PLM-Module-4 New _Modified.pptx SSP.pptx

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1. Production and Logistics Management (MBA 2040) Module 4 – Logistics Management Course text books/reference books Operations Management William Stevenson Operations Management Collier/Evans/Ganguli Logistics Management D. K. Agrawal

2. Digital Twin market Potential Companies that will use Cloud computing Smart Sensor Market Growth Rate Smart Glasses Revenue Last Mile Transportation Cost

3. Emerging Trends: Integrated Logistics Management (ILM) Dynamic & Constantly Evolving Changing Market Demands Technological Advancements

4. 1. Supply Chain Visibility & Analytics Visibility: Real Time Tracking Monitoring of Goods & Information Quick Response Customer Updates (WIMS) Analytics: Insights into Operations Customer Demand Inventory Levels Transportation Costs Key Metrics for Improvements Emerging Trends: Integrated Logistics Management (ILM)

5. 2. Automation & Robotics Focus on Improving Efficiency Accuracy Safety Cost Tasks Picking Packing Sorting Emerging Trends: Integrated Logistics Management (ILM)

6. 3. Sustainability Green Logistics: Reduce Carbon Footprint Promote Eco-friendly practices Use of Electric Vehicles Transport route optimization (reduce Emissions) Examples: Efficient Material Handling Use of eco-friendly equipment Recycling & Waste Reduction Use of Renewable energy sources Supplier Sustainability Emerging Trends: Integrated Logistics Management (ILM)

7. 4. Real-time tracking & Monitoring ILM can help companies to Gain Holistic view of the logistics operations Enable making informed decisions Optimize Processes Tools & Techniques: Usage of Advanced analytical tools & process for data analytics Leveraging Machine Learning algorithms IOT GPS RFIDs Emerging Trends: Integrated Logistics Management (ILM)

8. 5. Collaboration & Partnership Common Practice Collaborating & partnering between Logistics Companies Reduces costs Improves processes & efficiencies Leverage Technological advantages Synergy due to Sharing of real-time data Order status Inventory levels Shipping schedules Avoid duplication of efforts, resources and investments (sharing of warehouse, transportation, etc.,) Emerging Trends: Integrated Logistics Management (ILM)

9. Top 10 Digital Ecosystem Trends in SCM & Logistics Environmental Considerations The rise of ecommerce + Logistics combo The evolution of Block Chain Logistics as a Service Model (Laas) Emerging as unstoppable partners The AI takeover The digital twin initiation Data-driven Optimization Real-time Supply Chain Visibility New entrants in the business

10. What is the difference? Supply Chain Management & Logistics Management

11. SCM : Managing & coordinating all activities to ensure RM is converted to FG and delivered to the Customers

12. Logistics Management : All about movement of material

13. Logistics Management (Sub-set of Supply Chain Mgmt.) Coordination & Integration of all activities involved in Materials Flow / Movement Information Flow Resource availability Point of Origin Point of Consumption

14. Integrated Logistics Management (ILM) Two types: Inbound Logistics From Suppliers to Manufacturer Outbound Logistics From Manufacturer to End Customer

15. Right Product Right Quantity Right Condition Right Place Right Time Right Customer Right Price Seven Rs of Logistics:

16. Key Responsibilities of Logistics:

17. An Effective Logistics Management helps in Improved Customer Experience Reduced Operational Cost Ensures Seamless Delivery Successful of Supply Chain Improved Warehouse Management Enhanced Visibility Intelligent Route Planning Scalability

18. Transportation Management

19. Transportation Management Main objective To reduce transportation cost and time Route Optimization Employing Efficient, Safe & Sustainable options Methods of reducing & optimizing transportation costs Linear Programming model Northwest corner rule Least cost method Vogel’s Approximation method MODI method

20. North West Corner Rule Steps to estimate transportation cost by NWCR Formulate the cost matrix from the given data. Check whether the problem is balanced or unbalanced (Demand & Supply) If unbalanced introduce dummy (Demand or Supply) and assign Zero cost Start allocation from North West end by selecting minimum demand/supply Move on to next allocation (Right or Down or Diagonal) depending upon the remaining Demand and Supply values Allocate till you exhaust all Demand and Supply Calculate total transportation cost by multiplying the allotted cell values with the respective cost in that particular cell.

21. Problem on NWCR Calculate the transportation Cost as per the given data: 12,200

22. Least Cost Method Steps to estimate transportation cost by LCM Formulate the cost matrix from the given data. Check whether the problem is balanced or unbalanced (Demand & Supply) If unbalanced introduce dummy (Demand or Supply) and assign Zero cost Start allocation from least cost cell by selecting minimum demand/supply Move on to next allocation i.e. next least cost cell depending upon the remaining Demand and Supply values Allocate till you exhaust all Demand and Supply Calculate total transportation cost by multiplying the allotted cell values with the respective cost in that particular cell.

