LOGISTIC AND ITS STATERGIES

Presented by L.A.ASHOK VIVEK BOSE

Logistics = Supply + Materials management + Distribution

The Role of Logistics

Suppliers

Distribution Manufacturing

Logistics
Trade & Consumers

& Sales

LOGISTIC MIX AND ITS FUNCTION

LOOKING BEYOND BASIC

LOGISTIC TODAY COVERS Responsiveness Reliability Rationalization Relationship

Logistic strategy
When a company creates a logistics strategy it is defining the service levels at which its logistics organization is at its most cost effective. Because supply chains are constantly changing and evolving a company may develop a number of logistics strategies for specific product lines, specific countries or specific customers.

Key components of Logistics Strategy

Customer Service STRATEGIC Channel Design Network Strategy

S T R U C T U R A L
Warehouse Design & Operations Transportation Management Materials Management

F U N C T I O N A L Information Systems Organization & Change Management I M P L E M E N T A T I O N Policies & Procedures Facilities & Equipments

Customer service
Pre-transaction phase
order status information customer complaints, returns customer education and training

Transaction phase
delivery of goods order convenience product substitute

Post-transaction phase
after sale service Customer education and training

Channel Design and Network strategy

Manufacturer Customer Manufacturer Retailer Customer Manufacturer Wholesaler Retailer Customer Manufacturer Agent Wholesaler Retailer Customer ---- > ex: ITC

WAREHOUSE
FUCTIONS
CONSOLIDATION BREAK-UP CROSS DOCKING

SITE SELECTION IS VERY IMPORTANT

Transportation Mode Selection

Larger Shipments Slower

Shipment Size

Smaller Shipments

Speed

Faster

Ship

Intermodal

Rail

Truckload

LTL

Parcel

Air Premium

Less Expensive Slower More Expensive

Transportation Cost Service Cost Inventory Cost

More Expensive Faster Less Expensive

MATERIAL MANAGEMENT

Implementation

Information Systems

Organization & Change Management I M P L E M E N T A T I O N Policies & Procedures Facilities & Equipments

Implementation Level
Information system is used to support logistics*vital* Policies & procedures to guide day-to-day logistics operations Installation & maintenance of facilities & equipment Organization & people issues*vital*

Logistics Information Systems

Decision Support System Leading-Edge Application Software Reengineered Logistics Processes Timely & Accurate Data Capture

Strategic Logistics Planning Process

Steep 1: Visioning
Corporate Strategy Customer Requirements External Control Logistics Vision Sessions
Customer Service Requirements Strategic Direction & Requirements for Logistics Strategic Alternatives & Focus Final Logistics Plan

External Focus

Strategic Logistics Planning Process

Step 2: Logistics Strategy Analysis
Customer Service Channel Design Network Analysis Warehousing Transportation Materials Management Organization Systems

Strategic Logistics Planning Process

Step 3: Logistic Planning
Mission & Goals Programs Activities Timetable Responsibility Measures

Strategic Logistics Planning Process

Step 4: Managing Change
Visible Plan A champion in the management ranks Training & coaching

THANK YOU