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What is Logistics Management? ,[object Object],[object Object],[object Object]
[object Object],[object Object]
Competitive Advantage  Customers seeking benefits at acceptable cost Company A (Asset utilization) Company B (Asset utilization) Cost differential
Source of Competitive Advantage ,[object Object],[object Object]
Commercial success Cost advantage Value advantage
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
Productivity and Value Matrix Commodity Market (1) Cost Leader (2) Service Leader (3) Cost and Service Leader (4) Productivity Advantage V a l u e A d v
[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
Value Chain Activities Value Chain Activities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
Factors affecting value and productivity advantage ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Underlying Philosophy Behind Logistics Concept Suppliers Procurement Operation Distribution Customers Materials Flow Information Flow
[object Object],[object Object]
How do we define logistics management? ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
How do we define supply chain? ,[object Object],Customers Retailers Shirt Manufacturer Weavers of Fabrics Yarn/Fibre  mfrers Downstream Upstream
[object Object],[object Object]
Is Supply chain management same as vertical integration? ,[object Object],[object Object],[object Object],[object Object]
Implementation of SCM through Logistics Management ,[object Object],[object Object],[object Object]
How does Logistics differ from SCM? ,[object Object],[object Object],[object Object],[object Object]
Impact of Logistics and Customer Service on Marketing ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Activities Included in Logistics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Network Design ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Information Deficiencies in the quality of information ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Transportation  ,[object Object],[object Object],[object Object],[object Object],[object Object]
Factors affecting transportation performance Transportation performance Cost Speed Consistency
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
Inventory ,[object Object],[object Object],[object Object]
Warehousing, Material Handling, And Packaging ,[object Object],[object Object]
[object Object],[object Object],[object Object]
Inventory Management Policy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Customer Segmentation ,[object Object],[object Object],[object Object],[object Object]
Product Requirements ,[object Object],[object Object],[object Object]
[object Object],[object Object]
Transport Integration ,[object Object],[object Object]
Time-Based Requirements  ,[object Object],[object Object],[object Object]
[object Object],[object Object]
Competitive Performance ,[object Object],[object Object]
Integrated  Logistics Customers Physical distribution Manufacturing support Procurement Suppliers Inventory Flow Information Flow
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],Inventory Flow Physical distribution Manufacturing support Procurement
Physical Distribution ,[object Object],[object Object],[object Object]
Manufacturing Support ,[object Object],[object Object],[object Object]
Difference between Physical distribution and Manufacturing Support ,[object Object],[object Object]
Procurement ,[object Object],[object Object]
Information Flow ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Logistical Performance Cycles ,[object Object],Performance Cycle Transaction creating  activities Physical fulfillment activities Advertising & Selling Physical distribution
Physical distribution performance cycle Customer order Order transmission Order processing Order selection Order transportation Order delivery  to the customer
Significance of physical distribution performance cycle ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
How to reduce physical distribution operational variance ,[object Object],[object Object],[object Object]
Manufacture Support Performance Cycle ,[object Object],[object Object],[object Object],[object Object]
Features of manufacturing support performance cycle. ,[object Object],[object Object],[object Object]
Procurement Performance Cycles Sourcing Order placement and Expediting S U P P L I E R S Transportation Receiving
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
Reducing performance cycle uncertainties ,[object Object],[object Object],[object Object],[object Object],[object Object]
A few terms used in Inventory Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
Inventory Planning ,[object Object],[object Object],[object Object]
Inventory decisions-High risk & high cost ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
Types of Inventory ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Functions underlying inventory commitments ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Inventory Management Strategy ,[object Object],[object Object],[object Object],[object Object]
Inventory Cost Consideration ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
Inventory Control Procedures Perpetual Review Periodic Review
Perpetual Review ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Periodic Review ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Inventory Planning Methods Fair Share allocation Distribution  Requirement Planning
Fair Share Allocation Plant Warehouse Inventory- 600 units Distribution Centre-1 Distribution Centre-2 Distribution  Centre-3 Inventory= 50 units Daily use= 10 units Inventory= 100 units Daily use= 50 units Inventory= 75 units Daily use= 15 units
[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Distribution Requirement Planning ,[object Object],[object Object],[object Object],[object Object],[object Object]
Plant Warehouse Regional warehouse Regional warehouse Distribution  centre Distribution centre Distribution centre Distribution centre Distrib ution centre Distribution centre C  U S T O M E R S
