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LOGISTICS MANAGEMENT
Dated-6-JULY-2019
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*What is logistics & logistics management?
*Main fields within logistics
*Activities involved in logistics management
*Types of logistics
*Rights of logistics
*Objective
*Logistics Control
*Conclusion
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What is logistics & logistics
management?
Logistics(Definition)
:-BY-CSCMP(Council of Supply Chain
Management Professionals)
The planning, execution, and control of the movement /
placement of goods and / or people, and the related
supporting activities, all within a system designed to achieve
specific objectives.
*The explanation of logistics in a simple manner is as follows:
The supply of raw materials, materials management in a firm
and distribution of it to customers is known as logistics
management.
SUPPLY OF MATERIALS
MANAGEMENT DISTRIBUTION
RAW TO CUSTOMERS
LOGISTICS
MATERIALS IN A FACTORY
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Main fields within logistics
1. Procurement Logistics
2. Production Logistics
3. Distribution Logistics
4. After-sales Logistics
5. Disposal Logistics
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1.Procurement Logistics
Procurement Logistics is the entire process used
to select suppliers and negotiate contracts for
delivery of goods or services. It consists of
activities such as market research, requirements
planning, make or buy decisions, supplier
management, ordering, and order controlling.
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2. Production Logistics
Production Logistics concerns itself with
streamlining and controlling the flow through the
supply chain from point of entry to the end, which is
distribution logistics. Production logistics activities
are related to organizational concepts, layout
planning, production planning, and control.
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3.Distribution Logistics
Distribution Logistics is concerned with the
delivery of finished products to the customer. It
consists of order processing, warehousing, and
transportation. Major sub-sectors within the
industry include air, rail, water, and truck
transportation, urban transit and ground passenger
transportation, warehousing and storage, and
motor vehicle repair. Logistics involve the
integration of these sub sectors, including
information, transportation, inventory,
warehousing, material-handling, and packaging.
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4.After-salesLogistics
Its services cover support for products sold to
customers, the refurbishment of returned items,
and disposal of end-of-life goods.
5.Disposal Logistics
Disposal Logistics is also known as reverse logistics,
stands for all operations related to the reuse of
products and materials. The main function of this field
is to reduce logistics cost, enhance service, and save
natural resources.
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Logistics activities or Functions
of Logistics
(i) Network Design:
Network design is one of the prime responsibilities of
logistics management. This network is required to
determine the number and location of manufacturing
plants, warehouses, material handling equipment’s etc.
on which logistical efficiency depends. The network of
logistics is explained in the below diagram:-
CENTERS OF
VENDORS PLANTS CUSTOMERS
DISTRIBUTION
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(ii) Order Processing:
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(iii) Procurement:
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(iv) Material Handling:
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(viii) Transportation:
Transportation is that logistical activity which creates
place utility.
Transportation is needed for:
1. Movement of raw-materials from suppliers to the
manufacturing unit.
2. Movement of work-in-progress within the plant.
3. Movement of finished goods from plant to the final
consumers.
Major transportation systems include:
1. Railways
2. Roadways
3. Airways
4. Waterways
5. Pipelines.
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The choice of a particular mode of transportation is
dependent on a balancing of following considerations:
1. Speed of transportation system
2. Cost involved in transportation
3. Safety in transportation
4. Reliability of transportation time schedules
5. Number of locations served etc.
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Classification of Logistics:-
Logistics may be Broadly Classified into Two
Categories:
I. Inbound logistics:-
Activities related to the material’s procurement,
transportation, handling and storing are called as
inbound logistics.
II. Outbound logistics (also called physical distribution
management or supply chain management):-
Activities that are related to the maintenance, collection, and
delivery of products to the customer’s are called as outbound
activities.
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1. RIGHT
PRODUCT
7. RIGHT 2. RIGHT
PRICE QUANTITY
RIGHTS OF
LOGISTICS
3. RIGHT
6. RIGHT TIME
CONDITION
5. RIGHT 4. RIGHT
CUSTOMER PLACE
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Objectives and constraints:-
To measure and study the performance of logistics systems we
can formulate objectives and constraints.
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Logistics control
Productivity can be used to measure the performance of
logistics systems. Productivity is the ratio of outputs (goods and
services) divided by inputs (such as labour, management and
capital). Improvements in productivity results in improvements
in efficiency.
Output/input factor
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Thank you
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