1 Session Objectives Definition of logistics Logistics amp supply chain management differentiation Objectives of logistics management Logistics Overview 2 Logistics Origin The word logistics traces its origin to the Greek word logistikos and the Latin word logisticus meaning the ID: 364545
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Logistics Overview
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Session Objectives
Definition of logistics
Logistics & supply chain management differentiation Objectives of logistics management
Logistics Overview
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Logistics Origin
The word logistics traces its origin to the Greek word logistikos and the Latin word logisticus, meaning the science of computing and calculating. Logistics Overview
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Logistics History
Great Pyramid of Giza [2700 BC]
Steam Engine [1800] World War I [1914-18] Invention of Sea Container [1956 - Malcom
P Mclean]
Kanban & JIT concepts [1970-1980]
Logistics Overview
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Logistics Definition
“Planning, implementing and controlling the physical flows of materials and finished goods from point of origin to point of use to meet the customer’s needs at a profit.”[Philip Kotler]
Logistics Overview
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Logistics Definition
“The process of planning, implementing and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of confirming to customers’ requirements.”
[The American Council of Logistics Management]
Logistics Overview
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Logistics Definition
“Logistics is essentially a planning process and an information-based activity.”
[Martin Christopher]“The corporate traffic cop,” which directs the flow of material from the source through the production and distribution to the final customer.
[Philip scary]
Logistics Overview
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Logistics Definition
Logistics vs. Physical Distribution
Logistics Overview
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Pervasiveness of logistics [Example-1]
Logic in Logistics for 30-minute Pizza
Order registration: 1 minuteMake line: 2 minutesOven time: 5 minutesInspection, quality check & packing: 1 minuteRoute checking & final confirmation: 1 minuteOut of door time: 10-12 minutes
Punch in time: on return
Logistics Overview
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Pervasiveness of logistics [Example-1]
Logic in Logistics for 30-minute Pizza
Importance: Process Sequencing, Just-in-Time inventory availability and time management for success in this service operations logistics.
Logistics Overview
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Pervasiveness of logistics [Example-2]
24 Hour ATM
Logistics aspects: Availability and continuous supply of currency notes Information availability to customers on credit limits available at time of withdrawal
Data mining with automatic updating for real-time information on creditworthiness
E-business solutions takes care of the complex
transaction process involved in ATM operations
Logistics Overview
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Pervasiveness of logistics [Example-3]
Dabbawala’s of Mumbai
Over 2,00,000 office employees are catered to daily 5000 men & women (mostly illiterate) operate in assigned areas in Mumbai Each handles an optimum lot size of 25-30 tiffin boxes
Dabbas collected from houses and put in tiffin racks at
a network of 96 railway stations across Mumbai
Use of colour code system on dabbas to identify
collection and delivery points
After lunch time operation works in reverse direction
Logistics Overview
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Pervasiveness of logistics [Example-3]
Dabbawala’s of Mumbai
Logistics aspects: Timely collections and deliveries Error free deliveries and pick-ups
Smooth working against odds of rains, scorching heat, strikes etc
Precision of six sigma accuracy
Logistics Overview
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Pervasiveness of logistics [Example-4]
Laundry Service in Five Star Hotels
Logistic operations: Collecting laundry from 210 rooms Three parts: staff uniforms, room laundry (bed sheets, pillow covers) and guest clothes Special attention given to guest clothes for express or
same day delivery
Identification code, and the punching into the
computer for tracking, processing and final delivery
Hand over to the laundry service supplier, who delivers
it in the evening to the housekeeping department
Logistics Overview
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Objectives – Logistics Management
The primary objective of a logistics system is to move the inventory in a supply chain effectively and efficiently to extend the desired level of customer service at the least cost.
Logistics Overview
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Objectives – Logistics Management
Based on Manufacturer’s viewpoint
Minimise transportation cost for raw materials Reduce inventory cost Freight reductions [Consolidations, Load unitising] Proper Planning & Routing of transportation from their
warehouse to destination
Eliminate warehousing charges
Proper scheduling to reduce material-handling costs
Logistics Overview
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Objectives – Logistics Management
Based on Logistician’s viewpoint
Scheduling transportation modes for good time management Offer competitive rates to clients Providing good service levels
Acting as representatives for Traders in International
Trade
Logistics Overview
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Objectives – Logistics Management
Based on Customer’s viewpoint
Timely Deliveries Error free documentation Safe deliveries of their shipments/ Minimum product damages
Perfect stock maintenance
Low distribution costs for competitive advantage
Reliable & consistent delivery performance
Logistics Overview
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