Concepts in International Logistics Management-prince Dudhatra-9724949948

8/7/2019 Concepts in International Logistics Management-prince Dudhatra-9724949948

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1. CONCEPTS IN INTERNATIONAL

LOGISTICS MANAGEMENT

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Well . . . . Is This Logistics ?




Actually . . . . . This Is Logistics




Logistics Management

LOGISTICS IS THE PROCESS OF PLANNING IMPLEMENTING AND CONTROLLING THEEFFECTIVE AND EFFICIENT FLOW AND STORAGE OF GOODS, SERVICES AND RELATEDINFORMATION FROM THE POINT OF ORIGIN TO THE POINT OF CONSUMPTION FOR THEPURPOSE OF CONFORMING TO CUSTOMER REQUIREMENTS.

( COUNCIL OF LOGISTICS MANAGEMENT/USA)

ITS ORIGINS BELONG TO MILITARY OPERATIONS RELATING TO THE COMPLETE SYSTEM OFMOVING, SUPPLYING AND QUATERING TROOPS AND ALL THE RESOURCES THEY NEED.

IN TODAYS HIGHLY COMPETITIVE INDUSTRIAL SCENARIO OF GLOBAL COMPETITIVENESS,LOGISTICS HAS TRULY BECOME A STRATEGIC WEAPON AND MOST IMPORTANT FACTOR

IN THE SUPPLY CHAIN




Contd

Getting the right product to the right place in the

right quantity at the right time, in the best

condition and at an acceptable cost.

(The Chartered Institute of Logistics & Transport)

Logistics involves 8 Rs- Logistics involves getting, in

the right way, the right product, in the right

quantity and right quality, in the right place at the

right time, for the right customer at the right cost.




Global : Logistics Industry Scenario

�

The logistics industry is valued at US$ 3.5 trillion.� The U.S., which contributes to over 25% of the global industry value, spends close to 9% of its GDP

on logistic services.

� The sector currently employs over 40 million people in the world

Countries Logistics Cost/GDP

India/China 13-15%

U.S 9.90%

Europe 10%

Japan 11.40%

Countries Logistics Cost /

GDP




India : Logistics Industry Scenario

Total GDP US$ 3 Trillion.

India spends 13% of its GDP on logistics compared to an average of 10% in other developing countries.

India logistics market to double by 2012.

The industry would need 4,20,000 skilled people in the SeniorResource Category in warehouse management it self, by 2015.

Currently, India logistics industry has only 14,000 WarehouseManagers but required are approx. 35,000 .

Technological change in the logistics industry demands a trained

workforce in all areas of the sector. Indian logistics industry is at an inflection point and will reach a

market size of over $125 billion in year 2010.

The organized logistics, which is about 6% of the total logisticsmarket, is growing @ 15-20% a year.




Logistics Mix

Logistics covers the following functional areas, and

are termed as Logistics Mix by Martin Cristopher.

1. Information flow- Order registration, order

checking & editing, order processing, coordination

2. Warehousing- Material storage, material

handling, site selection & network planning,

despatch documentation

3. Packaging- Handling & damage prevention

4. Transportation- Route planning, mode selection &

vehicle schedulingprince dudhatra-9724949948



CONCEPT

According to Council of logistics management:

� Logistics is the process of planning,

implementing and controlling the efficient,

effective flow and storage of goods, services andrelated information from point of origin to point

of consumption for the purpose of conforming

the customer requirement.




� design and administration of systems to controls the

flow of material, work- in process, and finishedinventory to support business unit strategy.

� designing and managing of a system in order tocontrol the flow of material throughout acorporation.

� very important part of an international companybecause of geographical barriers.

� Logistics of an international company includesmovement of raw materials, coordinating flows into

and out of different countries, choices of transportation, cost of the transportation, packagingthe product for shipment, storing the product, andmanaging the entire process.







Fragmentation :

� This era was known as fragmentation becauseevery thing that done was disintegrated

Evolving Integration:

� At this stage of time new concepts of Logisticalmanagement were evolving

Total integration :

�In the present scenario because of technological advances logistics has evolved as

part of management






Inbound logistics + Material Management

+ Physical Distribution =Logistics

� Inbound logistics covers the movement of materialsreceived from suppliers

� Material management describes the movements of material & components within a firm

� Physical distribution refers to movement of goods outwardfrom the end of the assembly line to the costumer.

� Supply- chain management is somewhat larger thanlogistics and it links

� logistics more directly within the users totalcommunication network & with the firm engineering staff.It includes manufacturer and suppliers but alsotransporters, warehouses, retailers and customersthemselves.




Importance of logistics

� Transportation cost rose rapidly due to the rise in fuel prices

� Production efficiency was reaching a peak

� Fundamental change in inventory philosophy

� Product line proliferated

� Computer technology� Increased use or computers

� Increased public concern of products Growth of several new, largeretail chains or mass merchandise with large demands & verysophisticated logistics services, bypass traditional channel &distribution.

� Reduction in economic regulation

� Growing power of retailers

� Globalization




components of Logistics


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Concepts in International Logistics Management-prince Dudhatra-9724949948