Logistics and Supply Chain
Prof. Suman Saurabh
External: 50 marks
Internal: 50 marks
Presentation: 20 marks
Case Study Presentation: 10 marks
Class Test: 10 marks
Attendance: 10 marks
Introduction, function and strategies of Logistics.
Understanding about C&F, wholesaler and retailer.
Order taking, raising invoice, goods return and expiry
Introduction, philosophy of Just in time method and
Introduction, strategies, challenges and opportunity of
Supply Chain Management.
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
Science the beginning of the last decade of the
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.
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.
All these are possible by Improving his
productivity as well as profitability.
In short :
“Right Product at a right time”
“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
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.
There are mainly three types of
function of logistics.
Inbound logistics function
Production related logistics function
Outbound logistics function
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
It consist entire activity of logistics from
procurement of material to Production
center which is mention billow:
Activity involve on inbound logistics
Delivery of Product
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,
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
Production Related Function
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
Outbound Logistics Function
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
It is a subset of the overall corporate strategy
that deals with the management of the flow of
materials/product in downward approach.
Step of Strategic Logistics
1) Corporate Visioning
2) Strategic Logistics Analysis
3) Logistics planning and evolution
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.
Key element of corporate vision
towards strategic logistics
1. Recognition of service requirement for
different market segment.
2. Understanding of key external
environmental forces along with their
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
3. Final selection of the best alternatives and
formulation of detailed logistics plan.
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.
Channel partner for Pharmaceutical
C & F
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
It is appointed by the company on mutually
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.
To dispatch the company’s promotional
material to company’s field force.
To submit sales tax and other returns to
To provide all feedback regarding all matters
concerning the business.
Why C & F agent
1) To manage distribution system
2) To provide better service to all channel
3) To reduce cost of distribution and company
No sales transaction taking place
To avoid trade margin
Wages are very less of staff
Stickist is main channel partner of company
which is appointed for a specific area to resell
company product to chemist or retailer.
Function of stockist
Maintenance of adequate stocks of the
company product, at all time, to prevent stock
To provide proper storage facilities in term of
maintaining the specific temperature.
To resell company product among retailers,
nursing homes and hospital.
To provide details regarding sales and stocks
held by them at the end of every month
To collect the returned goods from retailers and
To provide feedback regarding consumer
reactions to company.
Retailers in the Indian pharmaceutical
industry is known as chemists and
Retailer who dispenses the prescription of a
medical practitioner and sell medicines to a
Retailers is very important source of
information regarding the prescribing
behaviors of doctors and competitor
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