INSTITUTE –University School of

Business
DEPARTMENT -Management
M.B.A
Logistics & Supply Chain Management 23BAT-623
Faculty Name :Upendra Kumar

Logistics at MTC

UNIT-3: Logistics at
DISCOVER . LEARN . EMPOWER
MTC

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 Logistics at MTC

Course Objective Course Outcome

CO Title Level CO Title Level
Number Number
CO1 At the completion of this course, the Understand CO1 Design competition strategies, Understand
student should be able to including costing, pricing, product
understand the concepts related to differentiation, and market
SCM. . environment according to the
CO2 Students will be able to design and natures of products and the
Apply
study performance of supply structures of the markets.
networks and processes in different
business contexts CO2 Understand the links between Apply
production costs and the economic
models of supply. 2

CO3 To understand the global supply Analyze CO3 Understand how different degrees of Analyze
chains & risks thereof competition in a market affect pricing
and output
Logistics at MTC

Source : Shutterstock 3
Logistics at MTC

• Logistics is a part of supply chain

management that
involves planning, implementing,
and overseeing the transportation
and storage of goods from the point
of origin to the point of
consumption.

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Logistics of MTC
involves:

• Inbound logistics: Bringing materials and

other goods into a company. This
includes ordering, receiving, storing,
transporting, and managing incoming
supplies.
• Reverse logistics: The process of
returning products from end users back
through the supply chain to either the
retailer or manufacturer.
• Transportation management: Managing
the physical movement of goods or
people.
• Warehousing
management: Administering storage
places
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Logistics of MTC also
involves:

• Production planning, Purchasing,

Transporting, Shipping, Receiving,
Importing and exporting,
Warehousing, Inventory
management, Customer service.

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Logistics of MTC

• This is known as Forward

Logistics which means product
moving forward or downstream
from the point of origin (e.g.
supplier, manufacturer) to point of
consumption (e.g. end-user,
customer), or expressed differently,
from raw materials to the final
product destination.

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Here are some
aspects of MTC
logistics:

• Inventory management
• Demand forecasting
• Communication
• Procurement
• Transparency
• Transportation

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Inventory
management in
MTC

• This is a key part of logistics and

supply chain management. It
involves managing the flow of
goods and maintaining an overview
of merchandise and materials.

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Demand
forecasting for
MTC

• This is critical for optimizing

supply chain operations in
manufacturing. It helps with
production planning, inventory
management, procurement,
and customer satisfaction.

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Communication for
MTC

• Open communication between the

supplier, buyer, and third-party mediators
helps with inventory forecasting and
replenishment.

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Procurement for MTC

• This ensures that a company gets

materials from the most efficient supplier
at an appropriate cost. It also ensures
that materials and machinery for
production are available in the right time
at an appropriate quality and quantity.

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Transparency for MTC

• This is one of the biggest trends

and perhaps the most critical
component of sustainable supply
chain management.

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Transportation for MTC

• This is the most crucial and

essential function of logistics in
supply chain management. It
allows items to move from the
provider to the buyer.

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 Supply Contracts

An agreement by which a seller promises to supply all of the

specified goods or services that a buyer needs over a certain
time and at a fixed price, and the buyer agrees to purchase
such goods or services exclusively from the seller during that
time.

The terms of a supply contract often define everything from the

means whereby the products are delivered, terms of payment,
and any other aspect of the relationship that the two parties
have determined to be necessary.
.
 Make to Stock Contracts

Make to stock (MTS) is a traditional production strategy that is used

by businesses to match the inventory with anticipated consumer

demand .

Instead of setting a production level and then attempting to sell, a

company using MTS would estimate how many orders its products

could generate, and then supply enough stock to meet those orders.
 Make to Stock Contracts

The MTS method requires an accurate forecast of this demand to

determine how much stock it produces. If demand for the product can

be estimated accurately, the MTS strategy is an efficient choice for

production..
 Make to Order Contracts

Make to order (MTO), or made to order, is a business production

strategy that typically allows consumers to purchase products

that are customized to their specifications.

It is a manufacturing process in which the production of an item

begins only after a confirmed customer order is received. It is

also known as mass customization.

 Make to Stock Contracts

The MTS method requires an accurate forecast of this demand to

determine how much stock it produces. If demand for the product can

be estimated accurately, the MTS strategy is an efficient choice for

production..
 Make to Stock Contracts

This type of manufacturing strategy is referred to as a pull-type

supply chain operation because products are only made when

there is firm customer demand.

The pull-type production model is employed by the assembly

industry where the quantity needed to be produced per product

specification is one or only a few.

 Make to Stock Contracts

This includes specialized industries such as construction, aircraft

and vessel production, bridges, and so on. MTS is also

appropriate for highly configured products such as computer

servers, automobiles, bicycles, or products that are very

expensive to keep inventory.

 Contracts with Asymmetric Information

Asymmetric information, also known as "information failure," occurs when

one party to an economic transaction possesses greater material knowledge

than the other party.

This typically manifests when the seller of a good or service possesses

greater knowledge than the buyer; however, the reverse dynamic is also

possible.

Almost all economic transactions involve information asymmetries.

 Resources

1. Essentials of Supply Chain Management (Essentials

Series) Paperback – Import, 12 August 2011 by Michael
H. Hugo

2. Principles and Practice of Supply Chain

Management Hardcover – Import, 3 June 2019
By Judy Dickens

3. Supply chain design and management: Strategic and

tactical perspectives by Manish Govil and Jean-Marie
Proth
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 Homework

Explain the components of MTC Logistics with examples.

Explain the communication help in MTC Logistics.

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 Blackboard
Assessment Pattern

Components HT-1 HT-2 Assignment Surprise Business GD Forum Attendance Scaled

Test Quiz Marks

Max. Marks 10 10 6 4 4 4 2 40

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THANK YOU

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