To understand the escalating importance of logistics and supply-chain management as crucial tools for competitiveness. To learn about materials management and physical distribution. To learn why international logistics is more complex than domestic logistics. To learn why international inventory management is crucial for success.

1. Global Logistics
&
Distribution
By Anubhav Singh

2. Learning Objectives
 To understand the escalating importance of logistics and supply-
chain management as crucial tools for competitiveness.
 To learn about materials management and physical distribution.
 To learn why international logistics is more complex than domestic
logistics.
 To learn why international inventory management is crucial for
success.

3. Global Logistics
Global logistics refers to the flow of
resources and information between a
business or source and the consumer. It
is a management process that analyzes
how resources are acquired, stored and
transported. To be effective, the process
requires detailed analysis of a
company's entire supply chain

4. Global Logistics (cont.)
 Through the implementation of global logistics, the firm can
implement cost-saving programs such as just-in-time (JIT),
electronic data interchange (EDI), and early supplier involvement
(ESI).
 The two phases of the movement of materials include:
 materials management, or the timely movement of materials,
parts, and supplies.
 physical distribution, or the movement of the firm’s physical
product to its customers.

5. Supply Chain Management - Decision Phases

6. 6
Supply Chain Strategy
• Mostly decision is taken by the management
• Decision to be made considers the sections like long term prediction
and involves price of goods that are very expensive if it goes wrong. It is
very important to study the market conditions at this stage.
• These decisions consider the prevailing and future conditions of the
market. They comprise the structural layout of supply chain. After the
layout is prepared, the tasks and duties of each is laid out.
• These decisions include deciding manufacturing the material, factory
location, which should be easy for transporters to load material and to
dispatch at their mentioned location, location of warehouses for storage
of completed product or goods and many more.

7. 7
Supply Chain Planning
• Planning should be done according to the demand and supply
• The second thing to consider is awareness and updated information about
the competitors and strategies used by them to satisfy their customer
demands and requirements. As we know, different markets have different
demands and should be dealt with a different approach
• This phase includes it all, starting from predicting the market demand to
which market will be provided the finished goods to which plant is
planned in this stage.
• A supply chain design phase is considered successful if it performs
well in short-term planning.

8. 8
Supply Chain Operations
• Last decision phase consists of the various functional decisions that are to be made
instantly within minutes, hours or days. The objective behind this decisional phase
is minimizing uncertainty and performance optimization. Starting from handling the
customer order to supplying the customer with that product, everything is included
in this phase

9. 9
Managing physical Distribution
1. Materials Handling:
• It involves moving products in and out of a stock. It consists of routine
tasks that can be performed through mechanization and standardization.
• Efficiency is increased through use of electronic data processing to control
conveyor systems, order picking and other traffic flaws.
2. Inventory Planning And Control:
• Inventory refers to the stock of products a firm has on hand and ready for
sale to customers. Inventories are kept to meet market demands
promptly. Inventory is the link interconnecting the customer’s orders and
the company’s production activity.
• Infact the entire physical distribution management rotates around the
inventory management. Inventory management is the heart of the game
of physical distribution.
• Marketing managers undertake an inventory planning to develop
adequate assortments of products for the target market and also try to
control the costs involved in obtaining and maintaining inventory.

10. 10
3. Order Processing
• Order-processing and inventory control are related to each other. Order
processing is considered as the key to customer service and satisfaction.
• It includes receiving, recording, filling, and assembling of products for
dispatch. The amount of time required from the dates of receipt of an
order up to the date of dispatch of goods must be reasonable and as
short as possible.
4. Transportation
It is an essential element of physical distribution. It involves integrating
the advantages of each transportation method by adopting containers and
physical handling producers to permit transfers among different types of
carriers.

11. 11
5. Communications
It is a process of passing information and understanding from one person to
another. This includes the information system which should link producers,
intermediaries, and customers. Computers, memory systems, display
equipment and other communication technology facilitate the flow of
information among other members in the channel.
6. Organizational Structure
The person in charge of the physical distribution should co-ordinate all
Activities into an effective system to provide the desired customer service
in the most efficient manner. Examples of organizational consideration are:
(i) How can the five elements of physical distribution best be co-ordinated
so that a team effort results? How can compartmentalization thinking be
avoided?
(ii) If a central head is established to direct all physical distribution
activities, to whom should he report—The Head of the Marketing or The
Chief Executive Officer?