2. INTERNATIONAL LOGISTICS
• International logistics is the process of planning and managing the
flow of goods and products in your company's supply chain from
acquisition to customer purchase, where part of the process involves
crossing at least one international border.
• It is a Global Supply Chain Logistics provide for clients that have
products to move from point to point. We cover all aspects of Supply
Chain distribution for any type of shipment and commodity.
3. What is Logistics?
• Definition of logistics management
Part of the supply chain management plans, implements, and controls
the efficient, effective forward and reverse flow and storage of goods,
services and related information between the point of origin and the
point of consumption in order to meet customers' requirements
4. What is Logistics?
• Business logistics: moving cargo
• General logistics: moving cargo and moving
people
• Moving cargo vs. moving people
• We refer to business logistics
5. What is Logistics?
Definition of supply chain management
• Supply chain management encompasses the planning and
management of all activities involved in sourcing and procurement,
conversion, and all logistics management activities.
• Importantly, it also includes coordination and collaboration with
channel partners, which can be suppliers, intermediaries, third party
service providers, and customers.
• In essence, supply chain management integrates supply and demand
management within and across companies
6. There are two main phases that are
important in the movement of materials:
• Material management - It is the timely movement of raw materials,
parts, and supplies.
• 2. Physical distribution-It is the movement of the firm’s finished
products to the customers. Both phases involve every stage of the
process including storage. The ultimate goal of logistics is:
• “To coordinate all efforts of the company to maintain a cost effective
flow of goods.”
7. • Word, ’Logistics’ is derived from French word ‘loger’, which means art
of war pertaining to movement and supply of armies.
• A military concept Fighting a war requires: a. Setting of an objective b.
Meticulous planning to achieve the objective c. Troops properly
deployed d. Supply line consisting weaponry, food, medical
assistance, etc. maintained
• Plan should be such that there is minimum loss to men & material
8. What is the Goal of Logistics?
• Logistics is about getting things to where they need to be, but is much
broader than transportation
• The overall goal of logistics:-
• To achieve a targeted level of customer service at the lowest possible
cost
9. Inbound logistics + Material Management +
Physical Distribution =Logistics
• Inbound logistics –
• -covers the movement of materials received from suppliers
• Material management –
• describes the movements of material & components within a firm Physical
distribution –
• refers to movement of goods outward from the end of the assembly line to
the costumer.
• Supply- chain management –
• is somewhat larger than logistics and it links logistics more directly within
the user’s total communication network & with the firm engineering staff.
It includes manufacturer and suppliers but also transporters, warehouses,
retailers and customers themselves.
10. Importance of Logistics
• Transportation cost rose rapidly due to the rise in fuel prices.
• Production efficiency was reaching a peak
• Fundamental change in inventory philosophy
• Product line proliferated
• Computer technology
• Increased public concern of products
• Growth of several new, large retail chains or mass merchandise with large
demands & very sophisticated logistics services, by pass traditional channel &
distribution.
• Reduction in economic regulation
• • Growing power of retailers
• • Globalization
11. Components
• There are five elements of logistics:
• Storage, warehousing and materials handling.
• Packaging and unitization.
• Inventory.
• Transport.
• Information and control.
12. 1.Storage, Material handling and Warehouses
-
• to enable a steady stream of products to be supplied by manufacturers.
• Manufacturers need to operate at peak efficiency, but consumers tend not
to demand goods at the same rate as a manufacturer supplies them.
• There tends to be an imbalance between supply, which is steady, and
demand, which can be unpredictable. The answer is to store the surplus
goods produced by a manufacturer until they are demanded by consumers.
• To achieve this, warehouse buildings are required. - specialist storage
equipment such as shelving or racks and material handling equipment to
move them around the warehouse and to load and unload delivery
vehicles.
13. 2.Packaging and Unitisation
• A key component of logistics is the care and condition of a product.
Packaging is an essential part of that.
• Unitisation is also important as this assists storage and
transportation.
• The easiest product to move and store is a cube, so packaging and
unitisation attempts to take all different sizes and shapes of product
and pack them as near as possible into a cuboid shape.
14. 3.Inventory
•
• Inventory is a logistics element that is closely related to storage and
warehousing.
• It is concerned with what stock to hold, where the stock is located and
how much stock to hold.
• In effect, inventory is controlling the flows of goods going into and out of a
warehouse.
