Logistics final

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Logistics final

  1. 1. BY GROUP <br />3<br />Logistics Management And Its Link With Inventory Control<br />
  2. 2. OVERVIEW <br /><ul><li> Logistics
  3. 3. Inventory
  4. 4. Inventory control
  5. 5. Methods of inventory control</li></ul> JIT & H.P. Case<br /> JIT II<br />Kanban<br /> Kaizen<br /><ul><li> Challenges</li></ul> Tracking<br /> Inventory cost<br /> Demand & supply<br /> Strategic location<br />Distribution<br /><ul><li> Conclusion </li></li></ul><li> LOGISTICS MANAGEMENT<br /><ul><li>Part of supply chain management
  6. 6. Plans, implements and controls the efficient, effective, forward and reverse flow
  7. 7. Storage of goods, services and related information
  8. 8. Between the point of origin and the point of consumption
  9. 9. To meet customer’s requirements.</li></li></ul><li><ul><li> A physical resource
  10. 10. Firm holds in stock with the intent of selling it or transforming it into a more valuable state</li></ul>INVENTORY<br />INVENTORY INCLUDES<br /><ul><li> Raw Materials
  11. 11. Works-in-Process 
  12. 12. Finished Goods
  13. 13. Maintenance, Repair and Operating (MRO)
  14. 14. Pipeline or in-transit inventory</li></li></ul><li>Inbound logistics<br />Transporting Finished Goods<br />Procurement Of Raw Materials<br />Transporting Work In Progress<br />Distribution <br />Channels<br />LINK OF LOGISTICS AND INVENTORY CONTROL<br />Outbound logistics<br />Customers<br />Warehouse<br />Central Hub<br />Retailers<br />
  15. 15. INVENTORY CONTROL<br /><ul><li>Supervision of the supply and storage and accessibility of items in order to insure an adequate supply without excessive oversupply</li></li></ul><li> INVENTORY CONTROL<br />TOOLS OF INVENTORY CONTROL<br /><ul><li>Just in time- I & II
  16. 16. Kaizen
  17. 17. Kanban
  18. 18. EOQ</li></li></ul><li> JUST IN TIME (JIT)<br /><ul><li>Produce output within the minimum lead time
  19. 19. Minimise total cost
  20. 20. Continuously identify wastage and variance
  21. 21. Eliminating corporate waste and variance. </li></li></ul><li> H.P. CASE <br />
  22. 22. JUST IN TIME II<br /><ul><li>In JIT II system, vendor’s representatives are stationed at the customer’s place of business
  23. 23. Designed to create harmony and efficiencies for both sides
  24. 24. It relies heavily on trust</li></li></ul><li>KANBAN<br /><ul><li>Pull type
  25. 25. Production depends on customer demand
  26. 26. Production takes place only when order is placed
  27. 27. Bin cards, boxes, shelves etc. are used to place order</li></li></ul><li> KANBAN BOARD <br />
  28. 28. KAIZEN TRAINING<br /><ul><li> Continuous improvement
  29. 29. Concentrates on improving methods rather than achieving certain results.
  30. 30. Philosophy-“Do it better, make it better” rather than “if it aint broke, don’t fix it” </li></li></ul><li>
  31. 31. CHALLENGES <br /><ul><li>Tracking
  32. 32. Carrying cost
  33. 33. Demand and supply
  34. 34. Strategic location management
  35. 35. Distribution</li></li></ul><li> INVENTORY TRACKING<br />Methods of inventory tracking <br /><ul><li>Sufficient space for your inventory
  36. 36. Organize your inventory
  37. 37. Develop inventory database
  38. 38. Develop procedures for “check-in” and “check-out”
  39. 39. Strive for accuracy and manually double-check at least annually</li></li></ul><li> INVENTORY TRACKING<br />LOGISTICS TRACKING<br />
  40. 40. INVENTORY COST<br /><ul><li>Amount to about 10-25% of sales
  41. 41. Affects profitability of the company
  42. 42. Factor of competitive edge</li></ul>`<br />HIGH COST<br />HIGH INVENTORY<br />LOWER PROFITS<br />H.P. Reduced inventory from 7 to 5 weeks <br />Made a profit of $ 30 mn annually<br />
  43. 43. DEMAND AND SUPPLY<br /><ul><li> Based on previous data
  44. 44. Rational and well</li></ul> planned<br /><ul><li> According to the market</li></ul> data<br /><ul><li> According to demand
  45. 45. Strategically managed</li></li></ul><li> INCORRECT ESTIMATION<br /><ul><li> Archies did overstocking for 3-4 years
  46. 46. Incurred loss of Rs. 6.5 crores
  47. 47. Subhiksha expanded stores with insufficient funds
  48. 48. No control on mobile inventory
  49. 49. Stock outs in stores</li></li></ul><li>STRATEGIC LOCATION <br />A geographical or social position which plays a part in a predetermined plan<br />v<br />v<br />
  50. 50. DISTRIBUTION <br />Best way to reach the strategic location and cater to markets<br />

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