LOGISTIC

MANAGEMENT

Group 8 – Section B

Chetan Sodhi
Aditya Anand
Anirudh Chauhan
Aarooshi Bansal
Ashish Pandey
Priyanshi Porwal
 WHAT IS LOGISTICS?

Logistics is the . . . “process of planning, implementing, and

controlling the efficient, effective flow and storage of goods,
services, and related information from point of origin to point of
consumption for the purpose of conforming to customer
requirements.”

The term Logistics Management is that part of Supply

Chain Management 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
 IS IT DIFFERENT FROM SCM?

Not really!

“Supply Chain Management deals with the management of

materials, information, and financial flows in a network
consisting of suppliers, manufacturers, distributors, and
customers.”
So, Logistics and Supply Chain are equivalent terms.
LOGISTICS FUNCTIONS

• Purchasing / Procurement
• Inventory Control
• Warehousing
• Materials Handling
• Facility Location / Network Design
• Transportation
• Customer Service
• Order Processing
VISUAL REPRESENTATION OF INTEGRATED
LOGISTICS MANAGEMENT
INBOUND LOGISTICS

Transport Supplier
Transport
Raw Materials Source

Material Consolidation
Handling Warehouse

Supplier
Transport
Raw Materials Source

Raw materials
or Parts Storage
INTERNAL LOGISTICS

Material
Handling

Manufacturing Manufcaturing
Manufacturing
Stage I Stage II N Stages Manufacturing
Stage N Finished Goods

OUTBOUND LOGISTICS
Material
Handling

Retailer Local delivery Warehouse Delivery

Transport
Finished Goods
Storage
Customers
Delivery
Wholesaler
Local delivery
Retailer

Note:
Material Flow Information Flow
 NATURE AND CONCEPTS

• Logistics is the management of the flow of goods,

information and other resources, including energy and
people, between the point of origin and the point of
consumption in order to meet the requirements of
consumers (frequently, and originally, military
organizations).
• Logistics involves the integration of information,
transportation, inventory, warehousing, material-handling,
and packaging, and occasionally security. Logistics is a
channel of the supply chain which adds the value of time
and place utility.
• Today the complexity of production logistics can be
modeled, analyzed, visualized and optimized by plant
simulation software
TYPES OF LOGISTICS

A. Inbound Logistics
B. Outbound Logistics
C. Third Party Logistics
D. Fourth Party Logistics
E. Reverse Logistics
 A. INBOUND LOGISTICS

• Inbound logistics refers to the transport, storage and delivery

of goods coming into a business.

• Sourcing and vendor selection for supply of raw materials and

manufacturing parts
• Inbound transportation and procurement planning
• Raw materials warehousing including consolidation
warehousing
• Management of Inventory
• Information system for effective support strategic alliances
with the supplies and transporters
 B. OUTBOUND LOGISTICS
• Outbound logistics refers to the same for goods going out of a business.
Inbound and outbound logistics combine within the field of supply-chain
management, as managers seek to maximize the reliability and efficiency of
distribution networks while minimizing transport and storage costs.

• Outbound logistics system is concerned with the flow of finished products

from factory warehouse to the customers through a distribution network comprising:
• The wholesalers
• Distributors
• Retailers
• Regional warehouses
• Transporters
• The inventory at all levels
• Sales order processing
• Sales return processing
• Accounts receivable realization and
• Counter flow of information from the customers to the factory
 C. THIRD PARTY LOGISTICS

• A 3PL (third-party logistics) is a provider of outsourced logistics

services. Logistic services encompass anything that involves
management of the way resources are moved to the areas
where they are required. The term comes from the military.
 D. FOURTH PARTY LOGISTICS
• This evolution in supply chain outsourcing is Fourth-party
Logistics or 4PL. A 4PL provider is a supply chain integrator.
The 4PL assembles and manages all resources, capabilities
and technology of an organization's Supply Chain and its array
of providers.
Multiple
System
S
e Integration 4 PL
r

v
3 PL
i
O
fc
2 PL
fe

i
1 PL
c
Single
e

r Low Level of International Cross High

 E. REVERSE LOGISTICS

• Reverse logistics is for all operations related to the reuse of

products and materials. It is "the process of moving goods from
their typical final destination for the purpose of capturing value,
or proper disposal.
 MAJOR FEATURES OF FOR
LOGISTICS MANAGEMENT

• Smooth flow of all types of goods such as raw mareials, work-in-

process and finished goods
• Meeting customer expectations about product and related
information requirements
• Real time flow of information about products’ demand and
availability
• Delivery of quality product in required quantity without excessive
safety stock
• Best possible customer service at the least possible cost
• Integration of various managerial functions for optimization of
resources
• Movement and storage of goods in appropriate quantity
• Enhancement of productivity and profitability
CROSS DOCKING
Cross docking is a logistics procedure where products from
a supplier or manufacturing plant are distributed directly
to a customer or retail chain with marginal to no handling
or storage time
RESULTS
• Savings in transportation of more than 25 million truck
kilometres
• A reduction of more than 10,000 tons of CO2 emissions each
year, based on an assumption of 750,000 shipments annually,
with further potential in the years ahead
• Significant operational cost reductions and scale efficiencies
• Greater overall flexibility for inbound and outbound
• Improved high service levels to automotive
shipments
dealerships within the network
 INTEGRATED LOGISTICS MANAGEMENT

• Integrated Logistics is viewed as a method to create a

sustainable competitive advantage over the
company's competition
• Logistics strategy must be integrated with corporate strategy
because corporate strategy sets the basic requirement to
the Logistics system of a strategy
• The logics process is becoming more demanding and complex,
so is the business environment in which the logistics has
to operate
• Highlights seven critical factors including that are
contributing to
the complexity of logistics system operations
• Escalating customer demand
• Cycle time reduction
• Globalization
• Restructuring
• Supply Chain Partnerships
• Productivity pressures and
• Environmental awareness
 STRATEGIC LOGISTICS
PLANNING
• Strategic logistics planning is essentially concerned with the
deployment and management of logistics resources to met
the desired cost effective service performance of the
system

• This may involve, number and location of warehouses, mode

and carrier selection, Inventory positioning, inventory planning,
sub contracting of services, sourcing, equipment and facilities
planning, order management and Information systems planning
etc.
• This is also includes such decisions as location and capacities of
company owned plants and warehouses, acquisition or long
term hiring of carriers like ships barges, trucks etc, acquisition of
martial handling system and facilities, balancing facilities to
maximize throughput and flexibility and introduction of system to
help, reductions in response time and in process inventory

• Choice of supply, transport mode, strategic alliance with both

suppliers and customers also form parts of these strategic
logistics planning process.

• The process of strategically managing the acquisition,

movement and storage of materials, parts, finished goods
inventory, and related information flows through the organization
and its marketing channel in such a way that current and future
profitability is maximized through the cost-effective fulfillment of
orders.
 MAIN OBJECTIVES OF LOGISTICS
PLANNING ARE:

• Cost reduction: - This strategy is directed towards minimizing

the variable costs associated with the movement and storage.
The best strategy is to evaluate the alternative courses
action
of and select the optimum one keeping
maximization as the prime goal in mind.
profit

• Capital reduction: - This strategy is directed

minimizing
towards the level of investment in the logistics
system.
• Service improvements: - This strategy recognizes that
revenue
the is a function of the logistics service provided and
develops an effective service strategy that is different from the
one provided by competitors
 ISSUES FOR GLOBAL LOGISTICS

• Movement of product
• The flow of information
• Time / Service
• Cost competitiveness
• Integration
• Different culture
THANK YOU…