• From sales data of past orders and using various mathematical and
statistical tools to attempt to predict how much goods will be demanded
by consumers.
• Inventory management is not an exact science, but depending on how
variable demand can be, it is a useful tool to help manage the flows of
goods through the supply chain.
15. 4.Transport
• This includes all modes of transport including road vehicles, freight
trains, cargo shipping and air transport.
• Without transport, goods would be unable to move from one stage
to another within a supply chain.
• Some goods with short supply chains, such as foods, do not travel far.
Other more complex products consist of many components that can
be transported from all over the world.
16. 5.Information and control-
• The element of information and control is needed by all the elements
to act as triggers to various operational procedures.
• Order levels help decide what orders need to be picked and packed
in warehouses and enable the planning and organisation of transport.
• Information and control’s role is to help design information systems
that can control operational procedures. They are also key in the
forecasting of demand and inventory.
17. 6 Different Types Of Logistics
There are six different types of logistics which needs to be studied in
detail:
• Inbound Logistics.
• Outbound Logistics.
• Third Party Logistics.
• Fourth Party Logistics.
• Distribution Logistics.
• Reverse logistics.
18. . Inbound Logistics
• Inbound logistics alludes to the inner logistics errands and exercises that
organizations need to finish so as working. Inbound logistics ordinarily
refers to the strategic tasks of organizations that work genuinely upstream.
As far as the supply chain is concerned, it includes the relationship with
parties that work further upstream than the given business.
• Contingent upon the business, the parties that work upstream may change
significantly in their particular tasks.
• For instance, consider being a car manufacturer. The maker’s inbound
logistics would involve the sourcing of crude material data sources (sheet
metal, glass, wiring, plastics, and so forth.), how to store the materials in
preparation for and during the assembly procedure, and how to deal with
the flow of produced cars that leave the plant.
19. Inbound Logistics Activities
1. Sourcing and procurement
2. Ordering/purchasing
3. Transportation
4. Receiving
5. Material handling
6. Putaway https://youtu.be/ZN6--Xi5lKo
7. Storing and warehousing
8. Inventory management
21. Outbound Logistics
• Outbound logistics allude to the errands and exercises engaged with
moving the item to the end client. Such strategic obligations generally
apply to players that work moderately downstream, which are
normally the last party in the supply chain.
• The obligations incorporate the storage of manufactured stock, the
transportation of produced merchandise to the retail location, and
sometimes, the shipping and handling involved in the process.
24. 3. Third Party Logistics
• Third party logistics can be mistaking for entrepreneurs. Logistics
incorporates all pieces of the supply chain that plan, actualize, and
control the flow of merchandise and services to meet client
prerequisites. Third party logistics imply that a third party business is
utilized to outsource logistics services.
• These services can incorporate all exercises that include the
management and the different ways an enterprise moves resources
starting with one location then onto the next. They involve tasks,
transportation, warehousing, production, and more.
25. 4. Fourth Party Logistics
• A 4PL is a fourth-party logistics supplier and it basically makes third
party logistics a stride further by overseeing resources, innovation,
technology, infrastructure, and even manage external 3PLs to
configure, fabricate and give supply chain solutions for organizations.
• A 4PL service includes 3PL service as well as Logistics strategy, Freight
sourcing strategies, Network analysis, and design, Consultancy,
Business planning, Change management, Project management,
Inventory planning, and management and also Inbound, outbound
and reverse logistics management.
26. 5. Distribution Logistics
• Distribution logistics involves the arranging errands, control and all
procedures concerning the flow of goods and information between
manufacturing companies and clients. Distribution logistics
(otherwise called transport logistics or sale logistics) is the connection
or link between market and production.
• The zone contains all procedures engaged with the distribution of
merchandise – from manufacturing organizations to customers.
Customers could be final end users, wholesalers, distributors or
processors. It ensures that the manufactured goods and services
reach the customer safely and quickly.
27. 6. Reverse logistics
• Reverse logistics is the set of activities that are directed after the sale
of an item to recover worth and end the item’s lifecycle. It commonly
includes restoring an item to the producer or merchant or sending it
on for overhauling, repair, or reusing. It is also called aftermarket
supply chain, reseller’s aftermarket logistics, or reverse logistics.
• Reverse logistics is the sector of supply chains that procedure
anything returning inwards through the supply chain or voyaging ‘in
reverse’ through the supply chain. Thus the name becomes reverse
logistics.