LOGISTICS MANAGEMENT & PHYSICAL DISTRIBUTION Logistics management is the process of managing the movement and storage of materials ,parts and finished inventory from supplier through the firm and to customers. It involves 1.physical supply or material management which involves movement of raw materials to plant and 2.physical distribution ,flow of finished products from the plants to the customers.

TYPES OF LOGISTICS SUPPLIER LOGISTICS-It takes care of the flow of supplies and raw materials from vendor to the company. It includes 1.supplier evaluation ,2.ordering of the final product. PRODUCTION/CORPORATE LOGISTICS-It integrates production ,sales , logistics, and after sales service.

Replenishment production system-tracks outgoing shipments ,inventory movements , generates market demand and production plan . Purchase support system-consisting of ordering and payment system to prevent shortages and fulfill customer needs.

CUSTOMER LOGISTICS-It is a process of Right quantity, of the Right product, to the Right place, in the Right conditions , at the Right costs , and at the Right time , with the Right impression. speedy and timely delivery ,low distribution costs , shorter lead time , safety of goods

PHYSICAL DISTRIBUTION Refers to the movement of goods from producers to customers. It involves Order processing Inventory management Materials handling Warehousing transportation

PHYSICAL DISTRIBUTION AND MARKETING MIX PROMOTION-To make product available during promotion to meet demand/reduce distribution to build image of exclusivity. PRICE-Lowering distribution cost to increase profits. PRODUCT-Attributes affecting it are weight , size, value, packaging ,delivery schedules

OBJECTIVES OF PDS TOTAL COST GOALS- Minimize transportation , storage ,material handling, cost of lost sales. CUSTOMER SERVICE GOALS- TIME DEPENDABILITY COMMUNICATION CONVENIENCE PRODUCT PROTECTION ACCURACY

FUNCTIONAL AREAS OF PDS NETWORK DESIGN-No and location of facilities to perform physical distribution. INFORMATION TECHNOLOGY-Used in sales forecasting and order processing. TRANSPORTATION –Speed/cost INVENTORY MANAGEMENT- EOQ WAREHOUSING-PRIVATE/LEASED/PUBLIC

CONTD… MATERIAL HANDLING EQUIPMENTS- MECHANIZED/SEMI AUTOMATIC/AUTOMATIC(ROBOTICS) SECONDARY PACKAGING-HANDLING/STORAGE /PROTECTION FROM LOSS OR DAMAGE

MAJOR COST ELEMENTS OF PDS Transportation costs-railway costs , road way costs , sea way costs, airway costs Inventory costs-ordering & carrying costs Warehouse costs-cost of land , building, administrative cost Material costs-material handling equipments , cost of damages Packaging costs- Customer service costs-trade off between lost sales & inventory carrying costs