1 Logistics Overview Macro amp Micro Perspective 2 Macro amp Micro Perspective Logistics Overview 3 Macro Perspective Logistics costs increase with growth in economy Total Logistic Costs measured with GDP ID: 291860
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Logistics Overview
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Logistics
Overview
Macro & Micro Perspective
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Macro & Micro Perspective
Logistics Overview
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Macro Perspective
Logistics costs increase with growth in economy
Total Logistic Costs measured with GDP USA – 9% Europe – 11% India – 13%
Logistics Overview
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Macro Perspective
70% of total domestic product is transported
through road network and 15% through rail
Organized Logistics Market – 6% CAGR – 25% [Projected] USD 15 Billion [FY 11]
Logistics Overview
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Macro Perspective
Logistic Costs
Warehousing & Inventory Costs
Transportation Costs Other Logistics Costs
Logistics Overview
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Macro Perspective
Logistic Costs
Warehousing Costs
Assets used to hold Inventory Inventory Costs Interest Opportunity Risk [Obsolescence, Depreciation] Service Related [Insurance, taxes]
Logistics Overview
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Macro Perspective
Logistic Costs
Transportation Costs
Total national expenditure for movement of freight in India Other Logistics Costs Administrative Costs Managing Personnel
Logistics Overview
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Micro Perspective
Logistics Interface with Functional Areas
Marketing
Manufacturing / Operations Finance & Accounting
Logistics Overview
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Micro Perspective
Logistics Interface with Manufacturing/Operations
Long
vs Short Production Runs Pulled vs Pushed Systems Lowers Inventory & Logistics Costs Seasonal Variation in Demand Inbound Movement & storage of Raw Materials
Logistics Overview
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Micro Perspective
Logistics Interface with Marketing-Price
Full Truck Loads
vs Smaller Shipments Products-Volume Discounts Transportation Costs related to Product Weight
Logistics Overview
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Micro PerspectiveLogistics Interface with Marketing-Product
New Products – Movement & Storage
Size Shape Weight Physical Attributes Re-furbishing Old Products Package design Package sizes
Logistics Overview
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Micro PerspectiveLogistics Interface with Finance
ROA=Revenue-Expenses/Assets
ROA=Gross Profit/Assets
Inventory Asset-Balance sheet, Expense-Income Statement Lower inventory reduces Asset Base & Variable Expenses- Increases ROA Owning Warehouses & Transport Equipment reduces ROA Focus on Customer service increases ROA [Incremental Increase in revenue vs Cost of Cust Svc]
Logistics Overview
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