Logistic and supply chain management involves planning and coordinating all activities from procuring raw materials to delivering the final product to customers. The goal is to achieve the desired level of service and quality at the lowest possible cost. Competitive advantage comes from either lower costs or providing greater value to customers than competitors. Logistics management encompasses activities like network design, transportation, inventory, and warehousing that facilitate the flow of materials and information from suppliers to customers.

1. Logistic & supply chain management

2. Introduction
What is logistic management…?
The objective is to plan and coordinate all the
activities necessary to achieve desired level of delivered
service and quality at lowest possible cost.
The scope of logistics include the entire of
activities starting from the procurement and management
of raw materials through to delivery of final product to the
customer

3. Competitive advantage
Customers seeking benefits at acceptable cost
Company A
Asset utilization
Cost Differential
Company B
Asset utilization

4. Source of Competitive Advantage
* Competitive advantage is the ability of an
organization to differentiate itself in the eyes of
the customer, from its competition, and to
operate at a lower cost and hence greater profit.
* Competitive advantage helps
organizations to achieve commercialsuccess
which mainly depends upon two factors – cost
advantage and value advantage.

5. COMMERCIAL SUCCES
Cost advantage
Value advantage

6. Value Chain Activities
Primary Activities
• Inbound Logistics
• Operations
• Outbound Logistics
• Marketing & sales
• Service
Secondary Activities
• Infrastructure
• Human Resource
management
• Technology Development
• Procurement

7. Underlying Philosophy Behind
Logistics Concept
-----------------Materials Flow---------------------
Suppliers
Procurement
Operation
Distribution
-------------------Information Flow------------------
Customers

8. Activities Include in logistics
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Network design
Information
Transportation
Inventory
Warehousing, material handling and
packaging.