According to The Council of Logistics Management, International Logistics is the process of Planning, Implementing and Controlling the flow and Storage of Goods, Services and related information from a point of origin to a point of Consumption located in a different Country.

Distribution/Dealer Net works Design 6. 1. Location of Ware Houses . Product Design 2. Productions Structure 5. Plant Location 3.DECISIONS IN LOGISTICS MANAGEMENT the various decisions in Logistics management that need examination for an integrated systems are. Choice of Markets/ Sources 4.

Transport Contracting 14. Transportation-mode choice 12. Inventory Management-stocking level 11. packaging 15. Warehouse Operations . Plant Layout and Logistics 8. Shipment Size and Routing design 13.7. Production Planning 10. Allocation Decision 9. Materials handling 16.

Some of the important Legislation that affect Logistics are. Use of Packaging materials 6. 1. Consignment tax 3. Excise Duties 4. Motor Vehicles Act and similar Acts for other modes 7. Distribution Policies .ROLE OF GOVERNMENT The Government plays a significant role in logistics. Octroi and Entry Tax 5. Central sales tax and Local Sales tax 2.

CLASSIFICATION OF LOGISTICS APPLICATION 1. 6. Decision wise Actor-wise Inbound and Outbound Logistics Private Vs Public Sector Single of Multiple Plants Nature of Product Made to Stocks Vs Made to Order . 3. 5. 7. 4. 2.

Handling and warehouse operations 7. Pipeline inventory 3. Product inventory at warehouses and dealers 4. Transits Losses/Insurance 5. Important element of Logistics product inventory at sources 2. Transportation 9. Packaging 8. Storage Losses/insurance 6.TOTAL LOGISTICS COST 1. Customer shopping .

Mathematical Programming Models Location-allocation model-distribution network designing model 3. Scheduling Model 6. stocks out cost . spoilage and material handling costs 4. Alternative Analysis . Forecasting Models 2.inventory vs.MODELS IN LOGISTICS MANAGEMENT 1. Inventory Model .inventory vs. transportation cost .Inventory vs. Routing Model 5.

2.LOGISTICS AND INFRASTRUCTURE 1. 5. Right of way Vehicle Motive power Terminals Operations/systems . 3. 4.

.SUPPLY CHAIN MANAGEMENT DEFINITION According to Mentzer supply chain management is defined as the systematic strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across business within the supply chain for the purpose of improving the long-term performance of the individual companies and to supply chain as whole .

Materials and information flow both up And down the supply chain. Supply chain management(SCM) is the integration of these act5ivities. through improved supply chain relationships. to achieve a sustainable competitive advantages .The supply chain encompasses all activities associated with the flow and transformation of goods from the raw materials stages through to the end user as well as the associated information flows.

OBJECTIVES OF SC 1. 2. The impact of the logistics system design on the revenue contribution and b). two dimensions to the goal a). The operating cost and capital requirements of the design. 3. the desire to develop a logistics activity mix that will result in the highest possible return on investment over time. . to achieve supply channel process goals that will more the firm toward its overall objectives.

SCOPE OF MODERN SUPPLY CHAIN Company Suppliers customers Supplier s suppliers customers/end users .

Complex problems involve also midsized companies to an increasing degree. . Increased cross border sourcing 4. Increasingly global operations.Global supply chain management Global supply chains pose challenges regarding both quantity and value: 1. Globalization 3. Shared service centers for logistical and administrative functions 6. Collaboration for parts of value chain with low-cost providers 5. which require increasingly global coordination and planning to achieve global optimums 7. Supply and Value Chain Trends 2.

The differences between channels of distribution. Creating cost alignment to meet profit objectives . In developing improved channel strategies. such as specific customer or product needs. Gaining clear direction as to how to achieve optimum profitability from different channels 3.CHANNEL STRUCTURE Business and Supply Chain Channel Strategy supply chain initiatives are optimized to meet various channel strategies. perhaps through cost to serve analysis. Articulation of contributions from different customers and customer groups. 1. Ensuring service alignment to meet profit objectives 4. 2. can have a major impact on supply chain solutions.

Logistics Bureau have undertaken a number of reviews recently that have assessed the potential benefits of competitors sharing distribution facilities and/or delivery transport. This type of work is undertaken within a strict set of agreed boundaries to ensure that each companies information is handled with the appropriate degree of confidentiality. Many companies have shied away from this in the past . but attitudes are now changing. fearing a loss of cost and service differentiation in the market place. .A review of distribution channel strategy can often highlight opportunities for shared distribution.

2. who sells to end customers 3. Advertisement typically used for consumption goods . Distributor. who sells to retailers.Channels A number of alternate 'channels' of distribution may be available: 1. Retailer (also called dealer or reseller).

