LOGISTICS CONCEPTS Lt Gen D V Kalra, PVSM, AVSM (Retired)

Slides:



Advertisements
Similar presentations
Objectives Know why companies use distribution channels and understand the functions that these channels perform. Learn how channel members interact and.
Advertisements

REVERSE LOGISTICS PROBLEM
BA 308B and LOM 408B/5330 Business Logistics Systems Course Home Page:
ROLE OF LOGISTICS IN SUPPLY CHAINS
Transportation/Logistic Strategy John Ozment Oren Harris Chair of Transportation University of Arkansas (479) (479)
Supply Chain Management
Logistics. Theory and Practice.. Logistics is the art of managing the supply chain and science of managing and controlling the flow of goods, information.
Supply Chain Management
Teacher: Ing. Eva Šlaichová, Ph.D.
Physical Distribution Management and Strategy
Chapter 2: Role of Logistics in Supply Chains
Logistics PRODUCED BY : ABDULVALI IBN MANAN. Meaning & Definition Logistics is the process of planning, implementing and controlling the efficient, cost-effective.
Objectives Know why companies use distribution channels and understand the functions that these channels perform. Learn how channel members interact and.
Physical Distribution & Logistics
THE IMPACT OF GLOBAL LOGISTICS
International Logistics: The Management of International Trade Operations © 2011 Cengage Learning. Atomic Dog is a trademark used herein under license.
Introduction to Logistics. “Ideal” Armed Forces of Mauryan Empire Infantry Cavalry (War) Elephants Chariots.
Principles of Marketing Lecture-29. Summary of Lecture-28.
LOGISTICS OPERATION Industrial Logistics (BPT 3123)
Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Chapter 3 Characteristics of international transport.
INTERNATIONAL LOGISTICS Source: International Business (1998). Fifth Edition. Zinkota, M., Ronkainen, I., and Moffett, M. Fort Worth: The Dryden Press.
Introduction to International Logistics
Supply Chain Management
Logistics Tran Van Hoai Faculty of Computer Science & Engineering HCMC University of Technology Tran Van Hoai.
What is logistics management?
Introduction into Logistics
Learning Goals Know why companies use distribution channels and understand the functions that these channels perform. Learn how channel members interact.
Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved. Logistics.
Coordinated by :M. Abu Nahle Gathered from : www. en.wikipedia.org Supply Chain Management.
Marketing Channels and Supply Chain Management 10.
Supply Chain Management Harcourt, Inc. S.C. 16-2Supply Chain Management.
Chapter 16 Global Logistics and Materials Management.
1 Overview of Logistics & Supply Chain Systems Lecture 1 ESD.260, 1.260, Fall 2003 Sheffi & Caplice.
LOGISTICS MANAGEMENT 2. Definition Of LOGISTIS What is Logistics ?  “ Logistics means having the right thing at the right place, at the right time 
PURCHASING & STORAGE MANAGEMENT Instructor Abdel Fatah Afifi 2 nd Semester 90/10.
Information Systems for Competitive Advantage Source: Management Information System, 10 edition Raymond McLeod & George Schell.
Supply Chain Management
Physical Distribution Management and Strategy. Physical Distribution The process of –planning, implementing, and controlling –the efficient, effective.
Trans_Log_CI IIPSEC Integrated Infrastructure Protection System Engineering Center Critical Infrastructure Protection Center SMU Systems Engineering.
Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed.
Marketing Channels and Supply Chain Management Chapter 12.
SCM is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed.
Main Function of SCM (Part II). Main Functions  Procurement (supplier selection, optimal procurement policies, etc.)  Manufacturing (plant location,
MANAGING MARKETING LOGISTICS Professor Chip Besio Cox School of Business Southern Methodist University.
CHAPTER 8 PHYSICAL DISTRIBUTION MANAGEMENT STRATEGY.
CITY LOGISTICS STRATEGIES AND POLICIES
Logistics Management LSM 730 Lecture 4 Dr. Khurrum S. Mughal.
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin 1-1 JAMES R. STOCK  DOUGLAS M. LAMBERT STRATEGIC LOGISTICS MANAGEMENT.
Main Function of SCM (Part I)
1-1 Business Logistics/Supply Chain—A Vital Subject The supply chain is simply another way of saying “the whole process of business.” Chapter 1 CR (2004)
MGT301 Principles of Marketing Lecture-29. Summary of Lecture-28.
INTRODUCTION TO SUPPLY CHAIN MANAGEMENT. What is a Supply Chain? A supply chain consists of the flow of products and services from: Raw materials manufacturers.
The supply chain is simply another way of saying “the whole process of business.” MODULE 4 LOGISTICS MANAGEMENT Seminar FORXTROT SUPPLY CHAIN MANAGEMENT.
Chapter 2 Dimensions of Logistics. Introduction Modern logistics concepts has come a long way since the 1960s. The big challenge is to manage the whole.
Operations & Logistics Management Lesson 10: Logistics Management.
Introducing Logistics & Supply Chain Management Prof. Costas Panou Lecture #2 in M.Sc New Technologies in Shipping and Transportation.
THE IMPACT OF GLOBAL LOGISTICS
Materials & Logistics Management
Logistics – An Introduction
Purchasing and Supply Management
Common Learning Blocks
LOGISTICS NETWORK.
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Topic 6 – Logistics and Supply Chain Management
Supply Chain Management (SCM) Basics
Logistics in Marketing
Logistics and Supply Chain Management
CHAPTER 1 Overview of Logistics.
Business Logistics Management
Physical Distribution Management and Strategy
Presentation transcript:

