صفحه 1:
DEFINITION OF LOGISTICS MANAGEMENT
CONCEPT OF LOGISTICS MANAGEMENT
ROLE OF LOGISTICS MANAGEMENT IN AN
ORGANIZATION
ROLE OF LOGISTICS IN SCM & INTEGRATION OF
LOGISTICS OPERATIONS
THE FIVE ARMS OF LOGISTICS MANAGEMENT
TRANSPORTATION,
WAREHOUSING,
MATERIALS HANDLING,
INFORMATION &
PACKAGING.
PHYSICAL DISTRIBUTION MANAGEMENT
BULLWHIP EFFECT
صفحه 2:
DEFINITION
Logical extension of transportation and related areas to
achieve an efficient and effective goods distribution system
Design 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 orders
Logistics management can provide a multitude of ways to
increase efficiency and productivity and hence contribute
significantly to reduced unit costs
صفحه 3:
Integrated Logistics
= The 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 logistics
= Conversion operations
صفحه 4:
Formal Definition of
logistics management
™ Design 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.
صفحه 5:
Decisions in logistics
management
Product Design (moulded plastic water tanks)
Plant Location
Choice of Markets/Sources
Production Structure (cement manufactures)
Distribution/Dealer Network Design (two
wheeler)
Location of Warehouses (two wheeler)
Plant Layout
Allocation Decision
Production Planning
10. Inventory Management - Stocking Levels
2
پا و بت سب
صفحه 6:
11. Transportation - mode Choice,
Shipment Size and Routing Decision,
and Transport Contracting
12. Packaging
13. Materials Handling
14. Warehouse Operations
صفحه 7:
Key Actors in effective
logistics system
= Shippers
= Suppliers
- Carriers (rail, road, air,water,
pipeline)
- Ware house providers
- Freight Forwarders
- Terminal Operators (Ports etc.)
Government (regulator of logistics)
صفحه 8:
Role of government
(legislations that affect
logistics)
= Central Sales Tax and Local Sales Tax
= Consignment Tax
= Excise Duties
= Octroi and Entry Tax
™ Use of Packaging Material
= MODVAT (modified value added tax)
= Motor Vehicles Act and similar acts for
other models
= Distribution Policies
صفحه 9:
Classification of logistics
applications
™ Decision - wise
= Actor - wise
= Inbound logistics and outbound
logistics
= Private vs public sector
= Single vs multiple plants
™ Nature of the product
™ Made to stock vs made to order
صفحه 10:
Total Logistics Cost
= Product inventory at source
= Pipeline inventory
= Product inventory at warehouses and
ات
Transit ©
Storage losses/insurance
Handling and warehouse operations
Packaging
Transportation
Customer’s shopping
صفحه 11:
DAY 2
= Explain the integrated logistics model
= Discuss the major activities associated with
integrated logistics
= Discuss the service response logistics concept
= Discuss the value added concept in the
context of integrated logistics
= Explain the financial impact of logistics on the
۱
= Identify and discuss the major interfaces with
logistics
صفحه 12:
THE INTEGRATED LOGISTICS
MODEL
= The 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
صفحه 13:
Logistics management of
services
= Process of coordinating
nonmaterial activities necessary to
the fulfillment of the service ina
cost - and customer service -
9
= Service response logistics activities
waiting time
capacity
0 الت
صفحه 14:
Models in logistics
Management
= Forecasting models
= Mathematicals programming models
location models
allocation models
distribution network design models
= Inventory Models
= Routing Models
= Scheduling Models
صفحه 15:
صفحه 16:
superior integrated logistics
How do و 6م 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 warehousink
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?
roduction setups are required? Which را
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?
صفحه 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
صفحه 18:
Characteristics of supply
chain
™ Decision in each part of the supply chain
affect the other parts
= Accelerator or Bullwhip effect
Demand 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)
صفحه 19:
Supply chain management
vs logistics management
ILM
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 requirements
SCM seems to be replacing more of the
traditional terms of management of material
and service flows.
صفحه 20:
SUPPLY CHAIN
STRATEGY
= DELL VS CAMPBELL SOUP
= SUPPLY CHAIN SHOULD BE STRUCTURED
TO MEET THE NEEDS OF DIFFERENT
PRODUCTS AND CUSTOMER GROUPS
= The efficiency of the supply chain can be
measured based on the size of the inventory
investment in the supply chain
= Inventory turnover & weeks-of-supply
= Inventory turnover = cost of goods sold/
220۰
aggregate
inventory value
صفحه 21:
™ The cost of goods sold is the annual
cost for a company to produce the
goods or services provided to customers
=" The 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.
صفحه 22:
4 types of supply chain
strategies
= Efficient supply chains
= Risk-hedging supply chains
= Responsive supply chains
= Agile supply chains
صفحه 23:
Efficient supply chain
Highest cost efficiency
Non value added activities should be eliminated
Scale economies should be pursued
Optimization techniques should be deployed to
get the best capacity utilization in production and
distribution
= Information 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)
صفحه 24:
Risk-hedging supply
chains
= Pooling and sharing resources in a
supply chain so that the risks in supply
disruption can be shared.
= Alternative supply sources reduce the
risk of disruption
™ Sharing the safety stock with other
companies
"IT is important for the success
(Hydro electric power, food produce)
صفحه 25:
Responsive supply chains
= Responsive and flexible to the
changing and diverse needs of the
customer
= Companies use build to order and
mass customization processes as a
means to meet the specific
requirements of customers
(Fashion apparel, computers, popular
music)
صفحه 26:
Agile supply chain
= Supply 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)
صفحه 27: