UNIT 10 Logistics

Logistics is concerned with the organization movement and 1. Highway Transportation

storage of material and people. Recent improvements in highways;
- Expansion of highways - Construction of express ways
Inbound Logistics  Supplier to business - Flyover bridges &tunnel ways -Better traffic light system
Advantages Disadvantages
Outbound Logistics Business to final consumer
- Can select most suitable - Inability to transport large
Logistics Systems mode of transportation volume of stock at same time
- Available any time - Cost associated is high
1. Heavy inbound logistics system - This mode is available all - Obstacles due to adverse
2. Heavy outbound logistics system around the country weather conditions
3. Balanced logistics system 2. Railway Transportation
4. Reverse logistic system: Goods move from end user Recent developments;
 Online booking facilities  Better canteen facilities
back to seller or manufacturer
Type Inbound Outbound  Better interior facilities  Expansion of railway tracks
1. Heavy Inbound High complexity Less complexity Advantages Disadvantages
2. Heavy Outbound Less complexity High complexity - Speed - Unavailable all over country
3. Balanced Equal Equal - Cost associsated is very low - Not availabe at preferred times
- Safer than highways - Delays can still occur
Necessity of logistics
3. Water Transportation
 To get required raw materials with the right quantity. Special features of waterway transportation
 To provide right product in right quantity at right time - Natural waterways -Less power consumption to operate
to right place at the right price to ensure positive - Lower operational costs - Flexibility
customer satisfaction Advantages Disadvantages
 To minimize cost and maintain effective supply chain -Suitable for foreign trade -Duration taken is too long
management -Can transport large volumes -Not available freely at preferred
 To enhance revenue and profitability -Cost is low times
4. Air Transport
Benefits of logistics Advantages Disadvantages
-Speed -Not available all the time
 Can reduce wastage and minimize cost
-Suitable for perishable goods - Probability of accidents
 Can guarantee timely delivery to final consumer -No cost of maintanance -Cost is very high
 Can be leaders in the leaders in the industry Factors to be considered when selecting an appropriate
 Can obtain right quantity and quality raw materials transport method
Functions and advantages of transportation
1. Nature of the goods 5. Capacity
 Widens the market 2. Cost 6. Safety
 Ensure large scale production 3. Speed 7. Availability
 Increases mobility of labour 4. Distance 8. Frequencies
 Provides employment The qualities of a good transport system include
 Improves standard/quality of living speediness, safety, cost effective, sufficient capacity,
availability, good standards and legal existence.
Importance of transportation

To Businessmen To Individuals To Economy Trends in transportation

- Obtain raw - Tourism - Foreign trade
 The use of tunnels
material on time - Entertainment - Achieve
- For employee - For employment macro-  Deployment of electric motor vehicles
mobility - Education economic goals  Use of cable cars, Use of electric trains
- Expand business purpose  Construction of flyovers and express ways

Future development in the transportation field;

Elements of transportation
 Hyper loop concept
Way Mode Power Terminal
Highways Lorry, Truck, Bus Fuel, Electricilty Parking, Bus station
 Flying taxis
Railways Train Fuel, Coal, Electricity Railway station  Walk car, air wheel
Waterway Ship, Boat Fuel, Wind ,Electricilty Harbour  Autonomous vehicle
Airways Helicopter, Aeroplane Fuel, Wind ,Electricilty Airport  Delivery drones
 Light weight vehicles
Warehousing – Managing and storing raw materials and Equipment’s used in warehouse
finished goods
Fork Lift Pallet jacks
Factors to consider when locating a warehouse

1. Layout and flow of building – To ensure smooth flow of

inventory
2. Zoning and intensity of use in the warehouse – Level of
operations and the complete duration of operations
3. Proximity to major linkages – access to different ways
and methods of transportation
Conveyer belts Forklift truck
4. Materials handling capabilities – Ease of loading and
unloading materials
5. Nature of stocked materials – Type of raw material and
finished goods
6. Cost – Evaluate whether business can afford the
warehouse

Methods of storing goods in a warehouse

 Pallet racking
Advantages of using equipment in storing and moving the
goods systematically in the warehouse

 Organized
 Block stacking/bulk storage  Safety of the stocked products and employees
 Save time
 Saves space of the warehouse

 Pallet flow (First in First Out – FIFO)

 Push-back racks (Last in First Out – LIFO)

 Mezzanine (Best storage method if the warehouse

space is small and limited)

 Automated storage system - Modern warehouse that

are fully automated with minimal employees