1. LOGISTICS Supply Chain Management Distribution Logistics
Single Country Single Market
Dependable Mode of Transport
Safe Arrival of Goods
Reasonable Time
Reasonable Cost
Such Solution Not Viable For Global Markets
Correct Quantity of Product in Required Time Frame
Physical Distribution Process as Integrated System

2. LOGISTICS Supply Chain Management Distribution Logistics
Global Markets
Multi Modal Transport
Trans-shipments
Regulatory Authorities
Pilferage
Damages
Quality Issues, Storage at Different Climatic Conditions
Control

3. LOGISTICS Supply Chain Management Sea Air
Transport Costs $31,790 $127,160
Transit Time 21 Days 3 Days
In-Transit Inventory $44,289 $6,328
Finance Cost
Total Trans. Cost $ $133,487
WareHsg. Inventory $126,540
WareHsg. Rent $6,500
Real Physical D.C. $209,119 $133,487
*44,000 Units, Value $7.7 m, SGP to LA, Finance Cost 10% i.e.$2,109 per day, Inventory of 30 days at SGP and LA

4. LOGISTICS Supply Chain Management Distribution Logistics
The management of resources to supply the product and services needs of the end consumer encompassing the supply chain of any physical products and the exchange processes involved
RM → Mfgr. / Producer of Goods or Services → Importer (Intermediary or Wholesaler or Stockist) → Retailer → Consumer
Traditional Distribution Chain
Linear chain, unidirectional
Passive Customer at the other end

5. LOGISTICS Supply Chain Management Distribution Logistics
Limited Channel
Mfgr. / Producer of Goods or Services
→ Importer → Retailer → Consumer
Direct Channel
→ Consumer

6. LOGISTICS Supply Chain Management Distribution Logistics Flow
Physical Flow, Ownership Flow, Service Flow, Information Flow, Payment Flow, Promotion Flow
Good logistics or SCM techniques needed to ensure smoother movement of merchandise till it reaches the consumer
Customer satisfaction at acceptable costs

7. LOGISTICS
Logistics
Logistic is the process of strategically managing the procurement, movement, and storage of materials, parts, and finished inventory through the organisation and its marketing channels in such a way that the current and future profitability are maximised through the cost effective fulfillment of orders
Procure, Store and Transport in cost effective manner

8. LOGISTICS
Logistics
Movement of Goods from Exporter to Importer and From Importer to Exporter
FCL
LCL
Volume
Weight

9. LOGISTICS Logistics Cost Structure Total Distribution Cost
TDC = TC + FC + CC + IC + HC + PC + MC
TC - Transport Cost - Substantial Fixed Cost element.
Capacity to match volumes
Centralised Distribution
Route Planning
Optimal Schedules
Back Haul
Use of software

10. LOGISTICS Logistics Cost Structure Total Distribution Cost
TDC = TC + FC + CC + IC + HC + PC + MC
FC – Facility Cost
Warehousing, capital cost and running cost related to infrastructure and internal systems to store and pick up stocks
RDC in low cost area
Use of Information Systems, Electronic Data Interchange
Warehouse Management System like radio links. Reduction in wage bill – Refer to HR

11. LOGISTICS Logistics Cost Structure Total Distribution Cost
TDC = TC + FC + CC + IC + HC + PC + MC
CC – Communication Cost – Cost associated with EDI and other communication through the chain. These are administrative costs
IC – Inventory Cost – Direct capital cost for goods purchased and Opportunity cost for carrying inventory. These are cost associated with maintenance and replenishment of inventory

12. LOGISTICS Logistics Cost Structure Total Distribution Cost
TDC = TC + FC + CC + IC + HC + PC + MC
HC – Handling Cost – Cost associated with Damage, Pilferage, Deterioration of stocks
PC – Packaging Cost – Repacking, shrink wrapping, pallets, boxes, containers, tapes, labels etc

13. LOGISTICS Logistics Cost Structure Total Distribution Cost
TDC = TC + FC + CC + IC + HC + PC + MC
MC – Management Cost – Cost associated Management of the chain. Ranging from security system to storage conditions to HR, Finance and almost everything where managerial input is needed

14. LOGISTICS SCM IT in SCM Goldmine - Tanishq
60 Boutiques, 32 C&F, 29 Cities
Challenges
Reduction in cycle time, increasing efficiency, cost reduction in tracking movement of goods and sales indenting, order status, sales visibility, communication (reports) and exception reporting

15. LOGISTICS SCM IT in SCM Goods in Transit
Details of dispatches to C&F and Boutiques, Tracking stock returns, Monitor loss of goods and stocks in transit
Indenting
Automate ordering by boutiques, Online product catalogues and price lists, Stock replenshments, shop specific customer specific indents, POS indenting for each variant as per track record

16. LOGISTICS SCM IT in SCM Order Status
Visibility of status of orders placed by boutiques, daily synchronization with factory and web-based solution, No s
Sales Visibility
Sales visibility has improved, helps management in evaluating marketing programmes and promotions at boutique level by category and price band. Best sellers are also available on line

17. LOGISTICS SCM IT in SCM Communication and Exception Reporting
Platform for dissemination of information through uploads, bulletin boards, Market information. 40,000 variants interaction is vital
Future Plans
To set up bench mark for the industry. Use of relevant business information in real time in the boutiques during a customer touch

18. LOGISTICS SCM IT in SCM UPS FEDEX DHL Complete Logistic Management
Door to Door Delivery Around The World
WareHousing, Inventory, Labour & Technology
Integrate Supplies from Various Countries and
Despatch, Reduces Time, Inventory, Tracking
And Much More………