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Singh
Aditi Chauhan
Anupriya
Kaveri Sapra
Nilanjan Biswas
Vikas Prakash
LOGISTICS
Derived from
Greek word Logistikos
Latin word Logisticus
10/21/16
PHASES
IN B O U N D
10/21/16
LOGISTIC
S
C
I
T
S
I
G
O
L
D
N
U
O
OUTB
PROCESS
LOGISTICS
LOGISTICS SUBSYSTEMS
W a r e h o u s i n g
Site Selection
Material Storage
Material Handling
I n v e n t o r y M a n a g e m e n t
Material Requirement
Planning
I n f o r m a t i o n F l o w
Tr a n s p o r t a t i o n
Order Registration
Route Planning
Order Checking and
Mode Selection
Editing
Ve h i c l e S c h e d u l i n g
Order Processing
of Management
I n v e n t o r y P l a nIndian
n i nInstitute
g Raipur
10/21/16
4
Warehousing
Transportatio
Inventory
Transportatio
Inventory
Mgmt
n
n
Mgmt
Insuranc
e
WAREHOUSING
Warehouse
a commercial building used for storage of
goods
Important Decisions
Location
Number
Size
Layout
Ownership
Need
Seasonal Production
Quick Supply
Continuous Production
Price Stabilization
Indian Institute of Management
10/21/16
Raipur
Seasonal Demand
Large Scale Production5
Warehousing
Transportatio
Inventory
Transportatio
Inventory
Mgmt
n
n
Mgmt
Insuranc
e
SEASONAL
PRODUCTION
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SEASONAL
DEMAND
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QUICK SUPPLY
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Indian Institute
of Management
Iron warehousing
- For
very short lead time10
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Raipur
PRICE
STABILIZATION
11
TYPES OF WAREHOUSES
CENTRALIZED/DECENTRA
LIZED
12
STRATEGIES
PUBLIC WAREHOUSE
PRIVATE
WAREHOUSE
CONTRACT WAREHOUS
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13
FUNCTI
ONS
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Storage of goods
14
FUNCTI
ONS
Processing of Goods
15
FUNCTI
ONS
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16
FUNCTI
ONS
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Indian Institute of
of Management
Sorting
Goods
Raipur
17
FUNCTI
ONS
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18
FUNCTI
ONS
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Protection
of Goods
Raipur
19
FUNCTI
RISK BEARING
ONS
WAREHOUSES TAKE OVER THE RISKS INCIDENTAL TO
STORAGE OF GOODS
RESPONSIBILITY OF THE GOODS PASSES ON TO THE
WAREHOUSE-KEEPER
GRADING
AND BRANDING
GRADING AND BRANDING OF GOODS ON BEHALF OF
THE
MANUFACTURER,
WHOLESALER
OR
THE
IMPORTER OF GOODS ON REQUEST
PROVIDES FACILITIES FOR MIXING, BLENDING AND
PACKAGING OF GOODS FOR THE CONVENIENCE OF
HANDLING AND SALE
ORDER PICKING
PROCESS OF REMOVING ITEMS FROM STORAGE TO
MEET A SPECIFIC DEMAND
BASIC SERVICE THAT THE WAREHOUSE PROVIDES FOR
THE CUSTOMER
Indian Institute of Management
10/21/16
20
Raipur ARE BASED AROUND THIS
MOST WAREHOUSE DESIGNS
FUNCTI
RISK BEARING
ONS
WAREHOUSES TAKE OVER THE RISKS INCIDENTAL TO
STORAGE OF GOODS
RESPONSIBILITY OF THE GOODS PASSES ON TO THE
WAREHOUSE-KEEPER
GRADING
AND BRANDING
ON BEHALF OF THE MANUFACTURER, WHOLESALER
OR THE IMPORTER OF GOODS ON REQUEST PROVIDES
FACILITIES FOR MIXING, BLENDING AND PACKAGING
OF GOODS FOR THE CONVENIENCE OF HANDLING
AND SALE
ORDER PICKING
PROCESS OF REMOVING ITEMS FROM STORAGE TO
MEET A SPECIFIC DEMAND
BASIC SERVICE THAT THE WAREHOUSE PROVIDES FOR
THE CUSTOMER
Indian Institute of Management
10/21/16
21
Raipur ARE BASED AROUND THIS
MOST WAREHOUSE DESIGNS
FUNCTI
RISK BEARING
ONSTHE RISKS INCIDENTAL TO
WAREHOUSES TAKE OVER
STORAGE OF GOODS
RESPONSIBILITY OF THE GOODS PASSES ON TO THE
WAREHOUSE-KEEPER
GRADING
AND BRANDING
GRADING AND BRANDING OF GOODS ON BEHALF OF
THE
MANUFACTURER,
WHOLESALER
OR
THE
IMPORTER OF GOODS ON REQUEST
PROVIDES FACILITIES FOR MIXING, BLENDING AND
PACKAGING OF GOODS FOR THE CONVENIENCE OF
HANDLING
AND SALE
ORDER
PICKING
PROCESS OF REMOVING ITEMS FROM STORAGE TO
MEET A SPECIFIC DEMAND
BASIC SERVICE THAT THE WAREHOUSE PROVIDES FOR
THE CUSTOMER
Indian Institute of Management
10/21/16
