Management


 Logistics
 Logistics management
 Supply chain
 Supply chain management
Relating marketing channels, logistics
management, and supply chain management
The automotive supply chain
SIGNIFICANCE OF SUPPLY CHAIN AND
LOGISTICS MANAGEMENT
 Supply Chain Management and Marketing Strategy
 Aligning a Supply Chain with Marketing Strategy
 Understand the customer
 Understand the supply chain
 Harmonize the supply chain with
the marketing strategy
INFORMATION AND LOGISTICS MANAGEMENT OBJECTIVE
IN A SUPPLY CHAIN

 Information’s Role in Supply Chain Responsiveness and Efficiency


 Electronic data interchanges
 Total Logistics Cost Concept
INFORMATION AND LOGISTICS MANAGEMENT
OBJECTIVE
IN A SUPPLY CHAIN
 Customer Service Concept
Supply chain managers balance total logistics
cost factors against customer service factors
INFORMATION AND LOGISTICS MANAGEMENT OBJECTIVE
IN A SUPPLY CHAIN

 Customer Service Concept


 Lead Time
 Quick response
 Efficient consumer response
 Dependability
 Communication
 Convenience
 Customer Service Standards
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN
 Third-party logistics providers
 Transportation
Advantages and disadvantages of five modes
of transportation
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN
 Transportation
 Railroads
 Intermodal transportation
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN
 Transportation
 Motor Carriers
 Air Carriers and Express Companies
 Freight Forwarders
 Warehousing and Materials Handling
 Order Processing
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN
 Inventory Management
 Reasons for Inventory
 Inventory Costs
 Supply Chain Inventory Strategies
 Just-in-time (JIT) concept
 Vendor-managed inventory
 CLOSING THE LOOP:
REVERSE LOGISTICS
Logistics

 Those activities that focus on getting the right amount of the right
products to the right place at the right time at the lowest possible
price.
Logistics Management

 The practice of organizing the cost-effective flow of raw materials, in-process inventory,
finished goods, and related information from point of origin to point of consumption to
satisfy customer requirements.
Supply Chain

 A sequence of firms that perform activities required to create and


deliver a good or service to consumers or industrial users.
Supply Chain Management

 The integration and organization of information and logistic activities


across firms in a supply chain for the purpose of creating and
delivering goods and services that provide value to customers.
Cross Docking

 Practice of unloading products from suppliers, sorting products for


individual stores, and quickly reloading products onto trucks for a
particular store.
Electronic Data Interchange (EDI)

 Combine proprietary computer and telecommunication technologies to


exchange electronic invoices, payments, and information among suppliers,
manufacturers, and retailers.
Total Logistics Cost

 Expenses associated with transportation, materials handling and


warehousing, inventory, stock-outs, order processing, and return
goods handling.
Customer Service

 The ability of logistics management to satisfy users in terms of time,


dependability, communication, and convenience.
Lead Time

 Lag from ordering an item until it is received and ready for use or sale.
Also called order cycle time or replenishment time.
Quick Response

 An inventory management system designed to reduce the retailer’s lead


time, thereby lowering its inventory investment, improving customer
service levels, and reducing logistics expense.
Third-Party Logistics Providers
 Firms that perform most or all of the logistics functions that
manufacturers, suppliers, and distributors would normally perform
themselves.
Vendor-Managed Inventory

 An inventory management system whereby the supplier determines the


product amount and assortment a customer (such as a retailer) needs and
automatically delivers the appropriate items.
Reverse Logistics

 A process of reclaiming recyclable and reusable materials, returns, and


reworks from the point of consumption or sue for repair, remanufacturing,
redistribution, or disposal.
Intermodal Transportation

 Combining different transportation modes to get the best features from


each.
Freight Forwarders
 Firms that accumulate small shipments into larger lots and then hire a
carrier to move them, usually at reduced rates.
Materials Handling

 Moving goods over short distances into, within, and out of warehouses
and manufacturing plants.
Just-In-Time Concept

 An inventory supply system that operates with very low inventories and
requires fast, on-time delivery.

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