This ppt will give you brief about logistic and warehouse management, meaning, functions and logistics goals, critical elements.

1. Thank you for being here Today.
I’m Amit Karra
From the field in Logistics since 2008.
I am here Today to talk to you about
Logistics and Warehouse management
meaning and it’s functions, logistics goals,
critical elements.

2. Primary objective for the division or business unit
The increasing importance of customer service
Maximizing profitability
Increasing customer satisfaction
Maximizing asset utilization
Reducing costs
increase number of customers
Improve new product innovation
Increase market share
Improve service performance
Demand forecasts
Fast Order processing

3. TRANSPORTATION REQUIRED ..
Energy / Chemical / Mining
Manufacturing – General
Manufacturing - Consumer products
Manufacturing - High technology
Manufacturing – Automotive
Manufacturing - Industrial
Warehousing - 3PL
Manufacturing - Pharmaceuticals
Transportation - 3PL
Transportation provider
Food Industry
Wholesaler/Distributor
Other

4. Definition
Art and science of obtaining, producing and distributing
Material and product in proper place and in proper quantities.
Defined by concept of supply chain management professionals Ohio USA., as 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 usage.
More Simply, the objective of a logistics system is that the
right product, reach the right place in the right quantity and
at the right time to satisfy customer demand.

5. Most Popular concept of
logistics management is the
concept of seven R’s
1) Right
Product
2) Right
Place
3) Right
Price
4) Right
Condition
5) Right
Customer
6) Right
Quantity
7) Right
Time

6. Logistics Management means………
It is a part of logistics and supply chain management
- Plan
- Implement
- Control
The efficient and effective, forward flow and reverse flow and storage of goods
and services and related information between the point of origin and the
point of consumption order to meet customer requirement.
Point of
Origin
Point of
consumption
Supplier -------- Manufacturer ------warehouse------Distributer ----- Customer
Forward logistics flow
Reverse Logistics flow

7. Critical element of an effective logistics system…..
Nature of product
Type of packaging
Material handling
system
Cost of
Transportation
e.g.
High Value
and Low
Volume
By Air
Low Value
High
Volume
By Sea
Location of the
Manufacturing plant
- Tax Benefits in
backward regions
- Near the port and
airport
- SEZ
- Single window
clearance etc.

8. Availability of
infrastructure
a) Back bone of any country
b) Good road conditions
c) Help speed of movement of cargo
d) Capability to handle all type of
containerized and break bulk cargo
Good port faculties with suitable material
handling system help the cargo move
without wastage and damage of cargo.
“Save time” Turn around time”
Fast and Convenient loading and unloading
Less congestion
Availability of different mode of
Transport
By Sea
Absence of Air
service
Carry
refrigerated
containers
To carry cargo to
the nearest port
If delay in arrival
may perish the
goods.
By Air
Flower and
vegetable
Reach desired
overseas
destination
In fresh condition
And on time
Meet their
overseas
Commitment
More efficiently.

9. Location of
warehouse
-Off-the-shelf-
delivery or
“Just in Time”
Solve Distribution
problem
Stock of goods
Lifted at the time of
consumption
Dealer and
Distribution
Network
- If excellent
product and
attractive price
+
- Aggressively
promoted
- But not have an
efficient
distribution
system
- Success in the
market is
doubtful
- E.g. COCA COLA
Knowledge of
Govt. Policies
Exim Policy & procedure
Sales Tax
Excise Tax GST
Octroi Tax
Modvat
Motor
Transport
Act
Knowledge of taxes
reduce cost

10. Logistics Functions ……….
Following areas of logistics management contribute to an
integrated approach to logistics.
Transportation
Warehouse
3 & 4th
Party
Logistics

11. By
Sea
By Air
By Rail
By Road
By
Pipeline
Select most efficient combination of transport that create
value for customers…….
By Post, any type of courier service like DHL, BLUE DART,
MARUTI COURIER.
Transportation management strategy is part of our end-to-end
supply chain strategy.
Transportation
play a role of
movement of
goods via

12. Every body struggling with transportation challenges
Shorter lead time
On time delivery
Low cost
Consolidate shipments to reduce their cost
Required estimate time when you will deliver the product?
Required status / update for every movement via email / sms!
Try to Save their time and Money!
But
Fuel Cost rising – Higher costs reduce profit
Freight cost increases – Freight cost per unit high
Operation cost increase
Increase in traffic, road jam – fuel consumption increases.
– Managing driver performance
- Vehicle maintenance
- Safety issue –Vehicle theft, break down or unfortunate accident
Customer expectation….

