How Logistic Management Happens? What is the process?

2. What is Logistic
Management?

3. IN TODAY’S HIGHLY COMPETITIVE INDUSTRIAL SCENARIO OF GLOBAL
COMPETITIVENESS, LOGISTICS HAS TRULY BECOME A STRATEGIC WEAPON AND MOST
IMPORTANT FACTOR IN THE SUPPLY CHAIN

4. • Three objectives of logistics Management:
•
•
•
Cost reduction (variable costs)
Capital reduction (investment, fixed costs)
Service Improvement (may be at odds with the
above two objectives).

5. 1. Production
2. Storage
3. Transportation

6. 
Fundamental logistics questions are:
(1) when should a resource be produced; and (2) where should a resource be produced.

The “when” question includes the topics of aggregate resource planning, and
production scheduling.

The “where” question includes the topics of facility location and production allocation.

Some of the important production questions are:

(a) What outside source should be used to supply a part?

(b) Where should a new facility be built?

(c) When should a facility produce different items, taking into account:
•
•
Demand uncertainty?
•
Cost of operating single, double, triple shifts?
•

Seasonal demand patterns?
Labor costs?
(d) When should a firm use two or more sources for a part?

7. 
Fundamental logistics questions are (1) when should a resource (material, machine or
labor) be put in inventory and taken out of inventory; and (2) where should a resource
be stored.

The “when” question includes the general topics of economic-order-quantity models,
safety stock models and seasonal models, and specialized topics of fleet management,
and personnel planning.

The “where” questions includes the topic of inventory echelons.

Some of the important inventory questions are:
(a)
(b)
How much does it cost to store resources in inventory?
How much “safety stock” should be carried in inventory to prevent against running out
of a resource?
How much inventory should be carried in order to smooth out seasonal variations in
demand?
(d) Where should replacement parts be stored in multi-echelon inventory system?
(c)


8. 
Fundamental logistics are: (1) where should resources be moved to, and by
what mode and route; (2) when should resources be moved.

The “where” question includes the topics of terminal location, vehicle
routing, and shortest path methods and network flow allocation.

The “when” question includes the topic of distribution rules.

Some of the important questions are:
When should shipment be sent through terminals, and when should
shipment be sent direct?
(b) Which, and how many, terminals should shipments be sent through?
(c) What are the best vehicle routes?
(d) When should a vehicle be dispatched over a route?
(a)

9. Goods : Raw Materials Final products, and everything in between.
Logistics for services & people similar to goods logistics.
Ex. Police, fire, ambulance, passenger airlines, taxi cabs, etc.
Movement
Storage
=
=
Transportation (between locations).
Inventory, Warehousing (at locations).
Difference between acquisition and consumption is a matter of space and
time.
Focus: Best way to overcome space and time that separates acquisition
and consumption.

10.  TNT EXPRESS
 DHL
 ALL CARGO LOGISTIC LTD.
 AGARWAL PACKERS AND MOVERS
 GATI
 DTDC
 BLUEDART
 FIRST FLIGHT
 FEDEX
 GLOBE EXPRESS SERVICES

14. Case Study : Blue
Dart

15. Blue Dart DHL is South Asia's premier courier,
and integrated express package Distribution
Company. It has the most extensive domestic
network covering over 27,578 locations, and
services in more than 220 countries and
territories worldwide through its parent
company DHL, the premier global brand name
in express distribution services. Its vision is
to establish continuing excellence in delivery
capabilities focused on the individual
customer.
Blue Dart runs economical, door - to-door,
ground distribution service to over 27,578
locations in India for shipments weighing 10
kgs and above.

16. It offers a cost-effective logistics option for
less time-sensitive shipments. For making
time bound deliveries, it runs a fleet of
vehicles on pre-determined routes (between
hubs) and schedules to provide committed
delivery. Maintaining the transit schedule is
the key need of the operation.
Blue Dart DHL management has always
pioneered technological investment to
improve efficiency and customer service
delivery and continues to do so. In 2007, it
partnered with their vehicle vendors to install
a GPS - based vehicle tracking solution on its
all ground operation vehicles runs between
hubs.

17. “With GPS ground operation vehicles, it has
become very simple to locate any vehicle of
there fleet in real time. This has also helped
them to identify en route stoppage, delays, and
other unforeseen situations and take corrective
action” says R Venket, Astt.Manager, Ground
Network Operations of Blue Dart DHL.”
They have specially designed large monitoring
screens in Network Control Center (NCC) to
track all India operations and manage ground
operations, which is first of a kind in the
industry,” added Venket.

18. Paper Cuttings/ Advertisements

20.  Google
 Times of India
 The Hindu
 www.youtube.com
 Economic Times

21. “Logistic is the process of planning, implementing and controlling
the efficient, effective flow of goods storage of goods, services
and related information from the point of origin to the point of
consumption for the purpose of conforming to customer
requirements”
Logistics exists to satisfy customer requirements by facilitating
relevant manufacturing and marketing operation. The main
responsibility of logistic is the geographical positioning of raw
materials, work in process and finished inventories at the lowest
possible cost.
Creating logistics value is costly. Logistics accounts for one of the
highest costs of doing business. Logistics expenditure normally
ranges from 5% to 35% of sales depending on the type of
business. Thus logistics even though very important for any
business success is expensive.

22. Robin Patni