Logistic

Logistic

1. A Presentation on Prepared by:- Mehul Rasadiya K.K. Parekh Institute of Management Studies ( Amreli ) 1 Logistics

2. 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

3. Seven R’s Ensuring the availability of the Right product Right quantity Right condition Right Place Right time Right customer Right cost

4. 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

5. 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

6. 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

7. 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

8. 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

9. Components of LOG Management Natural Resources (land, facilities Equipment) HR Finance Information Marketing Orientation (competitive Advantage) Time and Place utility Efficient move to customer Customer service Demand forecasting Distribution Communications Inventory control Materials handling Order processing Parts and service support Plants and warehouse selection Procurement Packaging Return goods handling Salvage and scrap disposal Traffic and transportation Warehouse and storage Input Output Logistics Activities

10. Components Inbound Logistics Internal Logistics Outbound Logistics

11. 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

12. 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

13. 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

14. Links and Flows Customer’s customer Supplier’s supplier Supplier Lead Firm Customer General cash flow Information flow Information flow Inbound / Upstream logistics Outbound / Downstream logistics

15. Logistical performance cycles

16. 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

17. Types of operations that integrate the logistics FLOW STOCK PROCESS

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

19. Operations of stock C onsiders Storage of Raw materials and Finished Products

20. P rocess Operations C onsiders Production ( product ) and Preparation ( packaged,packing ,).