LOGISTICS

MANAGEMENT
DYNAMIC
ENDLESS POSSIBILITY
PROFITABILITY RATHER THAN REVENUE

Presented by: Imran Karim

 THE HIDDEN ICEBARG : Logistics or Logistics Efficiency reduce the profitability!!!

A Quick Logistics Review

Inventory Management Procurement Distribution Management

Inventory Turnover ratio CCFOT Analysis

Procurement Policy
ABC Analysis Automated SD process
KYS and Vendor Management
Inventory value

Sales Through Rate Demand Forecast Process Sales and Delivery Management Policy
Days of inventory outstanding (DIO)  Supply Forecast Sales Order vs. Delivery Analysis
Safety stock  PR-PO Policy

Inventory Reports KYC Analysis

PO vs GR Analysis
Real Time Inventory movement Data Credit Policy
Payment Policy
Inventory Accuracy Distribution cost vs. Turnover Ratio

Dispatch SOP
Team Knowledge Market Price Analysis
Distribution Capacity Analysis
Written SOP & Process Vendor Performance Rating
Sales & Distributor SLA
Transparency Partner Compliance and Audit
Distribution Route and Frequency
Accountability and Responsibility
 THE HIDDEN ICEBARG : Logistics reduce the profitability!!!

Product A Product B

Revenue 100 Revenue 100

Logistics Cost Containment 5%
Log. Cost 80 Log. Cost 76

Profit 20 Profit 24

Product A Product B

Revenue 100 Revenue increase 20%

Revenue 120
Log. Cost 80 (Same Price & Cost Per Unit) Log. Cost 96

Profit 20 Profit 24

Cost Containment Revenue increase

•is not Cost Cutting or Cost Reduction.
•Cost Containment directly Impact GP •Increase of Revenue also increases the costs like TAX, VAT
•High Possibilities of •High possibilities of Sales Drop and market loose
•Increase or maximum utilization of the Throughput/ Production Capacity
•Process Re-engineering and adaptation of new technology
•Increasing the forecast accuracy, Inventory Accuracy, CCFOT
•Keep tracking of Improvement and results
•ROI and Comparative Analysis
Logistics is Live and Dynamic

Almost similar commission/margin structure

Uniform Pricing, VAT-TAX structure

Common source of RM
Facilities
Perfect competition market

Homogeneous product and quality

Inventory Distribution
Same external factors impact

Pricing Information
Better Customer Service attracts the customer

On time delivery and availability increases

market share
Sourcing
Market Size, customer buying pattern and
Distribution Cost based market penetration
Order and delivery frequency based on 80:20
rules
Omini-channel distribution to ensure lowest order
bounce
Strategic Procurement and warehouse
Management for best utilization of investment
7 R’s of Logistics 6 Benefits of Logistics Management
Logistics Operation Flow
Key Logistics Report: Live and Accurate Data

Real Time Inventory Report CCFOT Analysis

Inventory Valuation Report Order and Delivery Report
Inventory SD Report
Inventory Coverage Report Order and Delivery Accuracy
Multidimensional Analysis Management
Distributor Analysis
Reports
Sales and Market Analysis

Resource Utilization Analysis Cost to Serve Analysis

KPI and Target Settings Team and Profitability and Target Market Analysis
Logistics
Project Identification Process Logistics Route Delivery frequency and cost
Cross Functional Integration Cost Report Distribution Optimization
Development Reports
Per Ton Distribution Cost

Demand Forecast Distributor Ranking based on Order

Supply Forecast Strategic Distributor Distributor Credit Analysis
Distribution Planning Business Market Share Analysis
Reporting
Dispatch Planning Analysis
Improvement Area Identification
Thank You