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Introduction to logistics management
The document provides a comprehensive overview of logistics, covering its definitions, objectives, functions, and evolution, emphasizing its critical role in business and military contexts. It highlights the impact of globalization on the logistics industry, particularly in India, where trade and e-commerce growth are driving demand for logistics services. The document also discusses career opportunities in logistics, underscoring its importance for organizational success and the need for skilled professionals.
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Introduction to logistics management
- 1. Contents • THE ORIGINOF LOGISTICS • DEFINITIONS OF LOGISTICS • EXAMPLES OF LOGISTICS SOLUTIONS • OBJECTIVES OF LOGISTICS • FUNCTIONS OF LOGISTICS • SCOPE OF LOGISTICS • LOGISTICS INDUSTRY IN INDIA
- 2. The current trendsin International Trade • Globalization has vastly increased the trade between countries • Markets have transformed from domestic to Global • Manufacturing in low cost countries and selling to consumers throughout the world has become a set trend
- 3. • Competition betweencompanies in products and services have become extremely fierce and mind boggling • Companies constantly endeavoring to improve the quality of their products and services for a larger share of the market • Countries battling for economic supremacy and GDP growth
- 4. Impact of Globalization •Companies are striving to meet changing customer demands in a market where products become outdated fast • Success rate has become lower because far too many products are launched • Customers opting for better value new products to old products • Customer demands are increasing for world class products and services
- 5. How can companiesturn competitive? • 1.Produce world class products which are competitively priced and bear top quality • 2.Reduce manufacturing costs • 3.Reduce distribution costs and reach products on time to the markets • 4.Quickly respond to the market and changing Customer requirements • 5.Ensure an effective supply chain and Logistics Management
- 7. Definition of Logistics •LOGISTICS OR PHYSICAL DISTRIBUTION REFERS TO THE ART OF MANAGING THE FLOW OF PRODUCTS OR MATERIAL FROM PRODUCER OR SUPPLIER TO THE CUSTOMER OR USER AND IS THUS CONCERNED WITH THE CREATION OF TIME AND PLACE UTILITY
- 8. Definition of Logistics •Logistics is the process of planning,implementing,and controlling the efficient cost effective flow and storage of Raw materials, Semi-finished, Finished goods and related information from point of origin to point of consumption for the purpose of conforming to Customers requirements - American Council of Logistics management
- 9. WHAT IS THRROLE OF A LOGISTICS MANAGER ? LOGISTICS MANAGERS ENSURE THAT THE RIGHT PRODUCT,IN THE RIGHT QUANTITY,IN THE RIGHT CONDITION IS DELIVERED TO THE RIGHT CUSTOMER AT THE RIGHT PLACE AT THE RIGHT TIME AND AT THE RIGHT COST.
- 10. The key Driversof Logistics Management • Inventory Transportation • Warehousing Packaging • Information Technology • Reverse Logistics
- 11. The Evolution ofLogistics • LOGISTICS AS A DISCIPLINE STARTED WITH THE EUROPEAN ARMED FORCES. • DURING TIMES OF WAR MAINTAINING ONES SUPPLY LINES WHILE DISRUPTING THOSE OF THE ENEMY IS A CRUCIAL ELEMENT OF MILITARY STRATEGY. • SOLDIERS MOVED FROM THEIR BASE TO A FORWARD POSITION AND ALONG WITH THEM ARMS,AMMUNITION,FOOD,EQUIPMENT HAD TO BE MOVED QUICKLY WITHOUT ANY ERRORS OR OMISSIONS.
- 13. • WARS WEREWON OR LOST DEPENDING UPON THE STRENGTH OF A COUNTRY’S LOGISTICS CAPABILITY OR THE LACK OF IT. • IN TODAY'S GLOBALIZED COMPETITION AND BUSINESS WARFARE, COMPANIES EITHER SURVIVE OR PERISH DEPENDING UPON THE STRENGTH OF THEIR LOGISTICS CAPABILITIES.
- 14. MILITARY LOGISTICS • THEBRANCH OF MILITARY OPERATIONS THAT DEALS WITH PROCUREMENT,DISTRIBUTION, MAINTENANCE, AND REPLACEMENT OF MATERIAL AND PERSONNEL.
- 15. Business Logistics • THETERM LOGISTICS IS EXTENSIVELY USED IN BUSINESS TODAY AND MANY COMPANIES ATTACH GREAT IMPORTANCE TO LOGISTICS . • COMPANIES ARE INCREASINGLY FOCUSSING ON PROCESSES LIKE CRM –ISCM AND SRM TO IMPROVE THEIR QUALITY COST AND DELIVERY TO FULFIL THE REQUIREMENT OF THEIR CUSTOMERS AND CAPTURE A LARGER SHARE OF THE MARKET. • PERFORM OR PERISH EQUALLY APPLIES TO COMPANIES AND EMPLOYEES.
- 16. 7 R’s ofLogistics management • Logistics management is concerned with getting the Right product, in the Right quantity, in the Right condition, to the Right place, at the Right time, to the Right Customer and at the Right cost.
