string(5077) ‘ Strategies Mix was formulated by simply Martin Captain christopher • Covers the following functional areas – Inventory Control – Packaging – Warehousing – Vehicles – Information flow 20 , Strategies – A method Concept • The objective of logistics is to help the circulation of elements across the supply chain associated with an enterprise so the right system is available at the ideal place at the right time, price effectively • This is feasible only when all logistics functions are working as a unified system to achieve prevalent goals 1 Logistics Functions • Logistics is the process of movement of materials , goods through the supply string of the company • This process consists of numerous functions • Each of the features have to be correctly managed to bring about effectiveness , efficiency in the supply chain • Main Logistics functions are – Material Managing , – Order Digesting Storage – Inventory Administration – Logistical Packaging – Warehousing – Information – Transportation twenty-two , Strategies Functions 23 , Strategies Functions
Buy Processing • Starts when a purchase order is placed by a customer on the provider • Includes the following activities – Purchase checking for any deviations in agreed or perhaps negotiated terms – Prices, payment , delivery conditions – Checking the availability of components in stocks and shares – Materials , Development scheduling to avoid shortages – Acknowledging the order, implying deviations, in the event any twenty four , Logistics Functions Purchase Processing • In huge organizations – Usually thousands of orders happen to be received per day – The essential to develop an order processing program capable of handling these kinds of voluminous assist minimal human being intervention your five , Logistics Functions • Inventory Management – Can be maintaining the requisite amount of stocks to satisfy customer requirements simultaneously guaranteeing minimal having cost – In the general supply cycle, inventory costs indirectly chews profits as a result of inventory carrying costs – Average products on hand carrying costs varies from 10% 25% in the total products on hand per year – Two approaches to Inventory managing • Expense approach • Customer satisfaction dua puluh enam , Logistics Functions Inventory Management – Businesses make an effort to strike a balance between these two methods – With improvements in infrastructure , communication, organization firms happen to be adopting JIT techniques 28 , Logistics Functions • Warehousing – Storage place where completed goods are stored right up until they are delivered to point of sales – Location of warehouse impacts the ability of the firm to offer desired amount of customer service – Effectiveness of the organization’s online strategy depends on producing the right decision about storage 28 , Logistics Capabilities Warehousing – In Strategies, warehousing is known as a key decision area involving following decisions • Site of warehousing facilities • Number of warehouses • Size , layout of stockroom • Title of storage place 29 , Logistics Features • Travel – Goods have to be moved from supplier to purchaser through diverse transportation settings – Based on infrastructure of country / region, particular mode of transportation is selected – Usually pertaining to low benefit products transport cost is 20% of item cost – Is very critical for perishable merchandise such as dairy, ice-creams 0 , Logistics Functions • Transportation – Common ways are highway carriers, railways, airways, ships, pipelines , ropeways – Key decisions involved in Transportation is if the firm include its own fleet or get outsourcing\? – Choice of Transportations depends on reach, investment required, operating costs, expertise , reliability – Firms decide on the function with the best possible cost beneath given product-market conditions thirty-one 31 , Logistics Features Material Controlling , Storage space – Acceleration of inventory movement through the supply string depends on the material handling methods – Inappropriate methods of materials handling could lead to product damage and delayed deliveries, resulting in incidental expenses – Mechanisation , automation in material handling improves productivity of logistics system 32 , Logistics Capabilities • Materials Handling , Storage – Considerations to get material handling are amounts to be managed, speed required for material activity and level of ervice being offered to the customer – Choice of storage system should increase space usage \(floor and cubic\) inside the warehouse – Material handling system will need to support the storage program for quick movement \(storage , retrieval\) of goods out-and-in of the factory 33 , Logistics Capabilities • Logistical Packaging – AKA Commercial Packaging – Differs from product packaging which is based on promoting objectives – Influences the efficiency of the logistical program – Takes on an important part in destruction protection, easy material controlling and storage space economy thirty four \. ‘
Strategies Chapter 1 Logistics Managing , Vinod V. Sople Contents • Introduction • Military beginning of Strategies • Explanations – Strategies – Logistics Management • The Wide Scope of Logistics (Only for your understanding. Not required intended for exam) • Logistics – A System Strategy – Logistics Mix • Logistics Features • 2. Scope / Activities of Logistics 2. Refer Vipul’s BMS Series Elements of Logistics , Supply Chain Managing by Vijay Kumar Bhatia 2 , Contents Inbound Logistics [Upstream Logistics] • Outbound Strategies [Downstream Logistics] • Making Logistics [Process as well as Operations as well as Production Logistics] • Distribution of Logistics Costs • Logistics in the benefit chain as well as Customer Benefit Chain • ** Worth , Added Role of Logistics • ** Strategies for Competitive Advantage – The 3C’s Concept • Four Sub-divisions of Strategies – Business Logistics – Event Strategies – Support Logistics – Military Strategies ** To get done from slides just 3 , Contents Strategies Interfaces – Logistics Software with Businesses / Manufacturing – Logistics Interface with Marketing – Logistics Program with Other Areas • Progression of Logistics Functions • Integrated Logistics / Integrative Role of Logistics • Barriers to Integration • Operational Goals of Strategies Management • What Causes Bad Logistics? • Customer Buy Cycle • Lead-Time four , Articles • Logistical Performance Cycle • Logistics Planning , Strategy • Logistical Proficiency • Objective of Logistics Management • Reverse Strategies • Strategies for Business Quality • Need for Logistics • Logistics Upcoming • References Introduction • Logistics – Originated from the Greek job logistikos , the Latina word logisticus – Means the science of computing or perhaps calculating – Usage may be traced back to the 17th century because it was probably used for initially by the France army – Is considered to obtain originated in the militarys’ need to supply themselves with forearms, ammunition and rations because they moved from their base to a forward placement 6.
. Introduction – Gained importance during Ww ii in armed service operations, masking movement of supplies, soldiers and gear • Recently Logistics has acquired larger meaning , is used running a business for the movement of raw material from suppliers to the companies and finally the finished goods to buyers • Also known as physical distribution 7 Armed forces Origin of Logistics The term “logistics” comes from the Greek adjective logistikos meaning “skilled in calculating” • The first management use of the term was in Both roman and Traditional times when there is a armed service administrative established with the title “Logista” • Usage could be traced to the seventeenth century when it was likely used for initially by the French army regarding an prepared military management science • The French still use the words logistique and loger • Logistics may be the lifeblood of any military 8.. Military Origin of Logistics • The manner in which any military is recognized with food , ammunition decides just how efficiently an army fights • The military activity called logistics most likely is as aged as battle itself • In the early history of person when the initial wars had been fought, every man was required to find his own foodstuff, stones, and knotted golf equipment • Each warrior was responsible for moving for his own food and firewood 9 , Military Source of Strategies Later, once fighters became a member of as groupings and fighting groups started to be larger, specific men centered on supporting practitioners by providing these people food and weapons • The men who have provided support to the fighters constituted the first logistics organization • There have been many wars which have been believed to have already been won or lost solely on the basis of advantages or disadvantages logistics managing, including the American War of Independence 15.. Military Origins of Strategies • Various famous military leaders such as Alexander , Duke of Wellington are thought to have been logistical conspirators • Napoleon Bonaparte famously stated, “an army marche on its stomach” • After Ww ii in the 1950s Logistics as a organization concept emerged 11 Definitions Philip Kotler defines Logistics as “Planning, implementing and controlling the physical flow of materials and finished items from level of origin to level of use to satisfy the client’s need at a profit” • The American Authorities of Strategies Management specifies Logistics because “The means of planning, putting into action , controlling the efficient, cost effective flow , storage of raw materials, in-process inventory, completed goods and related info from level of source to point of consumption for the purpose of contouring to consumers’ requirements” 12.. Definitions • Logistics is the function responsible for flow of materials coming from supplier to organization, through operations in the organization after which out to consumers • Martin Christoper says that “Logistics is essentially a planning procedure , an information based activity” • Philips Schary identifies logistics because “The corporate traffic cop”, directing the flow of material from origin, through creation and distribution, to the last customer 13.. Definitions – Logistics is usually not limited to manufacturing companies alone – Logistics is relevant to all types of businesses, government, NGOs, service related organizations such as schools, eating places, hospitals, financial institution, retail outlets and many others 14 , Definitions Logistics Management – Application of managing principles to logistics procedures for useful and economical movement of goods and staff – Is definitely an integrative process which optimizes the flow of materials , supplies via an organization , its operations to the customer – Is that element of Supply Cycle Management that plans, implements, and settings the successful, effective, ahead, and reverse flow and storage of goods, services, and related information between the level of origins and the stage of ingestion in order to meet customers’ requirements 15
The Broad Opportunity of Strategies Only for knowing about it. Not required pertaining to exam 16 Logistics – A System Principle • Within an organization business process – Starts with flow of elements from suppliers – Progresses to making – Through distribution channels reaches consumers • Each department may excel at all their respective features viz procurement, production , distribution nevertheless may not exceed as an organization • Causes – Deficiency of coordination – Departments go after different desired goals – Not one agency that coordinates these kinds of activities 17.. Logistics – A System Concept 18 , Logistics – A System Strategy • Concept of logistics is dependent on the system way • Movement of material via supplier to manufacturing plant to end customer can be considered a single string, ensuring efficiency , efficiency to achieve client satisfaction at most reasonable cost • Logistics recognizes that all actions of material motion across business processes – Are interdependent , need close skill – Should be managed as a system nineteen
Strategies – A System Concept STRATEGIES MIX • Logistics Combine was formulated by Matn Christopher • Covers this functional areas – Inventory Control – Packaging – Warehousing – Transportation – Information movement 20 , Logistics – A System Idea • The purpose of logistics is to facilitate the flow of materials through the supply sequence of an venture so that the right product is available at the right place at the best, cost efficiently • This is possible only if all logistics functions will work as a specific system to attain common desired goals 1 Strategies Functions • Logistics is a process of motion of elements , products across the supply chain of the company • This process contains various features • Each one of the functions need to be properly were able to bring about effectiveness , efficiency in the source chain • Major Strategies functions will be – Material Handling , – Order Processing Storage area – Inventory Management – Logistical Product packaging – Storage – Information – Travel 22 , Logistics Functions 23 , Logistics Capabilities
Order Control • Starts off when a po is placed with a buyer for the supplier • Consists of this activities – Order examining for any deviations in arranged or negotiated terms – Prices, repayment , delivery terms – Checking the accessibility to materials in stocks – Material , Production organizing to avoid shortages – Acknowledging the order, indicating deviations, if any 24 , Logistics Features Order Control • In large companies – Generally thousands of instructions are received a day – Its essential to devise an order digesting system capable of handling such extensive work with nominal human involvement 5 , Logistics Features • Products on hand Management – Is retaining the required level of stocks and options to meet customer requirements concurrently ensuring nominal carrying expense – In the overall supply chain, products on hand costs not directly chews earnings because of products on hand carrying costs – Common inventory carrying costs varies from 10% 25% of the total inventory annually – Two approaches to Products on hand management • Cost strategy • Customer satisfaction 26 , Logistics Capabilities Inventory Administration – Businesses try to achieve a balance between both of these approaches – With improvements in system , communication, business companies are using JIT techniques 27 , Logistics Capabilities • Storage – Safe-keeping place in which finished products are placed until they may be brought to point of revenue – Area of storage place impacts the power of a organization to deliver preferred level of customer support – Performance of an company marketing strategy is determined by making the best decision about warehousing twenty-eight , Strategies Functions Warehousing – In Logistics, warehousing is a crucial decision location involving subsequent decisions • Location of warehousing services • Quantity of warehouses • Size , layout of warehouse • Ownership of warehouse 30 , Strategies Functions • Transportation – Goods have to be moved by supplier to buyer through different transportation modes – Depending on system of nation / area, particular method of vehicles is chosen – Generally for low value products transportation value is 20% of product expense – Is incredibly critical for perishable goods such as milk, ice-creams 0 , Logistics Capabilities • Vehicles – Common modes will be road companies, railways, airways, ships, pipelines , ropeways – Crucial decisions involved in Transportation is should the company have a unique fleet or go in for outsourcing techniques? – Range of Transportations will depend on reach, expense required, working costs, knowledge , trustworthiness – Firms decide on the mode with optimum expense under given product-market conditions 31 thirty-one , Strategies Functions Materials Handling , Storage – Speed of inventory motion across the source chain depend upon which material managing methods – Improper ways of material controlling could lead to merchandise damage and delayed transport, resulting in circunstancial overheads – Mechanisation , automation in material handling enhances productivity of logistics system thirty-two , Strategies Functions • Material Handling , Safe-keeping – Factors for material handling happen to be volumes to become handled, velocity required for material movement and level of ervice to be offered to the customer – Choice of safe-keeping system ought to maximise space utilization (floor and cubic) in the warehouse – Material handling program should support the safe-keeping system intended for speedy activity (storage , retrieval) of goods in and out with the warehouse 33 , Logistics Functions • Logistical The labels – OTHERWISE KNOWN AS Industrial The labels – Varies from packaging which is based upon marketing targets – Affects the efficiency of the logistical system – Plays an important role in damage safety, ease of materials handling and storage space overall economy 34.. Logistics Functions • Information – Logistics is usually an information structured activity of products on hand movement through the supply chain – Information systems perform a vital role in delivering remarkable customer service – Involves use of IT equipment for information identification codes, gain access to, storage, examination and decision support 35 Scope as well as Activities of Logistics thirty six , Opportunity / Actions of Strategies In any business logistics consists of 3 phases – Incoming Logistics / Upstream Logistics – Operations / Method Logistics – Outbound Logistics / Downstream Logistics • In these several phases the entire scope or activities included in logistics happen to be? Procurement as well as Purchasing? Outward Transport? Inward Transport Physical Distribution? Managing Receiving? Recycling where possible, returns , Warehousing garbage disposal? Stock Control? Location? Buy Picking? Connection? Materials Managing 37 Inbound Logistics 35 , Incoming Logistics ALSO KNOWN AS Upstream Logistics • Consists of pre-production logistical activities that take care of getting materials via vendors • Manages the procurement circuit involving the subsequent tasks – Sourcing – Order Location – Vehicles – Receiving • Linked activities happen to be material controlling, warehousing, inventory control, delivery scheduling, obtaining, storing and so on • Factors such as delivery time, scale shipment, function of travel, inventory amounts have to be prepared 39 Outbound Logistics 40 , Outbound Logistics OTHERWISE KNOWN AS Downstream Logistics • Consists of post-production logistical activities that take care of syndication of done goods • Manages the delivery circuit involving the pursuing tasks – Order Getting – Purchase Processing – Order Completing – Travel • Linked activities happen to be order digesting, order stuffing, material handling, warehousing, delivery vehicle operations, scheduling, transportation etc • Factors including delivery time, size of delivery, mode of transport have to be planned 41 Manufacturing Strategies AKA Functions / Process / Production Logistics • The purpose of development logistics is to ensure that every single machine and workstation has been fed with the right product inside the right quantity and quality at the most fortunate time • Helps to ensure that the production resources , 4Ms are used effectively • Requires synchronizing the flow of fabric with the development processes • The concern is definitely not the transportation itself, but to reduces costs of and control the flow through value-adding processes and eliminate non–value-adding ones a couple of , Manufacturing Logistics • Manages the production cycle relating to the following responsibilities – Materials planning – In-house transport – Storage space – Packaging – Inventory management • Associated activities are in-house transport (transport of organic material towards the production range, transport of semi-finished goods to the next stage of development, transport done product for the stores), storage, packaging of products 43 43
Manufacturing Logistics • Production strategies is becoming essential with decreasing batch sizes allowing user’s demand to get fulfilled proficiently • Production Logistics must address the issues of monitoring and looking up which are attaining importance because of product basic safety and item reliability issues especially in the automotive and medical industries forty-four Distribution of Logistics Costs 45 , Distribution of Logistics Costs There are 3 categories of strategies – Inbound logistics – Process Logistics – Telephone logistics • Logistics costs are involved in all of the above categories • The largest costs are involved in outbound logistics • The element of transportation protects the largest part • The overall logistics cost as a percentage of revenue differs with product categories • Pertaining to FMCG products the logistics cost probably 30-40% from the sales value • Intended for high value hefty engineering things the logistics cost can be 5-8% from the sales value • With proper devices , controls, the logistics cost which can be borne by the customer can be reduced 46
Logistics in the Value Chain 47 , Logistics inside the Value Sequence • Concept of Value Cycle was developed by Michael jordan Porter • The Value String is composed of value activities and margin which can be achieved by these kinds of activities • Value actions are split up into two sets of activities – Primary Actions – Supplementary Activities twenty four , Strategies in the Worth Chain Primary Activities – Those actions which are fond of the physical transformation and handling of products , providers the organization gives to the customers – Includes the next categories • Inbound Logistics • Functions • Telephone Logistics • Marketing , Sales • Services 49 , Strategies in the Worth Chain • Secondary Activities – All those activities which in turn enable and support main activities – Includes this categories • Procurement • Technology Expansion • Hrm • Company Infrastructure 40 , Strategies in the Worth Chain The value chain supplies further insights on how strategies can bring about cost and service edge to the firm • The activities in the worth chain happen to be those actions that an business must perform in order to provide rewards or benefit to the customers • Two of the five primary actions are related to logistics: – Supplying recycleables, component parts , related services into the production collection (inbound logistics) – Taking care of the flow of done goods via end of production collection to the customer (outbound logistics) 51.. Logistics inside the Value String • Almost all activities have to performed in such a way that the total benefit generated by company is more than the quantity of its costs • The total worth of the business is determined by the full of its sales benefit whereas perimeter reflects the rewards • Hence companies must develop logistics capacities to attain price and support advantages 52 Value , Added Role of Logistics 53
Value , Added Role of Strategies • 4 principle types of economical utilities add value to a product or service viz – Type Utility – Time Energy – Place Utility – Possession Electricity • Generally, professionals credit – Production activities with providing form utility – Logistics activities with featuring time , place energy – Promoting activities with providing possession utility fifty four , Value , Added Role of Logistics
Type Utility • Refers to the value added to items through a developing, production, or assembly process • Outcomes when recycleables are merged in some predetermined manner to produce a finished product • at the. g. – A bottling firm brings together viscous syrup, water, and carbonation to make a soft drink – This simple process of adding the unprocessed trash together to produce the soft drink presents a change in development form that adds worth to the product 55 fifty five , Value , Added Role of Logistics
Type Utility • Certain logistics activities is form power • elizabeth. g. – Breaking mass and product mixing, which usually typically takes place at distribution centers, modify a product’s form by changing the shipment size and presentation characteristics – Thus, undoing a pallet of breakfast time cereal in individual consumer-size boxes gives form power to the product • Nevertheless , the two theory ways in which strategies adds value are place and period utility 56.. Value , Added Position of Logistics Place Energy • Logistics provides place utility simply by moving merchandise from production points to details where demand exists • Logistics extends the physical boundaries from the market area, thus adding economic worth to the goods • This addition to the economic worth of goods or perhaps services is called place energy • Logistics creates place utility mainly through vehicles 57 , Value , Added Part of Strategies
