Logistics
- 1. LOG i STICS
- 2. A glimpse… Logistics originated in the military's need to supply themselves with arms, ammunition and rations as they moved from their base to a forward position. In ancient Greek, Roman and Byzantine empires, there were military officers with the title ‘Logistikas’ who were responsible for financial and supply distribution matters. The term "logistics" originates from the ancient Greek "λόγος" ("logos"—"ratio, word, calculation, reason, speech, oration").
- 3. Supply Chain Management •suppliers ( and their suppliers), •consumers (and their consumers), •manufacturing centers, warehouses, • distribution centers, •and the retail outlets, •as well as raw materials, work-in-process inventory, and finished products that flow between facilities
- 4. Four Pillars • Procurement • Demand and Replenishment • Customer Service • Logistics
- 5. 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 point of origin to point of consumption for the purpose of conforming to Customer Requirements
- 6. Main Objective “Ensuring availability of the right product in the right quantity, and of right condition at the right place, at the right time, for the right customer, at the right cost” - Council of Logistics Management
- 7. A Typical Supply Chain Supplier Warehouse Manufacturing Distributors Retailers Supplier Consumers
- 8. Current Logistics Practice Client Vendor C Forwarders/B Forwarders/B Customer A rokers/ rokers/ Vendo rA Truckers - Receiving Truckers - Quality Assurance - Storage Customer B - Production - Picking/Packing Customer C Vendor D
- 9. Logistical Operations • Warehousing • Materials Handling • Inventory Management • Transportation and Distribution
- 10. What is a Warehouse? A warehouse is a place for storage or any space or area that is used to keep materials, goods, products, and other items for a period of time until finally withdrawn, used, transferred or sold. It is also described as a place where things kept are protected from elements and safe guarded from losses
- 11. Major Objectives of Warehousing •To receive materials and supplies in accordance with proper documentation procedures and in conformance with specified quality. •To plan and provide adequate storage space for goods •To keep storage of goods in accordance with efficient warehousing practices including ease of order picking •To undertake measures to protect stocks from damage, pilferage, and unauthorized movements •To implement a system of reconciling inventory records with actual physical stock •To issue and transfer materials and goods in conformance with set documentation procedures •To assist in the effective and efficient disposal of scrap/surplus items by identifying, collecting, and segregating these items for easier disposal.
- 12. Logistical Operations • Warehousing • Materials Handling • Inventory Management • Transportation and Distribution
- 13. What is Materials Handling? From an engineering From the logistics point of view, it is the art management point of and science involving the view, it is the portion of moving, packaging, and the business system storing of substances in which affects the any form. relationship of material and packaging to the product, facility, or customer without adding usable worth or changing the nature of the product.
- 14. Elements of Materials Handling • Motion • Time • Place • Quantity • Space
- 15. Objectives of Materials Handling Reduced Cost -Lower Inventory and production control costs -Better space utilization/ reduce demurrage -Shorter production time cycle Reduce Waste -Less Spoilage -Less damage by improper handling
- 16. Increased Productivity Capacity -Assure constant rate of production -Coordinated handling system -Better control of materials -More effective use of manpower -Eliminates production bottlenecks Improved Working Conditions -Safer working situations -Less fatigue -Upgrading employee to more productive work Improved Distribution -Quicker delivery to customers -Increased production volume due to lower cost -Cut damage claims.
- 17. 3Ms of Materials Handling Physical Characteristics What Material Volume Scope Where Source & Destination Movement Route When Frequency Speed or Rate How Unit Handled Method Who Equipment Manpower
- 18. Logistical Operations • Warehousing • Materials Handling • Inventory Management • Transportation and Distribution
- 19. Inventory Management Inventory Management determines the amount of inventory to keep in stock that is how much to order and when to replenish, or order.
- 20. Role of Inventory Management in Logistics •management of inventories to have the right amount and to achieve competitive priorities for the business. •balance the conflicting cost in keeping inventory to ensure supply versus stock-out issue that affects revenue and customer service.
- 21. Logistical Operations • Warehousing • Materials Handling • Inventory Management • Transportation and Distribution
- 22. Transportation and Delivery it provides service operation which moves materials and goods between each process in the link and between links in the supply chain to obtain cost efficient transport route from supplier to factory and factory to customer.
- 23. Movement/ Transportation Sytem RM Supply RM Storage Manufacturing FG Storage Markets Point supplier storage plant warehouse customers Movement/ Movement/ Movement/ Movement/ transport transport transport transport
- 24. Distribution is the coordination and management of the movement, inventory, protection and storage of finished goods from the end of production line to the customers to achieve timely and cost effective service level. It aims to minimize cost involved in physically moving and storing products from its production point to the point where it is purchased by customer, while maintaining customer service level
- 25. Simple Distribution System Market Customer Raw materials supply point Manufacturing Market plant Customer Raw materials supply point Market Customer
- 26. Complex Distribution System retailer retailer warehouse wholesaler retailer Raw Materials Supply point retailer retailer Manufacturing Plant retailer retailer Raw Materials warehouse wholesaler retailer Supply point retailer retailer Manufacturing Plant retailer retailer Raw Materials Supply point warehouse wholesaler retailer Manufacturing retailer retailer Plant retailer retailer Raw Materials Supply point warehouse wholesaler retailer retailer retailer
- 28. Quiz • Define supply chain (3points) • 4 pillars of supply chain • 7 Rs • 3M’S of Material Handling • 5 elements of Material Handling • 3 types of material inventory