Contents

• THE ORIGIN OF LOGISTICS

• DEFINITIONS OF LOGISTICS

• EXAMPLES OF LOGISTICS SOLUTIONS

• OBJECTIVES OF LOGISTICS

• FUNCTIONS OF LOGISTICS

• SCOPE OF LOGISTICS

• LOGISTICS INDUSTRY IN INDIA

 The current trends in International Trade

• Globalization has vastly increased the trade

between countries
• Markets have transformed from domestic to Global
• Manufacturing in low cost countries and selling to
consumers throughout the world has become a set
trend
• Competition between companies in products and
services have become extremely fierce and mind
boggling

• Companies constantly endeavoring to improve the

quality of their products and services for a larger
share of the market

• Countries battling for economic supremacy and

GDP growth
 Impact of Globalization
• Companies are striving to meet changing customer
demands in a market where products become
outdated fast
• Success rate has become lower because far too
many products are launched
• Customers opting for better value new products to
old products
• Customer demands are increasing for world class
products and services
How can companies turn competitive?
• 1.Produce world class products which are
competitively priced and bear top quality
• 2.Reduce manufacturing costs
• 3.Reduce distribution costs and reach
products on time to the markets
• 4.Quickly respond to the market and
changing Customer requirements
• 5.Ensure an effective supply chain and
Logistics Management
 Definition of Logistics

• LOGISTICS OR PHYSICAL DISTRIBUTION REFERS TO

THE ART OF MANAGING THE FLOW OF PRODUCTS
OR MATERIAL FROM PRODUCER OR SUPPLIER TO
THE CUSTOMER OR USER AND IS THUS
CONCERNED WITH THE CREATION OF TIME AND
PLACE UTILITY
 Definition of Logistics

• Logistics is the process of

planning,implementing,and controlling the
efficient cost effective flow and storage of
Raw materials, Semi-finished, Finished goods
and related information from point of origin
to point of consumption for the purpose of
conforming to Customers requirements
- American Council of Logistics management
WHAT IS THR ROLE OF A LOGISTICS
MANAGER ?

LOGISTICS MANAGERS ENSURE THAT THE RIGHT

PRODUCT,IN THE RIGHT QUANTITY,IN THE RIGHT
CONDITION IS DELIVERED TO THE RIGHT
CUSTOMER AT THE RIGHT PLACE AT THE RIGHT
TIME AND AT THE RIGHT COST.
 The key Drivers of Logistics
Management
• Inventory Transportation

• Warehousing Packaging

• Information Technology

• Reverse Logistics
 The Evolution of Logistics
• LOGISTICS AS A DISCIPLINE STARTED WITH THE
EUROPEAN ARMED FORCES.

• DURING TIMES OF WAR MAINTAINING ONES SUPPLY

LINES WHILE DISRUPTING THOSE OF THE ENEMY IS A
CRUCIAL ELEMENT OF MILITARY STRATEGY.

• SOLDIERS MOVED FROM THEIR BASE TO A FORWARD

POSITION AND ALONG WITH THEM
ARMS,AMMUNITION,FOOD,EQUIPMENT HAD TO BE
MOVED QUICKLY WITHOUT ANY ERRORS OR
OMISSIONS.
• WARS WERE WON OR LOST DEPENDING UPON
THE STRENGTH OF A COUNTRY’S LOGISTICS
CAPABILITY OR THE LACK OF IT.

• IN TODAY'S GLOBALIZED COMPETITION AND

BUSINESS WARFARE, COMPANIES EITHER SURVIVE
OR PERISH DEPENDING UPON THE STRENGTH OF
THEIR LOGISTICS CAPABILITIES.
 MILITARY LOGISTICS
• THE BRANCH OF MILITARY OPERATIONS
THAT DEALS WITH
PROCUREMENT,DISTRIBUTION,
MAINTENANCE, AND REPLACEMENT OF
MATERIAL AND PERSONNEL.
 Business Logistics
• THE TERM LOGISTICS IS EXTENSIVELY USED IN
BUSINESS TODAY AND MANY COMPANIES ATTACH
GREAT IMPORTANCE TO LOGISTICS .

• COMPANIES ARE INCREASINGLY FOCUSSING ON

PROCESSES LIKE CRM –ISCM AND SRM TO IMPROVE
THEIR QUALITY COST AND DELIVERY TO FULFIL THE
REQUIREMENT OF THEIR CUSTOMERS AND CAPTURE A
LARGER SHARE OF THE MARKET.

• PERFORM OR PERISH EQUALLY APPLIES TO

COMPANIES AND EMPLOYEES.
 7 R’s of Logistics management

• Logistics management is concerned with

getting the Right product, in the Right
quantity, in the Right condition, to the Right
place, at the Right time, to the Right
Customer and at the Right cost.
 Examples of Logistics Solutions
• Dhabawallas of Mumbai
• Automobile Industry
• Textiles Industry
• Indian postal service
• Restaurants
• Hotel Laundry Services
• Ecommerce
 Objectives of Logistics

• Reduction in Inventory costs

• Economy of freight-Reduce Transportation

costs

• Timely delivery to customers

• Minimum damage to products

• Quicker and faster response to customers
• Lower the cost of distribution to make
• the selling price more competitive
• Efficiency in warehousing and perfect stock
maintenance
 Function of Logistics
• Processing of orders received from the
customers
• Inventory planning, control and management
• Warehousing
• Logistical Packaging
• Transportation
• Material handling and storage
• Information
 Logistics in three stages
• Inbound Logistics before manufacturing

