Complit Project on Lo Gist Ices

8/6/2019 Complit Project on Lo Gist Ices

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VIVA COLLEGE OF ARTS, COMM., &SCIENCE

SUBJECT: LOGISTICS

PROJECT ON: ACHIEVING LOGISTICAL COMPENTENCE IN

CURRENT INDUAN SCENARIO

SUBMITTED TO: PROF. NITIN KULKARNI

CLASS: T.Y.B.M.S 5TH SEM

GROUP MEMBER:

ROLL NO NAME

HARESH GADDA 23

SAJIDALI.S.KHAN 38

HEMANT PATIL 69

KUMAR TIKARE 101

DISHANG MEHTA 112

MANISH MORE 115


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ACHIEVING LOGISTICAL

COMPETENCE IN

CURRENT INDIAN SCENARIO


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AcknowledgementWe would like to thank all those who have given us constructive suggestions for the

improvement of all the aspects related to this project.

We would like to thank Prof. NITIN KULKARNI for giving us the opportunity and

the requisite base in the subject matter which enabled us to bring out this project, for

which we are highly grateful.


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TABLE OF CONTENTS

NO CONTENTS PAGE NO.

1 ACHIEVING LOGISTICAL COMPETENCY IN CURRENT

INDIAN SCENARIO

2 THE ROLE OF LOGISTICS' INFORMATION AND

COMMUNICATION TECHNOLOGIES IN PROMOTING

COMPETITIVE ADVANTAGES OF THE FIRM

3 INVENTORY FLOW

4 LOGISTICS CURRENT SCENARIO IN

INFRASTRUCTURE

5 LOGISTIC BUSINESS MANAGEMENT INSIGHT IN

INDIA

6 CASE STUDY


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ACHIEVING LOGISTICAL COMPETENCY IN CURRENT INDIAN

SCENARIO

Competency is the ability to perform a function. Logistical competency is the ability of the firm to

perform logistical function effectively & efficiently.

Definition:- logistical competency is t6he relative assessment of a firms capability to provide

competitively superior customer service at the lowest possible total cost. It is a strategy to provide

a superior service at a total cost below industry average. Its aim is to view how logistics can be

exploited as a core competency so that fits into a firms overall strategic positioning.

How can logistical positioning be achieved?

Logistical competency can be achieved by performing logistical functions effectively. To

understand logistical excellence in each aspect of functional work is relevant only when it is

viewed in terms of improving overall efficiency & effectiveness of integrated logistics. In the

above process of achieving logistical competency the firm should co-ordinate all functions well.

Network design should integrate the need of information, transportation & inventory. These

elements play important roles in overall effectiveness of logistical function. A well designed

network keeping in view the objectives of the company is primary for logistical competency.

In a tour made by a product from a raw material stage to the manufacturing firm to the point of

consumption by the customer, logistics encompasses a wide range of functional areas like

transportation and material handling required for the movement of the material, storing &

warehouse for storage , information flow, etc.

The work of logistics is to co-ordinate functional areas like transportation, information, inventory,

warehousing, material handling and packaging into Network Design to achieve logistical

competency. Work related to these functional areas is combined to create the capabilities needed to

achieve logistical requirements.

CONCLUSION:- Thus logistical competency can be achieved by proper design of

material handling and storage systems including computer controlled cranes,


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electronic guide vehicles and other sophisticated devices; deployment of stocks

within a warehouse, methods of scheduling and controlling the operations of goods

receiving, putting away, replenishing, picking, checking, proper design of packing

and packaging & dispatch.