Place Utility • elizabeth. g. – Transporting farm building produce by farm areas to marketplaces where consumers need this kind of produce produces place electricity – A similar is also accurate when steel is relocated to a flower where the metallic is used for making another item • The industry boundary expansion added simply by place electricity increases competition, which usually brings about lower prices and increased item availability 58 , Worth , Added Role of Logistics
Period Utility • Refers to producing available services and goods not only in which consumers require them, although also at the time when consumers demand these people • Strategies creates time utility through proper products on hand maintenance and the strategic area of goods and services • e. g. logistics creates time electricity by having heavily advertised products and sale items available in retail stores at precisely the time assured in adverts 59
Value , Added Role of Strategies Possession Power • Control utility can be primarily made through the fundamental marketing actions related to the promotion of goods or providers • Period or place utility make sense only if demand for the product or service exists • Likewise possession utility cannot be acted upon unless some place energy are provided • Order happiness is the important and often final step to get meeting client requirements 0 , Worth , Added Role of Logistics • Logistics helps in creating period , place utilities in the product that satisfies consumers’ needs • In today’s competitive markets, the competitiveness of your firm is usually judged simply by how successfully , successfully it deals with creation of your time , place utilities to – Avail of sales opportunities – Create fresh opportunities pertaining to repeat revenue to the same customers 61
Logistics to get Competitive Benefits 62 , Logistics intended for Competitive Benefit • Principle formulated by Martin Christopher • 3Cs in business will be – Consumer – Company – Competition • Every 3Cs are very important , healthful for a business , the economy • A buying decision is always induced by a will need / desire experienced with a customer 63 , Logistics for Competitive Advantage Buyer: Whilst producing a ordering decision, Customer is attracted by value offered by a firm • Business: Tries to give a better supplying to the customer than competition by simply efficient , effective usage of its possessions • Competition: Ensures their assets will be almost comparable to industry other players in the same market • Therefore product difference in terms of product quality , cost is extremely difficult • Opportunity exists pertaining to Company to differentiate usana products , companies through remarkable logistics • When this happens, Consumer sees less expensive in Business products than Competition • This provides the Company with a method of beating Competition viz competitive advantage sixty four Four Sub-divisions of Logistics • In the 21st century, logistics must be viewed as an integral part of management , has several subdivisions – – – – Organization Logistics Military logistics Celebration logistics Services logistics • All of the 4 sub-divisions incorporate some common characteristics , equirements such as forecasting, scheduling and transportation • All four sub-divisions can be viewed in supply-chain framework viz upstream , downstream, several companies play a role in the overall accomplishment of businesses 65 , Four Sub-divisions of Strategies • Business Logistics That part of the source chain method that strategies, implements, and controls the efficient, powerful flow and storage of products, service, and related info from level of use or perhaps consumption to be able to meet consumer requirements? Armed service logistics The style and integration of all facets of support for the functional capability of the military causes (deployed or perhaps in garrison) and their tools to ensure openness, reliability, and efficiency sixty six , Four Sub-divisions of Logistics? Event logistics
The network of activities, facilities, and employees required to set up, schedule, and deploy the resources for a conference to take place also to efficiently take away after the function • Service logistics The acquisition, booking, and managing of the features / property, personnel, and materials to compliment and maintain a service operation or business 67 Logistics Interfaces • Logistics, by its characteristics, focuses on procedures that cut across traditional functions of any firm • Logistics extr�mit� in many essential ways to functional areas • Worth addressing are – Logistics User interface with Businesses / Making Logistics Extr�mit� with Advertising Logistics Interfaces with Other Areas 68 – – , Logistics Extr�mit�
Logistics Program with Operations / Manufacturing • Length of production works Balance financial systems of lengthy production runs against elevated costs an excellent source of inventories • Seasonal require Logistics , manufacturing has to be prepared to accept seasonal products on hand that begins to accumulate 2 – 3 months prior to season / event • Supply-side cadre Stocking sufficient supplies to make sure uninterrupted production is now a logistics function 69 , Logistics Extr�mit� Logistics Program with Procedures / Developing • Professional packaging Main purpose is usually unitization and protection in the product by damage , pilferage • Foreign , third party alternatives Several organizations are making agreements with third party or deal manufacturers to produce / put together some of the business’s products, a practice is usual in the meals industry 70 , Strategies Interfaces Strategies Interface with Marketing This place is studied with respect to Advertising Mix viz 4Ps • Product –
Product shape, weight, size , the labels affect the capability of the strategies system to go , transfer products Consequently the strategies manager should be consulted when ever marketing is definitely deciding product dimensions Marketing always will pay great deal of focus on product packaging Logistics manager has to be consulted the moment marketing is deciding presentation because the product with its packaging has to in shape inside logistical packaging 71 71 – – – , Logistics Interfaces Strategies Interface with Marketing • Place – The place decision refers to the distribution funnel decisions, which involves both distribution , ventures The kind of circulation channel chosen by promoting has an effect on strategies operations at the. g. Companies dealing only with bulk suppliers will have fewer logistics challenges in distribution than when dealing immediately with merchants. The reason is bulk suppliers order equally whereas retailers require smaller sized quantities more often 72 – – , Logistics Cadre Logistics Interface with Promoting • Promo –
When ever marketing ideas promotions to stimulate sales, logistics supervisor must be knowledgeable so that sufficient quantities of inventory are available at the place where consumers’ demand all of them Adjusting variety prices to accommodate shipment sizes for travel is important Amounts sold underneath different costs schedules will affect inventory requirements , replenishments 73 • Value – – , Logistics Interfaces Strategies Interface with Other Areas • Manufacturing and marketing are most likely the two most important internal functional interfaces with logistics • Other important interfaces today include finance and accounting – Logistics can have a key impact on go back on resources and return on investment – Logistics costs reported by cost systems measure supply chain trade-offs and performance seventy four Evolution of Logistics Function Before the 1955s, managers centered on the production function and methods to achieve effectiveness in production • Logistics was under a dormant condition in this period • Post World War II, in the 1950s businesses realized the value of logistics • Through the 1950s to and 1960s, applying new ideas of administration about business was obviously a tendency • Businesses started out focusing on the method of physical distribution of goods 75 , Evolution of Logistics Function • From the 1970s onwards, more and more applications and studies of logistics were started , came out in UNITED STATES • Due to petroleum price rise in 1973, the effects of logistics activities in enterprises grew Slow growth of market, pressure of high stagflation, release of transportation control, and tournaments of the under developed on products and materials all increased the value of logistics system in planning and business at that time • Personal computers and technology came old and were increasingly being utilized in business applications 76 , Evolution of Logistics Function • In the 1980s , 1990s economies of many countries including India were liberalized • This saw the growth of the positive effect and firm competition • Hence businesses started concentrating on global finding, manufacturing , distribution • Simultaneously 3PLs emerged 77
