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Logistics and Distribution Management
Logistics and Distribution Management
Logistics and Distribution Management
management
Logistics
Logistics is used more broadly to refer to the process of coordinating
and moving resources – people, materials, inventory, and equipment –
from one location to storage at the desired destination.
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Common Definition
• Logistics is the management of the flow of things between the point of origin and
the point of consumption in order to meet requirements of customers or
corporations. (Wikipedia, 2016)
• Logistics Function
Reverse Logistics
Order Processing
Warehousing
Transportation
Facility 1 Facility 2
Packaging and Inventory
material handling Management
Warehouse Retailer
Supplier Retailer
Retailer
Supplier Warehouse Factory
Retailer Retailer
Retailer
Supplier
Retailer Retailer
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Defining Logistics Management (1)
Logistics management is that part of supply chain management that
plans, implements, and controls the efficient, effective forward and
reverse flow and storage of goods, services and related information
between the point of origin and the point of consumption in order to
meet customers’ requirements.
(Council of Supply Chain Management Professionals, 2016b)
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Logistics and distribution
management
Understanding logistical integration
eg. 3PL, 4PL concepts
Understanding logistical integration
• 1PL
• 2PL
• 3PL
• 4PL
Supplier Customer
Seller Buyer
Sender Receiver
Tangible Intangible
Fleet Knowledge/ Experience
Manpower Expertise/ Skills
Material handling equipment Connectivity/ technology
Capacity Strategic management
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1PL
Supplier Customer
Seller Buyer
Sender Receiver
Tangible Intangible
Fleet Knowledge/ Experience
Manpower Expertise/ Skills
Material handling equipment Connectivity/ technology
Capacity Strategic management
8
2PL
Supplier Customer
Seller Buyer
Sender Receiver
Intangible
Knowledge/ Experience
Expertise/ Skills
Connectivity/ technology
Tangible Strategic management
Fleet
Manpower
Material handling equipment
Capacity
9
3PL
Supplier Customer
Seller Buyer
Sender Receiver
3PL
Tangible Intangible
Fleet Knowledge/ Experience
Manpower Expertise/ Skills
Material handling equipment Connectivity/ technology
Capacity Strategic management
1
0
4PL – Case 1
Supplier Customer
Seller Buyer
Sender Receiver
4PL
Intangible
Knowledge/ Experience
Expertise/ Skills
Connectivity/ technology
Strategic management
Tangible
Fleet
Manpower
Material handling equipment
Capacity
1
1
4PL – Case 2
Supplier Customer
Seller Buyer
Sender Receiver
4PL
Intangible
Knowledge/ Experience
Expertise/ Skills
Connectivity/ technology
Strategic management
1
2
4PL – Case 3
Supplier Customer
Seller Buyer
Sender Receiver
4PL
3PL
Tangible Intangible
Fleet Knowledge/ Experience
Manpower Expertise/ Skills
Material handling equipment Connectivity/ technology
Capacity Strategic management
1
3
CROSS DOCKING AND JIT
CONCEPTS
CROSS DOCKING
• Management Issues
• Limited Capital Investment
• Not feasible in various situations
• Increased costs of trucks and docks
• Inefficiency in low turn over setups
JUST IN TIME CONCEPT
• Waste reduction
• Less Space needed
• Smaller Investment
DISADVANTAGES OF JUST IN TIME
• Lack of Control
• Risk of running out of stock
• More planning required
Belt and Road Initiative
The belt and road initiative (BRI) is considered one of the most
important global development strategies ever made by the Chinese
government. It is estimated that the worth of the belt and road is
around USD 1 trillion comprised of approximately 1700 different
projects.
Opportunities and Risks
Opportunities
• Political Risks
• Inflated Expectations
• Complexity
• Performance issues
• Sustainability concerns
Emerging trends of Sustainability in
Supply Chain Management
Emerging trend of Sustainability