Unit-1 : Introduction to
Logistics Management
Dr. Eti Khatri
Existence of
Logistics
The current trends in International
Trade
Globalization has vastly increased the trade between
countries
Markets have transformed from domestic to Global
Manufacturing in low cost countries and selling to
consumers throughout the world has become a set trend
Competition between companies in products and
services have become extremely fierce and mind
boggling
Companies constantly endeavoring to improve
the quality of their products and services for a
larger share of the market
Countries battling for economic supremacy and
GDP growth
Impact of Globalization
Companies are striving to meet changing customer
demands in a market where products become
outdated fast
Success rate has become lower because far too many
products are launched
Customers opting for better value new products to old
products
Customer demands are increasing for world class
products and services
How can companies turn competitive?
1.Produce world class products which are competitively
priced and bear top quality
2.Reduce manufacturing costs
3.Reduce distribution costs and reach products on time to
the markets
4.Quickly respond to the market and changing Customer
requirements
5.Ensure an effective supply chain and Logistics
Management
Definition
Logistics is the process of planning, implementing and
controlling the efficient cost-seffective flow and storage
of Raw materials, Semi-finished, Finished goods and
related information from point of origin to point of
consumption for the purpose of conforming to
Customers requirements
- American Council of Logistics management
Logistics or physical distribution refers to the art
of managing the flow of products or material from
producer or supplier to the customer or user and
is thus concerned with the creation of time and
place utility
The key Drivers of Logistics Management
Inventory Transportation
Warehousing Packaging
Information Technology
Reverse Logistics
7 R’s of Logistics management
Logisticsmanagement is concerned with
getting the Right product, in the Right
quantity, in the Right condition, to the
Right place, at the Right time, to the Right
Customer and at the Right cost.
Objectives of Logistics
Reduction in Inventory costs
Economy of freight-Reduce Transportation costs
Timely delivery to customers
Minimum damage to products
Types of Logistics management
Business logistics
Military Logistics
Event Logistics
Service Logistics
Business logistics
It is the part of the supply chain process that
plans, implement and controls the efficient flow
and storage of goods, service and related
information from point of origin to point of use or
consumption in order to meet the customer
requirement
Military Logistics
The design and integration of all aspects of
support for the operational capabilities of the
military forces and their equipment to ensure
readiness, reliability and efficiency.
Event Logistics
The network of activities, facilities and personnel
required to organise, schedule and deploy the
resources for an event to take place and to
efficiently withdraw after the event.
Service Logistics
The acquisition, scheduling and management of
the facilities/ assets, personnel and materials to
support and sustain a service operation or
business.
Scope of Logistics
Importance Of Logistics Management
(i) Cost Reduction and Profit Maximization:
(ii) Efficient Flow of Manufacturing
Operations:
(iii) Competitive Edge:
(iv) Effective Communication System:
(v) Sound Inventory Management:
Development of Logistics
Functions/ Role of Logistics
Role of Logistics in Competitive Strategy
1.Produce world class products which are competitively
priced and bear top quality
2.Reduce manufacturing costs
3.Reduce distribution costs and reach products on time to
the markets
4.Quickly respond to the market and changing Customer
requirements
5.Ensure an effective supply chain and Logistics
Management
Role of Logistics in Supply Chain
Supply Chain management refers as a pipeline or conduit for efficient and
effective flow of products/materials, services, information and money from
suppliers through the various intermediate organisation out to the customer’s
expectations.
Role of Logistics In The EConomy
Role of logistics in the Organisation
E Logistics
Introduction
E- Logistics is defined to be “the mechanism of
automating logistics processes and providing an
integrated, end to end fulfilment and supply
chain services to the players of logistics
processes.
Those logistics processes that are automated by
e-Logistics provide the supply chain visibility and
can be part of existing e-commerce or work flow
systems in an enterprise.
Components of E-Logistics
Request for quotes (RFQ)
Shipping’
Tracking
Advantages of E-Logistics
Thank You
