Logistic

A Presentation on

Prepared by:-

Mehul Rasadiya

K.K. Parekh Institute of Management Studies (Amreli)1

Logistics

Logistics Defined

Logistics means having the right thing, at the right place, at the right time

The procurement, maintenance, distribution and replacement of personnel and materials – Webster’s Dictionary

The science of planning, organizing and managing activities that provide goods or services – Logistics World, 1997

Seven R’s

Ensuring the availability of the Right productRight quantityRight conditionRight PlaceRight timeRight customerRight cost

Logistics

Functions: planning, procurement, transportation, supply and maintenance

Processes: requirements determination, acquisition, distribution and conservation

Business: science of planning, design and support of business operations of procurement, purchasing, inventory, warehousing, distribution, transportation, customer support, financial and human resources

Major functions of work

Order Processing

Inventory

Transportation

Warehousing, Materials Handling, and Packaging

Integrated through a network of facilities E.g. warehouses and

distribution centers

Service benefits are created by logistical performance in 3 areas

Availability involves having inventory to consistently meet customer material or product requirements

Operational performance deals with the time required to deliver a customer’s order

Service reliability involves the quality attributes of logistics

Scope of Logistics

Choice of markets Plant location and layout Inventory management Location and management of warehouses Choices of carriers, mode of transport Packaging decisions Relevant to all enterprises: manufacturing,

Government, Institutions, service organisations

Transportation

Warehousing and storage

Industrial packaging

Materials handling

Inventory control

Order fulfillment

Demand forecasting

Production

Procurement

Customer service

planning/scheduling

Facility location

Return goods handling

Parts and service support

Salvage and scrap disposal

Logistics Activities

Components of LOG Management

• Natural Resources

(land, facilitiesEquipment)

• HR• Finance

• Information

• Marketing Orientation

(competitive Advantage)

• Time and Place utility

•Efficient moveto customer

Customer serviceDemand forecasting

DistributionCommunicationsInventory control

Materials handlingOrder processing

Parts and service supportPlants and warehouse selection

ProcurementPackaging

Return goods handlingSalvage and scrap disposalTraffic and transportationWarehouse and storage

Input OutputLogistics Activities

Components

Inbound Logistics

Internal Logistics

Outbound Logistics

Inbound Logistics

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

Internal Logistics Capacity Planning Operational planning Production planning

Materials Requirement planning

Shop floor control

Management of in-process inventory

Supporting material handling facilities planning and their deployment etc

Out bound Logistics

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

Links and Flows

Customer’scustomer

Supplier’ssupplier

SupplierLead FirmCustomer

General cash flow

Information flow

Information flow

Inbound / Upstream logisticsOutbound / Downstream logistics

Logistical performance cycles

Client

Vendor A

Vendor C

Vendor B

- Receiving- Quality Assurance- Storage- Production- Picking/Packing

Customer A

Customer B

Customer C

Forwarders/Brokers/Truckers

Forwarders/Brokers/Truckers

Current Logistics Practice

Types of operations that integrate the logistics

FLOW

STOCK

PROCESS

Operations of flow

Transport associated to the supplying of raw materials and finished products.

Operations of stock

Considers Storage of Raw materials and Finished Products

Process Operations

Considers Production (product ) and Preparation (packaged,packing,).