Supply Chain Management - Harshad More

8/8/2019 Supply Chain Management - Harshad More

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Role of logistics packaging in

supply chain management

Prepared By

Harshad More


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Contents

SupplyChain ManagementPackaging

Logistical PackagingUnitization

DesignConsiderationRole of logistics


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SupplyChain Management

Supply chain management involves planning, design,&control of flow of material, information and financealong the supply chain to deliver superior value to the endcustomer in an effective & efficient manner

Objective is to be able to have the right products in theright quantities (at the right place) at the right moment

at minimal cost.

Manufacture& Raw Materials

Export &

ImportActivities

PrimaryMovement

DistributionCentres

SecondaryMovement

B2B & B2CDistribution

After-SalesServices


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PackagingA marketing tool

Consumer or product

Convenience

Marketing objectivesProtecting the product

Logistical or Industrial

Distribution objectives

Prevent damage of theproduct during storage,transportation, handling


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Well . . . . Is This Logistics ?


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Logistical Packaging

Logistics is the process of planningimplementing and controlling the effective and efficientflow and storage of goods, services and relatedinformation from the point of origin to the point of

consumption for the purpose of conforming to customerrequirements.

(Council of logistics management/usa)

Logistics involves 8 Rs- Logistics involves getting, inthe right way, the right product, in the right quantityand right quality, in the right place at the right time, for

the right customer at the right cost.


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UnitisationThe process of grouping a large number of products in

convenient packs

The most common method of unitisation is containersbut pallets & slip sheet are also used

Containers-

Excellent protection from environmental effects

Space economySubstantial reduction in transit damages

ForContainer transportation primary packaging need

to be simple


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ContdPallets-

Loading individual products or master cartons onpallets & tightly securing them with metal strips

Lowering of handling cost by unitising loadIncrease speed of material flow in the ware house

Facilitate handling of material by machines


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Contd

Slip sheet-It is constructed out of highly tensile laminated paper

Significant reduction in material handling costs.

Decreases loading/unloading time by up to 60%Savings on material costs can be 80%

Slip Sheets are very light, which means major savings

on shipping &air freight!


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DesignConsideration

Material Handling-The reason for the most product damages duringloading & unloading operations

Height of loading platform

Method of handling

Vehicle condition-Irregular truck bed , Gaps betweentruck beds, Protruding bolts & angles, Ropes used fortying.


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ContdRemedial measure-

Additional levelling & packaging material on truckbed

Special provisions for rope tying

Avoid rolling of packages on floor

Proper training &educating loader

Proper material handling equipment


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Contd

Transportation-Depends on Gross weight, Gross volume,

Size & Shape

Sea worthy packaging(TeakWood)

Cost of sea worthy packaging is 30-40% more than

normal packaging for inland transport

For air light weight material is used due to highestfreight tariffs


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ContdCommunication-

Contents of the package(product, weight, quantity, size)

Types of goods(hazardous, explosive, perishable)

Name of the manufacture,Name of the consigner

Name of the consignee

Country of origin

Label on package

Handling of the package

Barcode for each package


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Role of logisticsEconomy

Logistics is an important component of GDP

Adds value by creatingTIME& Place Utility(value)

Organization

Supports Marketing

Achieving organizational goals

The needs and wants of target markets

Delivering the desired satisfactions to customer


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Global : Logistics Industry Scenario

The logistics industry is valued atUS$3.5 trillion.

The U.S contributes to over 25% of the global industry

value

U.S spends close to 9% of itsGDP on logistic services.

The sector currently employs over 40 million people inthe world


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Countries Logistics Cost / GDP

Countries Logistics Cost/GDP

India/China 13-15%

U.S 9.90%

Europe 10%

Japan 11.40%


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The world is round and the place which mayseem like the end may also be the beginning.


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Supply Chain Management - Harshad More