8 Wings of Logistics Management

So what are the 8 Wings?

1 Customer Order Processing 5 Packaging

2 Location Analysis 6 Transportation

3 Inventory Control 7 Warehousing

8 Customer Service
4 Material Handling
Just Imagine…
Let’s help you with the process flow?
You will take
You need necessary
more tables steps
and chairs
for your Filling up the order
office form

What will you do next?

Deciding specifications
of product

Deciding quality
checklist of product

Deciding the delivery

schedule

Techniques

Deciding location of
1. EDI delivery
2. ERP or CPFR
3. Web portal
1 Customer Order Processing

Flow of Actions Important Factors Techniques

Filling up the order form

Cost of order processing Electronic Data Interchange

Deciding specifications of
product
Capability of company to E-ERP or CPFR
produce a component
Deciding quality checklist of
product

Detailed list of specifications Web Portal

Deciding the delivery
schedule

Deciding location of delivery

 Process
2
Location Analysis
I need a Cost of
warehouse Transportation of Availability and type
raw materials and of land
finished goods

You want to make a

warehouse but where?
Availability of
Availability of
desired manpower
secondary resources
at affordable cost

Governmental
Communal Harmony regulation and
taxation

Important factors to keep in mind

1. Cost of operations as a percentage of sales

2. Shelf life of Product
3 Inventory Control
I need to
order more What do I need check first? What will you do second?
material for
production… Communicate the quantity, quality and
On hand Inventory analysis
timing of material with supply points

What will you do last?

Get the material of right quality, quantity
at right time

TECHNIQUES IMPORTANT FACTORS

1. Inventory control at planning
DRP and replenishment Fixed order interval 2. Lead time
order control system 3. Cost vs importance of raw material

EOQ with ROP System

Selective inventory control Order forecasting using

(ABC, VED, FSN analysis, etc.) statistical tools
4 Material Handling

Flow of Actions Important Factors Techniques

Operational research
Material default location, Material breakage Deciding location of delivery
identification and traceability

Cost ratio of material handling to Material flow analysis

Pilferage
material cost

Material handling requirements Cost of material handling Computerized material

of material ( Fragile, Inflammable) retrieval system

Type of Material Number of handlings

ASRS (Advanced Storage
& Retrieval System)
5 Packaging

Flow of Actions Important Factors Techniques

Standard box packaging

Packaging requirement for Protection to product
material ( Refrigeration, fragile Containerisation of
etc) packaging
Holding the product
Direct part marking
Communicating message to
Primary packaging customers
ISO 14001

Customer requirement for Recycling of packaging

Secondary packaging packaging materials
Reusable packaging
Reverse logistics for packaging materials
Cost of packaging
Eco Friendly packaging
Recycling of packaging materials
material
Transportation requirement Bar coding and bumpy
for packaging ( Vibration
bar coding
proof, water or moisture) Cost of packaging
GPS Tracking system
and RFID
 Guess the Transportation techniques?
Containerised Cool Chain
Direct Shipment Cross docking Multimodal Milk run
Transport Transport

B C
A

Our Factory

D
E F
6 Transportation

Flow of Actions Important Factors Techniques

Containerised
Mode of transport transportation

Cool chain transport (

Urgency of the product Refrigerated vans)
Cost of product

Multimodal logistics
Speed of Transportation Cost of product

Milk Run distribution

Ambience requirement of system
material (Refrigeration, Cost of transportation
vacuum)
Cross Docking
Cost of transportation

Direct Shipment
Urgency of product to
customer
7 Warehousing

Flow of Actions Important Factors Techniques

Availability of space Third party logistics

Location of the warehouse

Availability of proper Third party

Inventory level of the warehousing
material handling systems
warehouse

Storage requirement of the Strategic location

product

Packing and re-packing

Packaging and repackaging facilities
requirement of the product

Information and allied

services
Shelf life of the product
8
Customer Service

Flow of Actions Important Factors Techniques

Contractual requirement
AMC (annual Maintenance
Contractual services offered to of customer service
Contracts) and free
client replacements
Service Quality

Type of customer service Limited (free) trial periods

required for the product
Reverse Logistics
Guarantee and Warrantee
Location of service centre

User Clubs
Service level at service centre
Help lines, toll free number,
call centres

Cost of service vs replacement

CRM
 What have we learnt?

i. 8 wings of logistics
ii. The process flow for each of the elements
iii. Important factors to consider
iv. Techniques to be used for each wing