19965941 Integrated Logistics 1

7/21/2019 19965941 Integrated Logistics 1

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INTEGRATED LOGISTICS & JUST IN TIME

LOGISTICS and Logistics Management:

1. Te Co!nci" o# Logistics Management $CLM% de#ines "ogistics as

tat 'a(t o# te s!''") cain '(ocess tat '"ans* im'"ements andcont(o"s te e##icient* e##ecti+e #"o, and sto(age o# goods* se(+ices

and (e"ated in#o(mation #(om 'oint o# o(igin to 'oint o#

cons!m'tion in o(de( to meet c!stome( (e-!i(ements.

/. Scmidt desc(i0es "ogistics management as : te management

i.e. te '"anning* e2ec!tion and cont(o"3 o# a"" #acto(s tat a##ect

te mate(ia"s #"o, and te in#o(mation a0o!t it* seen #(om te

'e(s'ecti+e o# te c!stome( (e-!i(ements* #o( te '!('ose o#

acie+ing : ig de"i+e() (e"ia0i"it) * a ig deg(ee o# de"i+e()

com'"eteness and a so(t de"i+e() time.

Logistics management is conce(ned ,it te de+e"o'ment and

im'"ementation o# a metodo"og) #o( ens!(ing te e##icient and cost4

e##ecti+e attainment o# "ogistic o05ecti+es. Logistics o05ecti+es a(e

de#ined as Getting te (igt item to te (igt c!stome(* in te (igt

-!antit)* in te (igt condition* at te (igt '"ace* at te (igt time and at

te (igt cost.

Ro"e o# "ogistics.

• Acc!(ate inte('(etation o# c!stome( (e-!i(ements o( o(de(s and 6 o(

ma(7eting st(ateg)* as a"so '(o+iding man!#act!(ing 6 o'e(ation

s!''o(t.

• 8(ecise e2ec!tion o# te '(ocess o# (eacing te '(od!ct #(om te

'oint o# o(igin to te 'oint o# (e-!i(ement 6 cons!m'tion.• S!ita0"e ca(e o# te '(od!ct #(om te 'oint o# o(igin to te 'oint o#

(e-!i(ement 6 cons!m'tion in o(de( to a+oid damage and 6 o(

dete(io(ation.

• E##icienc) to ens!(e te "o,est cost d!(ing e2ec!tion.



Logistics 9!nctiona" A(eas:

1. 9aci"it) "ocation and net,o(7 design.

/. In#o(mation Management.

. T(ans'o(tation Management.

;. In+ento() Management.

<. =a(eo!sing Management.>. Mate(ia" ?and"ing and

@. 8ac7aging.

INTEGRATED LOGISTICS.

Logistics integ(ates te a0o+e acti+ities into a sing"e acti+it) o(

'(ocess o# "ogistics di(ected to,a(ds se(+icing te c!stome( e##ecti+e")

and at te "o,est tota" cost o# a"" te #!nctiona" acti+ities ta7en togete(.

Te a''"ication o# "ogistics management '(inci'"es #(e-!ent") (e'(esents

a com'(omise among con#"icting inte(ests ,itin te ente('(ise.

Logistics* ,itin te conce't o# integ(ated "ogistics s!''o(t ILS3*

(e-!i(es an ILS manage(* te inte(#ace among "ogistics e"ements*

,ose o05ecti+e is to design a 'ac7age o# "ogistics (eso!(ces

ca(acte(ied 0) a(mon) and coe(ence.

INTEGRATED LOGISTICS is de#ined as te '(ocess o# antici'ating

c!stome( needs and ,antsB ac-!i(ing te ca'ita"* mate(ia"s* 'eo'"e *tecno"ogies and in#o(mation necessa() to meet tose needs and ,antsB

o'timiing te goods4o(4se(+ice4'(od!cing a net,o(7 to #!"#i"" c!stome(

(e-!estsB and !ti"iing te net,o(7 to #!"#i"" c!stome( (e-!est in a time")

,a).

