Professional Documents
Culture Documents
Ashwani Kumar
CRIS
TERI, 15.4.2017
Logistics
Those
Those activities
activities that
that focus
focus on
on getting
getting thethe
right
right amount
amount of of the
the right
right products
products to to the
the
right
right place
place at
at the
the right
right time
time at
at the
the lowest
lowest
possible
possible price.
price.
Logistics Management
The
The practice
practice of
of organizing
organizing the
the cost-effective
cost-effective flow
flow
of
of raw
raw materials,
materials, in-process
in-process inventory,
inventory, finished
finished
goods,
goods, and
and related
related information
information from
from point
point of
of
origin
origin to
to point
point of
of consumption
consumption to to satisfy
satisfy
customer
customer requirements.
requirements.
History of Logistics
Military were the only ones to using the term
(1950s, 60s)
Industry started using the term Logistics in 70s
No single concept of the term in the private
industry.
Companies had departments such as material
management, transport, purchase, warehousing,
machining, etc.
Supply Chain
AA sequence
sequence ofof firms
firms that
that perform
perform activities
activities
required
required to
to create
create and
and deliver
deliver aa good
good or
or
service
service to
to consumers
consumers or or industrial
industrial users.
users.
Supply Chain Management
The
The integration
integration and
and organization
organization of of
information
information andand logistic
logistic activities
activities across
across
firms
firms in
in aa supply
supply chain
chain for
for the
the purpose
purpose of
of
creating
creating and
and delivering
delivering goods
goods and
and
services
services that
that provide
provide value
value toto customers.
customers.
Logistics vs. Supply Chain Management
What is the difference?
A Supply chain is the network of:
Facilities (warehouses, factories, terminals, ports, stores,
homes)
Vehicles (trucks, trains, planes, ships)
Logistics information systems
Connecting suppliers suppliers with its customers customers.
Logistics is:
What happens in the supply chain
Putting the right material in the right place at the right time
It provides much of the Supply Chains value-added.
The Logistics/SCM Mission
Manufacturing
Manufacturing Cost 48% Cost
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LOGISTICS
Sample
activities: MARKETING
PRODUCTION/ Transport Interface Sample
OPERATIONS Inventory
Interface activities: activities:
Sample activities: Order Customer
Quality control activities: Promotion
Product processing service Market
Detailed production
scheduling Materials standards research
scheduling Plant Pricing
Equipment maint. handling Product
location Packaging
Capacity planning mix
Purchasing Retail Sales force
Work measurement
location management
& standards
Production-
logistics Marketing-
interface logistics
interface