This document discusses logistics management and topics related to improving performance, including order processing and customer service, domestic transportation, and protective packaging and material handling. It defines key terms and concepts in logistics like the functions of order management, types of domestic transportation, and factors to consider in packaging and materials handling. The document is written by an expert in logistics consulting and aims to outline important aspects of logistics for performance improvement.

1. LOGISTICS MANAGEMENT
FOR
PERFORMANCE IMPROVEMENT
TOPICS:
** ORDER PROCESSING AND
CUSTOMER SERVICE
** DOMESTIC TRANSPORTATION
** PROTECTIVE PACKAGING AND
MATERIAL HANDLING
BY

2. BY
PRABIR DATTA,B.Sc,F.I.E(I)
CONSULTANT CHARTERED MECHANICAL ENGINEER
VISITING FACULTY AND SENIOR CONSULTANT/INDIAN MARITIME
UNIVERSITY,KOLKATA CAMPUS.
SENIOR CONSULTANT/JACOBS--CONSULTING ENGINEERING SERVICES (I) PVT
LTD,GURGAON.
SENIOR CONSULTANT/BMTCI,AHMEDABAD
LIFE FELLOW/INSTITUTION OF ENGINEERS(I)
LIFE MEMBER/CONSULTING ENGINEERS ASSOCIATION OF INDIA,NEW DELHI(FIDIC
AFFILIATED).
SENIOR CONSULTANT/INDIAN PORT ASSOCIATION,NEW DELHI
TECHNICAL ADVISOR/INTERNATIONAL SEAPORTS(I) PVT LTD.

3. LOGISTICS MANAGEMENT
The word ‘LOGISTICS’ was first associated with the military.It is that branch of the Art of War
,pertaining to the movement and supply of armies.during World War II,military forces made effective use
of LOGISTICS models and forms of systems analysis to ensure that materials were at the proper place
when needed.
Many of the logistical techniques learned during World War II were temporarily ignored during the
postwar surge in economic activity.But this action effected badly in the business activities, due to various
trends in the market&the economy.They made it necessary to focus attention on product distribution.
Primarily, Eight such trends may be identified:-
1)Transportation costs rose rapidly.
2)Production efficiency was reaching a peak.
3)There was a fundamental change in inventory philosophy.
4)Product lines proliferated,a direct result of the marketing concept of giving each customer the exact
product he or she desires.
5)The advancement of computer technology.
6)The increased use of computers because even if a specific firm does not use computers,its
vendors&customers do.
7)The increased public concern for the recycling of products.
8)The growth of several new,large retail chains or mass merchandisers,with large demands and very
sophisticated logistics service.
Hence,various concepts like,integrated logistics,strategic logistics,leading edge logistics etc.have been
come into being with constant development in the area.
Logistics is a classic example of the systems approach to business problems.
The following basic functions are the key items in the total approach to the logistics management of any
business organization:-
1)Customer Service
2)Demand Forecasting
3)Documentation Flow
4)Interplant Movements
5)Inventory Management
6)Order processing
7)Packaging
8)Spare Parts&Service support
9)Plant&Warehouse Site Selection
10)Production Scheduling
11)Purchasing
12)Returned Products
13)Salvage Scrap Recycling&Disposal
14)Traffic Management
15)Warehouse&Distribution Centre Management
The LOGISTICS can be defined as ‘The process of planning,implementing and controlling the
efficient,effective flow&storage of goods,services&related information from the point of origin to the
point of consumption for the purpose of conforming to the customer requirements.’(CLM).
The logistics manager has a highly complex &challenging position.It is a part of a firm’s corporate
strategy.It is responsible for controlling large expenditure.
Name Of Some Professional Organisations:-
1)CLM-Council of Logistics Management/2)CALM-Canadian Association of Logistics
Management/3)APICS-American Production and Inventory Control Society/4)AST&L-American
Society of Transportation&Logistics/5)ATP-Association of Transportation Practitioners/6)DNA-Delta
Nu Alpha/7)SOLE-Society Of Logistics Engineers/8)TRF-Transportation Research Forum/9)WERC-
Warehouse & Education Research Council

