LOGISTICS MANAGEMENT

LOGISTICS EVOLUTION

• INDUSTRIALIZATION
• LPG
• EMERGENCE OF GLOBAL VILLAGE
 AN ARMY WARFARE TECHNIQUE
• STEMS FROM LOGISTICOS
• THE PROCUREMENT MAINTENANCE AND
TRANSPORTATION OF MILITARY
MATERIALS FACILITIES AND
PERSONNEL.
 DEFINITION

• CLM- LOGISTICS IS THE PROCESS OF

PLANNING IMPLEMENTING AND
CONTROLLING OF EFFICIENT EFFECTIVE
FLOW AND STORAGE OF GOODS
SERVICES AND RELATED INFORMATION
FROM THE POINT OF ORIGIN TO THE
POINT OF CONSUMPTION FOR THE
PURPOSE OF CONFORMING TO
CUSTOMER EXPECTATION.
COMPONENTS OF LOGISTICS
GENERIC
Customer service

Network Order
design purchasing
PRIMARY

Transportation Inventory
management

Storage and Material Protective

warehousing handling management SUPPORTIVE

Procurement information Forecasting

 INBOUND LOGISTICS

SOURCES INPUT NEEDS SHIPMENT

STUDY

ORDER NEGOCIATING
QUALITY AND SUPPLY
PLACEMENT
CONTRACTS
 OUTBOUND LOGISTICS

OUTPUT TRANSPROT PROTECTIVE

INVENTORY PACKAGING

DISTRIBUTION ORDER NEGOCIATING

WAREHOUSING PROCESSING CUSTOMER
 COSTS
• INVENTORY COST
• TRANSPORTATION COST
• STORAGE AND WAREHOUSING COST
• MATERIAL HANDLING COST
• PACKAGING COST
 CONTD..
• ORDER PROCESSING COST
• INFORMATION COST
• CUSTOMER SERVICE COST
 BULLWHIP EFFECT
• EACH STAGE OF SUPPLY CHAIN IS
TRYING TO OPTIMISE ITS LOCAL
OBJECTIVE AND ACCORDINGLY
TAKES ACTION THAT ULTIMATELY
RESULT IN POOR PERFORMNCE.
• POOR PRODUCT FORECAST
• EXCEESIVE CAPACITY
• PRODUCT UNAVAILABILITY
 CONTD..
• HIGHER COSTS
WAREHOUSING
• For the purpose of storing inventory in such
a manner that physical attributes of the
inventory can be preserved we need
warehousing.
 Different concepts??
• Storages
Keeping and storing raw material,
components, tools etc- related to production
function
• Warehouses
keeping finished goods facilitating to the
marketing and distribution function of the
enterprise.
• Distribution center
• Serve regional market
• Regroup products into customized orders
• Maintain full line of product
• Consolidation
 WHY WAREHOUSING?
• Economic function • Operational function
– Consolidation – Receiving goods
– Break bulk – Protection
– Stockpiling – Recording
– Value added – Dispatch
services – Legal function
 WAREHOUSING TYPES

• PUBLIC
• PRIVATE
• BONDED
• FIELD
• COLD STORAGE
• DISTRIBUTION WAREHOSUE
• BUFFER WAREHOUSE
• EXPORT AND IMPORT
WAREHOUSE
 THE NEW MISSION OF WAREHOUSING
MANAGING INVENTORIES
(The Old Mission)

COMPUTERIZATION EMPLOYEE SKILLS AUTOMATION

INTEGRATED PERSPECTIVE

MANAGING INVENTORIES & INFO FLOW

(The New Mission)