Aditya birla ppt and supply chain management

Ppt about aditya birla grasim industries ltd

1. Department of Management Studies MBA- Third SEMESTER ( Batch of 2022-2024) Course Code: 20MBA301 Course Title: Logistics & Supply Chain Management Faculty Instructor: Roopa Ajwal Email ID: [email protected] Dayananda Sagar Academy of Technology & Management

2. Department of Management Studies Dayananda Sagar Academy of Technology & Management What are logistics costs? A logistical cost refers to any expense incurred by a business to manage its logistics. Knowing how to reduce them is key to being more competitive. Logistics costs  include expenses related to resource acquisition, product distribution, and other expenses that make up a company chain of production, sales, and delivery.

3. Department of Management Studies Dayananda Sagar Academy of Technology & Management Good management of logistics costs  goes beyond making the product reach the consumer. It includes decision making on how to use financial resources best and, of course,  ensuring savings in all these processes.

4. Department of Management Studies Dayananda Sagar Academy of Technology & Management Why is it important to manage logistics costs? In a market that goes through constant  disruptions  and changes and becomes increasingly competitive,  every detail makes a difference. Even when the product consumers receive is high quality, poor management can cause a company to go out of business.  Good cost management is one way to deal with market changes. More effective logistics procedures are required from businesses due to customers who are becoming more demanding and the expansion of e-commerce sales. Naturally, the final costs also reflect the customer's decision to purchase brand A or B.

5. Department of Management Studies Dayananda Sagar Academy of Technology & Management What types of logistics costs are there? Acquisition costs Acquisition costs include the purchases of raw materials and other inputs required to produce the goods that will be delivered to the consumer. Since a lack of resources or poor procurement procedures can impact the entire production and distribution process, these costs must be considered in logistics management.

6. Department of Management Studies Dayananda Sagar Academy of Technology & Management 2. Inventory Inventory is another of the main logistical costs of an organization.  Expenses for storing products can represent a high cost , and without good inventory management, the brand can have problems. Costs associated with storage facilities, be it a small room or a big warehouse, storage insurance, and even maintenance to prevent product losses must be taken into account.

7. Department of Management Studies Dayananda Sagar Academy of Technology & Management 3. Packaging When sending goods to distant areas or when items are fragile and need protection to arrive at their destination undamaged, packaging is an important cost to consider. In addition to  ensuring product integrity , other factors must be taken into account like excess plastic, which can damage your brand’s image. Finding a balance between packaging expenses, sales value to the customer, and environmental effects is a must.

8. Department of Management Studies Dayananda Sagar Academy of Technology & Management 4. Transport Transport logistics costs  are related to the  distribution  of products. These expenses involve fuel, tolls, hiring drivers or a partner company, vehicle maintenance, and more. Keep in mind that price can vary depending on the distance, the quantity and type of cargo, the vehicle being used, and even the route chosen. 5. Taxation Another point that increases the total logistics cost is the  taxation of logistics processes.  Taxes can represent a significant cost.

9. Department of Management Studies Dayananda Sagar Academy of Technology & Management 6. Investments in new technologies It’s also necessary to consider the technologies that are used in managing logistical processes. These investments are important to improve workflows  and, in the medium and long term, represent more savings. In any case, they must be considered as a part of the company's logistical expenses.

10. Department of Management Studies Dayananda Sagar Academy of Technology & Management 7. People The final component of logistics costs is labour (think salaries, vacations, leave, benefits). All these values ultimately affect how much a brand charges its customers for the goods they receive. A company can calculate the  total logistical cost  by adding up these variables, which, depending on its area, may also include other factors.

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