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Basics of Logistics
Basics of Logistics
Supply Chain : It is a network of activities which transforms raw materials into Finished Goods to
Customers.
Logistics : Movement of materials in Supply Chain is called "Logistics"
Flow of
Phases in Logistics
1) Inbound Logistics: Movement of materials from the point of origin to point of
production.
other names physical supply , upstream
2) Outbound Logistics: Movement of finished goods from the point of production to
the
stream
of
3) Reverse Logistics: Movement of damaged, expired, unsold products from the point
consumption to the point of production
Types of Logistics
1) Business Logistics -- is the blend of greek mission plus french operations. Application of
logistics
techniques or principle in business or a commercial management.
2) Military Logistics -- is the planning and movement of military force, arms and ammunitions in
a
disciplined order
3) Event Logistics -4) Service Logistics --
Objectives of Logistics
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Cost Minimisation
Increasing the profit
Customer satisfaction
Reducing DLT
Cash Spin
Cash to cash convertion
Generate Business
Low cost Delivery
Speedy delivery or quick response
Right condition or reduce damage
Provide best service
Reliability
Repeated Business
Inventory Reduction
LT --> Lead Time
DLT --> Deliver Lead Time (This is the Gap between order placement and order receipt)
7 R's in Logistics ( R means Rights )
1.
2.
3.
4.
5.
6.
7.
Right Product
Right Place
Right Price
Right Customer
Right Condition
Right Time
Right Quantity
5 P's in Logistics
1.
2.
3.
Product
Place
Price
4.
5.
Promotion
Production
Definitions of Logistics
" It is a process of Planning, Implementing, and Controlling the efficient and effective flow of
goods/services and related information from the point of origin to point of consumption conforming to
customer requirements". ( CLM Definition )
" It is the process of implementing 7 R's to achieve Customer satisfaction " (Shine Babu)
" The procurement, maintenance, distribution, and replacement of personnel and materiel".
(Websters
Dictionary)
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a) Asset Based
b) Non-asset Based
Participents in Transportation
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INVENTORY- Asset or resources of a company kept for own use or for sale. Raw materials, Finished
Goods, Work in Progress, MRO, Sub Assemblies
Consolidation - Means combining or grouping of cargos to achieve an economic Freight