Advancement of Strategies Function • Today businesses realize – That sourcing, manufacturing and distribution will need to have a global perspective – Competition today is not in products although supply stores – Outstanding logistics can provide a competitive edge – Integration of supply string and flow of information is vital for excellent logistical functionality 78 Built-in Logistics 79 , Integrated Logistics • Information by , regarding customers flows through the organization in the form of product sales activity, forecasts , purchases • Information is then translated into developing and purchasing ideas • Unprocessed trash are in that case procured • Value addition takes place , ultimately brings about transfer of ownership of finished products to the customers • The integration is usually not limited to manufacturing companies by itself, the selling and wholesaling firms hyperlink physical division and purchasing since manufacturing can be not required 70 , Bundled Logistics Since shown in the figure, whole process can be seen with respect to two interrelated activities – Products on hand Flow – Information Movement Inventory Flow • Moves through 3 activities – Physical Syndication, Manufacturing , Procurement • These several activities incorporate to provide included management of fabric flow over the supply string 81 , Integrated Logistics Inventory Movement Physical Circulation • Links a marketing route with its customers facilitating the movement of a finished item to the desired location of a marketing channel • Needs a correct marketing work so as to enable desired products being shipped when and where necessary • Fulfills bjective of implementation of your energy and place resources Manufacturing • Concerned with handling work-in-process products on hand as it goes between the stages of manufacturing Purchase • Focused on purchasing , arranging in-bound movement of materials, parts thereby ensuring availability of materials/ assortments where and when necessary 82 , Integrated Strategies Information Circulation • Supplies integration inside the three functioning areas , physical distribution, manufacturing , procurement • Two key components of details flow are – Preparing , complementing flows – Operational moves 83 , Integrated Logistics Information Movement Planning , coordinating moves • Matching is the central source of information movement among supply chain companions • Deals with the following – –
Mother nature , Area of customers Necessary products , services coordinating to demands of customers Restrictions or bottlenecks within manufacturing facilities Choosing outsourcing requirements Requirements of logistical services based upon foretelling of MRP to back up manufacturing as well as procurement requirements 84 – – – – , Integrated Logistics Information Stream Operational goes • Reason for information movement is to provide detailed info required for incorporation of the 3 operating areas physical circulation, manufacturing , procurement • Deals with the subsequent – – – – Order managing and processing Procurement Products on hand management Transport and delivery 85 Obstacles to Integration
Factors that cause obstacles to supply chain integration happen to be • Firm Structure • Inventory Possession • Know-how Transfer Functionality • Dimension Systems • Information Technology eighty six , Obstacles to The use Organization Framework • Classic organization buildings are not in a position of putting into action any cross-functional processes • Traditional firm structures break down authority , responsibilities according to efficient work just like inventory control, warehousing or perhaps transportation etc . • These functional areas focus on achieving excellence within their functional areas • This hinders the aim of integration attained by cooperation between functional areas • Effective integration of logistics requires a structure that facilitates cross-functional coordination 87 , Barriers to Integration
Inventory Control • Traditional approach to products on hand is to keep adequate inventory for meeting demand and protection against uncertainness • Availability of inventory is beneficial because it facilitates long development runs leading to economies of scale • Such benefits have related costs • Critical to understand the cost-benefit relationship and risk involved with incorrectly located / out of date inventory 88 , Obstacles to The usage Knowledge Copy Capability • Every firm is a knowledge-base where-in expertise has been created through activities • Focus of this know-how strengthens the organization • For the employee leaves or retires this expertise is lost • A large number of organizations fail to develop procedures , systems for shifting cross-functional know-how • Unless this expertise is moved, a strong buffer is created pertaining to integration 89 , Boundaries to The use
Measurement Devices • Traditional measurement systems which are a great out-come of traditional firm structures also make coordination difficult • Hence more recent measurement devices must be created Information Technology • I. Big t. is the key source of achieving the use • Levels of technology implemented must reveal information else existing applications act as a barrier to integration 85 Operational Goals of Strategies • Functional objectives of logistics are definitely the primary determinants of logistical performance • Include – Rapid Response – Minimal Variance – Minimum Products on hand – Movements Consolidation – Quality – Life cycle Support 91 , Detailed Objectives of Logistics Fast Response • Is the business ability to interact to customer on a shipment-to-shipment basis in a timely manner • Developments and advancements in I. T. ave elevated the capability to postpone logistical operations right up until the latest likely time , then accomplish rapid delivery of essential inventory • Results in eradication of abnormal inventories traditionally stocked pending customer requirements 92 , Operational Goals of Logistics Minimum Difference • Variance may result because of the following – – – Delay in expected moments of customer buy receipt An unexpected disruption in production Items arriving in damaged state at a customer’s area Delivery to the incorrect location – • Traditionally the variances were minimized by means of safety share or high cost transport which will ensured rapid delivery • In modern times My spouse and i. T. since helped minimize variances 93 , Functional Objectives of Logistics Bare minimum Inventory • Traditionally inventory involved asset commitment and relative proceeds • Asset commitment =>, the monetary value from the inventory used in the total logistical system • Yield AKA convert velocity =>, the rate of inventory usage over time • A high yield along with inventory supply rate imply that inventory property are getting effectively utilized • On account of JIT and lean manufacturing the concept of no inventory can be popular • Hence constant efforts are made to minimize inventory in the supply chain 94 , Functional Objectives of Logistics
Movement consolidation • Is concerned with transportation costs • Transport costs are directly associated with – Sort of product – Size of shipment – Range • Since transportation costs are substantial, movement debt consolidation must be done to minimize costs =>, larger the complete shipment , longer the length it is transferred, lower the transportation price per device 95 , Operational Goals of Strategies Quality? Constant efforts should be made to boost quality of logistical services When quality of logistical service fails, the logistical performance should be reversed , the repeated again This can be further challenging by the reality logistical functions are performed over a large geographical area, at all times of day , night Reworking a customers’ order resulting from incorrect transport is far more high priced than carrying out it correct the first time ninety six??
Operational Objectives of Logistics Your life Cycle Support / Customer care? Situations where-in flow of products , companies is reversed viz invert logistics Usually happens during product recollect Reasons for product recall – – – –? Item expiry Item defects Laws prohibiting disposals Recycling of containers , packaging elements 97? Your life cycle support means cradle-to-cradle support What is causing Bad Strategies? Causes of poor logistics • Infrastructure – Bad street conditions – Inefficient railway services – Poor conversation facilities – Congestion by ports – Poor material handling features • Taxation – elizabeth. g. Octroi 98 , What Causes Awful Logistics?
