Logistic Management in India

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How Logistic Management Happens?
What is the process?

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Logistic Management in India

  1. 1. What is Logistic Management?
  2. 2. IN TODAY’S HIGHLY COMPETITIVE INDUSTRIAL SCENARIO OF GLOBAL COMPETITIVENESS, LOGISTICS HAS TRULY BECOME A STRATEGIC WEAPON AND MOST IMPORTANT FACTOR IN THE SUPPLY CHAIN
  3. 3. • Three objectives of logistics Management: • • • Cost reduction (variable costs) Capital reduction (investment, fixed costs) Service Improvement (may be at odds with the above two objectives).
  4. 4. 1. Production 2. Storage 3. Transportation
  5. 5.  Fundamental logistics questions are: (1) when should a resource be produced; and (2) where should a resource be produced.  The “when” question includes the topics of aggregate resource planning, and production scheduling.  The “where” question includes the topics of facility location and production allocation.  Some of the important production questions are:  (a) What outside source should be used to supply a part?  (b) Where should a new facility be built?  (c) When should a facility produce different items, taking into account: • • Demand uncertainty? • Cost of operating single, double, triple shifts? •  Seasonal demand patterns? Labor costs? (d) When should a firm use two or more sources for a part?
  6. 6.  Fundamental logistics questions are (1) when should a resource (material, machine or labor) be put in inventory and taken out of inventory; and (2) where should a resource be stored.  The “when” question includes the general topics of economic-order-quantity models, safety stock models and seasonal models, and specialized topics of fleet management, and personnel planning.  The “where” questions includes the topic of inventory echelons.  Some of the important inventory questions are: (a) (b) How much does it cost to store resources in inventory? How much “safety stock” should be carried in inventory to prevent against running out of a resource? How much inventory should be carried in order to smooth out seasonal variations in demand? (d) Where should replacement parts be stored in multi-echelon inventory system? (c) 
  7. 7.  Fundamental logistics are: (1) where should resources be moved to, and by what mode and route; (2) when should resources be moved.  The “where” question includes the topics of terminal location, vehicle routing, and shortest path methods and network flow allocation.  The “when” question includes the topic of distribution rules.  Some of the important questions are: When should shipment be sent through terminals, and when should shipment be sent direct? (b) Which, and how many, terminals should shipments be sent through? (c) What are the best vehicle routes? (d) When should a vehicle be dispatched over a route? (a)
  8. 8. Goods : Raw Materials Final products, and everything in between. Logistics for services & people similar to goods logistics. Ex. Police, fire, ambulance, passenger airlines, taxi cabs, etc. Movement Storage = = Transportation (between locations). Inventory, Warehousing (at locations). Difference between acquisition and consumption is a matter of space and time. Focus: Best way to overcome space and time that separates acquisition and consumption.
  9. 9.  TNT EXPRESS  DHL  ALL CARGO LOGISTIC LTD.  AGARWAL PACKERS AND MOVERS  GATI  DTDC  BLUEDART  FIRST FLIGHT  FEDEX  GLOBE EXPRESS SERVICES
  10. 10. Case Study : Blue Dart
  11. 11. Blue Dart DHL is South Asia's premier courier, and integrated express package Distribution Company. It has the most extensive domestic network covering over 27,578 locations, and services in more than 220 countries and territories worldwide through its parent company DHL, the premier global brand name in express distribution services. Its vision is to establish continuing excellence in delivery capabilities focused on the individual customer. Blue Dart runs economical, door - to-door, ground distribution service to over 27,578 locations in India for shipments weighing 10 kgs and above.
  12. 12. It offers a cost-effective logistics option for less time-sensitive shipments. For making time bound deliveries, it runs a fleet of vehicles on pre-determined routes (between hubs) and schedules to provide committed delivery. Maintaining the transit schedule is the key need of the operation. Blue Dart DHL management has always pioneered technological investment to improve efficiency and customer service delivery and continues to do so. In 2007, it partnered with their vehicle vendors to install a GPS - based vehicle tracking solution on its all ground operation vehicles runs between hubs.
  13. 13. “With GPS ground operation vehicles, it has become very simple to locate any vehicle of there fleet in real time. This has also helped them to identify en route stoppage, delays, and other unforeseen situations and take corrective action” says R Venket, Astt.Manager, Ground Network Operations of Blue Dart DHL.” They have specially designed large monitoring screens in Network Control Center (NCC) to track all India operations and manage ground operations, which is first of a kind in the industry,” added Venket.
  14. 14. Paper Cuttings/ Advertisements
  15. 15.  Google  Times of India  The Hindu  www.youtube.com  Economic Times
  16. 16. “Logistic is the process of planning, implementing and controlling the efficient, effective flow of goods storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements” Logistics exists to satisfy customer requirements by facilitating relevant manufacturing and marketing operation. The main responsibility of logistic is the geographical positioning of raw materials, work in process and finished inventories at the lowest possible cost. Creating logistics value is costly. Logistics accounts for one of the highest costs of doing business. Logistics expenditure normally ranges from 5% to 35% of sales depending on the type of business. Thus logistics even though very important for any business success is expensive.
  17. 17. Robin Patni

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