Raw Materials Warehouse Part A Part B Sub-assembly A Part C Part D Part E Sub assembly B Sub assembly C Final Assembly (Manufacturing) Plant Warehouse
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Benefits of DRP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Forecasting ,[object Object],[object Object],[object Object],Nature of Demand Dependent demand Independent demand
Dependent versus Independent Demand ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
Forecast Components ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Forecast Approaches ,[object Object],Plant Distribution Centre Field  Distribution Centre# 1 Forecast 4000 units Field Distribution Centre#2 Forecast 3000 units Field Distribution Centre#3 Forecast 2000 units Field Distribution Centre#4 Forecast 1000 units
[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
Components of Forecasting Process Orders History Tactics Forecast database Forecast Administration Forecast Technique Forecast  Support System Forecast Process Forecast Users Finance Marketing Sales Production Logistics
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Issues addressed by Forecast Administration ,[object Object],[object Object],[object Object],[object Object],[object Object]
Transportation ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
Transportation Functionality Product Movement  Product Storage
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],Objectives of Transportation Move product  from original  location to  prescribed  destination while  minimizing temporal, financial and environmental Costs. Minimize expenses incurred due to loss and damage. Meet customer demand regarding delivery and shipment information availability
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
Principles of Transportation Economies of Scale Economies of Distance
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
Tapering Principle Distance C O S T
Participants in Transportation decisions Government Shipper Carrier Consignee Public
Role and Perspective of each party ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Features of Different Modes of Transportation Modes of Transportation Rail Highway Water Pipeline Air
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
Cost Structure in respect of Motor Transport Fixed costs such as  overheads and vehicle cost are low relative to railway  Variable costs such as driver, fuel, tyres and repairs are high relative To railways.
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Nature of Traffic versus Mode of Transportation Mode Nature of Traffic Rail Extracting industries, heavy manufacturing, agricultural commodities Highway Medium and light manufacturing, distribution between wholesalers and retailers. Water Mining and basic bulk commodities, chemicals, cement, agro-based products. Pipeline Petroleum, gases, slurry. Air Emergency, perishables, limited marketing period, high value premium products.
Cost Structure for Each Mode of Transportation Mode Fixed Cost Variable Cost Rail High- equipment terminals, tracks etc. Low Highway Low-highways provided by public funds Medium- fuel, maintenance. Water Medium- ships and equipment Low-capability to transport large amount of tonnage. Pipeline Highest-rights-of-way, construction, control stations, pumping capacity.  Lowest-no labour cost of any significance. Air Low-aircraft and cargo handling system. High-fuel, labour and maintenance .
Transport Economies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
Multimodal Transport System ,[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
Choice of Mode ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Containerization ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
Piggyback –Trailer on Flat Car  ,[object Object],[object Object],[object Object],[object Object],[object Object]
Material Handling ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Mechanized Systems ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Semi automated Handling ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
Automated Handling ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
Packaging ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
How to design an Ideal Package? ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cost of Packaging L o s S B y D a m a g e
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
Channel Integration-PCM ,[object Object],[object Object],[object Object],[object Object]
Scrap/Waste Disposal Scrap Material Input Material Processing Material Output Recycle Disposal
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Wastivity of a System ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Issues to be addressed ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Recycling /reusing/ disposal of waste/ surplus/ scrap. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Warehousing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
[object Object],[object Object]
Logistics and supply chain management
Logistics and supply chain management
Logistics and supply chain management
Logistics and supply chain management
Logistics and supply chain management
Logistics and supply chain management
Logistics and supply chain management
Logistics and supply chain management
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Logistics and supply chain management
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Logistics and supply chain management
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Logistics and supply chain management
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Logistics and supply chain management
Logistics and supply chain management
Logistics and supply chain management
Logistics and supply chain management
Logistics and supply chain management
Logistics and supply chain management
Logistics and supply chain management

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Logistics and supply chain management

  • 1.
  • 2.
  • 3. Competitive Advantage Customers seeking benefits at acceptable cost Company A (Asset utilization) Company B (Asset utilization) Cost differential
  • 4.
  • 5. Commercial success Cost advantage Value advantage
  • 6.
  • 7.