13. Vehicle Check list…
Sr no. Parameter Status
1 Is GPS system is available in vehicle or not ? Yes
2 Is cleaner available along with container truck ? Yes
3 Is safety shoes & helmet available with driver and cleaner ? Yes
4 Is vehicle Road worthy ? (Check for Tyre, tanker body, lights etc.) Yes
5 Is driver under influence of alcohol ? No
6 Is PUC available ? Yes
7 Is First aid box available ? Yes
8 Is fire extinguisher available ? Yes
9 Is Oil leakage observed in vehicle ? No
10 Is vehicle Tyre damaged or worn out ? No
11 Is tarpaulin / cover roof available in case of local loading vehicle ? No
12 Is rope available in case of open lorry / truck ? No
13 Is driver explained about do's & don'ts while in premises. Yes
14 Is vehicle checked for prohibited items ? Yes
15 Drivers must have minimum xx Years of Experience :
16 (1) Pick up containers well in advance to allow for slower speeds.
(2) Maintain your speed limit upto 50 - 55 to prevent dangerous situation.
(3) Be familiar with the maintenance procedures for your vehicle and ensure it is kept in good
running order.
(4) Keep a safe distance behind the vehicle in front.
(5) Adjust your speed as necessary to allow for the type of road, traffic density, visibility and
weather conditions.
(6) Ensure proper maintenance of your vehicles – Check PRE AND POST CHECK LIST before leaving
premises.

14. Warehousing
When inventory not move between locations, they may have
spent time to move, we use Warehouse.
Warehouse is the activity of ……..
Receiving-------------Storing-------Shipping ….
To and From production to distribution location.
This Photo by Unknown Author is licensed under CC BY-SA

15. Definition
Warehouse is defined as “that part of a firm” logistics system that stores product
- Raw material
- Parts
- Goods in process
- Finished goods
At and between point of origin to point of consumption.
The basic function of a warehouse is the storage of a variety of goods.
Receiving goods
from Suppliers
Ensuring the
quality of
received
material
Arranging the
proper and
Safe storage
of material
Retrieval of goods as required
[Means process of getting
something back from somewhere]
Dispatching the
finished
goods to
the user

16. Warehouse Management Software Function……
Inventory Management
The system records incoming inventory
and places the material at the suitable place in the warehouse.
Order Processing

17. Warehouse Management Software Function……
Bar coding and Labelling
System generate bar codes for the products.
A bar code is a machine – readable representation of product
information.
It can also helps to trace the product and can reduce the instances
of stealing.
Stock Location and productivity
management
a) System help in locating the stocks within the warehouse.
b) Its also leads the stock pickers to proper location and
identifies the item to be picked up.

18. a) The system informs if the orders are executed in time.
b) The time required from the receipt of order to delivery of material.
c) The no of orders pick up per day
d) Overtime required for order execution etc.
Management Reporting
Benefits of a warehouse
system
1) Error free documentation work
2) Tighter inventory control
3) Better utilization of warehouse space
4) Faster storage and retrieved of goods
5) Higher productivity of the warehouse staff
6) Better co-ordination with supplier as well as customer.
7) Lower Costs, improve operation and security.
Warehouse Management Software
Function……

19. 3 PL LOGISTICS
• Provide one or more services in logistics…..
• a) Transportation
• b) Forwarding
• c) Warehousing
• d) Clearance etc…..
4 PL LOGISTICS
• They are specialized in entire projects..

20. Reverse Logistics
Return
Re-use
Recycling
Disposal
Product
To make the reverse Journey from Customer to supplier.

21. Difference b/w supply chain
and logistics
Supply chain
– Transforming a
raw material into
product and
getting into
customers.
logistics
–Movement of
material in
whole supply
chain.

