2 Supply Chain Management Legends of Logistics Dabbawala’s (Video)
3 Supply Chain Management Logistics is“The process of planning, implementing andcontrolling the efficient, effective flow and storage ofgoods, services and related information from pointof origin to point of consumption for the purpose ofcustomer Satisfaction”(council of logistics management)
4 Supply Chain Management Business LogisticsThe planning, implementation, & control of the efficient & effective flow and storage of goods, services, & related information from point of origin to point of use or consumption in order to meet customer requirementsMilitary LogisticsThe design & integration of all aspects of support for the operational capability of the military forces (deployed or in garrison) and their equipment to ensure readiness, reliability, & efficiency
5 Supply Chain Management Event LogisticsThe network of activities, facilities, and personnel required to organize, schedule, and deploy the resources for an event to take place and to efficiently withdraw after the event
6 Supply Chain Management Logistics has existed since the beginning of civilization. Raw material and finished products had always to be moved, though on a small scale. Things began changing with the advance in transportation. Population began moving from rural to urban areas and to business centre. No longer did people live near production centre, nor did production take place near residence centre. The geographical distance between the production point and consumption point increased. And logistics gained importance.
7 Supply Chain Management THE PURPOSE OF LOGISTICS SYSTEMRight quantities of theRight goods to theRight places at theRight time in theRight condition at theRight cost.
10 Supply Chain Management Two Main Types:Inbound logistics: The management of materials from suppliers and vendors into production processes or storage facilities.Outbound Logistics: The process related to the movement and storage of products from the end of the production line to the end user.
11 Supply Chain Management Steps toward improving Logistics performanceMake transport a customer service activity instead of a costReduce your stock pipeline to cut costs and improve service (go easy by low inventory)Pick as soon as you can (pick once, pick right and cut the cost time and error)Is everything you are doing is really necessary
12 Supply Chain Management Transportation:Transport or transportation is the movement of people and goods from one place to another. Industries which have the business of providing actual transport, transport of people or goods and services referred to as transport industries.
16 Supply Chain Management 3rd Party Logistic Service providers“Third-party Logistics is simply the use of an outside company to perform all or part of the firm’s materials management and product distribution function.”-- Simchi-Levi (2000)
18 Supply Chain Management AdvantagesCost reductionFocus on core competencyImproved efficiency, service and flexibilityDisadvantagesLoss of controlImpact on in-house workforce
19 Supply Chain Management Current State -- Market Size3PL market is growing( $ Billions )
20 Supply Chain Management Current use of 3PL by industryIndustryPercentage of 3PL use in different industriesComputerConsumerRetailChemicalMedicalAutoSource "What's ahead for 3PLs“ Modern Materials Handling, April, 2000