LOGISTICS CONCEPTS Lt Gen D V Kalra, PVSM, AVSM (Retired)

ORIGINS OF SUPPLY CHAIN MANAGEMENT Military origins and connotations of logistics Systems of maintenance of armies Logistics-a bridge between Strategy and Tactics Logistics and Supply Chain Management as integral parts of strategic planning

LOGISTICS (MILITARY DEFINITION) “THE SCIENCE OF PLANNING AND CARRYING OUT THE MOVEMENT AND MAINTENANCE OF FORCES.... THOSE ASPECTS OF MILITARY OPERATIONS THAT DEAL WITH THE DESIGN AND DEVELOPMENT, ACQUISITION, STORAGE, MOVEMENT, DISTRIBUTION, MAINTENANCE, EVACUATION AND DISPOSITION OF MATERIAL; MOVEMENT, EVACUATION, AND HOSPITALIZATION OF PERSONNEL; ACQUISITION OF CONSTRUCTION, MAINTENANCE, OPERATION AND DISPOSITION OF FACILITIES; AND ACQUISITION OF FURNISHING OF SERVICES”. -- (JCS PUB 1-02 EXCERPT)

LOGISTICS “THE PROCESS OF PLANNING, IMPLEMENTING, AND CONTROLLING THE EFFICIENT, EFFECTIVE FLOW AND STORAGE OF GOODS, SERVICES, AND RELATED INFORMATION FROM POINT OF ORIGIN TO POINT OF CONSUMPTION FOR THE PURPOSE OF CONFORMING TO CUSTOMER REQUIREMENTS." –NOTE THAT THIS DEFINITION INCLUDES INBOUND, OUTBOUND, INTERNAL, AND EXTERNAL MOVEMENTS, AND RETURN OF MATERIALS FOR ENVIRONMENTAL PURPOSES. -- ( REFERENCE: COUNCIL OF LOGISTICS MANAGEMENT).

LOGISTICS (BUSINESS DEFINITION) “LOGISTICS IS DEFINED AS A BUSINESS PLANNING FRAMEWORK FOR THE MANAGEMENT OF MATERIAL, SERVICE, INFORMATION AND CAPITAL FLOWS. IT INCLUDES THE INCREASINGLY COMPLEX INFORMATION, COMMUNICATION AND CONTROL SYSTEMS REQUIRED IN TODAY'S BUSINESS ENVIRONMENT”. -- (LOGISTIX PARTNERS OY, HELSINKI, FI, 1996)