Factors behind bad strategies • Info – Inadequate information because so many firms do not pay thanks attention to info integration • Management – Improper understanding of logistics – Poor bureaucratic decisions 99 Customer Purchase Cycle • The customer order cycle contains all techniques directly involved with receiving and filling the customer’s purchase • Typically, the customer initiates this circuit when the consumer feels the need for certain merchandise and locations an order with the dealer • The cycle depends on the receipt of the order and ends when the buyer receives the order • The pattern primarily requires filling customer demand 75 , Consumer Order Pattern Following activities are involved in the client order routine • Purchase preparation • Order transmittal • Buy entry • Order completing • Purchase status confirming 101 , Customer Order Cycle
Steps in the customer order cycle • The customer starts this pattern when the client feels the need for certain item and locations an order with the provider • In receipt of the order, the supplier functions the following investigations – Variety is available in inventory – If perhaps not available, commence its development – Customer’s credit is satisfactory • Order receipt acknowledgment is given to buyer 102 , Customer Purchase Cycle Stages in the customer order cycle • Picking , packing guidance are given to warehouse – When product has been taken out of inventory and transportation continues to be planned, bill is prepared • Products are carried and sent to the customer • Customer certifies the invoice of products with respect to quality , quantity • As far as possible the above actions should be digital to reduce errors 103 Lead-Time With reference to SCM, lead-time – Is the period taken from the moment the customer areas an in an attempt to the moment the order is definitely received by customer – Time taken up convert a great order to funds • In the event finished items stock is usually not available, then simply lead period would be the period it takes to manufacture and transport the products • Lead-time would also depend on the nature of the product – Items which are often made-to-stock goods, the lead-time may be several hours or just a couple days – Larger order of custom made parts may possess a leadtime of several weeks if not really months 104 , Lead-Time • Lead-time is a quantity of the pursuing three elements – Assessment time Comes with the time required for order reception, checking in the event ordered method available in inventory – Manufacture time In case the ordered method not available in stock, the product must be created – Transportation time Period taken pertaining to the shipment to reach the customer • Companies always looks for ways to improve lead-time • A low lead-time can be a method to obtain competitive advantage 105 Logistical Performance Cycle
Procurement Routine Manufacturing Support Cycle Physical Distribution Routine 106 , Logistical Functionality Cycle • Integrated logistics can be examined by means of performance cycle • The efficiency cycle offers the interface , link required to build a built-in logistical system • The logistics efficiency cycle is a basic unit of supply chain design and style and detailed control • The functionality cycle signifies elements of job necessary to complete the logistics related to consumer accommodation, manufacturing or purchase • Inside the performance cycle, suppliers, the firm and its customers happen to be linked collectively by communication , transport 07 , Logistical Efficiency Cycle • The service locations that performance pattern link collectively are called nodes • Function related to strategies occurs at nodes • A overall performance cycle also requires products on hand which consists of base inventory and security stock • The input to a performance cycle is an order that specifies requirements for a product or material • Output from the performance routine is standard of performance expected from the logistical operation 108 , Logistical Performance Circuit • The performance pattern comprises of three cycles – Physical Division Cycle – Manufacturing Support Cycle – Procurement Routine 109 , Logistical Performance Cycle
Physical Distribution Efficiency Cycle • Physical circulation operations consists of processing and delivering buyer orders • Activities performed in the physical distribution functionality cycle are as displayed in the number below • Physical distribution is crucial to promoting , product sales performance since it provides regular and cost effective product availability • Physical distribution works with manufacturing , marketing one hundred ten , Logistical Performance Routine Physical Distribution Performance Pattern • Conflict between promoting , manufacturing Marketing – Focuses on delighting customers – Would like to keep a broad products with substantial inventory levels, regardless of their impact on earnings Manufacturing – Constantly searches for sources of price control and standardization – Desires long stable creation runs – Prefers a narrow type of mass-produced products • Usually inventories are maintained to fix this turmoil 111 , Logistical Performance Cycle
Physical Distribution Overall performance Cycle • Since physical distribution circuit deals with client requirements, the related procedures are more irregular than developing or procurement cycles • Ways to reduce physical circulation operational difference – Improve accuracy of forecast – Improve buy management , coordination with customers – Have versatile , responsive cycle 112 , Logistical Performance Circuit Manufacturing Support Performance Pattern • Gives production strategies • Located between physical distribution , procurement businesses • Quite simply, supports what, where and when of the production and not how • Activity , storage area of product, material , semi-finished parts , pieces between the organizations’ facilities represent the responsibility of producing support logistics • Logistical operations will be restricted to – Dock-to-dock activity within the organization – Any kind of intermediate storage point – Finished goods are allotted and sent to facilities or straight to customers 113
Logistical Performance Cycle Manufacturing Support Performance Pattern • Pertaining to finished items movement, physical distribution can be initiated • Manufacturing support logistics will not deal with because uncertainty in comparison with procurement efficiency cycle , physical distribution performance cycle • Highlights of manufacturing support performance routine – Initiates the purchase of pieces , elements at the time , place necessary – Businesses are restricted to movement in the firm’s establishments – Following completion of manufacturing cycle, the finished merchandise inventory can be allocated , transported directly to customers or to warehouses 114 , Logistical Performance Circuit
Procurement Functionality Cycle • Activities involved in the procurement procedure are while shown in the figure • Operations performed as is also aware as inbound logistics • Objective is always to perform incoming logistics for lowest cost • Deals with a far wide variety of materials when compared with manufacturing performance cycle , physical division performance cycle 115 , Logistical Performance Cycle Purchase Performance Pattern • Procurement often requires large shipments which needs use of large vessels just like barges, boats, truck a lot etc on account of which purchase cycles are longer • Critical problems in purchase are uncertainness due to price change and / or supply discontinuity 116 , Logistical Performance Cycle
Lowering performance circuit uncertainties Performance cycle questions can be reduced by • Use of EDI • Monitoring daily change in workload • Human resource availability • Accessibility to specialized materials handling gadgets • Ensuring consistency in operations 117 Logistics Organizing , Strategy • Logistics planning attempts to answer problem of what, when , how • Logistics preparing is done in three amounts strategic, trickery , procedure • The difference is definitely the time �cart of planning, which requires a different perspective • Tactical Planning Long range, time horizon more than one year • Trickery Planning Moderate range, period horizon lower than 1 year • Operational Organizing Short range decision making, decisions frequently produced on an daily / hourly basis 118 , Logistics Planning , Strategy 119 Logistical Proficiency?
Logistical competency is a great assessment of a firm to supply competitively superior customer service at lowest possible cost you a firm can achieve logistical proficiency by matching and improving the level of efficiency of the next activities – Network design – Information – Travel – Inventory, Warehousing, Material Handling , Packaging one hundred twenty? , Logistical Competency Network design? Involves deciding the no . , type of features required, their particular geographic places , the effort to be performed at each facility Logistics facilities typically consist of manufacturing plants, facilities, cross-dock functions, and stores Network design is responsibility of logistics managers as a firm’s facilities are accustomed to provide products , solutions to consumers Network design and style determines the kind of the products on hand and the amount to be stored at each service, and the determining of client orders for shipment 121?? , Logistical Competency Network design?