22
Raipur
HIGH
LOCATION ATTRACTIVENESS OF
WAREHOUSING
NCR
Connectivi
ty
Jaipu
r
Sura
t
Bangalo
re
Barod
a
Ajme
r
Nagp
ur
Vizag
Kolkat
a
Chenna
i
Hyd
Indor
e
Competitive
Intensity
Low
Medium
Ranc
hi
High
Ludhiana
LOW
Guwah
ati
Bhop
al
LOW
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TotalIndian
Cargo
Institute of Management
Raipur
Traffic
HIGH
Source: KPMG
In
23
Warehousing
Transportatio
Inventory
Transportatio
Inventory
Mgmt
n
n
Mgmt
Insuranc
e
Established : 1957
Warehouses : 470
Storage Capacity : 10.13MT
Personnel : 5,370
National Presence : 18 Regional Offices
Chandigarh, Delhi, Panchkula, Lucknow,
Jaipur, Patna, Kolkata, Raipur, Bhopal,
Bhubaneshwar, Hyderabad, Chennai,
Kochi, Bangalore, Mumbai, Navi Mumbai,
Ahmedabad, Guwahati
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24
10/21/16
25
Warehousing
Inventory
Mgmt
Transportatio
n
Insuranc
e
26
Warehousing
Transportatio
Inventory
Transportatio
Inventory
Mgmt
n
n
Mgmt
Insuranc
e
IMC Ltd
Indian Molasses Company Leading
Independent Bulk Liquid Storage
Company
One Stop Solution For Bulk Liquid
Storage Needs At Indian Ports
Capacity : 6, 80,000 cu.mts
Terminals : 13 major sea ports
Kandla, Mumbai, Jawaharlal Nehru Port,
Goa, Karwar, Mangalore, Cochin, Chennai,
Haldia, Kakinada, Vizag, Kolkata, Ennore
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27
Warehousing
Transportatio
Inventory
Transportatio
Inventory
Mgmt
n
n
Mgmt
Insuranc
e
IMC Ltd
Products
Petroleum
Petrochemicals
Edible Oil
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28
Warehousing
Inventory
Mgmt
Transportatio
n
Insuranc
e
Documentation Management
Solution to Business Corporations
Services
Document Collection
Data Processing
Document Verification
Storage
Image Processing
Search and Retrieval
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29
Warehousing
Inventory
Mgmt
Transportatio
n
INVENTORY
MANAGEMENT
Categories
Insuranc
e
Raw material
Work in progress
Finished goods
In Transit
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30
Inventory
Mgmt
Warehousing
Transportatio
n
Insuranc
e
10/21/16
Raipur
1.Reduced
Inventory
Levels
2.Eliminati
on of
stock
redundanc
y
Effect
1.
Computeriz
ed demand
analysis
2.
Production
of Base
colours
Indian Institute only
of Management
Re-engineered
High
Finished
Goods
inventory
Effect
Earlier
shades
be
anufactur
in all
viants
31
Warehousing
Inventory
Mgmt
Transportatio
n
I
J
Insuranc
e
Warehousing
Inventory
Mgmt
Transportatio
n
Insuranc
e
TRANSPORTATION
Transportation modes and mix
decisions
Roads
Rails
Airways
Water
Inland
Sea
Pipeline
Ropeways
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33
Warehousing
Inventory
Mgmt
Transportatio
n
Insuranc
e
TRANSPORTATION
Factors
Volume
Distance
Product Shape
Market Dynamics
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Networks
Point-to-Point
Multiple Delivery
Point
Trans-shipment Poin
Nodal Network
34
Warehousing
Inventory
Mgmt
Transportatio
n
Insuranc
e
TRANSPORTATION
Factors
Shape of product
determines the mode of
transportation
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35
Warehousing
Inventory
Mgmt
Transportatio
n
Insuranc
e
TRANSPORTATION
Networks
Origin
Destinat
ion
Point-to-Point Network
Origin
10/21/16
Destinat
ion
Warehousing
Inventory
Mgmt
Transportatio
n
Insuranc
e
TRANSPORTATION
Networks
Origin
Transshipment
Point
Local Area
Distribution
Destinati
on
Trans-shipment Points
10/21/16
37
Inventory
Mgmt
Warehousing
Transportatio
n
Insuranc
e
TRANSPORTATION
Networks
Multiple Pickup and
Road
Distribution
Port
Termin
al
Termin
al
Rail
Termin
al
Air
Termin
al
Termin
al
Nodal Network
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38
Warehousing
Inventory
Mgmt
Transportatio
n
Insuranc
e
TRANSPORTATION
Networks
Distribution Center
Distribution Center
Mother
Hub
Distribution Center
Distribution Center
39
Warehousing
Inventory
Mgmt
Transportatio
n
Insuranc
e
INSURANCE
Marine Cargo Insurance, National Insurance
Company Ltd.
