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Logistics

The document discusses several key issues in logistics management. It describes the goals of logistics philosophy to have the right products in the right place at the right time with minimum cost. It also outlines some of the complexities that logistics managers face in different industries like food, manufacturing, and automotive. Key areas of focus are improving customer service, optimizing resource use, maintaining optimal inventory levels, and reducing costs while enabling traceability and real-time information sharing.

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Manivvannan Ambigapathy
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© Attribution Non-Commercial (BY-NC)
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40 views14 pages

Logistics

The document discusses several key issues in logistics management. It describes the goals of logistics philosophy to have the right products in the right place at the right time with minimum cost. It also outlines some of the complexities that logistics managers face in different industries like food, manufacturing, and automotive. Key areas of focus are improving customer service, optimizing resource use, maintaining optimal inventory levels, and reducing costs while enabling traceability and real-time information sharing.

Uploaded by

Manivvannan Ambigapathy
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Logistics Issues

Logistics philosophy
• Logistics philosophy is the availability of
the right product on the right place in the
right quantity at the right time with
minimum cost.
Current trend
• Logistics’ scale and complexity of one dynamically
developing company, takes vital significance for
company’s existing and success in a continuously and
competitively growing market.
• The new coming European/US requirements and
standards are leading to the necessity of information
systems not only for management and organization, but
for business optimization.
• In order to keep one company on the market, to increase
sales with competitive costs, high Customers service
level with lowest possible investments and respectively
higher profits
Logistics Managers
• Logistics Managers every day are trying
hard to reduce the internal costs and to
increase added values of the managed
products and services – a hard and long
fight.
• According to business sector, are resulting
some specialties, which are making harder
their daily efforts
In Food Industry
• Products’ short „life”,
• Different temperature regimes for keeping,
many pallet- and picking locations.
• Goods’ fast-moving, big number
• Different type of orders to Suppliers and
Clients requests, goods’ turnover, multiple
barcodes of article code,
• Simultaneously tracking of various policies
- FEFO, FIFO, etc.
In Manufacturing Industry
• Management of codes with different
purpose (raw materials, semi-finished
products, packages, ready products),
• Quality control (ISO, HACCP, GMP, FSM).
• Maintenance of manufacturing machines
(CMMS).
• Tracking of intermediate products in
manufacturing process, lots
traceability/lots genealogy, etc
In Auto Industry
• Huge nomenclatures (starting from 15,000
and according to company’s size they may
exceed 500,000),
• Tree-form model analysis of one spare
parts and vice versa, i.e. one spare part is
used for which models.
• serial numbers traceability.
• Frame number’ uniqueness, etc.
Logistics Company
• Big logistics warehouses, many and various
goods types with different characteristics –
foods, pharmaceuticals, clothes, electronics,
etc.,
• Management of Depositors’ goods, execution of
many services, changing the cost – packaging,
labeling, assembling, etc.,
• combined deliveries to Clients, Depositors, etc.
Key areas
• ➢ Customer service level improvement
• ➢ Optimization of using the available recourses
and areas
• ➢ Keeping of optimal inventory levels
• ➢ Operative cost reduction
• ➢ Easy traceability and management of goods
flow in real time and of
• information to/from company’s Logistics
warehouse
• ➢ Increasing of company’s competitiveness
Developments
What are pushing the costs
– Logistics costs are rising
driven by:
– Shorter order-to delivery times
– Higher service level expectations (on-time
delivery, order completeness & service levels)
– Increasing demand for customized supply
chain solutions (e.g. co- packing, pallet
heights)
– Overall inventory reduction
What are pushing down
Initiatives to drive down costs
 Increasing direct shipments from plant to reduce transport
costs
 Postponement of customization to improve flexible use of
goods utilization
 Moving delivery platforms (cross docks) closer to the customer
to reduce transport costs
 Share facilities to reduce overhead and improve asset
efficiency
 Using IT to provide network visibility and dynamic
management
Full Service
Company
ERP’s

LOGISTICS SERVICE Bonded


Bonded WH
WH

WAREHOUSING MANAGEMENT
Common
Common Stock
Stock
INBOUND
External
CERTIFICATION Factory
Factory Area
Area

OUTBOUND

NATIONAL CUSTOM FORWARDING SUB-


SUB
DISTRIBUTION CLEARANCE CONTRACTING
Supply Chain Management
“Supply Chain Management encompasses the planning
and management of all activities involved in sourcing and
procurement, conversion, and all Logistics Management
activities.

Importantly, it also includes coordination and collaboration


with channel partners, which can be suppliers,
intermediaries, third-party service providers, and
customers.

In essence, Supply Chain Management integrates


supply and demand management within and across
companies.”

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