Logistic

Management

Jayswal M. D.

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 Contain

 Introduction
 Definition
 Logisticsfunction
 Operating objectives
 Caused of bed logistics
 Importance of logistics

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 What is logistic management?

 Logistics is the process of strategically

managing procurement and storage of
material, part and finished inventory through
organization and its marketing channels in
such away that current and future profits are
maximized through cost effective fulfillment
of order.

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 Definition

 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.

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 Logistic function

 Inventory Management:
Balancing inventory
levels to achieve high
Customer service
levels.

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 Transportation:
Selecting the
best mode of
transportation
(air, rail, water
or truck)

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 Informational management:
Fast & accurate
information in
real time in
competitive
business
supported by
7 information
  Network analysis:
Number of
facilities, their
location,
communication
system,
operational
8 decision.
 Warehousing:
.
Locating and
designing
facilities to meet
customer service
levels

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 Material handling:
Minimizing the
movement of
raw materials,
work in process
and finished
goods

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 Packaging:

Types of
packaging-
consumer
packaging and
industrial
packaging
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 Operating objectives of logistics

 Rapid response.
 Minimum variance.
 Minimum inventory.
 Movement consolidation.
 Quality.
 Life cycle support.

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 What caused bad logistics?

 Infrastructure : Bad roads, Inefficient

railways, Poor communication line,
Congestion in ports.
 Taxation : e.g. Conroy
 Information : Inadequate information, Bad
communication.
 Management : Bad management decision
[ carrier selection, out sourcing etc.
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 What does bad logistics caused?

 Costly products, Shortages.

 Deterioration economy.

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 Importance of logistics
 Logisticsis the bed rock of trade and
business.
 Leads to customer satisfaction, D & F
expectations of customers.
 Integrates logistical activities.
 Competitive edge in a commodities market.
 Supports critical functions like, Operations
and marketing to be just in time to the
customer.
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 Continue…

 Logistical costs are 5% to 35% of sales

depending on type of business, geographical
areas of operation etc.
 Crucial to survival and prosperity in global
business.
 Logistics experts are moving up in corporate
ladder.
 Leads to the concept of supply chain

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 Continue…

 Indianmarket is changing shift from seller’s

market.
 Changing customer.
 Competition internal & external.

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