LOGISTICS

MANAGEMENT
 GROUP MEMBERS
Salman Khan s/o Ayesha
Rahim khan Rashid

Presented to:
Sir Zuhair
Mohsin Wadiya Uzair Sundas Ali

Syed Hamza Bukhari

Talha Muhammad
Siddiqui Salman Jamal

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7.1 PLANNING FRAMEWORK
FOR LOGISTICS
 LOGISTIC FRAMEWORK FOR PLANNING
• Organization uses Logistics planning framework for:
1- Efficient management
2- Maximization for flow of resources, information and commodities throughout the supply
chain network

• It includes all of the methods, tactics, and procedures used in organizing, arranging, and carrying out different
logistical tasks in order to meet predetermined corporate goals.

• Key logistics management components, such as distribution, transportation,

warehousing, inventory control, and procurement, may be approached methodically with the help of the
framework.
 Logistics planning framework
for pharmaceutical industry
Transportation Mode: Select modes
based on urgency and sensitivity.

Packaging and Labeling: Use

appropriate packaging and labeling.

Storage Facilites: Ensure suitable

Storage conditions.

Temperature Control: Monitor and

maintain temperature integrity.

Inventory Management: Track stock

levels and expiration dates.

Continuous Improvement: Monitor

KPIs and refine processes.
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 Logistics planning framework
example for Hamdard Pakistan
Transportation Mode: Company uses road
transport, 3PL and sometimes 2PL.

Packaging and Labeling: uses quality packaging,

also uses temperature control packaging for
medicines

Storage Facilites: Use non-conforming inventory

Temperature Control: devices for temperature

checking and frequent quality checking are carried
out.

Inventory Management: utilizes FIFO, LIFO and

FEFO

Continuous Improvement: Employee training

programs, feedbacks and benchmarking.
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ADVANTAGES OF EFFICIENT LOGISTICS
PLANNING
• Cost savings through optimized transportation routes and streamlined processes.
• Improved customer service with timely deliveries and accurate order fulfillment.
• Enhanced productivity by utilizing resources more efficiently and optimizing workflow.
• Better inventory management, minimizing excess stock and reducing stock outs.
• Enhanced supply chain visibility, enabling real-time tracking and proactive issue resolution.
• Improved partner collaboration, fostering better relationships and smoother operations.

To achieve the cost benefit, we need to focus on government policy, price hike and lubricants.

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WAYS TO IMPROVE PLANNING FRAMEWORK IN FUTURE

Transportation Mode Selection: Autonomous vehicles and

drones improve last-mile delivery.
• Andersson, F. (2021). Drones in Humanitarian logistics -Benefits for the last mile context.
Theseus. https://www.theseus.fi/handle/10024/503510

Packaging and Labeling: RFID-enabled smart packaging

enhances product tracking and authentication.
• Krohn, J. (2022). At source RFID-tagged pre-filled syringes and supply chain visibility.
Theseus. https://www.theseus.fi/handle/10024/787187

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WAYS TO IMPROVE PLANNING FRAMEWORK IN FUTURE

Temperature Control: Block chain and IoT technologies

enable end-to-end temperature monitoring and control.
• Shahzad, A., & Zhang, K. (2020). An integrated IoT-Blockchain implementation for End-to-
End supply chain. In Advances in intelligent systems and computing (Internet) (pp. 987–
997). https://doi.org/10.1007/978-3-030-63089-8_65

Storage Facilities: Robotics and automation optimize

warehouse management

• Odeyinka, O. F., & Omoegun, O. G. (2023, November 15). Warehouse Operations: An

Examination of Traditional and Automated Approaches in Supply Chain Management.
IntechOpen eBooks. https://doi.org/10.5772/intechopen.113147

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WAYS TO IMPROVE PLANNING FRAMEWORK IN FUTURE

Inventory Management: Predictive analytics and machine

learning algorithms optimize inventory levels.
• Smart Inventory Optimization using Machine Learning Algorithms. (2024, January 4). IE
Conference Publication | IEEE Xplore.
https://ieeexplore.ieee.org/abstract/document/10467512

Continuous Improvement: Digital twins and virtual reality

simulations enable simulation-based continuous improvement.
• Experimentable Digital Twins—Streamlining Simulation-Based Systems Engineering for
Industry 4.0. (2018, April 1). IEEE Journals & Magazine | IEEE Xplore.
https://ieeexplore.ieee.org/abstract/document/8289327

