2. Logistics Defined
Logistics means having the right thing, at the
right place, at the right time
The procurement, maintenance, distribution
and replacement of personnel and materials
Webster’s Dictionary
The science of planning, organizing and
managing activities that provide goods or
services Logistics World, 1997
3. Seven R’s
Ensuring the availability of the
Right product
Right quantity
Right condition
Right Place
Right time
Right customer
Right cost
4. Logistics
Functions:
planning,
procurement,
transportation, supply and maintenance
Processes:
requirements
determination,
acquisition, distribution and conservation
Business: science of planning, design and support
of business operations of procurement,
purchasing, inventory, warehousing, distribution,
transportation, customer support, financial and
human resources
5. Major functions of work
Order Processing
Inventory
Transportation
Warehousing,
Materials Handling,
and Packaging
Integrated through
a
network
of
facilities
E.g. warehouses and
distribution centers
6. Service benefits are created by
logistical performance in 3 areas
Availability involves having inventory to
consistently meet customer material or product
requirements
Operational performance deals with the time
required to deliver a customer’s order
Service reliability involves the quality attributes
of logistics
7. Scope of Logistics
Choice of markets
Plant location and layout
Inventory management
Location and management of warehouses
Choices of carriers, mode of transport
Packaging decisions
Relevant to all enterprises manufacturing,
Government, Institutions, service organisations
8. Logistics Activities
Transportation
Warehousing and storage Customer service
Industrial packaging
planning/scheduling
Materials handling
Facility location
Inventory control
Return goods handling
Order fulfillment
Parts and service support
Demand forecasting
Salvage and scrap disposal
Production
Procurement
9. Components of LOG Management
Logistics Activities
Input
•Natural
Resources
(land, facilities
Equipment)
•HR
•Finance
•Information
Output
Customer service
Demand forecasting
Distribution
Communications
Inventory control
Materials handling
Order processing
Parts and service support
Plants and warehouse selection
Procurement
Packaging
Return goods handling
Salvage and scrap disposal
Traffic and transportation
Warehouse and storage
•Marketing
Orientation
(competitive
Advantage)
•Time and
Place utility
•Efficient move
to customer
11. Inbound Logistics
Sourcing and vendor selection for supply of raw
materials and manufacturing parts
Inbound
planning
Raw
materials
warehousing
consolidation warehousing
Management of Inventory
Information system for effective support strategic
alliances with the supplies and transporters
transportation
and
procurement
including
12. Internal Logistics
Capacity Planning Operational planning Production planning
Materials Requirement planning
Shop floor control
Management of in-process inventory
Supporting material handling facilities planning and their
deployment etc
13. Out bound Logistics
Outbound logistics system is concerned with the flow of
finished products from factory warehouse to the
customers through a distribution network comprising:
The wholesalers
Sales order processing
Distributors
Sales return processing
Retailers
Accounts
realization and
Regional warehouses
Counter
Transporters
The
levels
inventory
information
at
receivable
all
flow
from
of
the
customers to the factory