- 17. Examples of LogisticsSolutions • Dhabawallas of Mumbai • Automobile Industry • Textiles Industry • Indian postal service • Restaurants • Hotel Laundry Services • Ecommerce
- 18. Objectives of Logistics •Reduction in Inventory costs • Economy of freight-Reduce Transportation costs • Timely delivery to customers • Minimum damage to products
- 19. • Quicker andfaster response to customers • Lower the cost of distribution to make • the selling price more competitive • Efficiency in warehousing and perfect stock maintenance
- 20. Function of Logistics •Processing of orders received from the customers • Inventory planning, control and management • Warehousing • Logistical Packaging • Transportation • Material handling and storage • Information
- 21. Logistics in threestages • Inbound Logistics before manufacturing • Process logistics-Storage and movement • Outbound Logistics after manufacturing-
- 22. 3 PL Logisticsservices • Transportation • Warehousing • Freight forwarding • Customs Clearance • Material handling • Shipping • Invoicing and Delivery • Many other value added services
- 23. THE GROWTH OFTHE LOGISTICS INDUSTRY IN INDIA
- 24. • INCREASE INTRADE POST LIBERALIZATION, FROM 250 MILLION TONNES TO 3000 MILLION TONNES IN 2011- 12 • INDIAN ECONOMY GROWING AT ABOUT 8 PERCENT EVERY FIVE YEARS WITH SERVICES CONTRIBUTING ABOUT 55 PERCENT TO GDP,MANUFACTURING 30 PERCENT AND AGRICULTURE 15 PERCENT • INDIA WITH ITS LARGE MARKET SIZE AND OTHER ADVANTAGES EMERGING AS A MANUFACTURING HUB.
- 25. • GLOBALIZATION-COMPANIES CANMANUFACTURE AND SELL IN ANY PART OF THE WORLD • INDIA EMERGING AS THE WORLDS RETAIL MARKET WITH MANY LARGE WORLD RETAILERS ENTERING INDIA • RISING INCOME OF INDIA'S MIDDLE CLASS AND UPPER MIDDLE CLASS LEADING TO AN EXPLOSION OF MALLS, HYPER MARKETS, MEGA SHOPPING CENTERS,BEAUTY PARLOURS ETC
- 26. • ECONOMIC GROWTHIN RURAL INDIA HAS RISEN INCOME LEVELS IN OUR RURAL POPULATION WITH INCREASED CONSUMPTION OF GOODS AND SERVICES • INCREASING FLOW OF FOREIGN INVESTMENTS IN INFRASTRUCTURE,AUTOMOBILES,RETAIL,FOOD,PH AR- MACEUTICALS,TELECOMMUNICATIONS,ELECTRONI CS AND OTHER INDUSTRIES. • THE GROWTH OF E-COMMERCE WARRANTS A SUBSTANTIAL INCREASE IN WAREHOUSING AND TRANSPORTATION.
- 27. The Role andimportance of Logistics • WITH GLOBALIZATION OF MARKETS AND GLOBAL COMPETITION THE PERFORMANCE OF THE INDIAN ECONOMY WOULD ESSENTIALLY DEPEND UPON HER LOGISTICS CAPABILITIES. • LOGISTICS INDUSTRY GROWING AT ABOUT 15 PERCENT EVERY YEAR WITH REVENUES TOUCHING ABOUT USD 125 BILLION IN 2013 • FOREIGN GLOBAL COMPANIES DOMINATING IN INDIA'S LOGISTICS INDUSTRY WITH MASSIVE INVESTMENTS
- 28. • LOGISTICS BEINGA SUNRISE INDUSTRY IN INDIA, KNOWLEDGE AND SKILLS ARE BEING DEVELOPED THROUGH MANY INSTITUTIONS. • WITH DOMESTIC AND FOREIGN INVESTMENTS IN LOGISTICS INFRASTRUCTURE, A SOLID FOUNDATION HAS BEEN ESTABLISHED FOR THE GROWTH OF THE LOGISTICS INDUSTRY. • WITH GLOBALIZATION AND DEVELOPING LOGISTICS SKILLS, COMPANIES ARE FOCUSSING ON THEIR CORE MANUFACTURING PROCESSES AND OUTSOURCING ALL LOGISTICS ACTIVITIES.
- 29. • INDIAN COMPANIESTODAY OUTSOURCE ABOUT 52 PERCENT OF THEIR LOGISTICS REQUIREMENT TO 3 PL COMPANIES . • THE 3 PL INDUSTRY HAS ACHIEVED MASSIVE GROWTH IN THE LAST DECADE AND GROWING AT ABOUT 20 PERCENT. • THE NUMBER OF EMPLOYEES IN THE LOGISTICS SECTOR IN INDIA IS ESTIMATED AT 4.5 MILLION AND THE NUMBERS ARE GROWING
- 30. LOGISTICS AS ACAREER • WITH THE CHANGES IN THE GLOBAL BUSINESS ENVIRONMENT,THE NEED FOR WELL- EDUCATED,TALENTED PROFESSIONALS WITH MULTIPLE SKILLS HAS EMERGED • LOGISTICS IS CRITICAL TO THE SUCCESS OF EVERY ORGANIZATION.MNC COMPANIES LIKE COCO- COLA,WALMART,NIKE AND COMPANIES IN RETAIL LIKE HINDUSTAN LEVER ATTRIBUTE THEIR SUCCESS TO THEIR GLOBAL LOGISTICAL SYSTEMS
- 31. WHAT DOES ACAREER IN LOGISTICS OFFER? • JOB OPENINGS IN SEVERAL COMPANIES • GOOD SALARIES AND PERKS • UPWARD MOBILITY • EXCITING OPPORTUNITIES IN INDIA AND WORLDWIDE • INTERNATIONAL ASSIGNMENTS
- 32. THE END • LogisticsManagement is therefore a fast growing Global industry offering tremendous scope for career development and leadership roles.
- 35.