DEFINITION
• “In Contemporary Business Practices the earlier days
Logistics Management is being termed as Logistics
and Supply Chain Management (LSCM). LSCM aim at
connecting end to end supply chain through the
process of management that encompasses efficient
and cost effective services rendered in ensuring
sourcing of raw materials, flow, storage of materials,
work in Progress, finished goods, returned, rejected
unwanted materials and associated information
from point of origin to point of consumption and its
subsequent recovery and disposal to conform to
customers’ and Governments’ requirements”
Materials LOGISTICS
LOGISTICSFUNCTIONS
FUNCTIONS Physical
Management Distribution
Distribution
Network
Master Schedule Distribution
Requirements
Capacity Planning Order Processing
Finished Goods Warehousing
MRP Inventory New
Transportation
Product Introduction
Purchasing Forecasting Distribution Costs
Production/ Sales/
Materials Cost Inventory Performance
Performance Aggregate Plan Customer
Material Inventory Service
Input/output Control
Shop Floor Control
Production Control Production Cost
Production Performance
THE INTEGRATED LOGISTICS CONCEPTS
Integrated LSCM Functions
Information
Delegation Transportation Facilities/Services Inventory Systems
Company’s Corporate
Own Manufacturing Raw Material Planning &
policy/strategy & Finished Strategy
Third Party Goods
Corporate Channel
Channel- Warehouse Work in Design &
Material & Process System
Finished Packaging
Goods
Channel Raw Order
Distribution Material & Processing
Material Network Finished Goods
Handling
Order Fill
Raw Material
Sourcing & Seasonal
Purchase Special
Products
Reverse Logistics &
Return Goods Handling
CUSTOMER SATISFACTION
“The
“The
same
same
ideas
ideas
used to
used to
manage
manage
products
products
can be
can be
used to
used to
manage
manage
services”
services”
The Satisfaction Model and Managerial Interface
• Human Resources • Capacity Creation
• Financial Resources • Capacity
Evaluation
• Materials
RESOURCE Handling &
MANAGEMENT FACILITIES Movement
E CAPACITIES &
INFRASTRUCTUR
OF
MANAGEMENT
CUSTOMER/
MANAGEMENT USER
SATISFACTION
STRATEGIC
CONCEPTUAL
OVERALL
MANAGEMENT
• Overall Strategy • Facilities
• Structural Integration
A SERVICE MEASUREMENT MODEL
Personal Past
Word of Mouth
Needs Experience
Commnunication
Expected
Service
CONSUMER
GAP 5
Expected
Service
MANUFACT
Service Delivery (including pre & Service Delivery (including
URER
post-contract) pre & post-contract)
GAP 4
GAP 3
Translation of perceptions into
GAP 1 service quality specifications
GAP 2
Management perceptions of
Consumer expectations
• The difference between customers expectations and GAP 5
perceptions.
• The difference between service delivery and what is GAP 4
communicated about the service to customers.
• The difference between service quality specifications and the GAP 3
service actually delivered.
• The difference between management perceptions of customer GAP 2
expectations and service quality specifications.
• The difference between customer expectation and GAP 1
management’s perceptions of customer expectations.
THE GAPS IDENTIFIED
The Tata Steel Experience- Bringing about a Paradigm Shift
Traditional Road transport Industry - Constraints
Frag
mente
d
road
transp
ort
indust
Unfriendly
ry industry
structure
Very high and unpredictable transit times
Poor asset utilization/lack of information
Damages during transit (Steel is “STEEL”)
Tata Steel Response
How do we design our service so as to meet high customer service levels
(circumventing the constraints)
Professional transport service provider?
All coils transported on rubber
All vehicles have retractable hood
based dunnages
Transit time to Mumbai from
Jamshedpur 83 hrs.
This service has been widely appreciated by TATA
customers leading to a demand for this service
from all zones.
Overcome the Challenge by
Resources Vs
Resourcefulness
Often the difference in
winning and losing lies in
the 1% things
Ability is no guarantee of
success! (+Passion,+
Attitude)
Service Competencies required for the New Millennium
See the “big picture” and how customer service
fits into it.
Establish an authentic human connection with
each customer.
Render timely, accurate and thorough service
Value and respond to unique customer needs
Extend a hand to repair and strengthen
relationships with customers who are upset or
angry