Managerial concern 1. Channel membership 2. Monitoring and managing channels . Channel motivation 3.

for example. 3.Where the majority of resellers stock the 'product' (with convenience channel 1. 2. . Exclusive distribution . and particularly the brand leaders in consumer goods markets) price competition may be evident. Intensive distribution . Selective distribution .This is the normal pattern (in both consumer and industrial markets) where 'suitable' resellers stock the product.Only specially selected resellers or authorized dealers (typically only one per geographical area) are allowed to sell the 'product'.

warehouses. pool point shipping. intermodal transport. private . mode of transportation. parcel. 2.g. e. motor carrier.. push or hybrid).. cross-docks and customers. railroad. direct shipment. replenishment strategy (e. cross docking. and transportation control (e. ocean freight. Distribution Network Configuration: number. owner-operated. airfreight. including TOFC (trailer on flatcar) and COFC (container on flatcar). e. decentralized or shared). pull. Distribution Strategy: questions of operating control (centralized. production facilities.g. distribution centers. DSD (direct store delivery). closed loop shipping.Supply chain management problems Supply chain management must address the following problems: 1.g.LTL. including truckload. location and network missions of suppliers.g... delivery scheme.

For example. .continuous 3. Trade-offs may increase the total cost if only one of the activities is optimized. Trade-Offs in Logistical Activities: This activities must be well coordinated in order to achieve the lowest total logistics cost. full truckload (FTL) rates are more economical on a cost per pallet basis than less than truckload (LTL) shipments.

5.continuous 4. including raw materials. Cash-Flow: Arranging the payment terms and methodologies for exchanging funds across entities within the supply chain. forecasts. inventory. work-in-progress (WIP) and finished goods. potential collaboration. Information: Integration of processes through the supply chain to share valuable information. Inventory Management: Quantity and location of inventory. transportation. including demand signals. etc. . 6.

Globalization Era 4. Specialization Era Phase Two: Supply Chain Management as a Service 6.0) . Creation Era 2. Specialization Era Phase One: Outsourced Manufacturing and Distribution 5.0 (SCM 2.Developments in Supply Chain Management 1. Supply Chain Management 2. Integration Era 3.

Risk and reward structure and 9.Components of SCM 1. Product flow facility structure 5. Culture and attitude . Planning and control 2. Organization structure 4. Power and leadership structure 8. Management methods 7. Information flow facility structure 6. Work structure 3.

-based vendors over the next 12 months will either stay the same (52 percent) or rise (28 percent). as 81 percent of [North American] firms and 73 percent of those in Europe indicate they will be rethinking sourcing points. In MFG. with particular emphasis being focused on the area of strategic sourcing." according to the key findings.S. The remaining 10 percent source in South America.the current economic conditions. "Given . the emphasis has shifted back to cost reduction. while 19 percent of respondents favor China for their sourcing needs and 7 percent conduct their sourcing business in Europe. 64 percent of industrial professionals said they prefer to source with North American's MFGWatch Survey earlier this year. Africa and other countries. Prime Advantage Group Outlook Survey found that 80 percent of industrial manufacturers agreed that the level of direct goods they purchase from U.

-based vendor purchases: 66 percent said they will look to China as their low-cost country of choice.S. 14 percent said they will look to Mexico. and 15 percent said they will look outside these three locations. .For non-U. followed by managing costs of raw materials (32 percent) and components (31 percent). top sourcing concerns for the second half of 2009 include focusing on such business process issues as cost savings and efficiency measurement (36 percent). 5 percent said they will look to India. According to Prime Advantage's findings.

They need new savings as much as the buyers. and the best results often come from a joint effort to reduce mutual costs. Rather. . work with suppliers who show an inclination to seek mutual values.Following a review of overall responses. 2. CSC's report provides strong evidence that supply chain leaders simply do not accept economic conditions as an excuse for poor performance and are hard at work finding the next level of savings in their supply chains. Don't let the drive to overcome poor economic conditions destroy good work that went into supply chain collaboration and supplier relationships. When looking for savings in the market. 1. the 2009 Global Survey of Supply Chain Progress offered the following calls for action as firms move forward with their supply chain sourcing efforts. Use the downturn as an opportunity to find new values by collaborating with network partners. they have taken a proactive approach to working with important network constituents to find new values.

leaders have demonstrated that a close working relationship between supply chain professionals and IT and the CFO yield superior results. Rid the firm of the technology paradox. risk management is no closer to where it should be across supply chains.3.e. While only 46 percent of respondents said technology enablement (i. applying technology to the supply chain management effort to create added value) is helping.. repairs and maintenance. It's time to have an understanding of the potential supply chain risks and have a contingency plan ready for action when problems are encountered. 4. 5. . Dig into the source problems and reduce the need for returns. Take a lead from the European respondents and use post-sales support for customers as an example of how to enhance relationships with key customers. Although greater attention is being applied to lessons learned from past failures and analyzing root causes for failure.

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