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19138279 ERPBusiness Process ReEngineering for Implementing Warehouse Management System

19138279 ERPBusiness Process ReEngineering for Implementing Warehouse Management System

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Published by Kevin Chan

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Published by: Kevin Chan on Nov 05, 2012
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01/07/2015

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Logistics is a part of supply chain and is defined as "the process of
planning, implementing and controlling the efficient, effective flow and
storage of raw materials, in-process inventory, finished goods, services
and related information right from the point of origin to the point of
consumption (including inbound, out bound, internal and external
movements) in order to satisfy customer's requirements.

Logistics is also defined as time related positioning of resources. The
whole concept of Logistics is based on 7 R's which are:-

• Right Place
• Right Time
• Right Quantity
• Right Quality
• Right Price
• Right Condition
• Right Customer

Logistics activities, as a part of Supply Chain Management comprises
of the following:

• Purchase and Supply
• Material Handling
• Production Planning
• Production Control
• Transportation
• Storage
• Distribution
• Product Management
• Installation and Servicing
• Strategic Management

Manoj Banshilal Pachouri

ICFAI Business School

16

A well designed Logistics chain is expected to support the strategic
objectives of:

• Reduced Costs
• Shorter Lead Time
• Flexibility
• Enhanced Service
• Better Product Availability
• Better Product Reliability

The best configuration of the chain will vary from individual chain to
chain and individual organization to organization. But, in all the case
the architecture of the chain would include the following three
elements - System, Technology, Relations.

For example: In a manufacturing industry, Logistics plays a key role in
Supply Chain Management as there is a strong inter-play of activities
starting from raw materials till the finished goods. In all the activities
there is a flow of goods whether it is raw materials or WIP or semi-
finished goods or finished goods. Logistics plays a significant role in
the management of entire supply chain.

The pre-requisite infrastructure required to provide logistics solutions
are:

• Land and Building (Warehouse)
• Trained Manpower
• Material Handling Equipments
• Hardware and Software
• Transport Network
• Vendors

Manoj Banshilal Pachouri

ICFAI Business School

17

• Consultants

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