The first step towards obtaining competitive benefit lies in superior network design, as the actual competition can be not among two businesses but between efficiency , effectiveness in managing their particular supply sequence network Details? Present day technology is capable of handling one of the most complicated details requirements? Forecasting , purchase management will be two areas that rely upon information Top quality , timeliness of information are key elements in logistical operations 122? , Logistical Competency Transport? Transportation geographically positions products on hand where it can be required? Transport can be obtained in three ways – Exclusive: A rivate fleet of cars operated by simply Private the firm – Contract: A strong may enter into a contract using a Contract transport firm – Common Carriage: The services of distinct Carriage firms may be interested on an person shipment basis 123 , Logistical Competency Transportation? Factors affecting vehicles performance Expense of transportation – The cost of shifting material among geographical locations Speed of transportation – The time required for moving material between geographical locations – Transport organizations capable of moving fast usually fee higher – Faster the transportation, decrease the required levels of safety share Consistency – Is the reliability of transportation – Decrease the regularity, larger the necessary safety share to protect against capricious service 124 , Logistical Competency Inventory?
Objective is always to achieve preferred customer service with minimum products on hand , lowest possible cost Increased inventories could possibly be helpful in paying for deficiencies in network design but in the end result in higher total logistics cost The best practice of inventory management is always to achieve optimum turnover whilst satisfying customer support levels Items needs to be warehoused at chosen times Actions carried out in a warehouse happen to be sorting, break-bulk, assortments, combining, consolidation, postponement, order collection , occasionally product adjustment and assemblage? Warehousing, Material Handling , Packaging? a hundred and twenty-five , Logistical Competency Storage, Material Managing , Product packaging? Within the warehouse, products should be received, transferred, sorted, and assembled to meet customer purchase requirements as well as for these actions material controlling is required Material handling should be used for successful loading and unloading of goods Products loaded in cans, bottles or perhaps boxes will be handled more efficiently when combined into larger units including Master Planisph�re Master models can even more be consolidated into significant units including pallets, storage containers etc?? 126 Mission of Logistics Managing Logistics of the firm is definitely an integrated effort aimed at aiding create customer value for lowest possible price • Logistics exists to satisfy customer requirements by facilitating the business’s manufacturing , marketing procedures • Logistics Management is involved with providing to the customer the specified service level at the most reasonable cost • To achieve this, the firm must plan , co-ordinate almost all its several activities • This is the mission of strategies management • Hence logistics can be viewed as a hyperlink between the industry (customers) and the various business operations 127 Reverse Logistics Definition? Invert logistics is definitely the process of remembering products by sales funnel partners or consumers Invert logistics is definitely the process of shifting goods from other final destination to their sources with regards to proper disposal or stocking or remanufacturing and refurbishing or product recall or capturing benefit? 128 , Reverse Strategies In reverse logistics, the product should go at least one take a step back in the source chain – A product recollect is a request to return to the maker, a batch or perhaps an entire development run of the product, generally over basic safety concerns or design flaws or labels errors – Whatever the factors behind reverse strategies, costs of moving goods over the invert logistics route is very excessive – Research have shown that the average of 4% to 6% of most retail acquisitions are delivered, costing the industry about $40 billion per year 129 , Change Logistics A Model of the Environmental Forces Influencing Reverse Logistics Activities 135 , Change Logistics Reasons / Dependence on reverse strategies • Strict environmental laws that power firms to consider back their products for correct disposal • Strict laws making ecycling mandatory • Damage in transit • Product recalls – This year Apple were recalled Iphone4 more than signal complications – In perhaps the largest product recall in India, Nokia were recalled 46 , 000, 000 BL-5C mobile phone batteries • Product expiration • Error in order finalizing by dealer • Exchange of new product for an old product • Return of unsold items such as loaf of bread, medicines, clothing etc 131 , Change Logistics Drivers of Change Logistics • Quality • Cost • Law Quality • Quality of material has to be ascertained before it can be shifted through the invert logistics route • Ideal facilities can be required for this kind of purpose • If top quality of material can be poor it might not be worthwhile incurring further costs in going goods within the reverse logistics channel 132 , Reverse Logistics
Motorists of Change Logistics Price • Generally drives the transportation decision for reverse logistics • Little attention is paid out to the support level given by the travel mode selected or particular carrier employed • Rail is often picked over engine carriage to get surface transportation – Rail can handle substantial volumes of low-value, hefty material more cheaply than motor carriage • Severe pressure to reduce costs likewise affects selection of facility location 133 , Reverse Strategies Drivers of Reverse Logistics • Rules – Government regulatory government bodies can need compliance with environmental criteria – Government authorities and consumers demand “environmentally conscious” goods , companies – This kind of causes firms to put into action reverse strategies processes 134 , Invert Logistics The achievements of reverse strategies depends upon the efficiency of following factors • Product Location • Product Collection System • Recycling / Disposal Centers • Documentation System one hundred thirty five , Reverse Logistics
Merchandise Location • For product recall it is necessary to identify the product location inside the physical distribution system of the firm • For this purpose companies implement tracking , looking up capabilities • It is difficult to , find products in case of consumer goods but much easier in case of industrial goods Merchandise Collection Program • Following your product position is discovered, product collection is to be performed through business field power or 3PL • 3PL’s themselves understand 12-15% income on the organization of change logistics 136 , Change Logistics Recycling where possible / Disposal Centers • This may be business plant, warehouse or any various other location • Called back products must be inspected ahead of recycling or perhaps disposal etc Documentation Program • Correct documents should be maintained at each level, this may help in doing a trace for the product position 137 Logistics for Business Quality 138 , Logistics for Business Excellence In every organization, regardless of big or small, there is certainly material motion from dealer to the producer and then to customers • Logistics can be an information based process of taking care of this activity of material • Involves 3 distinct pieces – Incoming Logistics – Operations Strategies – Outbound Logistics 139 , Strategies for Business Brilliance • These operations require several activities such as getting, inward transfer, receiving, storage, order finding, materials controlling, outward travel, information circulation etc • The integration of those operations and activities is likely to make the business run as a string rather than isolated process elements • For people who do buiness excellence, right integration between the logistics pieces • The efficiency , effectiveness of the business as a whole depends on just how individual activities get matched and act as a system 150 , Logistics for Business Superiority Integrated strategies requires a close coordination between inventory flow , info flow • For a producer inventory stream – Starts when raw material is shipped