23. Problem on Least Cost Method Calculate the Transportation Cost from the given data 2,650

24. Warehouse Management

25. Right Quantity Right condition Right Time Move to the correct storage location Safe Storage Easy to pick for packing Collect the items from storage locations for packing Correct Packing as per packing slip Safe Packing Correct Vehicle Correct Time Right Documentation Six Core Processes of Warehouse Management:

26. Day to Day Operations: Receiving O rganizing warehouse space Scheduling labor Managing inventory and F ulfilling orders B enefits of good Warehouse management: Fast, High-quality service at low cost S trengthening relationships with suppliers ss well as customers Owning vs Outsourcing a Warehouse Objectives: Improve Productivity, Reduce Cost, Optimum utilization of storage place, Increasing inventory turnover ratio, provide real time data Warehouse Management

27. Distribution Channels:

28. Nature of the Product Physical Character Size & Weight Unit Value Standardization Fluctuating Demand Changing requirements Truckload optimization Factors affecting the selection of a Distribution Channel:

29. Examples: DHL, TCL, VRL, Sical , GATI, etc., 3PL (Third Party Logistics) Companies Outsource Receiving Warehousing Packaging Transportation

30. Advantages of 3PL Cost-cutting, Focus on Core Competencies Flexibility: Adjust the scale as needed. Enhanced customer experience Experiment in new markets with least risk / cost Reduced risk Instantly leverage field expertise and understanding Ease of operations in International Logistics

31. 4PL is a Supply Chain Integrator Acts like a Consulting Firm specialized in Supply Chain, Logistics & Transportation Overseas activities of 2PL / 3PL service providers 4PL - Fourth Party Logistics:

32. Advantages of 4PL: Solution Oriented Approach Manages end to end supply chains Single point of contact Vendor Management Manages multiple vendors Reduced complexities, negotiations, cost & time IT Enabled Supply Chain End-to-End IT platforms Better insights & visibility Faster & effective decision making with comprehensive reports, insights, alerts, etc.,

33. End of Module 4

34. Back Up Slides

35. Current trends in Logistics Supply Chain Agility Quick response to customers Self managed services (not dependent on outsourcing) Leads to improved customer satisfaction Automation Complexity End to end integration Effective data management Demands for real time data Deliver real-time status updates to clients Integrating the platforms that enable business to track and monitor order shipments

36. Current Trends in Logistics SC transparency for critical collaborations When integration is done right, EDI and APIs work together to provide better supply chain visibility EDI can be used to kick-start the ordering, shipping, and fulfillment processes. APIs on the other hand can be used for shipment tracking, status updates, and inventory management Less than truckload demand Multiple smaller orders from various companies are placed on one carrier—creating a full load with numerous delivery stops Digitally evolving business End-to-end automation and EDI modernization can greatly increase the productivity of event-based workflows. When events are mapped to an automated workflow, humans are removed from the equation

37. Transportation Transportation means moving physical goods or people from one place to another i.e. from source to destination Modes of Transportation Roadways – Most popular, small consignments/people, Covers difficulty terrains, short to medium distance, Point to point delivery, costly compared to railways & waterways Railways – Large consignments/more people, works in rail network, long distance, cheaper Waterways – Very large consignments, very long distance (across continents), cheaper Airways – small consignments / people, very costly, very fast Route Planning is required, alternate routes to be explored

38. Distribution Management Distribution management is the process used to oversee the movement of goods from supplier to manufacturer to wholesaler or retailer and finally to the end consumer. Numerous activities and processes are involved, including vendor management, packaging, warehousing, inventory, supply chain, logistics. Factors affecting Distribution Management Perishability Fluctuating Demand Changing requirements Truckload optimization

39. OUTBOUND LOGISTICS MOVEMENT OF MATERIAL

40. Advantages of 3PL Cost-cutting Individual shippers have less negotiating power with freight companies than 3PLs. 3PLs can negotiate rates with carriers on behalf of several customers depending on volume and order frequency. As needed, adjust the scale. The demand for most enterprises fluctuates throughout the year. Using a 3PL allows you to better manage peaks & troughs without committing capital when you don’t have to. Enhance the customer experience Customers expect same-day or next-day delivery as a given. Using a third-party logistics provider helps you to deliver speedy shipping regardless of where the order is being shipped, thanks to the 3PL’s extensive distribution network. Experiment with new markets . With an international 3PL, you can test the waters in new countries without committing to large investments such as your own warehouse space or personnel.

41. Advantages of 3PL Reduce the risk Shipping delays can occur for a variety of reasons. A 3PL is responsible for arranging additional arrangements to fulfill your orders as promptly as feasible when unforeseen problems arise. Instantly gain field expertise and understanding Fulfillment, warehousing, and shipping all present significant obstacles, so delegating them to professionals can make a significant difference Become familiar with international logistics . If you’re selling overseas, 3PLs can handle the paperwork, customs, duties, and other concerns that can cause delays and expensive expenses if not handled properly. Cost-cutting opportunities Not having to maintain your own space and staff when it comes to warehousing can be a significant cost-cutting option.