Integ(ated "ogistics is a se(+ice4o(iented '(ocess. It inco('o(ates actions

tat e"' mo+e te '(od!ct #(om te (a, mate(ia" so!(ce to te #ina"

c!stome(.

INTEGRATED LOGISTICS MANAGEMENT.

Te mo+ement o# (a, mate(ia"s and com'onents to a

man!#act!(ing com'an) m!st 0e managed. So m!st te mo+ement o#

#inised goods #(om te man!#act!(ing '"ant to #!(te( '(ocessing* to te



(etai"* o( to te #ina" cons!me(. Te management o# tis mo+ement is

ca""ed integ(ated "ogistics management.

a(ia0"es a##ecting te E+a"!ation and G(o,t o# Integ(ated Logistic.

Man) +a(ia0"es a##ected te e+a"!ation and g(o,t o#integ(ated "ogistic.

Te #i(st ,as te g(o,t o# te cons!me( a,a(eness and te

ma(7eting conce't. 8(od!ct "ine e2'anded to meet te (ising demand #o(

mo(e se"ections. Tis '(od!ct "ine e2'ansion '!t g(eat '(esse( on

dist(i0!tion canne"s to mo+e mo(e '(od!cts and 7ee' cost do,n*

es'ecia"") in t(ans'o(tation and in+ento().

A second #acto( ,as te int(od!ction o# te com'!te(.

Com'!te( e2'e(ts and integ(ated "ogistic manage( -!ic7") #o!nd a

m!"tit!de o# com'!te( a''"ication #o( "ogistic. Tis a''"ication o##e(ed

sti"" g(eate( e##icienc) in t(ans'o(tation (o!ting and sced!"ing*

in+ento() cont(o"* ,a(eo!se "a)o!t and design* and e+e() as'ect o#

integ(ated "ogistic. In #act com'!te(s a""o,ed integ(ated "ogistic

managed to moda" integ(ated "ogistic s)stem and ten ana")e te e##ect

o# '(o'osed cange. Tis a''"ication g(eat") ad+ance te s)stems

a''(oac

Te ti(d +a(ia0"e "eading to te g(o,t o# integ(ated

"ogistics ,as te ,o("d ,ide econom) in te 1@Fs and 1Fs. G"o0a"

(ecession and (ising inte(est (ates ca!sed man) #i(ms to (e#oc!s attention

on (ed!cing cost ad+antageB man) #i(ms ,e(e #o(ced to (e+a"!ate o+e(a""

t(ans'o(tation needs. A"so* (ising inte(est (ates t!(ned attention to

maintaining minim!m in+ento() "e+e"s 0eca!se o# te cost o# ca'ita"

G"o0a"iation o# 0!siness and te de+e"o'ment o# ,o("d t(ade 0"oc7s a(e a #o!(t #acto( in#"!encing te g(o,t o# integ(ated "ogistics.

Integ(ated "ogistic can '(o+ide #i(ms ,it a cost ad+antage. 9!(te(mo(e*

t(ading 0"oc7s in E!(o'e. So!teast Asia* Asia* A#(ica and te Ame(icans

E!(o'ean Union* association o# So!teast Asian nations and te Asian4

'aci#ic economic coo'e(ation* so!te(n A#(ican de+e"o'ment



comm!nit)* No(t Ame(ican #(ee t(ade ag(eement and no, te #(ee t(ade

ag(eement o# te Ame(icas3 (e-!i(e integ(ated "ogistics to tie te

'a(tici'ating co!nt(ies into sing"e ma(7et'"aces.

Te #ina" #acto( a##ecting integ(ated "ogistics is te g(o,t o#

5!st4in4time man!#act!(ing JIT3* s!''") management* t(ans'o(tation*and e"ect(onic data inte(cange EDI3 in te 1Fs and 1Fs. As

man!#act!(e(s ado'ted tota" -!a"it) management THM3* JIT* and EDI*

integ(ated "ogistics management as come to te #o(e#(ont. E##ecti+e

THM and JIT (e-!i(e o'timiing te in0o!nd and o!t0o!nd

t(ans'o(tation and mo(e e##icient in+ento() management.

