TY.

BMS, SEM V, 2023-24

LOGISTICS AND SUPPLYCHAIN

MANAGEMENT
BY: DR. GANGA SUSHEEL WARRIAR
 UNIT 1

A. INTRODUCTION TO LOGISTICS
MANAGEMENT
B. INTRODUCTION TO SUPPLY CHAIN
MANAGEMENT
C. CUSTOMER SERVICE
D. DEMAND FORECASTING
A. INTRODUCTION TO LOGISTICS
MANAGEMENT
1. Meaning
2. Objective/importance/scope
3. Function/logistic mix
4. Integrated logistics
5. Logistical performance cycle
6. Logistical competency
7. Reverse logistics
8. Green logistics
9. Changing logistics environment
MEANING OF LOGISTICS

Philip Kotler defines Logistics as “Planning,

implementing and controlling the physical flows
of materials, and finished goods from point of
view to meet the customer’s need at a profit.”

Examples –
Dabbawalas of Mumbai
Indian Postal Services
THE INCREDIBLE DELIVERY SYSTEM OF
INDIA'S DABBAWALLAHS
CODING
INDIAN POSTAL SERVICES
OBJECTIVES/IMPORTANCE/SCOPE
1. Reduction of inventory
2. Economy of freight
3. Reliability and consistency in delivery performance
4. Minimum damage to products during handling and
storage
5. Quicker and faster response
6. Life cycle support (reverse logistics)
7. Customer satisfaction
FUNCTION OF LOGISTICS/LOGISTIC MIX

1. Demand forecasting
2. Transportation
3. Warehousing
4. Material handling
5. Packaging
6. Inventory control
7. Physical distribution
8. Customer service
9. Information processing
INTEGRATED LOGISTICS

Logistics is viewed as the competency that links an

enterprise with its customers and suppliers.
INTEGRATED LOGISTICS
Information flow
Information from and about customers flows through
the enterprise in the form of sales activity, forecasts
and orders.
Objective
To identify specific location within a logistical system
that have requirements.
To effectively and efficiently plan and execute
integrated logistical operations.
INTEGRATED LOGISTICS

Inventory flow
The management of logistics is concerned with
the movement and storage of materials and
finished products.
It starts with the initial shipment of a material or
component part from a supplier and are finalized
when a manufactured or processed product is
delivered to a customer.
INTEGRATED LOGISTICS

•Inventory flow
•Procurement •Information flow
•Suppliers-Manufacturers-Customers •Customers-Retailers-Wholesalers -
Manufactures
•In process
•Manufacturing support/ •Planning and coordination
requirements are consolidated •Requirements are consolidated

•Physical distribution •Operations flow

•Carry out operations to receive and •Carry out operations to receive and
process order in the required way process order in the required way
LOGISTICS PERFORMANCE CYCLE
Procurement performance
cycle (inbound logistics) • Suppliers-Manufacturer
s-Customers
Inventory flow
Procurement

Manufacturing Support
performance cycle (in • Manufacturing support/
process logistics) requirements are
consolidated
In process

Physical distribution • Carry out operations to

performance cycle (out receive and process
bound logistics) Physical
distribution
order in the required
way
LOGISTICS PERFORMANCE CYCLE
1. Procurement performance cycle (inbound logistics)
Includes
1. Resource planning
2. Supply sourcing
3. Negotiation
4. Order placement
5. Quality assurance
6. Inbound transportation, receiving and inspection
7. Storage and handling
LOGISTICS PERFORMANCE CYCLE
2. Manufacturing Support performance cycle (in
process logistics)
Objectives
1. To ensure each machine and work station
manufactures right product, at right time, right
quantity and right quality
2. To establish and maintain an orderly and
economic flow of materials and WIP
3. To ensure the schedules are met on time
LOGISTICS PERFORMANCE CYCLE

3. Physical distribution performance cycle (out

bound logistics)
1. It involve processing and delivering customer
order.
2. It provides timely and economical product
availability.
3. It resolves marketing and manufacturing
initiatives into an integrated effort.
 LOGISTICAL COMPETENCY

It is the ability of the company to offer superior

customer services in economically effective way.
Customers

Use company’s
resources to give
Value
Value either value
advantage or cost
advantage to the
consumers
Company Competitors
Cost advantage
TYPES OF LOGISTICS

1. Inbound logistics • Suppliers-Manufacturer

Inventory flow s-Customers
2. In process logistics Procurement

3. Outbound logistics
• Manufacturing support/
4. Third party logistics In process
requirements are
consolidated
5. Fourth party logistics
• Carry out operations to
6. Reverse logistics receive and process
order in the required
7. Green logistics Physical
distribution way
TYPES OF LOGISTICS
Third party logistics
When one or more logistics functions of a firm are
outsourced to a 3 PL provider
3PL can be broadly classified as
1. Transport based
2. Warehouse distribution
3. Forward based(handling forwarding services like
exports/imports)
4. Finance based (freight payments, cost controlling,
logistics mgt)
5. Information based (provide IT based services)
TYPES OF LOGISTICS
Fourth Party Logistics
A comprehensive supply chain, enables complete outsourcing
of logistics functions
Services provided by them are
1. Freight negotiations with 3 PLs
2. Freight contract management
3. Transport billing
4. Continuous improvement programs
5. IT solutions
6. Risk management and insurance
TYPES OF LOGISTICS
Advantages of 3 PLs and 4 PLs
1. Focus on core competence
2. Resource constraints
3. Cost saving
4. For large and global coverage
5. Improvement in service levels
6. Efficient management of inventory
7. For more professional and scientific approach to
logistical problems
TYPES OF LOGISTICS
Reverse logistics
Scope
1. Return of unsold goods
2. Refusal of the products in
COD cases
3. Reusable packaging
4. Goods used for
demonstrations
5. Repairs and refurbishing
6. Product recall
(eg: Samsung Note 7)
TYPES OF LOGISTICS

Advantages
1. Enhances corporate image
2. Minimizes cost
3. Greater customer service
4. Higher retention level
5. Meeting sustainability goals
TYPES OF LOGISTICS
Green Logistics
It attempts to measure and minimize the ecological impact of
logistic activities
Ways to implement green initiatives
1. Delivering products with min. environmental impact
2. Optimizing transportation networks
3. Truck to rail, air to sea
4. Retail partner expansion
5. Developing internal process to reduce waste
6. Reverse logistics
7. Opting for ISO 14000
TYPES OF LOGISTICS
Advantages
1. Better means of transportation
2. Lesser pollution
3. Increase in revenue
4. Loyal customers
5. Sustainability
6. Better waste management
7. Better corporate image
CHANGING LOGISTIC ENVIRONMENT

1. Globalization
2. Reduction in lead time
3. Changing customer expectations
4. Advancement in IT
5. Organizational integration
VIDEO

What is Logistics Management Definition &

Importance in Supply Chain - AIMS Lecture.mp4
REFERENCES

Donald J. Bowersox & David J Closs, Logistical

Management-The Integrated Supply Chain
Process, McGraw Hill Education
Ronald H Ballou & Samir K Srivastava, Business
Logistics/ Supply Chain Management- Pearson