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  1. 1. A Presentation on Logistics Prepared by:- Mehul Rasadiya K.K. Parekh Institute of Management Studies (Amreli)
  2. 2. Logistics Defined  Logistics means having the right thing, at the right place, at the right time  The procurement, maintenance, distribution and replacement of personnel and materials Webster’s Dictionary  The science of planning, organizing and managing activities that provide goods or services Logistics World, 1997
  3. 3. Seven R’s  Ensuring the availability of the Right product Right quantity Right condition Right Place Right time Right customer Right cost
  4. 4. Logistics  Functions: planning, procurement, transportation, supply and maintenance  Processes: requirements determination, acquisition, distribution and conservation  Business: science of planning, design and support of business operations of procurement, purchasing, inventory, warehousing, distribution, transportation, customer support, financial and human resources
  5. 5. Major functions of work  Order Processing  Inventory  Transportation  Warehousing, Materials Handling, and Packaging  Integrated through a network of facilities  E.g. warehouses and distribution centers
  6. 6. Service benefits are created by logistical performance in 3 areas  Availability involves having inventory to consistently meet customer material or product requirements  Operational performance deals with the time required to deliver a customer’s order  Service reliability involves the quality attributes of logistics
  7. 7. Scope of Logistics  Choice of markets  Plant location and layout  Inventory management  Location and management of warehouses  Choices of carriers, mode of transport  Packaging decisions  Relevant to all enterprises manufacturing, Government, Institutions, service organisations
  8. 8. Logistics Activities  Transportation  Warehousing and storage  Customer service  Industrial packaging  planning/scheduling  Materials handling  Facility location  Inventory control  Return goods handling  Order fulfillment  Parts and service support  Demand forecasting  Salvage and scrap disposal  Production  Procurement
  9. 9. Components of LOG Management Logistics Activities Input •Natural Resources (land, facilities Equipment) •HR •Finance •Information Output Customer service Demand forecasting Distribution Communications Inventory control Materials handling Order processing Parts and service support Plants and warehouse selection Procurement Packaging Return goods handling Salvage and scrap disposal Traffic and transportation Warehouse and storage •Marketing Orientation (competitive Advantage) •Time and Place utility •Efficient move to customer
  10. 10.   
  11. 11. Inbound Logistics  Sourcing and vendor selection for supply of raw materials and manufacturing parts  Inbound planning  Raw materials warehousing consolidation warehousing  Management of Inventory  Information system for effective support strategic alliances with the supplies and transporters transportation and procurement including
  12. 12. Internal Logistics  Capacity Planning Operational planning Production planning  Materials Requirement planning  Shop floor control  Management of in-process inventory  Supporting material handling facilities planning and their deployment etc
  13. 13. Out bound Logistics  Outbound logistics system is concerned with the flow of finished products from factory warehouse to the customers through a distribution network comprising:  The wholesalers  Sales order processing  Distributors  Sales return processing  Retailers  Accounts realization and  Regional warehouses  Counter  Transporters  The levels inventory information at receivable all flow from of the customers to the factory
  14. 14. Information flow Information flow Customer’s customer Customer Lead Firm Supplier Supplier’s supplier General cash flow Outbound / Downstream logistics Inbound / Upstream logistics
  15. 15. Logistical performance cycles
  16. 16. Current Logistics Practice Client Vendor C Forwarders/ Brokers/ Truckers Vendor A Vendor B Forwarders/ Brokers/ Truckers - Receiving - Quality Assurance - Storage - Production Picking/Packing Customer A Customer B Customer C
  17. 17. Types of operations that integrate the logistics FLOW STOCK PROCESS
  18. 18. Operations of flow Transport associated to the supplying of raw materials and finished products.
  19. 19. Operations of stock Considers Storage of Raw materials and Finished Products
  20. 20. Process Operations Considers Production (product ) and Preparation (packaged,packing,).