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The Role of Logistics' Information and Communication Technologies in

Promoting Competitive Advantages of the Firm

With the rapid growth of technologies, our economic society and life are changing significantly in

the 21th century. The way to capture their competitive advantage has become the most important

issue for enterprises in the rapidly changing and uncertain business environments. Many researches

have pointed out that the adoption of technology is the most important tool for enterprises to keep

their competitive advantage. The survival of an enterprise in the age of knowledge-based economy

depends on how to improve their technological capability. In this sense, firms should develop

adequate methodologies, in order to adopt, in a successful way, new technologies in the logistics

field, and also to integrate logistics into the corporate strategy for becoming even more

competitive. Growing number of firms are under pressure from their partners to change their

traditional management style, both operationally and organizationally, replacing them with

integrated systems that help increase the speed and fluidity of physical and information flows. In

order to reach this kind of integration they are investing on new Information and Communication

Technologies (ICT). In this paper we consider that the ICT are the devices or infrastructures to

make more efficient the communications of business information among organizations (Dawe,

1994). Being so, the present paper aims: (i) to highlight the importance of ICT on logistics; and (ii)

to understand the impact of ICT on the firms competitiveness. In this paper a conceptual model

for the adoption of Logistics ICT is presented, by taking into consideration four determinant

factors: individual, organizational, technological or innovation, and environmental. The interaction

established between the referred determinant factors may be identified through the computation of

the predominant factor, by using a selected set of adequate indicators and a simple geometry

methodology. These procedures may provide the identification of the sources of firms competitive

advantages that adopt Logistics ICT. The Logistics ICT analysed in this paper are grouped into

four types, such as, the identification, the data communications and the data acquisition

technologies. With regard to the identification technologies, firms may appeal to barcoding, Radio


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Frequency Identification (RFID). The barcoding (Chapman et al., 2003; Ellram et al., 1999), and

RFID (Kumar et al., 2006; Twist, 2005; Choy et al., 2007), are identification technologies that

facilitate logistics information collection and exchange. Nowadays, as regards the data acquisition

technologies, the firms usually deal with a large amount of goods and data which means that data

collection and exchange are critical for logistics information management and control. Good

quality in data acquisition can help firms deliver customers' goods more accurately and efficiently.

To attain this goal firms could appeal to some data acquisition technologies in logistics field, such

as the optical scanning, the electronic pen notepads, (Lin, 2006), the voice recognition and the

robotics (Dawe, 1994).


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INVENTORY FLOW:-

The logistical operation starts with initial shipment of material or a component part from a supplier

and ends when a manufactured or process product is delivered to a customer.

In inventory flow, a material gain value at each staple of its transformation in to finished

inventory to support manufacturing work inprogress inventory moves to support final assembly.

The final value gets added only with final transfer of ownership of product to customer when &

where required. Those an inventory flow comprises physical distribution, manufacturing process &

procurement as follows:-

Physical distribution:-

Physical distribution links a marketing channel with its customer. It is concerned with the

movement of finished product to customer, as the customer is the final distribution of the

marketing channel. An effective marketing effect would result in to a proper assortment of the

product being delivered when &where needed. It is through physical distribution process that the

time & space dimension of customer service become an integral part of marketing.

Procurement:-

Procurement function in concerned with purchasing &arranging in bound movement of material

part &finished inventory from supplier to manufacturing or assembly. Plant warehouses or retail

store i.e. in bound logistic. It ensures the availability of the desire material assortment where &

when needed.

The difference between Physical distribution & procurement is while the former is concerned

with outbound product shipment the letter is concerned with in bound material sorting or assembly.

In most marketing situation the manufactures Physical distribution is the same process as retailers

procurement operation.


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Logistics current scenario in infrastructure

India has been growing rapidly with over 1 billion potential consumers and a 200 million middle

class. Combined with a huge talent pool and progressive government policies, India is the focal

point of growth. The logistics industry has over the years faced a few challenges such as central

and state tax, local levies licenses, registrations and paperwork with infrastructure development.

