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Logistics

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Logistics is The process of planning, implementing and. controlling the efficient, effective flow and storage of . goods, services and related information from point – PowerPoint PPT presentation

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Title: Logistics


1
Supply Chain Management
  • Logistics

2
Supply Chain Management
  • 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
  • customer Satisfaction
  • (council of logistics management)

3
Supply Chain Management
  • Business Logistics
  • The planning, implementation, control of the
    efficient effective flow and storage of goods,
    services, related information from point of
    origin to point of use or consumption in order to
    meet customer requirements
  • Military Logistics
  • The design integration of all aspects of
    support for the operational capability of the
    military forces (deployed or in garrison) and
    their equipment to ensure readiness, reliability,
    efficiency

4
Supply Chain Management
  • Event Logistics
  • The network of activities, facilities, and
    personnel required to organize, schedule, and
    deploy the resources for an event to take place
    and to efficiently withdraw after the event

5
Supply Chain Management
  • Logistics has existed since the beginning of
    civilization. Raw material and finished products
    had always to be moved, though on a small scale.
    Things began changing with the advance in
    transportation. Population began moving from
    rural to urban areas and to business centre. No
    longer did people live near production centre,
    nor did production take place near residence
    centre. The geographical distance between the
    production point and consumption point increased.
    And logistics gained importance.

6
Supply Chain Management
  • THE PURPOSE OF LOGISTICS SYSTEM
  • Right quantities of the
  • Right goods to the
  • Right places at the
  • Right time in the
  • Right condition at the
  • Right cost.

7
Supply Chain Management
  • A Simple Logistics Channel

Market Customers
Raw materials supply point
Production facility
Market Customers
Raw materials supply point
Market Customers
Product Flow
8
Supply Chain ManagementA Multi-Echelon Logistics
Channel
Retailer
Raw materials supply point
Retailer
Warehouse
Retailer
Production facility
Raw materials supply point
Retailer
Retailer
Warehouse
Raw materials supply point
Retailer
Product Flow
9
Supply Chain Management
  • Two Main Types
  • Inbound logisticsĀ  The management of materials
    from suppliers and vendors into production
    processes or storage facilities.
  • Outbound LogisticsĀ  The process related to the
    movement and storage of products from the end of
    the production line to the end user.

10
Supply Chain Management
  • Steps toward improving Logistics performance
  • Make transport a customer service activity
    instead of a cost
  • Reduce your stock pipeline to cut costs and
    improve service (go easy by low inventory)
  • Pick as soon as you can (pick once, pick right
    and cut the cost time and error)
  • Is everything you are doing is really necessary

11
Supply Chain Management
  • Transportation
  • Transport or transportation is the movement of
    people and goods from one place to another.
    Industries which have the business of providing
    actual transport, transport of people or goods
    and services referred to as transport industries.

12
Supply Chain Management
  • Basic modes of transport
  • By Air
  • By Road
  • By Train
  • By Sea

13
Supply Chain Management
  • Considerations in Transportation
  • Cost / Rates
  • Reliability
  • Safety / Damages
  • Insurance
  • Speed / Time
  • Mode of Transportation
  • Routes / sectors
  • Vehicles type
  • Urgency / Priority
  • In-house / Outsource

14
Supply Chain Management
15
Supply Chain Management
  • 3rd Party Logistic Service providers
  • Third-party Logistics is simply the use of an
    outside company to perform all or part of the
    firms materials management and product
    distribution function.
  • -- Simchi-Levi (2000)

16
Supply Chain Management
  • Characteristics of 3PL
  • Perform outsourced logistics activities
  • Process management / Multiple activities
  • More customized services
  • Long-term commitments (1 3 years)

17
Supply Chain Management
  • Advantages
  • Cost reduction
  • Focus on core competency
  • Improved efficiency, service and flexibility
  • Disadvantages
  • Loss of control
  • Impact on in-house workforce

18
Supply Chain Management
  • Current State -- Market Size

3PL market is growing
( Billions )
19
Supply Chain Management
  • Current use of 3PL by industry
  • Industry
  • Percentage of 3PL use in different industries

Computer
Consumer
Retail
Chemical
Medical
Auto
Source "What's ahead for 3PLs Modern Materials
Handling, April, 2000
20
Supply Chain Management
  • End of Topic
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