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Introduction“An excellent product delivered late is not
acceptable by customers”. “Deliver on-time, everytime”Logistics expenditures typically range from 5 to
35 percent of sales depending on the type of biz, area of operation and weight/value of the product.
The costs of logistics in India is 4% of the total value of goods.
Firms with world class logistical competency can gain competitive advantage by providing customers with superior service.
The overall goal of logistics is to achieve a targeted level of customer service at lowest possible cost.
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Logistics Management is that part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information.
Logistics is the art and science of managing and controlling the flow of goods, energy, information and other resources from the source of production to the marketplace.
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FunctionsInformationTransportationInventoryWarehousingMaterial handlingpackaging
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Inventory Flow
Information Flow
Physical Distribution
Manufacturing Support
ProcurementCustomers Suppliers
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Business LogisticsIt is defined as having the
right item in the right quantity at the right time at the right place for the right price
In bound Logistics: Flow of materials into and within the organization to internal customers
Outbound Logistics : Flow of materials outside the organization to the customers.
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Production Logistics: This ensure that each machine and workstation is being fed with the right product in the right quantity and quality at the right point in time.
Reverse Logistics: collection of used goods from the final customer for adding value to the product.
Forward Logistics : ensuring the supply of final goods to the desired customers.
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Logistics automationLogistics automation is the application of
computer software and automated machinery to improve the efficiency of logistics operations.
It includes Fixed machineryMobile technology and Software
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ChallengesJust in time requirementHigh customer expectationsUncertain demandVehicle breakdownCustomer line stoppage cost
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