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7.2 LOGISTICS PROCESSES
 Logistics processes encompass all activities through which a
product passes from its manufacture to its delivery to the end
LOGISTICS customer. This includes transport, storage and eventual
distribution. The aim is to deliver the requested quantity of
PROCESSES materials at the right time and place and at the price agreed
upon in advance.
TYPES OF LOGISTICS PROCESSES
These are the five most
common logistics processes:
1. Procurement
2. Storage
3. Inventory management
4. Order picking
5. Dispatch and transport
6. Delivery of goods.
EXAMPLE OF LOGISTIC PROCESSES
Logistic Processes in ASML:
1. Demand Planning
2. Order Processing
3. Inventory Management
4. Warehouse Operations
5. Transportation
6. Order Fulfillment

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WAYS TO IMPROVE LOGISTICS PROCESS
IN5 Ways
FUTURE
to improve the logistics
process in the future are listed
below:
1. Route Optimization
2. Warehouse Management
Systems (WMS):
3. Demand Forecasting and
Inventory Planning:
4. Technology and Automation
5. Collaboration and Partnerships
REFERENCE: Jansson LLC,
Logistics, Aug 23
7.3. SUPPLY CHAIN
SEGMENTATION
SUPPLY CHAIN Supply chain segmentation is the process of dividing a
supply chain into smaller, more manageable parts, or
SEGMENTATIO segments, in order to improve the efficiency of the
supply chain.
N
METHODOLOGIES FOR APPROACHING SUPPLY CHAIN SEGMENTATION

•Product Complexity (No. of product variants)

•Volume Complexity (high-volume/low-mix ,low-
volume/high-mix)
•Pricing
•Life Cycle
•Quality expectations
Product •Innovative products
•Large highly profitable customer Vs. Small unprofitable
Customers customer

Production & Service

strategies
•Make to Stock (MTS), Make to Order(MTO), Engineer to
Order, Service Level Agreements (SLAs)
•Geographical location, Demand patterns (seasonal
Market Driven /constant), Tax and incentive

Lead time requirements

Multi source Vs. Single
source
Channels •Retail, Web, Distributors
HOW TO SEGMENT YOUR SUPPLY CHAIN TO OPTIMIZE OPERATIONS

Supply chain segmentation

processes are listed below
1. Landed cost analysis
2. Demand and cost-to-serve
analysis
3. Demand priorities for every
supply chain management
function
4. Inventory optimization
5. Replenishment strategy
EXAMPLE OF SUPPLY CHAIN SEGMENTATION

Amazon, for example, has

segmented its supply chain into
four distinct parts: delivery,
warehousing, production, and
customer service. These
segments provide Amazon with a
competitive advantage and allow
them to optimize its resources
and costs.
WAYS TO IMPROVE SUPPLY CHAIN SEGMENTATION

The way forward for supply chain

segmentation is to continue to
improve the process and apply it
more widely. Companies should look
to leverage the latest technologies to
improve their segmentation strategies
and increase their efficiency and cost
savings. Additionally, companies
should look to apply segmentation to
a wider range of activities, such as
inventory management and customer
service, in order to gain a competitive
edge.
7.4
LOGISTICS NETWORK PLANNING
LOGISTICS Logistics network planning (LNP) is a collection of tools
and processes required to review the physical
NETWORK infrastructure’s size, location, scope, inventory quantities,
and movement costs to support a desired level of
PLANNING customer service. It includes the reverse logistics or
returns process too.
LNP - STEPS
Steps to LNP are:
1. Process Customisation
2. Determine The Need for Change
3. Review Of As-Is Network
4. Evaluate Alternatives For The
Network
5. Plan Facilities
6. Decide The To-Be State
7. Implementation
OPTIMIZING LOGISTICS NETWORK

1. Focus on shared visibility

2. Leverage automation
3. Implement a transport management system
4. Leverage pool distribution
5. Improve sustainability

REFERENCE: Shehmir Javaid, Supply Chain

& Logistics, Jan 24
https://research.aimultiple.com/logistics-
optimization/

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EXAMPLE

• DHL’s Network Mode Optimization Tool

aids his transportation analysts in
identifying cost savings in the ground
logistic network
• Advanced Inventory Insights: a tool that
enables customers to view their inventory
in detail, & take actions to maximise
sales, minimise losses and cut costs.

