Logistics Management Concept Objectives Functions


Presentation Description

This presentation explore the origin, functions and objectives of Logistics or Logistics Management, which is now an integral part of Supply Chain Management. It explains the concept behind the philosophy which has now evolved itself in becoming one of the most important fields of business management. This presentation is an account of the origin and development of logistics management and explains the logic and concept behind its development. This presentation is suited for class notes, class lectures, class presentation, and class discussions for MBA, PGDM or BBA level courses and for all the keen students of business management. You may also view it on: https://youtu.be/NnM2rvv_u10


By: aryaness (42 month(s) ago)

Sir, Please provide me your Logistics Management ppt.

Presentation Transcript

Logistics Management: Concept, Objectives & Functions:

Logistics Management: Concept, Objectives & Functions Presented by: Anupam Kumar Reader School of Management Sciences, Varanasi Email: anupamkr@gmail.com 1 © Copyright 2013 Anupam Kumar


Logistics The origin of the word Logistics can be traced to: Greek word ‘ Logistikos ’, and Latin word ‘ Logisticus ’, Both meaning ‘the science of computing and calculating’. The word ‘logistics’, was first used by the French army and was extensively referred to during the second world war for the movement of supplies, men and equipments. 2 © Copyright 2013 Anupam Kumar

Concept of Logistics:

Concept of Logistics Logistics is a supply chain enabler coordinating the inventory movement process by optimizing the flow of materials and supplies through the business operations to finally reaching to the customers. Logistics is concerned with getting products and services wherever they are needed, whenever they are required. It is rather difficult to visualize marketing or manufacturing without logistics support. 3 © Copyright 2013 Anupam Kumar

Functions of Logistics:

Functions of Logistics Logistics is that part of the supply chain process which plans, implements and controls the effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption, in order to meet customer’s requirements. 4 © Copyright 2013 Anupam Kumar

Functions of Logistics:

Functions of Logistics Customer service Demand forecasting Distribution communication Inventory control Material handling Order processing Part & service support Plant and warehouse site selection Procurement Packaging Return goods handling Salvage & scrap disposal Traffic & transportation Warehousing & storage. 5 © Copyright 2013 Anupam Kumar

Concept of Logistics:

Concept of Logistics Logistics is the designing and managing a system in order to control the flow of material throughout an organization. Logistics is the similar to a particular organization, what supply chain is to the complete value chain of a product. In nutshell, logistics is a key to the success of supply chain management. 6 © Copyright 2013 Anupam Kumar

Objectives of Logistics:

Objectives of Logistics Logistical system is designed to achieve the following basic objectives for an organization. Rapid response Minimum variance Minimum inventory Consolidated movement Quality Life cycle support 7 © Copyright 2013 Anupam Kumar

Rapid Response:

Rapid Response Rapid response is concerned with a firm’s ability to satisfy customer service requirements in a timely manner. Rapid response capability shifts operational emphasis from anticipatory forecasting and inventory stocking to responding to customer requirement on a shipment to shipment basis. 8 © Copyright 2013 Anupam Kumar

Minimum Variance:

Minimum Variance Variance is an unexpected event that disrupts performance of the system. Variance may arise out of: Delays in expected time of customer orders, Unexpected disruption of manufacturing, Goods arriving damaged in a customer’s location, Delivery to an incorrect location. Operational areas of logistics are subject to potential variance. With the use of IT, logistics tries to minimize variance in operations. 9 © Copyright 2013 Anupam Kumar

Minimum Inventory:

Minimum Inventory To achieve minimum inventory … Not only for a business unit, but for the entire firm, The logistical system design controls: Inventory Commitment and Total commitment is the financial value of inventory deployed throughout the system. Turn velocity Turn velocity is the rate of inventory usage over time. 10 © Copyright 2013 Anupam Kumar

Consolidated Movement:

Consolidated Movement 11 © Copyright 2013 Anupam Kumar

Consolidated Movement:

Consolidated Movement The most important logistical cost is transportation. It is directly proportional to The type of product, Size of shipment, and Distance. To decrease the transportation cost it is desirable to achieve movement consolidation. To achieve it, smaller shipments need to be grouped together for consolidated movements. 12 © Copyright 2013 Anupam Kumar


Quality When quality fails: Logistical performance needs to be reversed and then, repeated. Commitment to ‘Total Quality Management’ (TQM) is one of the major forces which contributes to logistics. Reworking a customer’s order due to incorrect shipment or due to in-transit damage is more costly than performing it right the first time. Logistics is a main part of developing and maintaining continuous TQM improvements. 13 © Copyright 2013 Anupam Kumar

Life – Cycle Support:

Life – Cycle Support Most of the products are sold with guarantees that they will perform over a period of time. To ensure that, a normal value added inventory flow towards the customer must be a two way route. Also: Product recall is an important competency that results from increasingly rigid quality standards, product expiration dating, and responsibility for hazardous consequences. Environmental concerns requires the capacity to recycle and reuse ingredients and packaging materials. 14 © Copyright 2013 Anupam Kumar


Bibliography Websites: http://www.logisticslist.com/3pl-definition.html http://logistics.about.com/od/strategicsupplychain/a/select_3PL.htm For images and clip-arts: www.almc.army.mil www.collegelap.com khairul-anwar.com freightfilter.com Vivekvivacious.blogspot.com www.123rf.com accessqueens.com www.shipmyride.com Books: Agrawal , D.K., (2010) “Supply Chain Management: Strategy, Cases and Best Practices”, New Delhi: Macmillan Publishers. Ballou , R.H. and Srivastava , S.K., (2007) Fifth Edition, New Delhi: Dorling Kindersley (I) Pvt. Ltd. Bhatt, K.S., (2008), “Logistics Management”, Second Edition, New Delhi: Himalaya Publishing House Ismail, R., (2008), “Logistics Management”, New Delhi: Excel Books Kachru , U., (2009), “Exploring the Supply Chain: Theory and Practice”, New Delhi: Excel Books Raghuram , G. and Rangaraj (Eds.), (2000) N., “Logistics and Supply Chain Management: Cases and Concepts”, Chennai: Macmillan Publishers, 2010 reprint. Sople , V.V., (2012), “Supply Chain Management”, New Delhi: Dorling Kindersley (I) Pvt. Ltd. 15 © Copyright 2013 Anupam Kumar

For further details / comments…:

For further details / comments… Contact: - Anupam Kumar School of Management Sciences, Varanasi. Email: anupamkr@gmail.com 16 © Copyright 2013 Anupam Kumar

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