• Process logistics-Storage and movement

• Outbound Logistics after manufacturing-

 3 PL Logistics services
• Transportation
• Warehousing
• Freight forwarding
• Customs Clearance
• Material handling
• Shipping
• Invoicing and Delivery
• Many other value added services
 THE GROWTH OF THE
LOGISTICS INDUSTRY IN INDIA
• INCREASE IN TRADE POST LIBERALIZATION, FROM 250
MILLION TONNES TO 3000 MILLION TONNES IN 2011-
12

• INDIAN ECONOMY GROWING AT ABOUT 8 PERCENT

EVERY FIVE YEARS WITH SERVICES CONTRIBUTING
ABOUT 55 PERCENT TO GDP,MANUFACTURING 30
PERCENT AND AGRICULTURE 15 PERCENT

• INDIA WITH ITS LARGE MARKET SIZE AND OTHER

ADVANTAGES EMERGING AS A MANUFACTURING
HUB.
• GLOBALIZATION-COMPANIES CAN MANUFACTURE
AND SELL IN ANY PART OF THE WORLD

• INDIA EMERGING AS THE WORLDS RETAIL MARKET

WITH MANY LARGE WORLD RETAILERS ENTERING
INDIA

• RISING INCOME OF INDIA'S MIDDLE CLASS AND

UPPER MIDDLE CLASS LEADING TO AN EXPLOSION
OF MALLS, HYPER MARKETS, MEGA SHOPPING
CENTERS,BEAUTY PARLOURS ETC
• ECONOMIC GROWTH IN RURAL INDIA HAS RISEN
INCOME LEVELS IN OUR RURAL POPULATION WITH
INCREASED CONSUMPTION OF GOODS AND
SERVICES

• INCREASING FLOW OF FOREIGN INVESTMENTS

IN
INFRASTRUCTURE,AUTOMOBILES,RETAIL,FOOD,PH
AR-
MACEUTICALS,TELECOMMUNICATIONS,ELECTRONI
CS AND OTHER INDUSTRIES.
• THE GROWTH OF E-COMMERCE WARRANTS A
SUBSTANTIAL INCREASE IN WAREHOUSING AND
TRANSPORTATION.
 The Role and importance of Logistics
• WITH GLOBALIZATION OF MARKETS AND GLOBAL
COMPETITION THE PERFORMANCE OF THE INDIAN
ECONOMY WOULD ESSENTIALLY DEPEND UPON HER
LOGISTICS CAPABILITIES.

• LOGISTICS INDUSTRY GROWING AT ABOUT 15

PERCENT EVERY YEAR WITH REVENUES TOUCHING
ABOUT USD 125 BILLION IN 2013

• FOREIGN GLOBAL COMPANIES DOMINATING IN

INDIA'S LOGISTICS INDUSTRY WITH MASSIVE
INVESTMENTS
• LOGISTICS BEING A SUNRISE INDUSTRY IN INDIA,
KNOWLEDGE AND SKILLS ARE BEING DEVELOPED
THROUGH MANY INSTITUTIONS.

• WITH DOMESTIC AND FOREIGN INVESTMENTS IN

LOGISTICS INFRASTRUCTURE, A SOLID FOUNDATION
HAS BEEN ESTABLISHED FOR THE GROWTH OF THE
LOGISTICS INDUSTRY.

• WITH GLOBALIZATION AND DEVELOPING LOGISTICS

SKILLS, COMPANIES ARE FOCUSSING ON THEIR CORE
MANUFACTURING PROCESSES AND OUTSOURCING
ALL LOGISTICS ACTIVITIES.
• INDIAN COMPANIES TODAY OUTSOURCE ABOUT
52 PERCENT OF THEIR LOGISTICS REQUIREMENT
TO 3 PL COMPANIES .

• THE 3 PL INDUSTRY HAS ACHIEVED MASSIVE

GROWTH IN THE LAST DECADE AND GROWING AT
ABOUT 20 PERCENT.

• THE NUMBER OF EMPLOYEES IN THE LOGISTICS

SECTOR IN INDIA IS ESTIMATED AT 4.5 MILLION
AND THE NUMBERS ARE GROWING
 LOGISTICS AS A CAREER
• WITH THE CHANGES IN THE GLOBAL BUSINESS
ENVIRONMENT,THE NEED FOR WELL-
EDUCATED,TALENTED PROFESSIONALS WITH
MULTIPLE SKILLS HAS EMERGED
• LOGISTICS IS CRITICAL TO THE SUCCESS OF EVERY
ORGANIZATION.MNC COMPANIES LIKE COCO-
COLA,WALMART,NIKE AND COMPANIES IN RETAIL
LIKE HINDUSTAN LEVER ATTRIBUTE THEIR SUCCESS
TO THEIR GLOBAL LOGISTICAL SYSTEMS
 WHAT DOES A CAREER IN LOGISTICS
OFFER?
• JOB OPENINGS IN SEVERAL COMPANIES

• GOOD SALARIES AND PERKS

• UPWARD MOBILITY

• EXCITING OPPORTUNITIES IN INDIA AND

WORLDWIDE

• INTERNATIONAL ASSIGNMENTS
 THE END
• Logistics Management is
therefore a fast growing Global
industry offering tremendous
scope for career development
and leadership roles.
 MANY
THANKS
and BEST WISHES
Best