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Logistics
Fundamentals
Material Costs
Manufacturers
Transportation
Costs
Warehouses &
Distribution Centers
Transportation
Costs
Manufacturing Costs
Information
Customers
Transportation
Inventory Costs Costs
Suppliers
Manufacturers
Warehouses
Distribution centers
Source
Source
Make
Make
Deliver
Deliver
Buy
Buy
Transportation
The primary objective of transportation is to carry
goods and material between supply chain partners at an
optimal cost
A secondary objective is to provide temporary storage
for in-transit inventory
Stakeholders in transportation decisions Shipper,
Recipient, Carrier, Government
Modes of transportation Rail, Truck, Water, Water,
Pipeline, Air, Intermodal
Inbound & Outbound logistics
Decision regarding mode of transportation needs to be
taken based on efficiency, responsiveness, value of
product, predictability of demand
Warehousing
Two basic decisions about warehousing:
Number of warehouses
Specific Warehouse locations
Warehousing
Warehouse Capabilities:
Receiving, Packaging, Put-away, Storing, Order
picking, Moving, Shipping
Aspects affected by increased number of warehouses:
Customers Service, Transportation costs,
Inventory, Setup and overhead costs
Factors to be considered when locating warehouses:
Available services, Neighborhood, Costs,
Community, Regulatory concerns
Material Handling Systems used in Warehouses:
Mechanized Systems: Forklift Trucks, Conveyors,
Towlines, Tow tractors, Bridge and wagon cranes
Automated Systems: Automated Guided vehicle
systems, automated sorting systems, Robotic,
Automated storage and retrieval systems
RFID in Warehousing
RFID stands for Radio-Frequency IDentification. The
acronym refers to small electronic devices that consist of a
small chip and an antenna. The chip typically is capable of
carrying 2,000 bytes of data or less
Consolidation
Custom
er
Plant
Break Bulk
Warehous
e
Custom
er
Custom
er
Break-Bulk
Cross-docking (Example:
Walmart)
Postponement: Final
configuration of the finished product
is postponed until an order arrives
allowing parts to be assembled to fit
requirements in the order. Example:
Dell
Transportation in India
Key Challenges in Rail:
Important rail networks are oversaturated
Rail freight tariffs are high
Transit times are long and uncertain
Less flexibility in carrying different types of
products
Key Challenges in Road:
Inadequate road network coverage
Poor road quality
High level of fragmentation of the trucking industry
Multiple check points
Storage infrastructure related challenges
State of warehousing is poor
Multimodal Logistics parks yet to take off
Inadequate Technology and Skills
GST Implementation yet to happen
Logistics Sector-Present situation and way forward.pdf
A 4PL is "an integrator that assembles the resources, capabilities and technology of
its own organization and other organizations to design, build and run
comprehensive supply chain solutions.
Whereas a 3PL targets a function, a 4PL targets management of the entire process.
4PL is a general contractor who manages other 3PLs, taking responsibility of a
Cold Chain
A cold chain is a temperature-controlled supply
chain
An unbroken cold chain is an uninterrupted series of
storage and distribution activities which maintain a
given temperature range
It is used to help extend and ensure the shelf life of
products such as fresh agricultural produce, seafood,
frozen food, photographic film, chemicals and
pharmaceutical drugs
Cold chains are common
pharmaceutical industries
in
the
food
and
Reverse Logistics
Reverse logistics stands for all operations related to
the reuse of products and materials
It is "the process of planning, implementing, and
controlling the efficient, cost effective flow of raw
materials, in-process inventory, finished goods and
related information from the point of consumption to
the point of origin for the purpose of recapturing value
or proper disposal
Examples: Nokias Reverse Logistics Campaign,
Soft-drinks &
Pharmaceutical
Industries
Link to refer:
https://www.facebook.com/nitie.c2x
http://c2xnitie.wordpress.com/