Logistics involves planning, implementing, and controlling the physical flow of materials and finished goods from the point of origin to the point of use to meet customer needs. It covers a wide scope from macro-level infrastructure to speed and reliability of distribution. The concept views the flow of materials through a supply chain as a single system to ensure efficiency. Key logistics functions include transportation, warehousing, inventory management, packaging and information flow. The objectives are inventory reduction, reliable delivery, freight economy, minimizing damages and quick responses. Logistics solutions integrate various arms into comprehensive services from a single window.

1. Prestige Institute of Management and
Research, Indore
Topic: Introduction to Logistics
Submitted to: Submitted by:
Prof. Sonam Mathur Ashish Pratap Singh
Burhanuddin Zaki
Mustafa Talwada
Satish Mishra
MBA (MM) “B” III SEM

3. Definition of Logistics
Planning, implementing, and controlling the physical
flows of materials and finished goods from point of
origin to point of use to meet the customer’s need at a
point.
-Philip Kotler

4. Scope of Logistics
• At a macro level, the logistical infrastructure, such as modes of transportation,
transportation equipment, storage facilities, connectivity, and information
processing, are contributing to a large extent to the physical movement of goods
produced in manufacturing, mining, and agricultural sectors.
• The speed and reliability in distribution from the place of production to the place of
consumption contributes greatly to the growth of a country’s domestic and
international trade.
Country Logistics cost/GDP (in per cent)
China 15-18
India 11-13
US 8
Europe 7
Japan 11.4

5. Logistics- A system Concept
The concept of logistics is based on the system approach. The flow of material
from a supplier to a manufacturing plant and finally to the end customer is
viewed as a single chain, ensuring efficiency and effectiveness in sequential
activities toe achieve the objective of customer satisfaction at a reduced cost.
Logistics Mix:
•Information Flow
•Warehousing
•Inventory Control
•Packaging
•Transportation

6. Customer Value Chain
1. Globalization
2. Focus on supply chain management
3. Outsourcing of non-core competency functional areas
Distribution of Logistics cost
Stages Cost items Percentage
Inbound Logistics Transportation 12.0
Storage 8.0
Inventory 8.0
Process Logistics Transportation 2.0
Storage 5.0

7. Outbound Logistics Transportation 33.0
Storage 15.5
Inventory 6.5
Order Processing 10.0

8. Functions of Logistics
•Order Processing
•Inventory Management
•Warehousing
•Transportation
•Material Handling and Storage System
•Logistical Packaging
•Information

9. Logistics for Business Excellence
Logistics operations for business excellence need to be integrated on the following two fronts:
1.Integration of logistics into the business
2.Integration of components of logistics
Suppliers Procurement Processing Distribution Customers
Logistics activities can broadly be divided into three areas of operation wherein the logistics needs are
quite different
Procurement
Processing
Distribution

10. Objectives of Logistics
•Inventory Reduction
•Reliable and consistent Delivery Performance
•Freight Economy
•Minimum Product Damages
•Quick Responses

11. Logistics Solutions
The task of integrating these various arms of logistics to provide a
comprehensive services from a single window is known as logistics solution.
Logistics is not the area of core competency of manufacturing or trading
organisation. Hence this job needs to be handed over to somebody whose core
competency is logistics.
Today logistics is widely used in virtually every area and can form the basis
for a domestic kitchen inventory an one extreme to complex activities in
manufacturing a luxury car within a prescribed time frame.

12. Future of Logistics
Many foreign multinational firms have started trading activities on Indian
soils. They have become an accepted trend for the following reasons:
•Cost saving
•Focus on core business
•Paucity of funds
•Reduction in liabilities
•Wider geographical coverage
•Cross-pollination of better available practices

13. Thank You