1. Introduction to Logistics
Logistics is the backbone of supply chain management, ensuring the seamless delivery of goods and services from origin to consumption. It encompasses both forward and reverse flows and aims to meet customer requirements efficiently and cost-effectively.
Definition:
"Logistics is the part of the supply chain process that plans, implements, and controls the efficient flow and storage of goods, services, and related information from the point of origin to the point of consumption to meet customer requirements."
— Council of Logistics Management
2. Key Features of Logistics
Ensures continuous flow of goods from raw materials to final products
Meets and exceeds customer expectations
Emphasizes quality and cost-effective delivery
Enhances productivity and profitability
Deals with proper movement and storage of goods
3. Evolution of Logistics and SCM
Pre-1950s: Independent departments; focus on production
1960s-70s: Integration of materials and physical distribution
1980s: Focus on global operations and production functions
1990s: Emergence of SCM; focus on core competency and risk reduction
4. Objectives of SCM
5. Business Logistics & Stakeholders
Focuses on:
7 R’s of Logistics: Right Product, Quantity, Condition, Place, Time, Customer, and Cost
6. Importance of Logistics
Adds value by delivering at the right time
Reduces costs and enhances customer satisfaction
Aids market expansion and revenue growth
Supports globalization and efficient returns process
7. Logistics Mission and Strategy
Mission: Deliver goods/services as per customer specifications at minimum cost
Strategic Components:
Key Strategic Issues:
8. Functions of Logistics Management
Procurement (Inbound Logistics): Raw material sourcing, contracts, shipment
Production Logistics: Scheduling, inventory handling, material flow
Physical Distribution (Outbound Logistics): Order processing, transportation, warehousing
9. Integrated Logistics System
A strategic framework introduced in the 1980s to:
10. Key Logistics Activities
Inbound Logistics: Supplier to plant material flow
Material Handling
Outbound Logistics: Delivery to end users
Key Functions: Network design, procurement, order processing, packaging, warehousing, transport
11. Components of Logistics Management
Generic: Customer service, infrastructure, service evaluation
Primary: Network design, inventory, transportation
Supportive: Warehousing, handling, procurement, forecasting
12. Competitive Advantage through Logistics
Cost Advantage: Low inventory, intact delivery, capacity utilization
Value Advantage: Quality, service, speed, consistency
Michael E. Porter’s Value Chain: Primary and Secondary activities integrated for cost efficiency and differentiation
13. Strategic Logistics Planning
Corporate Vision
Logistics Strategy Analysis
Logistics Planning
Managing Change and Innovation
14. Outsourcing in Logistics
Engaging external providers for logistics tasks to reduce costs and improve efficiency.
Examples: 3PL and 4PL
3PL (Third-Party): Warehousing, shipping, customer support
4PL (Fourth-Party): Manages entire supply chain with no physical assets
Advantages: Cost reduction, resource optimization, flexibility
Challenges: Volume issues, mindset barriers, quality inconsistency
15. Logistics Information System (LIS)
Purpose: Provide accurate, real-time data to enhance decision-making in logistics
Functions:
Order and inventory status
Customer service and operational integration
Data collection, processing, and reporting
Four Elements of LIS:
Inputs: Sales data, forecasts, customer orders
Data Management: Data conversion and retrieval
Outputs: Summary reports, documents
Resources: Human, hardware, software, and data resources
16. Application of Information Technology in Logistics
EDI: Fast, accurate business communication
Barcoding: Product tracking and inventory control
ERP, Intranet, Internet: Integrated enterprise-level logistics.
With Regards.,
Dr Anthony Rahul Golden S
M.Com., M.Phil., NET., Ph.D., MBA.,SET., NET., M.A., M.Sc. (Psy)., M.A., PGDBA.,
Asst. Professor of Commerce., Loyola College (Autonomous), Chennai - 34
Mobile No- 91+9176313545
https://yesrahul.blogspot.com/
https://orcid.org/0000-0001-8071-4801
https://www.researchgate.net/profile/Anthony-Golden-S
