Operations Managment PPT

8/2/2019 Operations Managment PPT

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OPERATIONS

MANAGEMENT

(The study of logistic services and finding a solution for efficient connectivity within India)

Delivering Commitments

Amitkumar Maity

Geetha Sridhar

Nandhinie NakkeeranRamona Singh


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Introduction

Logistics is concerned with getting products and services where they are needed andwhere they are desired. It is very difficult to visualize accomplishing any marketingor manufacturing without logistics support.

The council of Logistics Management in 1991 defined Logistics as the process ofplanning, implementing and controlling the efficient, effective flow and storage ofgoods, services and related information from the point of origin to the point ofconsumption for the purpose of conforming to customer requirements.


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Third Party Logistics (3PL)The growth of 3PL companies has been driven by the need for businesses to become leaner,reducing assets and allowing focus on core business processes and the companies have started

utilizing the third party logistics, specialists in handling logistics and supply chain who cangive them a helping hand in their business development.

The advantages of 3PL: Improves strategic focus

Lowered cost

Easier market expansion

Increased flexibility

Third party logistics (3PL) companies are becoming an important part of todays supply chain.Many 3PL companies offer a wide range of services as listed below.

Material handling,

Storage and distribution,

Kitting, labeling,

Customized palletizing/packing,

Information and decision making handling,

Expertise on distribution strategies

Improved efficiency/reduced environmental impact.


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About the company

Sri Trans Tech Supply Chain Private Limited is a company engaged in the business ofexpress cargo, warehousing, FTL and retail cargo for the last 9 years committed tocustomers business also can be termed as Third Party Logistics Company.

The company has mix of customers comprising large corporates, small corporatesand retail. The shipment handled by the company varies from automobiles,electronics, textile, industrial coatings and computers.


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Guwahati

Kolkatta

Chennai

Problems Faced by the Company

The specific issue is with

respect to transportationof consignment from

South India to the Easternand North Eastern partsof India.


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Environment

External

FactorsProcess

PeopleMachines

Breakdown

MH in Warehouse

Delivery

Schedule

Vehicle

Contract with TPAs

Cold Storage facility

Follow up

Customer orders

Warehouse

manager

LaborDriver

Customer

Relationship

Route

Handling

special/oversized

Natural

calamities

Terrain

region

States

Safety

Issue

Fuel Price

HealthIssues

Statutory

documents

Alternate

route

Availability of

substitutes

EFFECTS

Training

Riots &

Strikes

Late

Delivery

Competitors

Advantage

Profit Margin

Dissatisfaction


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Effects

Financial impact for thecompany due to the poorservice

Impact on customer loyalty


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The General Performance MetricsPerformance Metrics can be studied under two heads -

External Metrics Internal Metrics

Customer loyalty is a major factor that

determines the competitiveness of a business(Gremler and Brown, 1996). A ResearchModel has been designed to study thatbusiness customer satisfaction and loyalty arerelated to service quality, cost performanceand relational performance of a freightshipping company.

Return on Investments - Strong positive cash

flow has become as much a desired goal ofmanagement as profit. The pressure in mostorganization is to improve the productivity ofcapital- to make the assets sweat. In thisregard it is usual to utilize the concept ofreturn on Investment (ROI).


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Recommendations

The recommendation suggested here is sector specific and also for the business as a whole,as they will have to grow their business from their current levels.

For immediate implementation:

Inducting sufficient and well known vendors and suppliers (TPAs)

Recruiting and training the manpower according to the needs of the customer and

organization.

All the statutory documents to be ensured

Transit pass has to be returned back to respective origin check post

Connecting the shipment from South to East and North East through train

To install RFID (Radio Frequency Identification) and GPS (Global Positioning System)

Financial Metrics: Company do an Activity Based Costing rather than the traditional approach


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For long-term and business oriented-

Customer Analysis-


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ReferencesThe company on which the analysis has been made is known to one of our team member, who brought theissue and the team discussed the issue in the light of the session on Logistics. The team studied the modelsthat could be applied for the analysis to study the impact and the performance metrics that could be used to

study the effect of the impact internally i.e., the profitability and externally, the customer satisfaction leadingto business retention. During the course of discussion whatever additional data was required for the analysiswas obtained from the Directors Mr N Swaminathan, Mr N Murali and N Ganesh, of the company. Becauseof our access to the company, we have suggested our recommendations and they were willing to accept thesame for implementation.

Text books and Journals:

Kai chieh HUand William JEN, 2010 - From the Viewpoint of Business Customers to Explore theAntecedents of Satisfaction and Loyalty for Freight Shipping Industry in Taiwan, Journal of the Eastern AsiaSociety for Transportation Studies, Vol.8, 2010

PrabirK. Bagchi and Subrata Mitra, 2006 - Key Success Factors, Performance Metrics and GlobalizationIssues in the Third-Party Logistics (3PL) Industry: A Survey of North American Service Providers, IndianInstitute of Management, Calcutta, Working Paper Series 595/ September 2006.

Decision SupportM

emora

ndum, Operations Management Roundtable, 3PL Selection and Implementation,Corporate Executive Board, June 2001.

FRoberts Jacob, Richard B Chase, 2008 Operations and Supply Management The Core Mc GrawHillHigher Education.

Donald J. Bowersox, David J. Closs, 1996, Logistics Management The Integrated Supply Chain Process Mc GrawHill Higher Education.

ChristopherM., (1998), Logistic and Supply Chain Management- Financial Times Pitman Publishing


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Documents

Operations Managment PPT