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    Logistics Management Lecture I

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    Nabendu Maji
    Logistics is the process of planning, implementing, and controlling the efficient flow of goods, services and information from origin to consumption. It aims to satisfy customer needs through activities like procurement, inventory management, transportation, warehousing and customer service. Logistics management impacts key business objectives like cost, quality, and customer satisfaction. It involves coordinating infrastructure, technology, services and human resources to create customer value through the logistics process.

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    Logistics Management Lecture I

    Uploaded by

    Nabendu Maji
    172 views16 pages
    Logistics is the process of planning, implementing, and controlling the efficient flow of goods, services and information from origin to consumption. It aims to satisfy customer needs through activities like procurement, inventory management, transportation, warehousing and customer service. Logistics management impacts key business objectives like cost, quality, and customer satisfaction. It involves coordinating infrastructure, technology, services and human resources to create customer value through the logistics process.

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    Logistics Management Lecture i

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    Logistics Management Lecture i

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    Logistics is the process of planning, implementing, and controlling the efficient flow of goods, services and information from origin to consumption. It aims to satisfy customer needs through activities like procurement, inventory management, transportation, warehousing and customer service. Logistics management impacts key business objectives like cost, quality, and customer satisfaction. It involves coordinating infrastructure, technology, services and human resources to create customer value through the logistics process.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    172 views16 pages

    Logistics Management Lecture I

    Uploaded by

    Nabendu Maji
    Logistics is the process of planning, implementing, and controlling the efficient flow of goods, services and information from origin to consumption. It aims to satisfy customer needs through activities like procurement, inventory management, transportation, warehousing and customer service. Logistics management impacts key business objectives like cost, quality, and customer satisfaction. It involves coordinating infrastructure, technology, services and human resources to create customer value through the logistics process.

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    LOGISTICS MANAGEMENT

    What is Logistics?
    Logistics is the . . . process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.
    Council of Logistics Management

    Logistics management includes the design and administration of systems to control the flow of materials, work in progress and finished goods inventory to support business unit strategy.
    By Bowersox and Closs

    Scope of logistics
    This speed & reliability in distribution of products & services contribute to a great extent in the growth of a country`s domestic & international trade . Logistic cost as a percentage of GDP across the world is shown in the following table Country Logistic cost as a percentage of GDP
    Korea China Japan India France UK USA 16 15 14 13 12 11 10

    Logistics Functions
    Purchasing / Procurement Inventory Control

    Facility Location / Network Design


    Transportation Customer Service

    Warehousing
    Materials Handling

    Order Processing

    Factors affecting logistics functions

    Lack of Standardisation Too close tolerances and high finishes Efficiency of production functions Effectivness of PPC

    Objective of Logistics Management


    Highest level customer satisfaction Min. Operating cost Reduced lead time Add value Reduce and control Inventory Improve Communication Just In Time (JIT) Right goods or services, to the Right place, at the Right time, in the Right condition and at the Right cost.

    Infrastructure

    O A&F p e r operations a S&M t i Out bond In bound o Logistics logistics n s


    Technology

    Services

    Customer Value

    M&M

    HR

    A List of Approaches in Log. Mgmt.


    Just in Time Inventory Vendor Managed Inventory Quick Response Collaborative Planning, Forecasting, and Replenishment Outsourcing / 3PLs Flow Through Centers

    Build to Order SC Visibility Software Internet Collaborative Transportation Management In - Transit Partnerships / Alliances

    Logistics Experience will be different from one sector to another


    Textiles speed and variety due to seasonality concerns Retailing (FMCG) prevents stores from having empty shelves or shelves with overstocks Frozen storage and transportation Health hygienic, have limited shelf life, require special storage conditions and entertain high inventory risks Automotive just in time (JIT), delivering parts from thousands of kilometers, special packaging Fuel and Petroleum Transportation very special tanker security systems

    Vehicle Logistics
    Vehicle logistics services include:
    Vehicle Transportation

    Marine Transportation (RO-RO)


    Ship Loading and Unloading Storage and Parking Lot Services Dealer Distributions Information Systems and Reporting

    What is Milk Run Distribution?


    It is the combination of shipments from multiple vendors in close geographic proximity into one shipment received by the customer,
    normally done for a defined route on a recurring basis.

    What is Milk Run Distribution?...

    Components of logistics management :


    Planning
    Inputs into logistics

    Management actions Implementation Control


    Outputs of logistics

    Natural resources (land, facilities, and equipments)

    Logistics management Suppliers Raw In-process materials inventory Finished goods


    Customers

    Marketing orientation (competitive advantage) Time and place utility Efficient movement to customer

    Human resources
    Customer

    Logistics Activities Service


    Plant

    Financial resources

    Demand

    Information resources

    forecasting Distribution communications Inventory control Material handling Order Processing Parts and service support

    and warehouse site selection Procurement Packaging Return goods handling Salvage and scrap disposal Traffic and transportation Warehousing and

    Proprietary asset

    Production

    Interface

    Logistics

    Interface

    Marketing

    Plants activity Materials manipulation Quality control Maintenance

    Product planning Plant location Purchasing

    Transport Inventory management Warehousing

    Customer service Packaging Distribution channels Information flow

    Promotion Market research Product mix Price

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