Here are the answers to the quiz questions: 1. Define supply chain (3 points): - The network of organizations, people, activities, information and resources involved in moving a product or service from supplier to customer. - It involves the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. - The goal is to deliver the right products to the right customers at the right time. 2. 4 pillars of supply chain: Procurement, Demand and Replenishment, Customer Service, Logistics 3. 7 Rs: Right product, Right quantity, Right condition, Right place, Right customer, Right time, Right cost

1. LOG i STICS

2. A glimpse…
Logistics originated in the military's need to supply themselves with
arms, ammunition and rations as they moved from their base to a
forward position.
In ancient Greek, Roman and Byzantine empires, there were military
officers with the title ‘Logistikas’ who were responsible for financial
and supply distribution matters.
The term "logistics" originates from the ancient Greek "λόγος"
("logos"—"ratio, word, calculation, reason, speech, oration").

3. Supply Chain Management
•suppliers ( and their suppliers),
•consumers (and their consumers),
•manufacturing centers, warehouses,
• distribution centers,
•and the retail outlets,
•as well as raw materials, work-in-process inventory,
and finished products that flow between facilities

4. Four Pillars
• Procurement
• Demand and Replenishment
• Customer Service
• Logistics

5. Logistics
is the process of Planning, Implementing
and Controlling the efficient, cost-effective
flow and storage of raw materials, in-
process inventory, finished goods and
related information from point of origin to
point of consumption for the purpose of
conforming to Customer Requirements

6. Main Objective
“Ensuring availability of the right
product in the right quantity, and
of right condition at the right
place, at the right time, for the
right customer, at the right cost”
- Council of Logistics Management

7. A Typical Supply Chain
Supplier
Warehouse
Manufacturing
Distributors Retailers
Supplier
Consumers

8. Current Logistics Practice
Client
Vendor
C
Forwarders/B Forwarders/B Customer A
rokers/ rokers/
Vendo
rA Truckers - Receiving Truckers
- Quality
Assurance
- Storage Customer B
- Production
- Picking/Packing
Customer C
Vendor D

9. Logistical Operations
• Warehousing
• Materials Handling
• Inventory Management
• Transportation and Distribution

10. What is a Warehouse?
A warehouse is a place for storage or any space or
area that is used to keep materials, goods,
products, and other items for a period of time until
finally withdrawn, used, transferred or sold.
It is also described as a place where things kept
are protected from elements and safe guarded from
losses

11. Major Objectives of Warehousing
•To receive materials and supplies in accordance
with proper documentation procedures and in
conformance with specified quality.
•To plan and provide adequate storage space for
goods
•To keep storage of goods in accordance with
efficient warehousing practices including ease of
order picking
•To undertake measures to protect stocks from
damage, pilferage, and unauthorized movements
•To implement a system of reconciling inventory
records with actual physical stock
•To issue and transfer materials and goods in
conformance with set documentation procedures
•To assist in the effective and efficient disposal of
scrap/surplus items by identifying, collecting, and
segregating these items for easier disposal.

12. Logistical Operations
• Warehousing
• Materials Handling
• Inventory Management
• Transportation and Distribution

13. What is Materials Handling?
From an engineering From the logistics
point of view, it is the art management point of
and science involving the view, it is the portion of
moving, packaging, and the business system
storing of substances in which affects the
any form. relationship of material
and packaging to the
product, facility, or
customer without adding
usable worth or changing
the nature of the
product.

14. Elements of
Materials Handling
• Motion
• Time
• Place
• Quantity
• Space

15. Objectives of Materials Handling
Reduced Cost
-Lower Inventory and production control
costs
-Better space utilization/ reduce demurrage
-Shorter production time cycle
Reduce Waste
-Less Spoilage
-Less damage by improper handling

16. Increased Productivity Capacity
-Assure constant rate of production
-Coordinated handling system
-Better control of materials
-More effective use of manpower
-Eliminates production bottlenecks
Improved Working Conditions
-Safer working situations
-Less fatigue
-Upgrading employee to more productive work
Improved Distribution
-Quicker delivery to customers
-Increased production volume due to lower cost
-Cut damage claims.

17. 3Ms of Materials Handling
Physical Characteristics
What Material
Volume
Scope
Where Source & Destination
Movement
Route
When
Frequency
Speed or Rate
How
Unit Handled
Method
Who Equipment
Manpower

18. Logistical Operations
• Warehousing
• Materials Handling
• Inventory Management
• Transportation and Distribution

19. Inventory Management
Inventory Management determines the
amount of inventory to keep in stock that is
how much to order and when to replenish, or
order.

20. Role of Inventory Management
in Logistics
•management of inventories to have the right amount
and to achieve competitive priorities for the business.
•balance the conflicting cost in keeping inventory to
ensure supply versus stock-out issue that affects
revenue and customer service.

21. Logistical Operations
• Warehousing
• Materials Handling
• Inventory Management
• Transportation and Distribution

22. Transportation and Delivery
it provides service operation which moves
materials and goods between each process in
the link and between links in the supply
chain to obtain cost efficient transport route
from supplier to factory and factory to
customer.

23. Movement/
Transportation
Sytem
RM Supply
RM Storage Manufacturing FG Storage Markets
Point
supplier storage plant warehouse customers
Movement/ Movement/ Movement/ Movement/
transport transport transport transport

24. Distribution
is the coordination and management of the
movement, inventory, protection and storage of
finished goods from the end of production line to the
customers to achieve timely and cost effective service
level. It aims to minimize cost involved in physically
moving and storing products from its production point
to the point where it is purchased by customer, while
maintaining customer service level

25. Simple Distribution
System
Market
Customer
Raw materials
supply point
Manufacturing Market
plant Customer
Raw materials
supply point
Market
Customer

26. Complex Distribution
System retailer retailer
warehouse wholesaler retailer
Raw Materials
Supply point
retailer retailer
Manufacturing
Plant retailer retailer
Raw Materials warehouse wholesaler retailer
Supply point
retailer retailer
Manufacturing
Plant
retailer retailer
Raw Materials
Supply point warehouse wholesaler retailer
Manufacturing retailer retailer
Plant
retailer retailer
Raw Materials
Supply point warehouse wholesaler retailer
retailer retailer

28. Quiz
• Define supply chain (3points)
• 4 pillars of supply chain
• 7 Rs
• 3M’S of Material Handling
• 5 elements of Material Handling
• 3 types of material inventory