Logistic Management Made by: Made by: Kritika chhatwal Kritika chhatwal

LOGISTICS Planning implementing and controlling the physical flow of material and finished goods from point of origin to point of use to meet customer`s need at a profit By “Philip Kotler” So A integrative process that optimizes the flow of material and supplies through the organization and its operations to the customer

The word logistic has originated from Greek word ‘Logistikos’ and the Latin word ‘Logisticus’ which means science of computing & calculating In ancient times it was used more in connection with moving armies, the supplies of food & armaments to the war front. During World War II logistics gained importance in army operations covering the movement of supplies, men & equipment across the border Today It has acquired the wider meaning and is used in the business for the movement of material from suppliers to the manufacturer and finally the finished goods to the consumers

Scope of Logistic 1) It is of critical importance to the organization how it delivers products & services to the customer, whether the product is tangible or intangible. 2)Effective & efficient Physical movement of the tangible product will speak of intangible services associated with the product and the organization which is delivering it. 3)In Case of intangible product, the delivery of tangibles at the right place & right time will speak about its quality. 4) speed & reliability in distribution of products & services contribute to a great extent in the growth of a country`s domestic & international trade. 5) Public distribution system in the country needs logistical support for delivering goods at right place on time and the lowest cost.

Scope of logistics 6) logistic plays a critical role in the value delivery system of business organization to provide superior customer service i.e. to achieve a desired level of delivered services and quality at the lowest possible cost. 7) help in cost reduction and proper deployment of scare national resources to the productive purposes.

Logistic –A system approach Logistic recognizes that all the activities of material movement across the business process are interdependent and needs close coordination and these are to be maintained as a system and not the functional Silos. System is shown as logistic Mix including following functional Areas Order Processing Order Processing Information Flow Information Flow Warehousing Warehousing Inventory control Inventory control Packaging Packaging Transportation Transportation

Order Processing Order checking for any deviation in agreed on negotiated term Order checking for any deviation in agreed on negotiated term Technical details; price; delivery period ;payment terms; taxes etc Technical details; price; delivery period ;payment terms; taxes etc Checking the availability of material in stock (material requisition) Checking the availability of material in stock (material requisition) Production & material scheduling for shortage Production & material scheduling for shortage Acknowledging the order, indicating deviation if any Acknowledging the order, indicating deviation if any It is routine operation but require great deal of planning training of people involved and investment to bring about efficiency & accuracy.

Information Flow It is basically information based activity of inventory movement across the supply chain. Hence role of information system plays a vital role in delivering superior customer service This function is required to facilitate the following information needs  Order Registration.  Order checking & editing.  Order processing.  Coordination.

Warehousing Warehouse are treated as switching facilities rather than storage place. It is a major cost center, many customer problem are the direct result of improper warehousing management. Major decision of ware house are as follows:  Location,Size & Number of warehousing facilities  Warehouse layout  Design of building  Ownership of the warehouse

Inventory management.)That is,How much to order,When to order.)Purchase Control.)Stores control.)Issue management ABC Analysis, VED Analysis, Level Management, EOQ Analysis, MRP System, Perpetual inventory system, JIT System

Packaging It is also a critical element in physical distribution of the product, which influences the efficiency of the logistic system this is done with the view of following :-  For handling and damage prevention.  For communications.  For inter modal transportation.  Storage space economy.

Transportation For the movement of goods from supplier to buyer, transportation is the most fundamental and important component of logistic. Mode of transportation ( Cost & time factor) Mode of transportation ( Cost & time factor) Own fleet or Outsourcing Own fleet or Outsourcing Route Planning Route Planning Vehicle scheduling Vehicle scheduling