  • 8. Productivity and Value Matrix Commodity Market (1) Cost Leader (2) Service Leader (3) Cost and Service Leader (4) Productivity Advantage V a l u e A d v
  • 9.
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  • 11.
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  • 13.
  • 14. Underlying Philosophy Behind Logistics Concept Suppliers Procurement Operation Distribution Customers Materials Flow Information Flow
  • 15.
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  • 33. Factors affecting transportation performance Transportation performance Cost Speed Consistency
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  • 46.
  • 47. Integrated Logistics Customers Physical distribution Manufacturing support Procurement Suppliers Inventory Flow Information Flow
  • 48.
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  • 50.
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  • 52.
  • 53.
  • 54.
  • 55.
  • 56.
  • 57. Physical distribution performance cycle Customer order Order transmission Order processing Order selection Order transportation Order delivery to the customer
  • 58.
  • 59.
  • 60.
  • 61.
  • 62.
  • 63. Procurement Performance Cycles Sourcing Order placement and Expediting S U P P L I E R S Transportation Receiving
  • 64.
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  • 83. Inventory Control Procedures Perpetual Review Periodic Review
  • 84.
  • 85.
  • 86.
  • 87.
  • 88.
  • 89. Inventory Planning Methods Fair Share allocation Distribution Requirement Planning
  • 90. Fair Share Allocation Plant Warehouse Inventory- 600 units Distribution Centre-1 Distribution Centre-2 Distribution Centre-3 Inventory= 50 units Daily use= 10 units Inventory= 100 units Daily use= 50 units Inventory= 75 units Daily use= 15 units
  • 91.
  • 92.
  • 93.
  • 94.
  • 95.
  • 96. Plant Warehouse Regional warehouse Regional warehouse Distribution centre Distribution centre Distribution centre Distribution centre Distrib ution centre Distribution centre C U S T O M E R S
  • 97. Raw Materials Warehouse Part A Part B Sub-assembly A Part C Part D Part E Sub assembly B Sub assembly C Final Assembly (Manufacturing) Plant Warehouse
  • 98.
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  • 100.
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  • 102.
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  • 106.
  • 107.
  • 108.
  • 109.
  • 110.
  • 111. Components of Forecasting Process Orders History Tactics Forecast database Forecast Administration Forecast Technique Forecast Support System Forecast Process Forecast Users Finance Marketing Sales Production Logistics
  • 112.
  • 113.
  • 114.
  • 115.
  • 116. Transportation Functionality Product Movement Product Storage
  • 117.
  • 118.
  • 119.
  • 120.
  • 121.
  • 122. Principles of Transportation Economies of Scale Economies of Distance
  • 123.
  • 124.
  • 126. Participants in Transportation decisions Government Shipper Carrier Consignee Public
  • 127.
  • 128.
  • 129. Features of Different Modes of Transportation Modes of Transportation Rail Highway Water Pipeline Air
  • 130.
  • 131.
  • 132. Cost Structure in respect of Motor Transport Fixed costs such as overheads and vehicle cost are low relative to railway Variable costs such as driver, fuel, tyres and repairs are high relative To railways.
  • 133.
  • 134.
  • 135.
  • 136.
  • 137.
  • 138. Nature of Traffic versus Mode of Transportation Mode Nature of Traffic Rail Extracting industries, heavy manufacturing, agricultural commodities Highway Medium and light manufacturing, distribution between wholesalers and retailers. Water Mining and basic bulk commodities, chemicals, cement, agro-based products. Pipeline Petroleum, gases, slurry. Air Emergency, perishables, limited marketing period, high value premium products.
  • 139. Cost Structure for Each Mode of Transportation Mode Fixed Cost Variable Cost Rail High- equipment terminals, tracks etc. Low Highway Low-highways provided by public funds Medium- fuel, maintenance. Water Medium- ships and equipment Low-capability to transport large amount of tonnage. Pipeline Highest-rights-of-way, construction, control stations, pumping capacity. Lowest-no labour cost of any significance. Air Low-aircraft and cargo handling system. High-fuel, labour and maintenance .
  • 140.
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  • 181.
  • 182. Cost of Packaging L o s S B y D a m a g e
  • 183.
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  • 193. Scrap/Waste Disposal Scrap Material Input Material Processing Material Output Recycle Disposal
  • 194.
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