1. Logistics Overview

2. Logistics Overview Macro & Micro Perspective

3. Macro & Micro Perspective
Logistics Overview
Macro & Micro Perspective

4. Logistics Overview Macro Perspective
Logistics costs increase with growth in economy
Total Logistic Costs measured with GDP
USA – 9%
Europe – 11%
India – 13%

5. Logistics Overview Macro Perspective
70% of total domestic product is transported
through road network and 15% through rail
Organized Logistics Market – 6%
CAGR – 25% [Projected]
USD 15 Billion [FY 11]

6. Logistics Overview Macro Perspective Logistic Costs
Warehousing & Inventory Costs
Transportation Costs
Other Logistics Costs

7. Logistics Overview Macro Perspective Logistic Costs Warehousing Costs
Assets used to hold Inventory
Inventory Costs
Interest
Opportunity
Risk [Obsolescence, Depreciation]
Service Related [Insurance, taxes]

8. Logistics Overview Macro Perspective Logistic Costs
Transportation Costs
Total national expenditure for movement of freight in India
Other Logistics Costs
Administrative Costs
Managing Personnel

9. Logistics Overview Micro Perspective Marketing
Logistics Interface with Functional Areas
Marketing
Manufacturing / Operations
Finance & Accounting

10. Logistics Overview Micro Perspective
Logistics Interface with Manufacturing/Operations
Long vs Short Production Runs
Pulled vs Pushed Systems
Lowers Inventory & Logistics Costs
Seasonal Variation in Demand
Inbound Movement & storage of Raw Materials

11. Logistics Overview Micro Perspective
Logistics Interface with Marketing-Price
Full Truck Loads vs Smaller Shipments
Products-Volume Discounts
Transportation Costs related to Product Weight

12. Logistics Overview Micro Perspective
Logistics Interface with Marketing-Product
New Products – Movement & Storage
Size
Shape
Weight
Physical Attributes
Re-furbishing Old Products
Package design
Package sizes

13. Logistics Overview Micro Perspective Logistics Interface with Finance
ROA=Revenue-Expenses/Assets
ROA=Gross Profit/Assets
Inventory
Asset-Balance sheet, Expense-Income Statement
Lower inventory reduces Asset Base & Variable Expenses-
Increases ROA
Owning Warehouses & Transport Equipment reduces ROA
Focus on Customer service increases ROA
[Incremental Increase in revenue vs Cost of Cust Svc]