Logistics management

Logistics management

اسلاید 1: DEFINITION OF LOGISTICS MANAGEMENTCONCEPT OF LOGISTICS MANAGEMENTROLE OF LOGISTICS MANAGEMENT IN AN ORGANIZATIONROLE OF LOGISTICS IN SCM & INTEGRATION OF LOGISTICS OPERATIONSTHE FIVE ARMS OF LOGISTICS MANAGEMENT TRANSPORTATION,WAREHOUSING,MATERIALS HANDLING, INFORMATION & PACKAGING.PHYSICAL DISTRIBUTION MANAGEMENTBULLWHIP EFFECT

اسلاید 2: DEFINITIONLogical extension of transportation and related areas to achieve an efficient and effective goods distribution systemDesign and operation of the physical, managerial, and informational systems needed to allow goods to overcome time and space (from the producer to customer).Logistics is the process of strategically managing the procurement, movement and storage of materials, parts and finished inventory( and the related information flows) through the organization and its marketing channels in such a way that current and future profitability are maximized through the cost-effective fulfillment of ordersLogistics management can provide a multitude of ways to increase efficiency and productivity and hence contribute significantly to reduced unit costs

اسلاید 3: Integrated LogisticsThe process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies, and information necessary to meet those needs and wants; optimizing the goods or service –producing network to fulfill customer requests; and utilizing the network to fulfill customer requests in a timely way.Inbound logisticsConversion operationsOutbound logistics

اسلاید 4: Formal Definition of logistics managementDesign and operation of the physical, managerial, and informational systems needed to allow goods to overcome time and space (from the producer to consumer)Integrated view of a number of activities/functions may be required.

اسلاید 5: Decisions in logistics managementProduct Design (moulded plastic water tanks)Plant LocationChoice of Markets/SourcesProduction Structure (cement manufactures)Distribution/Dealer Network Design (two wheeler)Location of Warehouses (two wheeler)Plant Layout Allocation DecisionProduction PlanningInventory Management – Stocking Levels

اسلاید 6: 11. Transportation – mode Choice, Shipment Size and Routing Decision, and Transport Contracting12. Packaging13. Materials Handling14. Warehouse Operations

اسلاید 7: Key Actors in effective logistics systemShippers Suppliers- Carriers (rail, road, air,water, pipeline)- Ware house providers - Freight Forwarders - Terminal Operators (Ports etc.) Government (regulator of logistics)

اسلاید 8: Role of government (legislations that affect logistics)Central Sales Tax and Local Sales TaxConsignment TaxExcise DutiesOctroi and Entry TaxUse of Packaging MaterialMODVAT (modified value added tax)Motor Vehicles Act and similar acts for other modelsDistribution Policies

اسلاید 9: Classification of logistics applicationsDecision – wiseActor – wiseInbound logistics and outbound logisticsPrivate vs public sectorSingle vs multiple plantsNature of the productMade to stock vs made to order

اسلاید 10: Total Logistics CostProduct inventory at sourcePipeline inventoryProduct inventory at warehouses and dealersTransit losses/insuranceStorage losses/insuranceHandling and warehouse operationsPackagingTransportationCustomer’s shopping

اسلاید 11: DAY 2Explain the integrated logistics modelDiscuss the major activities associated with integrated logisticsDiscuss the service response logistics conceptDiscuss the value added concept in the context of integrated logisticsExplain the financial impact of logistics on the firmIdentify and discuss the major interfaces with logistics

اسلاید 12: THE INTEGRATED LOGISTICS MODELThe process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies, and information necessary to meet those needs and wants; optimizing the goods – or service – producing a network to fulfill customer requests; and utilizing the network to fulfill customer requests in a timely way.Creates a sustainable, competitive, strategic advantage

اسلاید 13: Logistics management of servicesProcess of coordinating nonmaterial activities necessary to the fulfillment of the service in a cost – and customer service – effective mannerService response logistics activitieswaiting time capacitydelivery