from distributor to their manufacturing centre – Ends with delivery of completed product to customer • For a dealer inventory movement – Starts after the material is sent from the company or wholesaler – Ends with delivery of merchandise to client 141 , Logistics for Business Excellence • The volume , type of logistic activity differs with the size of the source chain, item category , volume of organization • No matter what type of business , mess of logistic activity, in the commercial process, there may be continuous value addition each and every stage • Logistics supports the value creation process and hence it requires constant management focus • Pertaining to focused attention, logistics activities can be extensively divided into 3 areas of functions, logistics needs of each area are quite diverse 142 , Logistics for people who do buiness Excellence Three broad areas requiring supervision focus will be – Purchase – Finalizing / Businesses / Manufacturing – Distribution 143 , Logistics for people who do buiness Excellence Purchase • OTHERWISE KNOWN AS buying or perhaps purchasing activity • Comes under grasp of inbound logistics • Material movements from distributor to customer • Entails materials including components, parts , consumables required for production • Interested in availability of materials before commence of manufacturing activity • Strategies activities thus include vehicles , safe-keeping • To save on carrying costs, smaller lot sizes happen to be planned • However , with an increase of cost of vehicles, freight fees may increase, thereby offsetting any financial savings on having costs 144.. Logistics for people who do buiness Excellence Distribution • Comes under grasp of telephone logistics • Concerned with availability of materials at the place , time wherever they are required by buyers • Vital for corporation so as to enable it to encash about sales opportunity • Material maybe required at different places in the distribution stations • Dependence on each funnel may vary when it comes to quantity, item variety, time of delivery, consistency of delivery, transportation and so forth • Telephone logistics guarantees movement of material as per the requirements at the right place, at the right time at minimal cost one hundred forty five , Strategies for Business Excellence
Processing • AKA procedures or manufacturing • Comes under purview of procedures logistics • Concerned with movement of in-process or work-inprogress inventory • Concerned with availability of materials on the place , time where they are required for manufacturing • Takes care of movements of material according to requirements of internal buyer • Amount of uncertainty is generally low since manufacturing businesses are underneath the control of the organization 146 , Logistics for people who do buiness Excellence • The prime goal of built-in logistics should be to coordinate strategies activities inside the three important operation areas of procurement, digesting and distribution • This is achieved by coordinating inventory activity across the supply chain • This leads to system efficiency and effectiveness, thus providing a competitive advantage and business excellence • In today’s globalized world, companies supply products beyond their particular national restrictions wherever there is also a market opportunity 147 , Logistics for Business Excellence In this scenario, businesses across the world strive to be competitive • Business organizations will be struggling not only for expansion but likewise survival • This has led to focus switching to including the operation areas of purchase, processing and distribution to never just deliver value to the customer but likewise gain competitive advantage • Logistics takes on a key role in the benefit delivery procedure 148 Significance of Logistics • The importance of logistics systems lies in the fact that it brings about ultimate happiness of the product sales contract • The buyer is not interested in the claims of the retailer that they can supply products at competitive prices nevertheless that he actually will so on a timely basis • Delivery according to the contract is essential to fulfilling the commercial and legal requirements • Better and timely delivery helps in getting repeat instructions through creation of goodwill for the supplier 149 , Importance of Logistics Powerful logistics system contributes immensely to – Creation of your time and place utilities in the items which can be useful for maximizing the significance satisfaction to consumers • The achievements of the business and promoting objectives of a firm • By ensuring quick deliveries in minimum time and cost, it relieves the customers of having excess inventories thus bringing down the cost of having inventory, material handling, travel and other related activities of distribution • Thus an efficient system of physical distribution / logistics includes a great prospect of improving customer care and reducing costs 150 , Importance of Logistics • Logistics features gained importance due to the following trends – Globalization – Rise in transportation cost – Increasing development efficiencies – Fundamental difference in inventory viewpoint – Technology developments – Increased usage of computers , technology – Increased community concern of items – Growth of several new, large price tag chains or perhaps mass goods with significant demands , very sophisticated logistics providers, bypass traditional channel , distribution – Economic de-regulation 151 , Importance of Strategies As a result of these kinds of developments, people at all levels of the organization believe and act in terms of bundled logistics • Efficient strategies systems throughout the world economy certainly are a basis intended for trade and a high lifestyle for all of us • Furthermore Logistics has obtained importance in international advertising for this reasons – Technological growth in the fields of information finalizing , conversation – Scientific development in transportation , material controlling – Companies are centralizing development facilities to find economies of scale – Most MNC organizations will be restructuring their very own production facilities on a global basis 152 , Significance of Logistics With the advancement of new technologies, managers can now upgrade sales and inventory preparing faster plus more frequently, and factories can easily respond with additional flexibility to volatile industry conditions – Product life periods are contracting , Firms that have absent all out to slash costs by looking at large scale set production regularly find themselves saddled with obsolete stocks and they are unable to come up with competitors’ new-product introductions – Product lines happen to be proliferating , More and more manufacturer product line variety is necessary to satisfy the growing range of consumer tastes and requirements, and stock levels in the two field and factory unavoidably rise 153 , Significance of Logistics Since today it is far from uncommon to find out companies create a product in a single country, manufacture it in another, and sell that to a third country, the complexities linked to global transact must be accounted for in building and handling supply cycle – The balance of electrical power in syndication chain can be shifting through the manufacturer to the trader • The above elements highlight the importance of Logistics 154 Strategies Future • Assignment one hundred fifty five References Video: http://www. youtube. com/watch? v=qDbnx6nLrQo=related Video: http://www. youtube. com/watch? v=Wlrf32iU9pc=1 http://en. wikipedia. org/wiki/Military_logistics http://en. wikipedia. org/wiki/Logistics http://www. artin-christopher. info/about/ http://www. gazettetimes. com/news/local/obituaries/article_b9a9848f-612a-5665-af70a32032f9b2e0. html • http://books. google. com/books? id=h1wg6KhurO8C=frontcover=Philips+b+Schary=bl=GmAi_n_mY9=h_ sF9Wlj0lCKSkdUIlQOlCFYfc=en=8ImyTe7oIc_xrQeFy8DIDQ=X=book_result=result esnum=1=0CBQQ6AEwAA#v=onepage=false • http://www. wpro. who. int/NR/rdonlyres/2A061C10-3D3B-408F-8103-7A8501A6EBC2/0/Logistics_unjlc. pdf • http://www. radford. edu/~cbienstoc/SCLM%20Logistics_Ch%202. ppt • http://www. businessdictionary. com/definition/logistics-management. html • http://en. wikipedia. rg/wiki/Logistics_Management Value added role of logistics • http://logmgt. nkmu. edu. tw/teaching/resource/logistics/What_Logistics_Is_20070911. doc Need for Logistics • http://www. mbaknol. com/logistics-management/importance-of-logistics-in-business/ • http://www. anandn
