Logistics and Supply Chain

Management
World Famous Logistics
Companies
Using AI in SCM
Success Mantra for Amazon
 Unit-1
• Introduction to Logistics Management:
Introduction, Objectives, Concept of Logistics,
Objectives of logistics, Types of logistics,
Concept of Logistics Management, Evolution
of Logistics, Role of Logistics in an Economy,
Difference between Logistics and Supply Chain
Management.
 Introduction to Logistics Management

• ‘Logistics’ has a military origin, and used to be

associated with the movement of troops and their
supplies in the battlefield. But like so many other
technologies and terminologies, it entered into the
business lexicon gradually and has now become
synonymous with the set of activities ranging from
procurement of raw materials, to the delivery of the
final polished good to the end consumer.
Meaning of Logistics
 Logistics in the world of
business
• In business, logistics is the management of the flow of things between
their point of origin and their final destination in order to meet the needs
of companies and customers. It is a subset of supply chain management.
• The resources managed in logistics include a wide range of items,
including:
• Food
• People
• Animals
• Materials
• Time
• Information
• Vehicles, Boats and Airplanes
• The logistics of physical things – things we can touch – generally involves
the integration of material handling, information flow, production,
packaging, transportation, inventory, warehousing and security.
 IMPORTANCE OF
LOGISTICS
• Logistics is the bedrock of trade and business.
• Leads to customer satisfaction.
• Integrated Logistical Activities.
• Competitive Edge.
• Logistics wins or loses wars.
• Supports critical functions like operations and
marketing.
• Logistical Costs.
 Objectives of Logistics
• Rapid Response
• Minimum Variance
• Minimum Inventory
• Movement Consolidation
• Quality
• Life Cycle Support
 Functions and Scope of Logistics
• Order Processing
• Inventory Management
• Warehousing
• Transportation
• Material Handling
• Packaging
• Information Management
• Procurement / Purchasing
 LOGISTICAL COMPETENCY FIVE
PILLARS
• Network Design
• Information Management
• Transportation
• Inventory Management
• Warehousing ,
• Material Handling & Packaging
 7 R’s of logistics
• Right Product
• Right Customer
• Right Condition
• Right Place
• Right Time
• Right Cost
• Right Quantity
 Types of Logistics
• 1. Inbound Logistics
• 2. Outbound Logistics
• 3. Reverse Logistics
• 4. Third Party Logistics (3PL )
• 5. Fourth Party Logistics (4PL)
1. Inbound Logistics
1. Inbound Logistics
• Inbound logistics is all about the
transportation between the companies and
their suppliers.
• The job of inbound logistics is to transfer the
crude or raw materials to the respective
departments or manufacturers for further
processing.
• Large trucks are mostly preferred for
transporting these crude raw materials.
2. Outbound Logistics
• Outbound logistics is the movement of
products or finished goods from the production
centers to the next supply chain link.
• After that, these products are moved from the
warehouse to the consumption point or the
customers.
• Hence, outbound logistics is also known as the
process of order fulfillment.
Inbound and Outbound Logistcs
Inbound and outbound logistics
3. Reverse Logistics
• As the name suggests, Reverse Logistics is the
transportation of goods or products from the
end-users to the supply chain.
• Reverse logistics is needed in the event of a
replacement or return of products for
refurbishing, repairing, exchange, disposal, or
recycling.
4. Third Party Logistics (3PL )
• Third Party Logistics (3PL) is defined as “A logistics
process performed by an organization that is NOT
the manufacturer or distributor of the product”
• Ex:
• International courier services
• International freight forwarding services
• Customs clearance services
• Warehousing services
• Transportation services
5. Fourth Party Logistics
• Fourth-party logistics (4PL) companies
interface between their client and multiple
logistics service providers – directing every
moving part within a supply chain, including
third-party logistics (3PL) and transportation
suppliers. 4PL service providers are a strategic
partner to their clients that strive to drive
supply chain efficiency.
 Concept of Logistics
Management
• Logistics Management is the process of
• Planning
• Implementing and
• Controlling
the efficient, cost- effective forward and reverse
flow of raw materials, in-process inventory,
finished goods, services, and related information
from point of origin to point of consumption for
the purpose of conforming to customer
requirements
--Council of Logistics Management
 Logistics Activities
• Customer service • Reverse logistics
• Demand forecasting • Material handling
• Logistics information • Order processing
systems • Parts and service
• Plant and warehouse support
site selection • Traffic and
• Procurement transportation
• Packaging • Warehousing and
• Inventory control storage
Objectives of Logistics Management
Evolution of Logistics
• https://youtu.be/kT_toh5NbxE