Unit -3 (Integration of logistics functions)

Integration of Logistics functions: Developments in outsourcing of Logistics-stores functions-bar coding,

layout, material handling, and suitable equipment’s for it, overall integration of various functions of
material management, stores, procurement, distribution network tuned to information flow from
customers to get the effectiveness.

CONTRACTS / OUTSOURCING)

Buying goods or services instead of producing or providing them in in-house,

Why company outsources activities

 To focus on core competencies.

 Resource constraints.
 Cost saving resulting from better management of supply chain.
 Optimum utilization of better available practice.
 Wider geographical coverage.

Benefits of outsources

 Focus on care activities

 At generate employment
 Utilization of external sources
 To improve quality
 Save tine & energy

Drawback of outsource

 Less control
 Dependence
 Costly
 Quality may not be consistent

Store Management
Store can be defined as the place or building where goods are kept.
Objective

 Ready accessible of material and equipment.

 Proper planning and coordination of inventory
 To provide safety
 To provide maintenance to raw material
 To level out irregulities in purchasing
 Better and improved service to shop floor
 Continuous supply of raw material
Type of Product to be stored

 Raw material
 Work in process
 Finishes product
 Equipment and supplies
 Wastage
 Emptities like drum
 Chemical like sulphuric acid
 Inflammable like petrol

Function of Store Keeper

 Receipt of item
 Inspection
 Record keeping
 Issuing
 Store controlling
 Safety
 Codification
 Proper maintainer of item.
Factors affecting stores

 Nature of product
 Quality
 Building structure
 Space available
 Location of store
 Cost of storage
 Layout of store

Material Handling

Material handling is the movement, protection, storage and control of materials and products throughout
manufacturing, warehousing, distribution, consumption and disposal. Inventory management and control.
Customer delivery,After-sales support and service.

Function of material handling

The basic function of material handling is to choose most appropriate materials handling equipment which is

safe and can fulfill material handling requirements at the minimum possible overall cost and to choose
production machinery and assist in plant layout so as to eliminate, as far as possible, the need of materials ..

Principles of Material Handling

Planning Principle: It establishes a plan which includes basic requirements, desirable alternates and planning for
contingency. Systems Principle: It integrates handling and storage activities, which is cost effective into
integrated system design.

Why Material Handling is important?

Following are the main importance of material Handling: ... Usually, about 59 tons of materials are handled for
every single ton of finished goods. Material handling ensures increased safety from permanent and temporary
disabilities. The methodology reduces claims for damages in parts and materials.

How do you classify material handling equipment?

The different types of handling equipment can be classified into four major categories: transport equipment,
positioning equipment, unit load formation equipment, and storage equipment.

Integration of various function of material management (store, procurement, distribution, network)

Materials management is defined as “the function responsible for the coordination of planning, sourcing,

purchasing, moving, storing and controlling materials in an optimum manner so as to provide a pre-decided
service to the customer at a minimum cost”.

Materials management is defined as “the function responsible for the coordination of planning, sourcing,
purchasing, moving, storing and controlling materials in an optimum manner so as to provide a pre-decided
service to the customer at a minimum cost”. From the definition it is clear that the scope of materials
management is vast.

Functions of Material Management

The functions of materials management can be categorized in the following ways:

 Material Planning and Control
 Purchasing
 Stores Management
 Inventory Control or Management
 Standardization
 Simplification
 Value Analysis
 Ergonomics
 Just-in-Time (JIT)

Scope of materials management