Logistics Management

Introduction to logistics

– Logistics management is a supply chain management

component that is used to meet customer demands
through the planning, control and implementation of the
effective movement and storage of related information,
goods and services from origin to destination. Logistics
management helps companies reduce expenses and
enhance customer service.
 SUPPLY CHAIN SYSTEMSOcean
Customs
Agent liner

Supplier Plant Port

Roadways Roadways Airways Road
+

Rail

Home Consumer Customer Customer’s RDC

(Retailer) Warehouse Roadways
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Principle of 3 C
CUSTOMERS

COMPANY

COMPETITOR
Objectives of logistics management
 Inventory reduction
Inventory is the biggest culprit in adversely affecting the objectives of logistics
management at the bottom line of an enterprise. Through a financial accountancy
perspective, inventory is an asset and does not cause any appreciable
disadvantage even when it is stocked in an excess quantity.
 Reliable and consistent delivery performance
On-time delivery is crucial to the customer to maintain his production schedule.
The customer is not interested in a faster delivery of the material ahead of the
production schedule.
 Freight economy
Freight is a major cost element in logistics cost. This can be reduced by adopting
measures such as freight consolidation, transport mode selection, route planning,
load unitizing and long distance shipments.
 Minimum product damages
Product damages add to the logistics cost. The reason for product damages is improper
logistical packaging, frequent consignment handling the absence of load unitizing, and
so on. Use of mechanised material handling equipment, load unitization, and proper
logistical packaging will reduce the product damage and fulfil the objectives of logistics
management

 Quick response
This is related to the capability of a firm to extend the service to the customer in the
shortest time frame. Use of the latest technologies in information processing and
communications will enhance the decision-making capability in terms of accuracy and
time, enabling the enterprise to be flexible enough to fulfil the customer requirements in
volumes and varieties in the shortest time frame, hence fulfil the objectives of logistics
management
 MAJOR LOGISTIC SUPPLY CHAIN FUNCTION

Order Processing Inventory Management

Warehouse Transportation
Order Processing
■ When an order has been received, it should be quickly and accurately
processed by the organization. When processing is done effectively, both
the organization as well as customer is benefited.
■ There are many ways of submitting an order like
■ By Mail
■ By Telephone
■ Through Salesperson
■ Through Computer and EDI
■ In some cases, orders are generated by suppliers for their customers.
Inventory Management
■ Inventory Management is the process of constantly and
efficiently overseeing the inflow and outflow of items from
the existing inventory.

Supervising the Maintaining Keeping

flow of goods detailed records sufficient stock

Inventory Management Process

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Basic Warehouse Operations
The Role of Transportation in Logistics
■ Transportation is the physical link connecting the firm to its suppliers and
customers.
■ In a nodes and links scenario, transportation is the link between fixed facilities
(nodes).
■ Transportation also adds value to the product by providing time and place
utility for the firm’s goods
■ As firms engage in global competition, transportation costs are becoming even
more significant.
■ Outbound transportation was clearly the largest component of total physical
distribution costs.
■ Cost trade-offs abound in transportation and are typified by trading lower
inventory costs for higher transportation costs.
The Basic Modes of Transportation
The basic modes available to the logistics manager are
■ rail,
■ motor,
■ water,
■ pipeline, and
■ air.
 Supply Chain Overview
Transportation Transportation Customers
Warehousing

Information
flows
Factory

Transportation

Vendors/plants/ports
Warehousing Transportation

CR (2004) Prentice Hall, Inc. Dickson Chiu 2006 1-2

TOP LOGISTICS COMPANIES IN INDIA
Positions In Logistics Company
– Logistics Managers
– Logistics Analysts
– Logistics Engineers
– Logisticians
– Transportation, Storage, and Distribution Managers
– Logging Equipment Operators
– Log Graders and Scalers
– Supply Chain Managers
– First-Line Supervisors of Logging Workers
– Storage and Distribution Managers
– Loss Prevention Managers
– Transportation Managers
– Meeting, Convention, and Event Planners Bright Outlook Bright Outlook
– Radio Frequency Identification Device Specialists
– Industrial Engineering Technologists
– Cargo and Freight Agents Bright Outlook
– Freight Forwarders Bright Outlook
– Production, Planning, and Expediting Clerks
– Shipping, Receiving, and Traffic
– Stock Clerks, Sales Floor Bright Outlook
– Logging Workers, All Other
– Inspectors, Testers, Sorters, Samplers, and Weighers
– Molding and Casting Workers
– First-Line Supervisors of Transportation and Material-Moving Machine
Vehicle Operators
– Industrial Truck and Tractor Operators
– Pump Operators, Except Wellhead Pumpers Bright Outlook
– Command and Control Center Officers
– Industrial Engineers Bright Outlook
– Fallers
– Agricultural Inspectors
– Operations Research Analysts Bright Outlook
– Geological Sample Test Technicians Bright Outlook
– Mobile Heavy Equipment Mechanics, Except Engines
– Foresters
– Sawing Machine Setters, Operators, and Tenders, Wood
– Furnace, Kiln, Oven, Drier, and Kettle Operators and
Tenders
– Heavy and Tractor-Trailer Truck Drivers Bright Outlook
– Purchasing Agents, Except Wholesale, Retail, and Farm
Products
– Petroleum Engineers Bright Outlook
– Electrical and Electronic Engineering Technicians
– Electrical Engineering Technicians
– Geological and Petroleum Technicians Bright
Outlook
– Geophysical Data Technicians Bright Outlook
– First-Line Supervisors of Office and
Administrative Support Workers Bright Outlook
– Bioinformatics Technicians
– Office and Administrative Support Workers, All
Other
– First-Line Supervisors of Farming, Fishing, and
Forestry Workers
– Continuous Mining Machine Operators
– Electromechanical Equipment Assemblers
– Woodworking Machine Setters, Operators, and
Tenders, Except Sawing
– Crushing, Grinding, and Polishing Machine
Setters, Operators, and Tenders
– Cutters and Trimmers, Hand
– Extruding, Forming, Pressing, and Compacting
Machine Setters, Operators, and Tenders
– Helpers--Production Workers Bright Outlook
– Production Workers, All Other
– Conveyor Operators and Tenders
– Hoist and Winch Operators
– Labourers and Freight, Stock, and Material Movers,
Hand Bright Outlook
– Machine Feeders and Off bearers
– Material Moving Workers, All Other
– Methane/Landfill Gas Collection System Operators
– Riggers Bright Outlook