Reference: Yibo, D. (2022, February 6).

Network mode optimization for DHL.

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MULTI-CHANNEL
FULFILLMENT
Multi-Channel Fulfillment (MCF) is the method by
which sellers can sell items through various sales
channels and have 3rd party to handle the packaging and
shipping aspects for them.
 EXAMPLE OF MULTI-CHANNEL
• Multi-Channel Fulfillment is a program offered by Amazon that allows sellers to outsource their fulfillment processes.
FULFILLMENT
Essentially, sellers send their inventory to an Amazon fulfillment center, and Amazon takes care of everything from
there—from storing, picking, packing, and shipping to handling customer service inquiries. This means that sellers
can focus on other aspects of their business, while trusting Amazon’s reliable and efficient fulfillment process.
PROS AND CONS OF MULTI-CHANNEL FULFILLMENT

PROS:
• Allows businesses to leverage the marketplace’s extensive fulfillment network.
• Improves the speed and reliability of order fulfillment.
• Save time and reduce complexity in order fulfillment.
CONS:
• Amazon’s Storage fees changes often.
• Picking, Packing and shipping fees are known to be unpredictable meaning costs can add up
quickly.
• No customization packaging offered by Amazon for brands want impression on customers.
• No access to inventory, Amazon may move it without intimation.
WAYS TO IMPROVE MULTI-CHANNEL
IMPROVEMENT
4 Ways to improve the Multi-channel IN FUTURE
fulfillment improvement process in
the future are listed below:
1. Balance multichannel and store-
based logistics operations needs
2. Integrate multichannel demand
forecasts with supply chain
execution.
3. Create visibility toward unit level
inventory with suppliers.
4. Align supply chain execution
metrics
Reference: Aberdeen Group –
titled “State of Cross-Channel Retail
Supply Chain Execution”
MANUFACTURING
LOGISTICS
 Manufacturing logistics refers to the planning, implementation, and
control of the movement and storage of raw materials, work-in-
progress inventory, and finished goods within a manufacturing
MANUFACTUR environment. It involves managing the flow of materials and
information to ensure efficient production processes, timely delivery
ING of products, and optimal use of resources such as manpower,
equipment, and facilities. This includes activities such as
LOGISTICS procurement, transportation, inventory management, warehousing,
and distribution, all aimed at meeting customer demands while
minimizing costs and maximizing productivity.
BEST PRACTICES IN MANUFACTURING LOGISTICS

• Lean Manufacturing
• Efficient Transportation Strategies
• Advanced Forecasting Strategies
• Automation and Robotics in Warehousing
ROLE OF MANUFACTURING LOGISTICS IN
PRODUCTION
Manufacturing logistics plays a crucial role in production by managing the flow of materials, components, and
finished products throughout the manufacturing process. It ensures timely delivery of raw materials to
production lines, optimizes inventory levels, and coordinates transportation to minimize costs and meet
production schedules. Effective manufacturing logistics also involves streamlining processes, reducing lead
times, and improving overall efficiency, thereby enhancing productivity and competitiveness in the market.

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KEY COMPONENTS OF MANUFACTURING LOGISTICS

• Supply Chain Management

• Inventory Management
• Production Planning and Scheduling
• Transportation and Distribution
For Example TechWorks efficiently manages its
manufacturing logistics through global supply chain
sourcing, streamlined inventory management, advanced
production planning, and transportation logistics.
Strategic warehousing locations ensure rapid distribution,
while rigorous quality control measures maintain product
standards. Additionally, TechWorks implements a robust
reverse logistics system for handling returns and
recycling. Overall, these components optimize operations,
reduce costs, and improve customer satisfaction.

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EXAMPLE OF EFFECTIVE MANUFACTURING LOGISTICS

For Example just-in-time (JIT) system used by Toyota.

Toyota minimizes inventory storage costs and waste by
ensuring that materials arrive exactly when they are
needed for production. This system reduces lead times,
improves efficiency, and streamlines the manufacturing
process, leading to cost savings and increased
productivity. Additionally, Toyota's use of Kanban, a
visual signaling system, helps manage inventory levels
and ensures smooth production flow. Overall, this
approach optimizes resources and enhances the
competitiveness of the manufacturing operation.
https://www.investopedia.com/terms/j/jit.asp

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THANK
YOU!!