Role of Logistic in SCM

7/28/2019 .Role of Logistic in SCM

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Role of Logistic in SCM

Presented by:

Aarti Mishra

Fashee SendhuSweta Kawdey

Manprit Kaur


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Supply ChainA Supply Chain(SC) is a sequence of organization their facilities,

functions and activities that are involved in producing and

delivering a product or service.

Eg. Supply Chain of Manufacturing Organization

Supplier

A

Supplier

B

Supplier

C

Storage Mfg Storage Distributor Retailer Customer


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History of Logistics In the 1950s and 60s, the military was the only organization using

the term logistics.

There was no true concept of logistics in private industry at that time.


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Evolution of Logistics in SCM

S

c

o

p

e

&

I

n

f

l

ue

n

c

e

1950s 1960,s 1970s 1980s 1990s

Workplace

Logistics

Facility

Logistics

Corporate

Logistics

Supply Chain

Logistics

Global Logistics


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LogisticsLogistics involves the movement of material and information in a SC.


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Type of Logistics Business Logistics

Military Logistics

Event Logistics

Service Logistics


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3PL Reverse Logistics


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Role of Logistics

Ensuring all the requirements of the customers are met on time in anefficient and safe manner.

To coordinate with third party logistics (3PLs).

To ensure that there is a safe and timely dispatch of goods.

To draft plans, policies and procedures for successful implementation

of logistics system.

To ensure that the business goals of the organization are in

synchronization with logistics system.


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Role of Logistics cont

To create and maintain customer support.

To maintain coordination with vendors, service providers and

transport carriers.

To ensure that no fraud is committed.

To ensure timely supply and payment of goods and reduce

inventories.


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Key Logistics Activities Customer service

Demand Forecasting

Order Processing

Transportation

Warehousing

Material Handling Packaging

Inventory Management

Supply(procurement) Management

Reverse Logistics

Parts & Service Support

Logistics Information/ Communication


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Performance Measurement in SCMThree types of performance measurement criteria

Supplier performance

Purchasing/ material management performance

Supply chain performance


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Strategic Logistics PlanStrategic logistic plan depends on various functional area

Marketing

Manufacturing

Finance/accounting

Logistics


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Strategic Logistics PlanMarketing:

Sales volume by month

Type of customer

Regional area

Product introduction and deletions

Customer

Geographical


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Strategic Logistics PlanCustomer service policy:

Order placement method

Order entry

Target cycle

Order cycle variability

Desired fill-rate or in-stock level


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Strategic Logistics PlanManufacture:

Location of current and planned production facilities

Plan volume and product mix for each location


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Strategic Logistics PlanFinance/accounting:

Forecast of cost based on inflation rate and growth rate

Perform cost trade off analysis


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Inventory Planning & ManagementInventory planning and management in the logistics framework consist

Forecasting

Order Quantity Engineering

Fill Rate Planning

Control Policy

Deployment


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Inventory Planning & ManagementHow to reduce inventory & increase service at the same time?

S

E

R

VI

C

E

L

EV

E

L

Return on Inventory

Measure &

Improve Forecast

Accuracy

Reduce Lead

Times in Each

Supply Chain Link

Minimize/

Eliminate Purchase

Order Cost

Eliminate

Supply ChainBlind Spots

Minimize Inventory

Carrying Rate


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Lead Time Demand Management


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Supply in LogisticsSupply in logistic framework consist of

Supplier service policy (SSP)

Sourcing

Supplier integration

Purchase order processing

Buying and payment


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Transportation in LogisticsTransportation in logistics framework consist of

Network design

Shipment management

Fleet /container management

Carrier management

Freight management


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Warehouse in LogisticsWarehouse in logistics framework consist of

Receiving

Putaway

Storage

Order picking

Shipping


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7 Disciplines of Logistic OrganizationThe seven disciplines tie together enterprises across the supply chain,

logistics activities within the enterprise,& personal community

development objectives within the logistics organization. Supply chain organization managemententerprise to enterprise

Corporate logistics organization alignmentlogistics to enterprise

Logistics strategic planning and project managementlogistics to

enterprise

Logistics process and activity managementlogistics to enterprise

Logistics professional developmentprofessional to logistics

Human-friendly logisticsprofessional to logistics Community-friendly logisticscommunity to logistics


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Future Direction for SCMEffective planning, operations and control in the logistics & SC area will

be:

Shift for virtual integration

Collaboration

Knowledge of core competencies

Technology & connectivity

Managing the people skill

Comprehensive SCM


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Documents

Role of Logistic in SCM