It include all the topics under T.Y.B.Com syllabus of Purchasings and storekeeping subject- unit 4

1. PURCHASING AND
STORE KEEPING
PRESENTED BY :
Ms. MAMTA KUMARI
ASST. PROFESSOR

2. UNIT 4 –
LOGISTICS AND SUPPLY OF
CHAIN MANAGEMENT

3. the various elements of logistic
network
• It is a vast system of companies, people,
technologies, activities, information and
resources involved in moving a product or
services from supplier to customer.
• Definition – Planning, implementing and
controlling the physical flows of materials and
finished goods from the place of origin to the
point of use to meet the customer needs at a
profit.

4. • Flow of material – supplier to manufacturing –
finally to end user = Single chain or system
concept.
• Main aim to reduced cost at customer
satisfaction.

5. ELEMENTS OF LOGISTICS
• Inventory Management – maintaining enough
inventories to meet customer requirement.
Balance between customer satisfaction and cost
of maintaining requirement.
• Maintaining right level of inventory for customer
for lower cost. Activities to be involved I,e.,
analysis of on hand inventory, communicating
with supplier related to qty quality & timing of
material, obtaining right qty at right time.

6. • Warehousing – storage of finished goods until
they are delivered to market. Directly linked
with firms major decision in warehouse:
location, size and number, design and layout ,
ownership of warehouse.
• Transportation – movement of goods from
supplier to buyer through different mode air,,
water, rail & road.
• Material Handling – speed of inventory
movement across the supply chain depends
upon material handling. Mechanization &
automation in material handling improve
logistic system productivity.

7. • Logistical packaging – imp element of physical
distribution of product. Protection of product
during transit. Certain decision: material used
for packaging, cost of packaging, design and
marketing &labeling.
• Customer order Processing – purchase order
place by buyer contain details of qty, quality,
price, delivery schedule payment terms etc.
• Must verify delivery schedule, location of
delivery, specification of product, payments
etc.

8. • Information – it’s an information based
activity. Information system play an important
role in delivery services to customers.
• Use of information technology tools for
information, identification, access, storage
analysis, decision support in logistic enables
firms to complete effectively.

9. IMPORTANCE OF LOGISTIC
Creates values for customers suppliers,
shareholders
• Protection of goods - from damage due to
efficient warehousing & transportation.
Proper handling and packing during transit.
• Expansion of business
• Marketing objectives – increase sales,
increase in market share, increase in profits.

10. • Customer satisfaction – it creates time & place
utilities in the product & help to maximize
customer satisfaction.
• Delivery on time
• Employment - it generate employment for
people in warehouse, transportation, material
handling etc.
• Economic growth
• Standard of living
• Facilities International trade – movements of
goods between the countries, which gives
comparative cost advantage.
• Revenue to the government

11. CHALLENGES FACED BY LOGISTIC
SECTOR IN INDIA
• Infrastructural bottlenecks – bad road
conditions, poor connectivity, inadequate air and
sea port capacities, lack of development of mode
of transport etc.
• Delays and spoilage – huge traffic jams & large
number of documentation
• Inter state check post.
• Problems of warehousing – poor handling,
stacking and monitoring technologies.
• Problems of unorganised sector – poor handling
& delay in goods. Doesnot adopt professionalism.

12. Supply Chain Management & its
components.
• SCM is the mgmt of supply chain activities to
maximize customer value and to achieve
competitive advantage.
• Supply chain is a network of facilities and
distribution options that performs the function of
procurement of materials, transformation of
these materials into intermediate and finished
products & distribution of finished products to
the customers.

13. • It refers to the management of the flow of
goods and services from the producer to the
customer. Origin of product till the
consumption.
• Definition – Supply Chain Management is the
management of a network of interconnected
activities involved in the provision of products
required by end customers.

14. COMPONENTS OF SCM
• PLANNING – plan must be develop to address
how a particular product will meet the needs
of the customers. Managing all resources
required to satisfy customer demand. Sets of
standards to monitor the supply chain for
efficient, cost effective and delivers high
quality product & value to customers.

15. • PROCUREMENT – it deals with purchase of
raw material, components and goods. It
manage to develop a set of pricing, delivery
and payment processes with suppliers &
develop standards for monitoring & improving
the relationships.
• PROCESSING AND SCHEDULING FOR
DELIVERY – it deals with manufacturing of the
product, testing, the quality, packaging and
scheduling for delivery to the distribution to
the customers.

