LOGISTICS MANAGEMENT

Presented by : Presented to:

Akash tyagi Mr. M.C Joshi
What is Logistics?
Logistics is the . . . “process of planning,
implementing, and controlling the efficient,
effective flow and storage of goods,
services, and related information from point
of origin to point of consumption for the
purpose of conforming to customer
requirements.“

Council of
Logistics Management
 Is it different from SCM?
Not really!

“Supply Chain Management deals with the

management of materials, information, and financial
flows in a network consisting of suppliers,
manufacturers, distributors, and customers.” (Stanford
Supply Chain Forum)

So, Logistics and Supply Chain are equivalent

terms.
LOGISTICS SUPPLY CHAIN MANAGEMENT

 Logistics is concerned  SCM is concerned with

with getting goods and movement of goods from
services where and when raw material stage to the
they required end user
 It works within a single  It works in a coordination
organisation of various organisations
 It is a part of supply  It is an extension of
chain management logistics management
 The concept of logistics  The concept of SCM is
is relatively old relatively new
 It is a narrow concept  It is a broader concept

Deference B/W
 Logistics embodies the effort to
deliver:
◦ the right product
◦ in the right quantity
◦ in the right condition
◦ to the right place
◦ at the right time
◦ for the right customer
◦ at the right cost
Logistics Functions

Purchasing / Procurement Facility Location / Network

Design
Inventory Control
Transportation
Warehousing
Customer Service
Materials Handling
Order Processing
 Activities and Logistics
Decisions
Transportation
rate and contract negotiation
mode and service selection
routing and scheduling
Inventories
finished goods policies
supply scheduling
short term forecasting
Warehousing
private vs. public
space determination
warehouse configuration
Stock layout and dock design
stock placement
Cross-docking
Facility Location
determining location, number
and size of facilities
allocating demand to facilities
Customer Service
◦ determining customer wants
◦ determining customer response to
service changes
Materials Handling
◦ equipment selection
◦ equipment replacement
◦ order picking procedures
Packaging design
Order Processing
◦ order procedure determination
Production Scheduling
◦ aggregate production quantities
◦ sequencing and timing of
production runs
 Logistics Experience will be
different from one sector to
another
Textiles - speed and variety due to seasonality concerns
Retailing (FMCG)

prevents stores from having empty shelves or shelves with overstocks

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 of kilometers,

special packaging
Fuel and Petroleum Transportation
very special tanker security systems
 TYPES OF LOGISTICS

•. Reverse Logistics
• Inbound Logistics
• Outbound Logistics
• Third-Party Logistics (3PL)
• Forth-Party Logistics (4PL)
Reverse Logistics
Reverse logistics is also known as Product
Recall. It may be defined as a process of moving
goods from their place of use, back to their place
of manufacture for re-processing, refilling, repair,
and recycling or waste disposal.
Drivers in Reverse Logistics
 The success of reverse logistics depends upon the
efficiency of following subsystems:

 Product Location: For product recall it is necessary to

identify the product location in the physical distribution
system of the firm. It is difficult in case of consumer
goods but easier in case of industrial goods.
 Product Collection System: After the product location is
identified, product collection is to be done through
company’s field force or third party.
 Recycling / Disposal Centers: This may be company’s
plant, warehouse or any other location. Called back
products must be inspected before recycling or disposal
etc.
 Documentation System: Proper documents should be
maintained at each level, this would help in tracing the
product location.
2. Inbound Logistics

All the activities related to the material movement till

the dispatch of the products out of the factory gate
are called as inbound logistics activities.
Creation of value in the products depends upon
availability of inputs on time. Making available these
inputs on time at minimum cost is the essence of
Inbound Logistics.
Activities of a procurement performance cycle come
under the scope of Inbound Logistics. They are
transportation during procurement operation,
storage, handling and overall management of
inventory of inputs.
3. Outbound Logistics
All the activities in which the value added goods
are to be made available in the market for
customers are called as outbound logistics
activities.
Success of the firm depends upon the supply of
products to the customer on time. Supplying the
products of firm at marketplace at minimum cost
is the essence of Outbound Logistics.
Activities of distribution performance cycle come
under the scope of Outbound Logistics. They are
order management, transportation, warehousing,
packaging, handling etc.
Third-Party Logistics (3PL)

In order to keep the costs of inbound and

outbound logistics activities under control, an
outside agency appointed to perform these
logistics functions is called “Third Party
Logistics”.
 5. Forth-Party Logistics (4PL)

Forth Party Logistics is a complete outsourcing

of manufacturing and logistics functions including
selection of Third Party service provider.
Need for 4PL:

•Ever-increasing customer requirements.

•Competitive and complex market scenario.

•Rising globalisation, liberalization and

privatisation.

