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First lecturer new

  1. 1. Logistics and Supply Chain Management Prof. Suman Saurabh
  2. 2. Marks Distribution  External: 50 marks  Internal: 50 marks  Presentation: 20 marks  Case Study Presentation: 10 marks  Class Test: 10 marks  Attendance: 10 marks
  3. 3. Syllabus  Introduction, function and strategies of Logistics.  Understanding about C&F, wholesaler and retailer.  Transportation management  Customer service  Order taking, raising invoice, goods return and expiry product
  4. 4. Cont….  Introduction, philosophy of Just in time method and kanban system.  Introduction, strategies, challenges and opportunity of Supply Chain Management.
  5. 5. Introduction  Logistics acquired from Greek word “LOGO”. Means “science of computing and calculating”  It was first used by military to procurement, maintenance and transportation of military materials.
  6. 6. Cont…  Science the beginning of the last decade of the 20th century, there has been a fast changes in the business world due to environmental transformation. That is result into tremendous growth opportunity In business world.  This is the outcome of heavy industrialization as a government’s liberalisation policy and globlisation of world market.
  7. 7. Cont…  Due to stiff competition, consumer are becoming very conscious about his purchase decision and value for money.  Retailer are also worried about his ROI.  Firm need to generate higher level of customer satisfaction and provide highest value to share holder.
  8. 8. Cont…  All these are possible by Improving his productivity as well as profitability.  In short : “Right Product at a right time”
  9. 9. Logistics Management  Definition: “Logistics management is the art of managing and controlling the flow of row material, work in progress and finish goods from point of origin to point of consumption towards customer satisfaction.”
  10. 10. Function of Logistics  The generic function of logistics management is making available the required quantity of required quality products at the point of use at right time at the least cost.
  11. 11. Cont…  There are mainly three types of function of logistics.  Inbound logistics function  Production related logistics function  Outbound logistics function
  12. 12. Inbound logistics function  Inbound (Procurement) function of logistics management ensures a smooth flow of raw material, part and component of specified quality and quantity from vendor to the production center.  It consist entire activity of logistics from procurement of material to Production center which is mention billow:
  13. 13. Activity involve on inbound logistics Input need Source Study Negotiation with vendor Order placement Selection of Vendor Delivery of Product Storage
  14. 14. Production Related Function  This function deals with efficient management of work in progress management and its flow between the different stages of manufacturing. For example – quality control, bottling, packaging.  Primary function is to establish and maintain an maintain an orderly, smooth and economic flow of material facilitating total production system, avoiding ideal time for any manufacturing facility due to non availability of any input items.
  15. 15. Production Related Function Production Schedule Inventory management Input StoragePackaging Material handling
  16. 16. Outbound logistics unction  Outbound logistics function deals with physical distribution of product from point of production to point of consumption.  Physical distribution function of logistics ensure zero-defect service and prohibits stock – out by making the final product available regularly with minimum inventory level.
  17. 17. Outbound Logistics Function Distribution warehousing Transportation Order processing Customer satisfaction Output inventory management
  18. 18. Strategic Logistics Management  While looking at logistics management strategically, it is essential to examine the classic approach to formulating a logistics strategy that begins with the firm’s overall strategy and then defining the logistics strategy that will enable the firm to reach its overall objectives.  It is a subset of the overall corporate strategy that deals with the management of the flow of materials/product in downward approach.
  19. 19. Step of Strategic Logistics 1) Corporate Visioning 2) Strategic Logistics Analysis 3) Logistics planning and evolution
  20. 20. Corporate Visioning  It start with definition of the corporate vision about objectives behind the potential use of logistics for gaining differential advantage and long term performance of the firm.  It reflect corporate mindset about logistics in term of planning process, identification of potential, alternative logistics approach.
  21. 21. Continue….  Key element of corporate vision towards strategic logistics management. 1. Recognition of service requirement for different market segment. 2. Understanding of key external environmental forces along with their impact.
  22. 22. Strategic logistics analysis  There are three key function of the step are as follow. 1. Development of various strategic alternatives 2. Evaluation and review of each developed alternatives for their capabilities for attainment of corporate vision, risk involved and additional resources required. 3. Final selection of the best alternatives and formulation of detailed logistics plan.
  23. 23. Logistics planning and evaluation  Logistics Planning is blueprint of total logistics systems in term of:  Functional goals to achieve.  Programme and procedures for implementation of new logistics system.  Time for framework.  Authorities and responsibility  Continuous evaluation and measurement of performance for further improvement.
  24. 24. Second Chapter Distribution System
  25. 25. Channel partner for Pharmaceutical company. Manufacturer C & F OR Super stockiest Stickiest OR Distributor Chemist OR Retailers Consumer
  26. 26. Carry n Forward Agent (C & F)  C & F agent is distribution agency which manage all distribution function of company.  Its work virtually like a company distribution office.  It is appointed by the company on mutually acceptable agreement.
  27. 27. Function of C & F agent  To store company goods safely as specified in various schedule of drugs.  To execute order to company.  To follow up documentation procedure.  To provide all detail about sales to company.
  28. 28. Cont….  To dispatch the company’s promotional material to company’s field force.  To submit sales tax and other returns to respective authority.  To provide all feedback regarding all matters concerning the business.
  29. 29. Why C & F agent 1) To manage distribution system 2) To provide better service to all channel member. 3) To reduce cost of distribution and company cost because  No sales transaction taking place  To avoid trade margin  Wages are very less of staff  Warehouse rent
  30. 30. Stockist  Stickist is main channel partner of company which is appointed for a specific area to resell company product to chemist or retailer.
  31. 31. Function of stockist  Maintenance of adequate stocks of the company product, at all time, to prevent stock out.  To provide proper storage facilities in term of maintaining the specific temperature.  To resell company product among retailers, nursing homes and hospital.
  32. 32. Cont….  To provide details regarding sales and stocks held by them at the end of every month  To collect the returned goods from retailers and other parties.  To provide feedback regarding consumer reactions to company.
  33. 33. Retailer  Retailers in the Indian pharmaceutical industry is known as chemists and druggists.  Retailer who dispenses the prescription of a medical practitioner and sell medicines to a patient.  Retailers is very important source of information regarding the prescribing behaviors of doctors and competitor activities.
  34. 34. Function of retailer  To hold ready stocks of various important and essential medicines needed to cater to the prescription of doctors.  To provides supplementary information required by patient regarding the dosage and side effect.
  35. 35. Thank You