Logistics Management(2)

8/9/2019 Logistics Management(2)

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LOGISTICS MANAGEMENTLOGISTICS MANAGEMENT

Presented By

Subhash Babu


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What is Logistics?

What is Logistics?

Logistics is the . . . process of planning,

implementing, and controlling the

efficient, effective flow and storage ofgoods, services, and related information

from point of origin to point of

consumption for the purpose of

conforming to customer requirements.

Council of Logistics Management


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Is it different from SCM?Is it different from SCM?Not really!

Supply Chain Management deals with themanagement of materials, information, andfinancial flows in a network consisting ofsuppliers, manufacturers, distributors, andcustomers. (Stanford Supply Chain Forum)

So, Logistics and Supply Chain areequivalent terms.


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Logistics Functions

Purchasing /

P

rocurement

Inventory Control

Warehousing

Materials Handling

Facility Location /

Network Design

Transportation

Customer Service

OrderProcessing


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Value Added Services

Value Added Services

Value added services, such as

quality control, labeling, sorting,repacking, etc. can be included in the

logistics processes.


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Cross DockingCross Docking

a logistics activity that attempts to reducecosts and total lead time.

breaks down received items on theloading dock and immediately matchesthem with outgoing shipment

requirements, instead of stocking theitems in warehouse locations andreturning to pick for orders at a later time.


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Cross DockingCross Docking

eliminates the need to place

inventory in storage.

This can mean moving pallets across

the docking areas (hence the name)

for loading onto delivery vehicles.


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Cross DockingCross DockingIn a traditional warehouse, goods are

received from vendors and stored in

devices like pallet racks or shelving.

When a customer (e.g., the consumer or

perhaps a retail outlet) requests an item,

workers pick it from the shelves and send

it to the destination.


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Cross DockingCross DockingIn a crossdock, goods arriving from thevendoralreadyhave a customer assigned,so workers need only move the shipmentfrom the inbound trailer to an outboundtrailer bound for the appropriatedestination.

The alreadypart should make you think ofinformation system requirements--a chiefobstacle to implementing crossdockingsuccessfully.


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Cross Docking(classification)Cross Docking(classification)Pre-distribution is definitely more difficult toimplement because the vendors of the crossdockmust know which customers of the crossdock

need what before they send the shipment.

This involves quite a bit of information transfer,system integration, and coordination.

For a distributor with hundreds of vendors, theproblem is big, big, big!


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Logistics Experience will beLogistics Experience will be

different from one sector to anotherdifferent from one sector to anotherTextiles

speed and variety due to seasonality concerns

Retailing (FMCG)

prevents stores from having empty shelves or shelves withoverstocks

Frozen storage and transportation

Health hygienic, have limited shelf life, require special storage

conditions and entertain high inventory risks

Automotive just in time (JIT), delivering parts from thousands ofkilometers, special packaging

Fuel and Petroleum Transportation very special tanker security systems


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Vehicle Logistics

Vehicle Logistics

Vehicle logistics services include:

Vehicle Transportation

Marine Transportation (RO-RO)

Ship Loading and Unloading

Storage and Parking Lot Services

Dealer Distributions

Information Systems and Reporting


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Vehicle Logistics

Vehicle Logistics

Special transportationservices are:

Inter-dealer transportation,

Fair exhibitions,

Sports competitions,

Collection vehicles


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Vehicle Logistics

Vehicle Logistics

During the placement of

vehicles on to the

ship;

Minimum parking

distances,

Installation of the safetyequipment

should be realized.

Documents

Logistics Management(2)