LOGISTICS

Introduction : Meaning & Definition Objective Components Significance Trade off customer services & cost

Introduction

Logistics is the management of the flow of the goods, information other resources in a repair cycle between the point of origin and the point of consumption in order to meet the requirements of customers. Logistics involves the integration of Information, Transportation, Inventory, Warehousing, Material Handling,, Packaging, And Security Logistics management is that part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customer and legal requirements.

S U P P L I E R S

INVENTORY FLOW

PROCUREMENT

MANUFACTURING SUPPORT

PHYSICAL DISTRBUTION

INFORMATION FLOW

C U S T O M E R S

FRAGMENTATION 1960
DEMAND FORECASTING PURCHASING REQUIREMENTS PLANNING PRODUCTION PLANNING MANUFACTURING INVENTORY WAREHOUSING MATERIALS HANDLING INDUSTRIAL PACKAGING FINISHED GOODS INVENTORY

EVOLVING TOTAL INTEGRATION INTEGRATION 1980 2000

INBOUND LOGISTICS LOGISTICS SUPPLY CHAIN

DISTRIBUTION PLANNING
ORDER PROCESSING TRANSPORTATION CUSTOMER SERVICE

OUTBOUND LOGISTICS

Natural resources ( Land, Building, and equipment

Management Functions Planning Implementation Control Customers

OUTPUTS OF LOGISTICS Outputs of logistics Marketing orientation Time & place utility Efficient distribution Proprietary asset

Human Resources
Information Resources

Raw Materials

In-process inventory

Finished Goods

Logistics Activities

Customer service, demand forecasting, plant & warehouse site selection, procurement, inventory control, material handling, order processing, packaging, distribution communication, return goods handling, savage & scrap disposal, traffic & transportation, warehousing & storage, Parts & Service support

 Higher

Level Customers Satisfaction Minimize the operating costs Reduction in time spend at every stage Value addition Inventory Control Competitive Tool Improve internal & external communication Implementation of JIT Co-operation & Co-ordination

NODE MATERIAL SOURCE COMPONENT PARTS PLAN

PROCUREMENT CYCLE

TRANSPORTATION LINKS
COMMUNICATION LINKS

ASSEMBLY PLANT DISTRIBUTION WAREHOUSE

PHYSICAL DISTRIBUTION CYCLE

CUSTOMER

RAW MATERIALS SUPPLY POINTS

RAW MATERIAL STORAGE

MANUFACTURING

FINISH GOODS STORAGE

MARKETS

MOVEMENT/ TRANSPORTATION STORAGE

MOVEMENT / TRANSPORTATION PLANT 1

MOVEMENT / TRANSPORTATION

MOVEMENT / TRANSPORTATION

WAREHOUSE

STORAGE

PLANT 2

WAREHOUSE

STORAGE

PLANT 3

WAREHOUSE

PHYSICAL SUPPLY MATERIALS MANAGEMENT INBOUND LOGISTICS

PHYSICAL DISTRIBUTION OUTBOUND LOGISTICS

1 MATERIAL SOURCE MANUFACTURING PLANT PLANT WAREHOUSE DISTRIBUTION WAREHOUSE CUSTOMER

2 MATERIAL SOURCE MANUFACTURING PLANT PLANT WAREHOUSE DISTRIBUTION WAREHOUSE CUSTOMER

3 MATERIAL SOURCE MANUFACTURING PLANT PLANT WAREHOUSE DISTRIBUTION WAREHOUSE CUSTOMER

10

ORDER PROCESSING

ORDER TRANSMISSION

CUSTOMER ORDER

ORDER SELECTION

ORDER TRNSPORTATION

CUSTOMER DELIVERY

LEAD TIME

COST

QUALITY

11

ORDER PROCESSING

DESIGN VARIFICATION

PRODUCTION PLANNING

MATERIAL PROCUREMENT

W A R E H O U S E

MANUFACTURING CYCLE INCLUDING QUALITY ASSURANCE

RAISING MANUFACTURING ORDER

12

SOURCING

ORDER PLACEMENT & EXPEDITING

SUPPLIER

RECEIVING

TRANSPORTATION

SHORTEST CYCLE TIME RIGHT QUALITY RIGHT COST JUST IN TIME

13

Order processing : Identify the lead time. Transportation Management: Own, Hiring, routing & load planning, selection of mode of transportation, packaging & documentation Inventory Management : Buffer stocks, lead time, replenishment of stocks Warehousing : site selection, space determination, layout & design, receipt & issue, preservation Material Handling : smoothing of materials flow, handling equipment, maintenance of equipments. Packaging: To ensure damage free & efficient handling Acquisition: To ensure availability of material at the right quantity , at the right time , at the right place , & at the right cost. Product scheduling: When, What, How much, How to produce Information system: Database management.

 Cross

functional co- ordination Creation of customer value Planning & control Succession generation

Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain). Another definition is provided by the APICS Dictionary when it defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."

A year of changes 1990 Rapid changes The changing business landscape - driving force The empowered consumer Impact on logistics Informed consumers Changing demographics Large retailers Focus upon distribution costs Changing strategies global strategy Increased importance of logistics and supply chains Supply chain strategy

CHANGES -

Deregulations Changing economic controls Changes in transportation Changes in financial institutions Changes in communication industry Utility industry Globalization Global market place Global network Supply chain challenges New supply sources Technology Information age Warehouse technology

According to the Council of Supply Chain Management Professionals (CSCMP), supply chain management encompasses the planning and management of all activities involved in Sourcing, Procurement, conversion, and logistics management.

It also includes the crucial components of coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers.

Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities. it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.

Logistics management is that part of the Supply Chain Management process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements "Logistics Management activities typically include inbound and outbound transportation management, warehousing, materials handling, order fulfilment, logistics network design, inventory management of third party logistics services providers.