Chain to Excellence

Session

Logistics
Fundamentals

A Supply Chain Model

Product
Flow
Cash Flow
Suppliers

Material Costs

Manufacturers

Transportation
Costs

Warehouses &
Distribution Centers

Transportation
Costs

Manufacturing Costs

Information

Customers

Transportation
Inventory Costs Costs

What Is a Supply Chain?

A set of approaches used to efficiently integrate

Suppliers
Manufacturers
Warehouses
Distribution centers

So that the product is produced and

distributed

In the right quantities

To the right locations
And at the right time

System-wide costs are minimized and

Service level requirements are satisfied
Plan
Plan

Source
Source

Make
Make

Deliver
Deliver

Buy
Buy

Supply Chain also referred to as the logistics

network

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

Important Transportation & Warehousing Functions

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

Last-mile delivery: refers to the

distributor/retailer delivering the

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

3PL & 4PL

A third-party logistics (3PL) provider performs one or more of
the logistics activities relating to the flow of product, information,
and funds that could be performed by the firm itself. Examples:
Gati, FedEx, UPS

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

Cold chains require refrigerator trucks, refrigerator

cars,
reefer
ships,
reefer
containers,
and
refrigerated warehouses
Link to refer:

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:

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http://c2xnitie.wordpress.com/