BUSINESS LOGISTICS “THE SCIENCE OF PLANNING, DESIGN, AND SUPPORT OF BUSINESS OPERATIONS OF PROCUREMENT, PURCHASING, INVENTORY, WAREHOUSING, DISTRIBUTION, TRANSPORTATION, CUSTOMER SUPPORT, FINANCIAL AND HUMAN RESOURCES”. -- (MDC, LOGLINK / LOGISTICSWORLD, 1997)

EVOLUTION OF SUPPLY CHAIN MANAGEMENT MATERIALS MANAGEMENT (TILL 70s) –PURCHASING AND STOCK KEEPING –ALLOCATION AND SCHEDULING EXTENDED MATERIALS MANAGEMENT (80s) –PRODUCTION PLANNING AND CONTROL INTEGRATED MATERIALS MANAGEMENT (Early 90s) –Order Processing Control and Distribution

SUPPLY CHAIN MANAGEMENT SUPPLY CHAIN MANAGEMENT (Mid 90s onwards) –To include Supplier / Customer Relations Management-an end to end approach

IMPORTANCE OF LOGISTICS “BUSINESSES CANNOT HOPE TO WIN IN WORLD MARKETS UNLESS THEY GET THEIR LOGISTICS RIGHT” Michael Heseltine, President Board of Trade UK “THE CORRECT APPLICATION OF THE PRINCIPLES OF MODERN LOGISTICS REPRESENTS NOT ONLY AMONG A NUMBER OF POSSIBLE ROUTES TO SUCCESS, BUT THE CENTRAL, DECISIVE ONE” Hansjoerg Bendel, President European Logistics Association

LOGISTICS SCOPE AND OPPORTUNITY “PHYSICAL DISTRIBUTION IS TODAY’S FRONTIER IN BUSINESS. IT IS ONE AREA WHERE MANAGERIAL RESULTS OF GREAT MAGNITUDE CAN BE ACHIEVED AND IS STILL LARGELY UNEXPLORED” Peter Drucker

ALLIED TERMS PHYSICAL DISTRIBUTION BUSINESS LOGISTICS PROCUREMENT AND SUPPLY MANUGISTICS MARKETING LOGISTICS SUPPLY CHAIN MANAGEMENT

WHAT IS LOGISTICS? “ LOGISTICS MEANS HAVING THE RIGHT THING, AT THE RIGHT PLACE, AT THE RIGHT TIME."

LOGISTICS SUPPLY PLUS MATERIALS MANAGEMENT PLUS DISTRIBUTION

LOGISTICS COST FOR KEY REGIONS (%AGE OF GDP) NORTH AMERICA (9.9 in 2007)* EUROPE ASIA PACIFIC REMAINING INDIA 13.00** * 8.6 in 2006 ** UNVERIFIED

COMPONENTS OF LOGISTICS COSTS REGIONTPTS&WH ICC ADM US46%22% 10% EU41%23%21%15%

ELEMENTS OF LOGISTICS AND DISTRIBUTION STORAGE AND WAREHOUSING MATERIALS HANDLING TRANSPORT INVENTORY INFORMATION AND CONTROL PACKAGING AND UNITISATION

DISTRIBUTION & LOGISTICS DEEP SEA CARRIERS SHORT SEA CARRIERS AIR TRANSPORT RAIL TRANSPORT ROAD TRANSPORT INLAND WATER TRANSPORT PARCEL TRANSPORT

DISTRIBUTION & LOGISTICS FREIGHT FORWARDERS BROKERS INTER-MODAL HUBS PORTS RAIL HUBS

INTERNATIONAL LOGISTICS For the international firm, customer locations and sourcing opportunities are widely dispersed. The firm can attain a strategically advantageous position only if it is able to successfully manage complex networks, consisting of its vendors, suppliers, other third parties, and its customers.

INTERNATIONAL LOGISTICS Logistics costs comprise between 10% and 30% of the total landed costs of an international order. Thus, international logistics is a competitive tool. Effective international logistics and supply-chain management can produce higher earnings and greater corporate efficiency.

INTERNATIONAL LOGISTICS International Logistics is design and management of a system that controls the flow of materials into, through, and out of the international corporation.