16. • DELIVERY (LOGISTICS) – Elements of logistics
–facility location and network design,
information, customer order processing,
warehousing, transportation, materials
handling, inventory management.
• MANAGEMENT OF RETURNS – design a
system to manage the goods returned by the
customers along that companies has to
address the problem with the customers

17. ADVANTAGES
• HIGHER EFFICIENCY RATE – more dynamically to
the fluctuating economy.
• INVENTORY BUFFERS – minimizing holding cost,
flexibility for customer needs.
• OPTIMAL SHIPPING OPTIONS – E-Commerce
businesses continue to grow, company should
have solid shipping plan in place.
• MITIGATE RISKS – face the risk in the business
• STAY ON TOP OF DEMAND – supply chain,
integrated logistics(main benefits it increases
flexibility), product innovation.

18. • ELIMINATE WASTE –New way to reduce the
waste of the companies.
• IMPROVE CUSTOMER SERVICES
• REDUCE OVERHEADS COSTS

19. PROCESS OF SUPPLY CHAIN
MANAGEMENT
Supply chain management should be efficient and
cost effective.
• PLAN – To address the how the products and
services will satisfy the demands and necessities
of the customers. Main aim to maximum profit.
• DEVELOP – we develop a strong relationship with
suppliers of the raw materials required for
production. It also involve different planning
methods for shipping, delivery, payment of the
product.

20. • Make – making a product that where
determined by the customers. Products are
designed, produced, tested, packaged and
synchronized for delivery.
• DELIVER – product are deliver to customers at
the destined location by the supplier.
Customer order is accepted and deliver the
good as per planned. Create good relationship
with warehouse.
• RETURN - defective and damaged goods is
return. Companies has to deal with this
queries have to respond them.

21. ROLE OF INFORMATION
TECHNOLOGY IN LOGISTICS AND
SUPPLY CHAIN MANAGEMENT
• IT is the study, design, creation, utilization,
support, and management of computer based
information system. Cell phones development,
• Technology help to coordinate with the
different activities to manage the supply
chain.

22. HOW IT CAN BE APPLIED IN SUPPLY CHAIN
MANAGEMENT
• ELECTRONIC COMMERCE – electronic moving
documents between supplier and customer.
Modes are email, electronic fund transfer,,
data interchange etc.
• ELECTRONIC DATA INTERCHANGE – computer
to computer exchange of business documents
in a standard format. It describe the capability
and practice of communicating information
between 2 org.

23. • BAR CODE AND SCANNER – visible in check
out counter of super market. It specify the
name of the product & its manufacturer.
• DATA WAREHOUSE – consolidated database
maintained separately form an organizations
production system database. Warehouse data
is timely maintained.
• ENTERPRISE RESOURCE PLANNING (ERP)
TOOLS – many companies now view ERP
system as the core of IT infrastructure. Reduce
manual activities and highly productive
through technologies.

24. BENEFITS OF INFORMATION
TECHNOLOGY IN SUPPLY CHAIN
MANAGEMENT
• INCREASED CONTROL OVER PRODUCTION
• BETTER INVENTORY MANAGEMENT
• INCREASED COLLABORATION BETWEEN
SUPPLY CHAIN PARTNERS
• MORE EFFECTIVE ORDER TRACKING AND
DELIVERY.

25. ADVANTAGES OF LOGISTICS
OUTSOURCING
• LOGISTICS OUTSOURCING – is a strategic use
of outside parties to perform activities
traditionally handled by internal staff and
resources.
• Brilliant way to free up resources and cost
efficiency.
• For the wise decision in the long run

26. ADVANTGES
• Reduce burden of back-office management
goods send for consignment paper are being
audited and verified.
• Economics of Scale – depending upon the
company
• Real – time visibility of inventory - tracking
devise ERP System.
• Expert documentation handling – expert
person to handle all kinds of documentation.

27. DISADVANTAGES
• OUTSOURCING WIHOUT PROPER APPRAISAL
PROCESS.
• CHOOSING A LOW PRICING VENDOR FOR COST-
BENEFIT
• NON SPECIFYING ROLES AND RESPONSIBILITIES
IN WRITING.
• NOT VIEWING LOGISTICS OUTSOURCING AS A
STRATEGY
• DISCONNECT BETWEEN CLIENTS AND
OUTSOURCING AGENTS

28. REFERENCES
• PADMA CLASSES NOTES

29. THANK YOU