4. ORDER PROCESSING & CUSTOMER SERVICE
Order processing deals with the handling of orders .Customer service is defined as the collection of
activities that includes order processing & keeping the customer happy.Customer service helps integrate the
seller’s logistical activities,since they must pull together to help customer.This also includes the order cycle
&order handling.The customer views the order cycle as the period of time from when the order is placed
until it is received.The seller has a shorter view:from the time order is received until the goods are
shipped.Customer service standards are important yardsticks of performance&important competitive tool
&take time to develop&maintain.
A few related activities are order processing,order cycle,order planning,order transmittal,order
handling,order picking&assembly,advance shipping notice(ASN),packing list,order delivery,load
planning,returned products,measurement&control of customer service,meeting customer demands,overall
customer service policy,check lists etc.
If the sequence is followed &maintained sincerely,the logistics manager should have not much of problem
in tackling any situation.
KEY TERMS:
Customer service/Load Planning/Order Cycle/Order Delivery/Order Handling/Order
Picking&Assembly/Order processing/Order Transmittal/Packing List.
DOMESTIC TRANSPORTATION SYSTEM
Transportation is the link portion of the links&nodes that makes up the logistics operation.Transportation is
pivotal to the success of any logistics operation.The shippers of small quantities rely on the post office or
pacel carriers or couriers.The next step is to ship by an LTL motor carrier,which picks up goods &takes
them to a local terminal, where they are loaded aboard a linehaul truck to a terminal near the
consignee.A small truck then makes delivery from the terminal.In terms of number of shippers,the vast
majority use only parcel or LTL services.
The next step, in terms of shipment size, is to ship in truck load, rail car load ,or barge load volumes or to
use a pipe line.However,air cargo is also lifted in case of emergency, as this the costliest mode.The rates
are negotiable&service considerations become part of the negotiations.Carriers encourage multiple truck
loads,multiple rail car loads&so on.Specialized equipment is also used with these volumes of traffic.
Specialized terminals are also custom built&designed for handling each different type of bulk commodity.
Parcel & LTL shippers pay rates established in carrier tariffs.To prepare a tariff, the carriers need three
different types of infor mations before they know the exact rate for a specific shipment. The information
needed is length of haul,size of shipment& the cargo’s handling characteristics.These are usually
incorporated into a product’s classification number.This number is heavily influenced by the product’s
density.This,in turn,is taken into account when the product is designed&when packaging is selected.
Today many tariffs are computerized on PC software&this had made the entire process of rate
determination much easier.
KEY TERMS:
Broker/Bulk Cargo/Common Carrier/Consignee/Dedicated Equipment/Freight Classification/Freight
Forwarder/LTL/Nesting/Parcel/Parcel Carrier/Private Transportation/Project Cargo/Routing
Guide/Shipper’s Cooperative/Slurry System/Terminal/Ton-Mile or Ton –KM/Unit Train.
PROTECTIVE PACKAGING & MATERIALS HANDLING
There are many considerations to take into account as one chooses protective packaging.Much depends on
the physical characteristics of the specific product.Some products are hazardous to either the environment
or to the persons handling them,& they require special packaging&attention.Common carriers often
specify the packaging that must be used.Concerns about recycling&environmental protection also have an
impact upon the choice of packaging materials.
Packagers have a sales function as well&a sturdy package contributes to a product’s solid image.In recent
years retail packages have been provided with protective seals,which make it easier to detect tampering.
Retail packages are placed into cartons,which are loaded onto pallets to form unit loads.Then unit loads are
loaded by fork lifts into containers,trucks,trailers or rail cars.Palletisation &unitisation both refer to the
utilization of pallet loads as a form of building block.
KEY TERMS:-
Building Block Concept/Bulk Materials/Ergonomics/Materials Handling/Package Testing/Pallet/Recycled
Content/Slip Sheet/Unitisation/Unit Loads.