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 design

Order purchasing PRIMARY

Transportation

Inventory management Protective management

Storage and warehousing

Material handling information

SUPPORTIVE

Procurement

Forecasting

INBOUND LOGISTICS
SOURCES STUDY INPUT NEEDS SHIPMENT

QUALITY

ORDER PLACEMENT

NEGOCIATING AND SUPPLY CONTRACTS

OUTBOUND LOGISTICS
OUTPUT INVENTORY TRANSPROT PROTECTIVE PACKAGING

DISTRIBUTION WAREHOUSING

ORDER PROCESSING

NEGOCIATING 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
± Consolidation ± Break bulk ± Stockpiling ± Value added services

‡ Operational function
± Receiving goods ± Protection ± Recording ± Dispatch ± 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)