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Logistics Management
(Part of ORL)
BBA (Semester 4)
Faculty : Ravi Kumar Singh, International School of management Patna
Lecture-2 : Introduction to logistics
Lecture-2 : Introduction to logistics
Topics to be covered :
● Logistics Chain
● Significance of Logistics
● Objectives of Logistics Management
ISM Patna/Logistics_1_Ravi_K_Singh
Recap of Lecture-1
● In the previous lecture we discussed-
○ Origin and meaning of Logistics
○ Definition of Logistics management
○ Features of Logistics
○ Scope of Logistics
○ 6R framework
ISM Patna/Logistics_1_Ravi_K_Singh
Customer's
Satisfaction
Right Cost
Right
Time
Right
Relations
Right
Service
Right
Place
Right
Quantity
Right
Quality
Logistics Chain
Buy
(Procurement)
Make
(Processing)
Deliver
(Distribution)
C
U
S
T
O
M
E
R
S
S
U
P
P
L
I
E
R
S
Inbound
Logistics
Process
Logistics
Outbound
Logistics
ISM Patna/Logistics_1_Ravi_K_Singh
Logistics Chain (Cont...)
Inbound logistics
It means operations preceding
manufacturing.
This includes movement of raw
materials and components from
supplier to the plant.
• .
ISM Patna/Logistics_1_Ravi_K_Singh
Logistics Chain (Cont...)
Process logistics
It means operations directly related
to processing or manufacturing.
This includes storage and
movement of raw materials and
components within the factory
premises as per the manufacturing
schedule.
ISM Patna/Logistics_1_Ravi_K_Singh
Logistics Chain (Cont...)
Outbound logistics
It means operations following
the manufacturing.
This includes warehousing,
transportation and inventory
management of finished
goods.
ISM Patna/Logistics_1_Ravi_K_Singh
Why Logistics is Important?
( Significance of Logistics)
1. Logistics is the backbone of trade and business.
2. Logistics enables superior customer service ( Refer CVDC model)
3. Logistics integrates different functional activities (Refer LI Model)
4. Logistics supports critical functions like operations and marketing.
5. Logistics has a significant share in the overall cost of operations.
6. Logistics plays a vital role in gaining competitive advantage.
ISM Patna/Logistics_1_Ravi_K_Singh
HR Competency, Procurement, Finance & Infrastructure (RESOURCES)
Technology (Enabler)
Inbound
Logistics
Operations
Outbound
Logistics
Sales &
Marketing
Service
Customer
Value
Customer Value Delivery Chain Model
ISM Patna/Logistics_1_Ravi_K_Singh
10
Logistical Integration Model
Objectives of Logistics Management
Overall optimisation of resources and getting competitive
advantage through :
1. Inventory reduction
2. Reliable and consistent delivery performance
3. Freight economy
4. Minimum product damages
5. Quick response in meeting customer’s requirement
6. Efficiency in Operations
ISM Patna/Logistics_1_Ravi_K_Singh
Summary of Lecture-2
ISM Patna/Logistics_1_Ravi_K_Singh
1. Logistics Chain – Inbound, Outbound and Process
Logistics
2. Significance of Logistics ( Backbone, CVDC Model, Li
Model)
3. Objectives of Logistics Management ( To be competitive
by optimising all the operation)

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Logistics lecture-2 introduction to logistics-2

  • 1. Logistics Management (Part of ORL) BBA (Semester 4) Faculty : Ravi Kumar Singh, International School of management Patna Lecture-2 : Introduction to logistics
  • 2. Lecture-2 : Introduction to logistics Topics to be covered : ● Logistics Chain ● Significance of Logistics ● Objectives of Logistics Management ISM Patna/Logistics_1_Ravi_K_Singh
  • 3. Recap of Lecture-1 ● In the previous lecture we discussed- ○ Origin and meaning of Logistics ○ Definition of Logistics management ○ Features of Logistics ○ Scope of Logistics ○ 6R framework ISM Patna/Logistics_1_Ravi_K_Singh Customer's Satisfaction Right Cost Right Time Right Relations Right Service Right Place Right Quantity Right Quality
  • 5. Logistics Chain (Cont...) Inbound logistics It means operations preceding manufacturing. This includes movement of raw materials and components from supplier to the plant. • . ISM Patna/Logistics_1_Ravi_K_Singh
  • 6. Logistics Chain (Cont...) Process logistics It means operations directly related to processing or manufacturing. This includes storage and movement of raw materials and components within the factory premises as per the manufacturing schedule. ISM Patna/Logistics_1_Ravi_K_Singh
  • 7. Logistics Chain (Cont...) Outbound logistics It means operations following the manufacturing. This includes warehousing, transportation and inventory management of finished goods. ISM Patna/Logistics_1_Ravi_K_Singh
  • 8. Why Logistics is Important? ( Significance of Logistics) 1. Logistics is the backbone of trade and business. 2. Logistics enables superior customer service ( Refer CVDC model) 3. Logistics integrates different functional activities (Refer LI Model) 4. Logistics supports critical functions like operations and marketing. 5. Logistics has a significant share in the overall cost of operations. 6. Logistics plays a vital role in gaining competitive advantage. ISM Patna/Logistics_1_Ravi_K_Singh
  • 9. HR Competency, Procurement, Finance & Infrastructure (RESOURCES) Technology (Enabler) Inbound Logistics Operations Outbound Logistics Sales & Marketing Service Customer Value Customer Value Delivery Chain Model ISM Patna/Logistics_1_Ravi_K_Singh
  • 11. Objectives of Logistics Management Overall optimisation of resources and getting competitive advantage through : 1. Inventory reduction 2. Reliable and consistent delivery performance 3. Freight economy 4. Minimum product damages 5. Quick response in meeting customer’s requirement 6. Efficiency in Operations ISM Patna/Logistics_1_Ravi_K_Singh
  • 12. Summary of Lecture-2 ISM Patna/Logistics_1_Ravi_K_Singh 1. Logistics Chain – Inbound, Outbound and Process Logistics 2. Significance of Logistics ( Backbone, CVDC Model, Li Model) 3. Objectives of Logistics Management ( To be competitive by optimising all the operation)