22. Need to Balance between
customer service and Cost
Customer service and cost are two elements in logistics.
Logistics Value proposition
Customer
Service
Cost
On time Delivery
Without mistake
And without
any breakages
Not only maintain
Inventory level
low
But also improve
The over all
Gain to the
Company.
On time delivery
Without any cost
Over runs

23. Logistics share the goal of supply chain management to meet customer requirement.
Logistics Goals
(A)
Rapid
response
capability to
meet
customer
order on time.
(B)
Minimum
variance
services
Meet specific
requirement
(C)
Minimum
inventory
expenses and
cost
(D)
Consolidate
shipments and
grouping
shipments.
(E)
High Quality
and
continues
improvemen
t
(F)
Entire support
product life
cycle (Avoid
delay in
production)
(G)
Reverse
logistics with
minimum
cost

24. E.g. Effective & Control Logistics
Late Arrival of
Cargo
Early Arrival
of Cargo
Customer dis-satisfy
Loss of opportunity
for 2nd order
Incur Demurrage on
port
Warehouse cost
increases
Or Product
may perish

25. (1) Integrating supply chain…..
Flow of Goods and information internally and forecasting
Purchasin
g
Inbound Logistics &
Outbound Logistics
Production
control
Marketing /
Sales
Distribution
d) On time delivery by maintaining proper inventory.
e) Inventory cost control
f) Reduce in inventory may impact on customer time delivery.
g) Raw material available on time to manufacturing on time.
a) Internal Planning
process
b) Flow of
information
properly co-
ordinated between
each department
of organisation.
c) Using forecast
Method for
demand and
Supply.
Accounting
Maintain
cash inflow
/ outflow
Customer
Service
Plant
maintenance
Store
What are the Logistics Strategies……?

26. Logistics Strategies…….
(2) Improve Co-ordination
functions with vendors and
transporters
a) Improve communication
b) Talk with Suppliers regularly and discussion plan
with them.
c) Arrange proper transportation
And
d) Documentation with 100% accuracy
e) Collaborate with suppliers and use continuous
improvement tools and share observation about
latest trends.

27. (3) Pooling method
When manufactures and retailers expenses high
variability in demand for their products, they can pool
together common inventory components.
Centralise
warehouse
(All products
pool together)
Manufacture
r
Retailers
Reduce stock out risks Storage cost
e.g. Camera
Mobile
Laptop
And accessories
printer
e.g. Camera
Mobile
Laptop
And accessories
printer

28. (4) Reduce no of partners..
Firms /
Suppliers Fright Forwarder
3&4th party
logistics
Warehouses
Retailers
Wholesalers
More partners, there are in chain more difficult and
expensive the chain is to manage.
It is called Vertical Integration strategy…
It takes complete control over on the production and
distribution of product.

29. More partners there are in chain more difficult and expensive the chain is to manage.
E.g.
Manufacturin
g
Factory
warehouse
Wholesale Retail
stores
Customer
Reduce
Reduce Reduce
Reduce
cycle Time
Operating
cost reduce
Inventory
holding cost
Fill customer
order and
related
activities is an
fast as possible
without
sacrificing
quality. This
includes
inbound and
outbound and
reverse
logistics
Management.

30. (5) Track Inventory - It could be done by using
BAR code or GPS code
system
(6) Postponement area
Avoid filling warehouse with
wrong mix of goods, setting
postponement centres, delay
product assembly. [It should
happen later date or time]
Information system
Location of
Goods
Location of
Goods
Location of
Goods
Location of
Goods Reduce Inventory cost by
tracking system

31. (7) Mix shipments to match customer needs
- Use different BAR codes or unique
identification code or code that refer to the
particular stock by mixing shipment.
(8) Don’t in Line at custom
- Reduce the time spent in custom
clearance by doing proper
documentation.
(9) Inventory in Transit
Keep inventory in transit
It reduce storage cost of
Inventory

32. (10) Select proper transportation modes and carrier that
connect easily to …..
Suppliers
Warehouses Distributors Customers
Producers
And Forward and Reverse
logistics can be done easily.
Properly select Location
of warehouses and no of
locations

33. * Locate in the right country where forward and reverse logistics can be done easily.
* Develop an effective export and import strategy and volume, inventory that reduce freight
cost.
* Maintain location of warehouses and no of warehouses that help customer, fast delivery.

35. THE END
NO QUESTION PLEASE