Scope of Cover
Particular Average
General Average
Risk of wars and strikes
Extent of CoverProvided
Duration of Cover
War Risk, Strike Risk
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40
Warehousing
Inventory
Mgmt
Transportatio
n
Insuranc
e
INSURANCE
The New India Assurance Co. Ltd.
Marine Cargo Policy
Scope: inland transport, import and export
Marine Hull Policy
Covers loss or damage to ships, tankers,
bulk carriers, smaller vessels, fishing boats
and sailing vessels
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41
Warehousing
Inventory
Mgmt
Transportatio
n
Insuranc
e
Insurance
Bharti AXA
Smart Cargo Insurance policy
Covers loss or damage while
transported by rail, road, sea or air.
Stock Throughput Policy (Cradle to
Crave)
Raw material, WIP, Finished goods at
warehouse
Deals with risk of transit and storage
under a single policy
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42
CASES
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43
Inventory
replenishment approach
Focus on information flow
Transportation
Uses road transport and rail transport depending on which one is
cheaper and efficient
reverseauctions, where it asks on an average six to ten transporters
overall, thecompany works with about 20 main transporters across the
country to bidonline for a consignment.
Warehouse
work with CFAs to optimize stacking patterns
Uses FIFO
advanced stacking and racking systems for usingthem in areas where
the rentals are high. Vertical stacking used
Go green : encourages the warehouse owners- the CFAs-to use
natural lighting
Warehouse
Location
22 Warehouses
Major capital
cities
Transportation
Outsources
Consumer durables are seasonal
Restricted theft, misrepresentation and
counterfeiting by deploying Global Digital Logistics
System (GDLS)
Follow the hub-and-spoke model
Mobiles shipped by air price elastic
Inventory
Rolled out 12 Inventory Optimization solutions
Warehouse
Central DC - Noida and Ranjangaon
53 warehouses
Location of
EMS
Added 15 Electronic
Manufacturing Services
located near to central DC
to ensure components
reach the EMS companies
on time, location are
either
located near Pune or
Noida
plant
Dehradun
Roorkee
Rudrapur
Baddi
Noida
Kolhapur
Rajpura
Main
Plant
% of total
variety
% of annual
sales
Fast-moving
group(FMG)
33
22
88
Slow moving
group
117
78
12
Total
150
100
100
AMUL
Logistics
Collection centers located at over 15000
villages.
Milk is transported to more than 30
processing units via 1200 routes using Tank
trucks.
Raw milk Silos- tanks have capacities of 150000
liters approximately.
After processing the pasteurized milk is
then stored in the pasteurized milk silos.
This milk after being packaged and
sorted is then loaded onto the milk
Indian Institute of Management
10/21/16
Raipur
delivery
vans/Tank trucks.
50
rivate Warehousing
One warehouse in every state (C&FAs)
Inventory - JIT
Transportation
Outsourced SCM to third party logistics service
provider Radhakrishna Foodland
10/21/16
51
Inventory
Just in Time
Minimum delay in Placing and Getting
Pre-cooked Hamburgers kept under heat la
Products not sold are discarded
Hub and Spoke Model
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52
53
Warehousing
Regional Warehouses: Mumbai, Delhi, Bangalore,
Kolkata
No in-store warehouses
Inventory Management
Everyday Auto Replenishment
Lead Time for Replenishment 1 Day
Transportation
Delivery from Warehouse to Store by Distribution
Center
Mode: Trucks
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54
Quick Replenishment
Low Inventory
Quick Response to Market Changes
Own Fleet of Trucks
Wal-Mart-managed
QR
Warehouse Just-in-Time
System
Distribution
Center
Distribution
Center
Wal-Mart
Wal-Mart
Order
POS Data
Supplier
Store
Supplier
Store
Vendor-managed QR
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55
10/21/16
56
THANKYOU
10/21/16
57