1. Logistics Overview 1

2. Session Objectives  Definition of logistics  Logistics & supply chain management differentiation  Objectives of logistics management Logistics Overview 2

3. Logistics Origin The word logistics traces its origin to the Greek word logistikos and the Latin word logisticus, meaning the science of computing and calculating. Logistics Overview 3

4. Logistics History  Great Pyramid of Giza [2700 BC]  Steam Engine [1800]  World War I [1914-18]  Invention of Sea Container [1956 - Malcom P Mclean]  Kanban & JIT concepts [1970-1980] Logistics Overview 4

5. Logistics Definition “Planning, implementing and controlling the physical flows of materials and finished goods from point of origin to point of use to meet the customer’s needs at a profit.” [Philip Kotler] Logistics Overview 5

6. Logistics Definition “The process of planning, implementing and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of confirming to customers’ requirements.” [The American Council of Logistics Management] Logistics Overview 6

7. Logistics Definition “Logistics is essentially a planning process and an information-based activity.” [Martin Christopher] “The corporate traffic cop,” which directs the flow of material from the source through the production and distribution to the final customer. [Philip scary] Logistics Overview 7

8. Logistics Definition Logistics vs. Physical Distribution Logistics Overview 8

9. Pervasiveness of logistics [Example-1] Logic in Logistics for 30-minute Pizza Order registration: 1 minute Make line: 2 minutes Oven time: 5 minutes Inspection, quality check & packing: 1 minute Route checking & final confirmation: 1 minute Out of door time: 10-12 minutes Punch in time: on return Logistics Overview 9

10. Pervasiveness of logistics [Example-1] Logic in Logistics for 30-minute Pizza Importance: Process Sequencing, Just-in-Time inventory availability and time management for success in this service operations logistics. Logistics Overview 10

11. Pervasiveness of logistics [Example-2] 24 Hour ATM Logistics aspects:  Availability and continuous supply of currency notes  Information availability to customers on credit limits available at time of withdrawal  Data mining with automatic updating for real-time information on creditworthiness  E-business solutions takes care of the complex transaction process involved in ATM operations Logistics Overview 11

12. Pervasiveness of logistics [Example-3] Dabbawala’s of Mumbai  Over 2,00,000 office employees are catered to daily  5000 men & women (mostly illiterate) operate in assigned areas in Mumbai  Each handles an optimum lot size of 25-30 tiffin boxes  Dabbas collected from houses and put in tiffin racks at a network of 96 railway stations across Mumbai  Use of colour code system on dabbas to identify collection and delivery points  After lunch time operation works in reverse direction Logistics Overview 12

13. Pervasiveness of logistics [Example-3] Dabbawala’s of Mumbai Logistics aspects:  Timely collections and deliveries  Error free deliveries and pick-ups  Smooth working against odds of rains, scorching heat, strikes etc  Precision of six sigma accuracy Logistics Overview 13

14. Pervasiveness of logistics [Example-4] Laundry Service in Five Star Hotels Logistic operations:  Collecting laundry from 210 rooms  Three parts: staff uniforms, room laundry (bed sheets, pillow covers) and guest clothes  Special attention given to guest clothes for express or same day delivery  Identification code, and the punching into the computer for tracking, processing and final delivery  Hand over to the laundry service supplier, who delivers it in the evening to the housekeeping department Logistics Overview 14

15. Objectives – Logistics Management The primary objective of a logistics system is to move the inventory in a supply chain effectively and efficiently to extend the desired level of customer service at the least cost. Logistics Overview 15

16. Objectives – Logistics Management Based on Manufacturer’s viewpoint  Minimise transportation cost for raw materials  Reduce inventory cost  Freight reductions [Consolidations, Load unitising]  Proper Planning & Routing of transportation from their warehouse to destination  Eliminate warehousing charges  Proper scheduling to reduce material-handling costs Logistics Overview 16

17. Objectives – Logistics Management Based on Logistician’s viewpoint  Scheduling transportation modes for good time management  Offer competitive rates to clients  Providing good service levels  Acting as representatives for Traders in International Trade Logistics Overview 17

18. Objectives – Logistics Management Based on Customer’s viewpoint  Timely Deliveries  Error free documentation  Safe deliveries of their shipments/ Minimum product damages  Perfect stock maintenance  Low distribution costs for competitive advantage  Reliable & consistent delivery performance Logistics Overview 18

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