The market although large is predominantly fragmented with multiple factors demographic, retail,

media, land & supplier fragmentation. But the scenario is fast improving with an enthusiastic

upswing in infrastructure. The Golden Quadrilateral Project , a planned network of divided 4-lane

highways to connect all its major cities, is a good start. This will enable a significant increase in

inbound and outbound cargo. Another initiative in planning has been the development of six world

class airports and 20 seaports. There are several emerging trends in India. The current logistics

market is 6.7 billion euros , with in sourced logistics at 91%. There will be a considerable increase

in this sector. The key driving factors for supply chain management are the changes in regulatory

framework, for example , VAT. Globalization also plays a major role in the increasing the

efficiency of supply chain management. The attached clip effectively shows the impact of

capabilities gap. The key challenge for supply chain is to deliver the right product, in the right

quantity, in the right condition to the right customer at the right place, at the right time, at the right

cost. The strategic choices are to focus on core competencies and partner with National Level

4PL/Distributor. The key elements of supply chain that can bring about a completely enhanced

total quality are an efficient warehouse network, skilled people and time-critical transportation

India is also an emerging clinical hub, the challenge being the movement of clinical samples in a

time-sensitive and temperature-controlled environment. India is a strategic market for DHL and

there are tremendous opportunities and growth. DHL has committed US$ 250 million in India over

the last few years in new technology, expanding infrastructure, developing innovative products and

services, marketing and sales to meet the growing demands of our growing customer base. We will

continue to build and pioneer world.


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Logistic Business Management Insight In India

Logistics management is increasingly gaining importance mainly because of fierce competition in

the global market, need for customer satisfaction and increasing logistics cost. It is recognized that

the goal of cost reduction and service enhancement can be achieved through effective logistics

management. Competency in logistics can be achieved only through the desired coordination

between functional areas of network design, information, transportation, inventory, warehousing,

material handling and packaging. Companies managing logistics need to understand the essence of

logistics management.

Key Findings and Highlights

- Logistics management activities include inbound and outbound transportation management, fleet

management, warehousing, materials handling, order fulfilment, logistics network design,

inventory management by third-party logistics (3PL) services providers.

- Integrated logistics is gaining importance. 3PL providers offer outsourced or 3PL services to

companies for part, or sometimes all of their supply chain management functions.

- The 3PL providers typically specialise in integrated warehousing and transportation services that

can be scaled and customised to customers needs based on market conditions and the demand and

delivery service requirements for their products and materials.

- Logistics information systems are the tools for linking logistics activities into an integrated

process. The integration is built around functionalities such as transaction, management control,

decision analysis and strategic planning systems.


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Case Study

A multi-location company dealing in office automation is confronted with a

continuous build-up of inventory and a downward spiral of fund flow.

Analysis

The company uses heavy commercial vehicles to distribute the requirements of products and spare

parts to their business units located in various parts of the country. The total cycle time for delivery

and return of the vehicles to base vary between 2/3 weeks, during which time sizeable volumes of

inventory lie idle in the factory and warehouse. Damage and delay, and the resultant costs, are a

consequence of the handling and surface transportation used. Moreover, the vehicles would return

empty, implying costs for unutilised capacity.

Payments from the customers are linked to the installation of the machines. However, the service

engineers have no means to ascertain delivery, resulting in further delays in recovery of

receivables, which impact cash flow negatively. Also, orders are skewed towards end-of-quarter

deliveries, entailing large storage areas to meet these demands. The current distribution process is

bleeding the organisa

Business Solution

Blue Dart offers its logistics services and convinces the organisation to focus on its core

competency. Blue Dart uses a combination of its Dart Apex (Air Package Express) and Dart

Surfaceline (Surface Express) to meet the individual urgency of each shipment and provide a cost-

effective solution. Time-sensitive, high-value products are sent through Dart Apex, and machines

through the more economical Dart Surfaceline. This combination of services results in a faster


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turnaround of the order cycle, substantially lower inventories and a reduction in the idle time of

machines at the factory. Blue Dart's Track and Trace system provides service engineers with an

updated status and delivery information of every shipment and recovery of monies from customers

are, consequently, expedited.

The earlier 48 machine-deliveries per day are now increased to 80 machine-deliveries per day, with

reduced manpower, decreased distribution costs and a shortened credit period to its customers.

Their management can now focus on future developments without adding an inch of warehouse

space!

Complit Project on Lo Gist Ices

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