•Rising accessibility of supply chain technology.

•Inclination
of companies to enter into higher
margin business
 Services provided by 4PL
•Procurement and storage of materials.

•Manufacturing of products.

•Selection of 3PL companies.

•Transportation and warehousing

management

•Collection
of payment and cash flow
management

•Risk management and insurance.

•Sharing of information, IT solution.

 Fuel and Petroleum
Transportation
Fuel tankers have bodies, including the chassis, made
of aluminum alloy and are the lightest tankers in weight
and highest in volume (20.000 to 38.000 liters).

•The tanks have a bottom loading and unloading

system and all the necessary security equipments for
overloading.
 Fuel and Petroleum
Transportation
•The tanks have capacities between 20.000
and 38.000 liters, 4 to 7 compartments and
3.200 to 7.000 liters of compartment
capacities.

•Along with these tankers there are three-level

security systems, bottom loading equipments,
anti-rolling system, a security system locking
the brakes when the API drum is opened and
the valves when it is closed, emergency
buttons at three sides and an EBS brake
system.
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
Vehicle Logistics
Special transportation
services are:

Inter-dealer
transportation,

Fair exhibitions,

Sports competitions,

Collection vehicles
 Vehicle Logistics …
During the placement of vehicles
on to the ship;
Minimum parking distances,

Installation of the safety equipment

should be realized.
MODES OF TRANSPORTATION
 . Airlines
 . Water Transport
 . Railways
 4. Roadways
 Pipeline
Pipeline

 transportation facilitates the

movement of liquids like oils; crude
petroleum products and water etc. In
India more than 5,000 km of pipeline
exists for crude and petroleum
products. Slurries, gases, vapors and
solids in powder form are also
transported in pipelines.
INTERMODAL
TRANSPORTATION

transportation is the use of more than one mode

of transport to move a shipment to its
destination. Intermodal movements combine the
cost and service advantages of two or more
modes in a single product movement. Benefits of
long haul, short time & flexibility are optimized for
achieving overall cost reduction.
Depending upon the type and amount of goods,
time of delivery, and prices following three
Intermodal combinations are available:
Piggyback:
: It is coordination between railways and road
transport. It is also called as TOFC (Trailer on
Flatcar) or COFC (Container on Flatcar). In
piggyback the motor carrier trailer placed on rail
flatcar, which moves the trailer by rail for a long
distance. Then the motor carrier moves the
trailer for short distance for deliveries. Here the
placement of trailer on a railcar can lead to
damages.
Fishyback:
It is coordination between waterways and
road transport. In fishyback the truck or
trailer rides on the ship for small portion of its
journey. This service is provided in coastal
waters between Atlantic and Gulf ports
Birdyback:
It is coordination between airways and road
transport. In birdyback the major portion of
journey is covered by airways then the cargo is
transported by trucks or trailers.
Others: Water and railways, air and railways, air
and waterways, pipeline and water, pipeline and
roadways etc.
 INALND CONTAINER DEPOTS
(ICDs)
ICDs are dry ports at a distance far away from
the shoreline and handle all the import export
formalities. This a large warehouse where
exporter books his cargo and completes all
export formalities. Then ICD moves the
containers to natural seaport. The customs
department, shipping companies, handling
agencies, banks, customs house agents and
clearing and forwarding agents are all based at
the ICDs.
Milk RunMilk Run
is a transportation network, in which Suppliers
send the supplies to CDC and from CDC to large
number of suppliers. Milk Run reduces out
bound transportation costs by consolidating
small shipments.
 CROSS DOCKING
Cross Docking is a new logistics technique used in the retail and
trucking industries which means receiving goods at one door and
shipping to the other door almost immediately without putting them
into storage.

Advantages / Objectives

It helps to reduce operating costs by eliminating handling and

storage of products.
It helps to reduce inventory level by direct shipment to the
customers.
It helps to increase sales by providing on time delivery to the
customers.
It encourages the electronic communication between the supplier
and retailers.
LOGISTICS MANAGEMENT
IN INDIA IN TODAY’S
CONTEXT
•Liberalization opens our door to competition
•Global business has long supply & distribution
lines.
•Changing Indian customer, aware, demanding
and less brand loyal
•Competition ensures that product differentiation
in terms of quality is difficult.
•Product life cycles are shrinking
•Our markets are shifting from sellers to buyers
LOGISTICS MANAGEMENT
IN INDIA IN TODAY’S
CONTEXT
Many consumer products are moving into
commodities market
In India, large distances separate production and
consumption centers. Essential commodities
have to travel from Food Corporation
Warehouses to consumers through PDS. (Public
Demand Service)
Still Logistics performance in India has not been
impressive – Fruits and vegetables are grown at
various places but do not enjoy access to market
In hope of creating a better
tomorrow…..