Acti+ities (e"ated to Integ(ated "ogistics.

1. 8)sica" dist(i0!tion.

/. Mate(ia"s management.

. Logistics enginee(ing.

;. !siness "ogistics.

<. Logistics management.

>. Integ(ated "ogistics management.

@. Dist(i0!tion management.

. S!''") cain management.

A"to!g te acti+ities inc"!de !nde( eac te(m +a()* te) sa(e one 7e)ing(edient: “The concept of a continuous uninterrupted flow of the

product.”

O'e(ations in+o"+ed in Integ(ated "ogistics mode".

1. In0o!nd "ogistics: It is (e#e((ed to as '(oc!(ement o( ')sica"

s!''"). It dea"s ,it te (e"ationsi' 0et,een te #i(m and its

s!''"ie(s. It add(esses te #"o, o# mate(ia"s #(om te s!''"ie(s to

te '"ant o( into se(+ice o'e(ations.

/. Con+e(sion 6 o'e(ations: It dea"s ,it te "ogistica" (e"ationsi'

0et,een and among te #aci"ities o# te #i(m. It add(esses o,

goods and mate(ia"s mo+e among ,o(7stations ,itin o'e(ations.



. O!t0o!nd "ogistics: It is (e#e((ed to as ')sica" dist(i0!tion. It is

te "ogistica" (e"ationsi' 0et,een te #i(m and its c!stome(s. It is

te mo+ement o# s #inised '(od!ct o!t o# te '"ant to te #ina"

c!stome(.

Eac o# tese (e"ationsi's is s!stained 0) te e2ec!tion o# < '(ima() "ogistics acti+ities "i7e t(ans'o(tation* #aci"it) st(!ct!(e*

in+ento() management* mate(ia" and"ing and comm!nication 6

in#o(mation. Tese acti+ities a(e inte(,o+en t(o!go!t te

integ(ated "ogistics s)stem. Eac is +ita" and is #o!nd at e+e()

stage.

• T(ans'o(tation: it is necessa() in o!t0o!nd* in0o!nd as ,e""

as con+e(sion '(ocesses. It dea"s ,it te mo+ement o# a '(od!ct into* t(o!g* and o!t o# te '"ant 6 ,a(eo!se. It is

te most e2'ensi+e "ogistics acti+it)* acco!nting #o( <F o(

mo(e o# tota" "ogistics costs.

• 9aci"it) st(!ct!(e (e#e(s to te st(ategic '"acement o#

,a(eo!ses* se(+ice cent(e* and '"ants t(o!go!t te s!''")

cain. It inc"!des te n!m0e(s and t)'es o# '"ants* tei(

"ocations and tei( o'e(ations.

• In+ento() management (e#e(s to '(od!ct 0!##e(s o# (a,

mate(ia"s* ,o(7 in '(og(ess* and #inised goods in "ogistics

'i'e"ines.

I# e+e() acti+it) ,o(7ed 'e(#ect")* i# te(e ,e(e no +a(iation

in t(ansit time* no +a(iation in '(ocessing time* no "oss o( damage* no

+o"!me disco!nts #o( t(ans'o(tation* no +o"!me disco!nt #o( '(od!cts*

and i# #i(ms co!"d #o(ecast demand acc!(ate") te(e ,o!"d 0e no need to

sto(e '(od!ct.

Un#o(t!nate")* integ(ated "ogistics manage(s o'e(ate in anim'e(#ect ,o("d and 0!##e( in+ento() is a (ea"it).

Eme(ging Integ(ated Logistics Conce'ts.

O+e( "ast /F )(s mo(e inte(est as 0een gi+en to integ(ated

"ogistics. eca!se o# tis* ada'tations #i+e conce'ts came to te



#o(e#(ont* se(+ice (es'onse "ogistics* -!ic7 (es'onse "ogistics* (es'onse

"ogistics (eco+e()* e##icient cons!me( (es'onse and (e+e(se "ogistics.

H!ic7 (es'onse "ogistics. Is anote( name #o( JIT and e"ect(onic data

inte(cange EDI3.

