Logistic

1. A Presentation on
Logistics
Prepared by:-
Mehul Rasadiya
K.K. Parekh Institute of Management Studies
(Amreli)

2. Logistics Defined

Logistics means having the right thing, at the
right place, at the right time

The procurement, maintenance, distribution
and replacement of personnel and materials
Webster’s Dictionary

The science of planning, organizing and
managing activities that provide goods or
services Logistics World, 1997

3. Seven R’s

Ensuring the availability of the
Right product
Right quantity
Right condition
Right Place
Right time
Right customer
Right cost

4. Logistics

Functions:
planning,
procurement,
transportation, supply and maintenance

Processes:
requirements
determination,
acquisition, distribution and conservation

Business: science of planning, design and support
of business operations of procurement,
purchasing, inventory, warehousing, distribution,
transportation, customer support, financial and
human resources

5. Major functions of work

Order Processing

Inventory

Transportation

Warehousing,
Materials Handling,
and Packaging

Integrated through
a
network
of
facilities
 E.g. warehouses and
distribution centers

6. Service benefits are created by
logistical performance in 3 areas

Availability involves having inventory to
consistently meet customer material or product
requirements

Operational performance deals with the time
required to deliver a customer’s order

Service reliability involves the quality attributes
of logistics

7. Scope of Logistics

Choice of markets

Plant location and layout

Inventory management

Location and management of warehouses

Choices of carriers, mode of transport

Packaging decisions

Relevant to all enterprises manufacturing,
Government, Institutions, service organisations

8. Logistics Activities

Transportation

Warehousing and storage  Customer service

Industrial packaging

planning/scheduling

Materials handling

Facility location

Inventory control

Return goods handling

Order fulfillment

Parts and service support

Demand forecasting

Salvage and scrap disposal

Production

Procurement

9. Components of LOG Management
Logistics Activities
Input
•Natural
Resources
(land, facilities
Equipment)
•HR
•Finance
•Information
Output
Customer service
Demand forecasting
Distribution
Communications
Inventory control
Materials handling
Order processing
Parts and service support
Plants and warehouse selection
Procurement
Packaging
Return goods handling
Salvage and scrap disposal
Traffic and transportation
Warehouse and storage
•Marketing
Orientation
(competitive
Advantage)
•Time and
Place utility
•Efficient move
to customer

10. 



11. Inbound Logistics

Sourcing and vendor selection for supply of raw
materials and manufacturing parts

Inbound
planning

Raw
materials
warehousing
consolidation warehousing

Management of Inventory

Information system for effective support strategic
alliances with the supplies and transporters
transportation
and
procurement
including

12. Internal Logistics

Capacity Planning Operational planning Production planning

Materials Requirement planning

Shop floor control

Management of in-process inventory

Supporting material handling facilities planning and their
deployment etc

13. Out bound Logistics

Outbound logistics system is concerned with the flow of
finished products from factory warehouse to the
customers through a distribution network comprising:
 The wholesalers
 Sales order processing
 Distributors
 Sales return processing
 Retailers
 Accounts
realization and
 Regional warehouses
 Counter
 Transporters
 The
levels
inventory
information
at
receivable
all
flow
from
of
the
customers to the factory

14. Information flow
Information flow
Customer’s
customer
Customer
Lead Firm
Supplier
Supplier’s
supplier
General cash flow
Outbound / Downstream logistics
Inbound / Upstream logistics

15. Logistical performance cycles

16. Current Logistics Practice
Client
Vendor
C
Forwarders/
Brokers/
Truckers
Vendor
A
Vendor B
Forwarders/
Brokers/
Truckers
- Receiving
- Quality
Assurance
- Storage
- Production
Picking/Packing
Customer A
Customer B
Customer C

17. Types of operations that
integrate the logistics
FLOW
STOCK
PROCESS

18. Operations of flow
Transport associated to the supplying
of raw materials and finished products.

19. Operations of stock
Considers Storage of Raw materials
and Finished Products

20. Process Operations
Considers Production (product ) and
Preparation (packaged,packing,).