اسلاید 14: Models in logistics managementForecasting modelsMathematicals programming modelslocation models allocation models distribution network design modelsInventory ModelsRouting ModelsScheduling Models

اسلاید 15: Financial impact of integrated logistics on the firmMacro level impactMicro level impact

اسلاید 16: Superior integrated logistics accounting systemHow do integrated logistics costs affect contribution by product, by territory, by customer, and by salesperson?What are the costs of additional customer service? What trade-offs are necessary and what are the incremental benefits or losses?What is the optimal amount of inventory? How sensitive is the inventory level to changes in warehousing patterns or to changes in customer service levels? How much does it cost to hold inventory?What mix of transport modes/carriers should be used?How many field warehouses should be used and where should they be located?How many production setups are required? Which plants will be used to produce each product? What are the optimum manufacturing plant capacities based on alternative product mixes and volumes?What product packaging alternatives should be used?To what extent should the order processing system be automated?What distribution channels should be used?

اسلاید 17: Supply chain (logistics network)Supply chain is defined as the sequence of business processes and information that provides a product or service from suppliers through manufacturing and distribution to the ultimate customer.(marketing, logistics, production)Buy-make-move-store-sell

اسلاید 18: Characteristics of supply chainDecision in each part of the supply chain affect the other partsAccelerator or Bullwhip effectDemand changes by the end user create an accelerator effect in the supply chain which magnifies the size of demand changes on upstream supply chain elements (wholesalers,Warehouses, factories)Reduce total replenishment time(the sc to react rapidly to real demand changes and reduces the inventory needs)

اسلاید 19: Supply chain management vs logistics managementCLM The process of planning, implementing and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption for the purpose of conforming to customer requirementsSCM seems to be replacing more of the traditional terms of management of material and service flows.

اسلاید 20: SUPPLY CHAIN STRATEGYDELL VS CAMPBELL SOUPSUPPLY CHAIN SHOULD BE STRUCTURED TO MEET THE NEEDS OF DIFFERENT PRODUCTS AND CUSTOMER GROUPSThe efficiency of the supply chain can be measured based on the size of the inventory investment in the supply chainInventory turnover & weeks-of-supplyInventory turnover = cost of goods sold/ average aggregate inventory value

اسلاید 21: The cost of goods sold is the annual cost for a company to produce the goods or services provided to customersThe average aggregate inventory value is the total value of all items held in inventory for the firm valued at cost. (includes the raw material, work-in-process, finished goods, and distribution inventory owned by the company)Weeks of supply is a measure of how many weeks worth of inventory is in the system at a particular point in time.

اسلاید 22: 4 types of supply chain strategiesEfficient supply chainsRisk-hedging supply chainsResponsive supply chainsAgile supply chains

اسلاید 23: Efficient supply chainHighest cost efficiencyNon value added activities should be eliminatedScale economies should be pursuedOptimization techniques should be deployed to get the best capacity utilization in production and distributionInformation linkages should be established to ensure the most efficient, accurate, cost-effective transmission of information across the supply chain(grocery, basic apparel, food, oil and gas)

اسلاید 24: Risk-hedging supply chainsPooling and sharing resources in a supply chain so that the risks in supply disruption can be shared.Alternative supply sources reduce the risk of disruptionSharing the safety stock with other companiesIT is important for the success(Hydro electric power, food produce)

اسلاید 25: Responsive supply chainsResponsive and flexible to the changing and diverse needs of the customerCompanies use build to order and mass customization processes as a means to meet the specific requirements of customers(Fashion apparel, computers, popular music)

اسلاید 26: Agile supply chainSupply chains that utilize strategies aimed at being responsive and flexible to customer needs, while the risks of supply shortages or disruptions are hedged by pooling inventory and other capacity resources.Ability to be responsive to the changing, diverse, and unpredictable demands of customers on the front end, while minimizing the back-end risks of supply disruptions(Telecom, high – end computers, semiconductor)