JIT

Jit is an integ(ate set o# acti+ities designed to acie+e ig +o"!me

'(od!ction !sing minima" in+ento(ies o# (a, mate(ia"s* #inised goods

and ,o(7 in '(ocess.

Management 'i"oso') K Noting '(od!ced !nti" needed.

Encom'asses te s!ccess#!" e2ec!tion o# a"" '(od!ction acti+ities

(e-!i(ed #(om design to te de"i+e() o# te '(od!cts.

Attac7 6 e"iminate ,aste An)ting not adding +a"!e to te '(od!ct.

9(om c!stome(s 'e(s'ecti+e3.

Minimie ,aste o# time* ene(g)* mate(ia"s and e((o(s.

Minimie ,aste K. In 0ot #acto(ies: Man!#act!(ing '(od!cts and

?idden.

Acie+e st(eam"ined '(od!ction ) (ed!cing in+ento().

E2'ose 8(o0"ems and 0ott"enec7s.

Contin!o!s im'(o+ement 6 cange.

O05ecti+es o# JIT.



• 8(od!ce on") te '(od!cts te c!stome( ,ants.

• 8(od!ce '(od!cts on") at te (ate tat te c!stome( ,ants tem.

• 8(od!ce ,it 'e(#ect -!a"it).

• 8(od!ce ,it minim!m "ead time.

• 8(od!ce '(od!cts ,it on") tose #eat!(es te c!stome( ,ants.

• 8(od!ce ,it no ,aste o# "a0o(* mate(ia" o( e-!i'ment 444 e+e()

mo+ement m!st a+e a '!('ose so tat te(e is e(o id"e in+ento().

• 8(od!ce ,it metods tat a""o, #o( te de+e"o'ment o# 'eo'"e.

T)'es o# ,astes.

• O+e( '(od!ction.

• =aiting.

• T(ans'o(tation.

• Ine##icient '(ocessing.

• In+ento().

• Unnecessa() motion.

• 8(od!ct de#ects.

Common ca!ses o# ,astes.• La)o!t Distance3.

• Long set !' time.

• Inca'a0"e '(ocesses.

• 8oo( maintenance.

• Lac7 o# '(o'e( t(aining.

• Inconsistent 'e(#o(mance meas!(es.

• Ine##ecti+e '(od!ction '"anning.

• Lac7 o# ,o(7'"ace o(ganiation.

• 8oo( s!''") -!a"it) 6 (e"ia0i"it).



JIT S!ccess 9acto(s.

Em'"o)ee

Em'o,e(ment

H!a"it)

8(e+enti+e

maintenanceSced!"ing

In+ento()

La)o!t

S!''"ie(s

JIT



JIT cont(i0!tion to Com'etiti+e Ad+antage.

• Inc(eased !ti"iation o# macine() and e-!i'ment.

• Red!ced in+estment in in+ento().• Im'(o+ement in te -!a"it) o# te '(od!ct o( se(+ice.

• Red!ction in te s'ace (e-!i(ements o# te #i(ms.

• Red!ction in te '(od!ction c)c"e time.

• e(o in+ento().

• e(o maintenance.

Ca(acte(istics.

• Uni#o(m ,o(7 stations "oads.

• Sma"" "ot sies.

• C"ose( s!''"ie( ties.

• Maintenance o# ig -!a"it).

• H!ic7 and economic set !'s.

• 8(e+enti+e maintenance.

• Contin!o!s im'(o+ement.• 9"e2i0"e #aci"ities and m!"ti s7i""ed ,o(7 #o(ce.

RESULTS.

• H!e!e and de"a) (ed!ction* s'eeds t(o!go!t* #(ees assets* and

,in o(de(s.

• H!a"it) im'(o+ement (ed!ces ,aste.

• Cost (ed!ctions* inc(eases ma(gin o( (ed!ces se""ing '(ice.• a(ia0i"it) (ed!ctions in te ,o(7'"ace* (ed!ces ,aste.

• Re,o(7 (ed!ction* (ed!ces ,aste.

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19965941 Integrated Logistics 1