Logistics Supply Chain Management Logistics The word has

Logistics & Supply Chain Management Logistics: The word has originated from the Greek word logistikos and the word logisticus, meaning the science of computing and calculating Philip Kotler, Marketing Management of Pearson Education, USA, Defines logistics as: The process of planning, implementing, and controlling the physical flows of materials and finished goods from point of origin to point of use to meet the customer’s need at a profit. American Council of Logistics Management, USA, Defines logistics as: The process of planning implementing, and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customers requirement”. Martin Christopher of London, UK, Says: Logistics is essentially a planning process and an information based activity

Logistics-A ‘System’ Concept The logistics concept is based on the ‘system’ approach. Logistics recognizes that all the activities across the business process are interdependent and needs close coordination and these are to be managed as system and not as functional silos.

‘Logistics & SCM (Mix Bag) Information Flow Packaging • Order registration • Order checking and editing • Order processing • Coordination • For handling & damage prevention • For communication • For inter-modal transportation Warehousing • Material Storage • Load unitizing & material handling • Site selection and network planning • Order picking and filling • Dispatch documentation Inventory Control Transportation • Route planning • Mode selection • Vehicle scheduling • Material requirement planning • Inventory level decisions for Customer service objectives Logistics has to achieve two polemic goals 1. Customer satisfaction 2. Least cost This is possible only when all logistics functions are working as unified system to achieve the common goal

Scope of Logistics The scope of logistics ranges from the management of various area of work, which is comprising of following: Ø Ø Ø Warehousing & Distribution Inventory Management Transportation Packaging Import & Export MIS

Warehousing & Distribution l l Warehousing & Distribution is not just simple act of storing & transporting items, rather a package of services that enables the smooth running of the wheels of any organization. Logistics must be in constant touch with the user departments, in order to provide uninterrupted services to all.

Warehousing Management l Broadly warehouse management can be divided into three fronts Ø Ø Ø Business Front (WH-Function, Planning and Operations) Non-Business Front (WHAdministration, Human Resource, Fleet Management and House keeping) Management Front

Warehouse Business Front Function, Planning and Operations Equipment Export Local Space Planning Sales Order Processing Import LPO SRN Shifting of old Material to old Spare yard Warehouse Planning Inward Conveyor Weighing machine Striping machine High voltage stapler Filler unit or Hooper Bar coding machine CCTV Digital camera Clearing of obsolete Material kept in W/H Height of the Racks Stacking Segregation of Bin ABC Analysis FIFO FMFO LIFO Distance between two Rack Warehouse Operations Picking Single Order Picking Batch order Picking Assembly Picking Packing Yellow Marking In whole Warehouse Miscellaneous Product customize Packing Fragile Packing Normal Packing Physical Counting Scanning if scanner available Damage/Shortage Report GRN or MRN

Warehouse Non-Business Front Warehouse Administration, Human Resource, Fleet Management and House Keeping Warehouse Administration Office Administration • Attendance of WH-Crew • Start of work • Security • Leave • Stationary Fire Fighting • Class of fire can take place in WH • No and location of fire extinguisher available • Hose points and water supply • Instituting fire fighting team and training to WH crew House keeping • Cleaning üDaily, Weekly and Mass • Rodent, Pest and Insect Control üMonthly, Quarterly and Yearly • Fumigation- As advised by the expert Warehouse Human Resource • Development of WH-Personnel • Quarterly performance appraisal • Discipline in WH & Working area • Rewards & Punishment Fleet Management Class & Size • No of Trucks, Horse & Trailers, fork lift, cranes and bus Log Book • Route plan, meter reading( IN/OUT), Driver’s Name Docs & Taxes • R/C, Road permits, Road taxes, fitness and Insurance papers Maintenance • Routine Maintenance • Minor repairs • Major repairs • Over haul • Accidental case

Warehouse Management Front Q-What Management wants from Warehouse as monthly report? A-A brief report, which helps the management for future plan. Warehouse Management Information System üTotal warehousing area in Sq. ft. üOccupied area as on date in Sq. ft. üOver all tonnage handled for the month üImport Consignment handled for the month üExport Consignment handled for the month üLocal purchase handled for the month üSRN handled üNumber of carton generated for the month üNumber of delivery in month üNumber of sales order processed for the month üGoods damage report üPacking material used and purchased üFleet status üStatus of Equipment & Machinery in warehouse üGeneral Maintenance üExpenditure for the month üSuggestion if any

Distribution Even before a product is ready for market, management should determine what methods and route will be used for distribution. It means establishing strategies for the products l Distribution Channels l Physical Distribution

Distribution Channels M C M R M M (Two Level) C (Three Level) W R C A W R (Four Level) C (Five Level) A= Agent C=Consumer M=Manufacturer R=Retailer W=Wholesaler

Physical Distribution Channels Once Organization establishes the channel distribution, then physical distribution must arranged as per commodities, it consists of all the activities concerned with moving the right amount of the right products to the right place at the right time. Rail Road Bulk Commodities Bulk & Packaged Sea Air Import & Export High value & Perishable Pipe Line Bulk fluids Rope way Ores & Mined

Process of Distribution Management U A-P R I M A R Y L O G I S T I C S P L F A C I T E U R S R E S Hub Clients N B-S E C O N D A R Y L O G I S T I C S Clients P A Company Stores U Hub Warehouses & Distributions Centers S M

Inventory As whole The basic objective of any inventory management is to determine the right quantity to be procured, in order to release the capital for more productive use The determination of the right quantity assumes tremendous importance, satisfying the conflicting view of • Not too much • Not too little • At minimum total cost • Increased profitability The effective inventory management is necessary to ensure adequate supplies at optimum cost as inventory act cushion between supply and demand

Inventory Management Classification of Inventory Operational Purpose • Production Inventories üRaw Materials üBought out Components Financial Reporting Purpose • Goods in Transit (GIT)- Materials ordered and paid for but not yet received and taken into store • Stores-All materials physically held in the store §MRO (Maintenance, Repair and Operating) üConsumables üSpare Parts § Work in Process (Semi-Finished products found at various stages in the production process) § Finished Goods Inventories üPackaging Materials üFinished goods • Work in Process (WIP)- Materials issued to the Shop-floor which have not yet became FG • Stock in Trade (SIT)- Finished goods, ready for sales

Different Types of Inventory Control Sr. No. Type of Control Criteria Main Use 1 A. B. C. (Also know as always better control of Pareto’s law) Value of consumption (It has nothing to do with unit value of the items) To control raw materials components and work in progress 2 H. M. L. (High, Medium, Low) Unit price to the materials (This is opposite of ABC analysis and does not take consumption into account) Mainly to control purchases 3 V. E. D. (Vital Essential Desirable) Critically of the item To determine the stocking levels of spare parts 4 S. D. E. (Scarce, Difficult and Easy to Obtain) Purchasing Problems in regards to availability Lead time analysis and purchasing strategies 5 G. O. L. F. (Government, Open Market, Local and Foreign Source) Source of supply of materials Procurement strategies 6 F. S. N. (Fast Moving, Slow Moving, Non Moving) Consumption pattern of the component To control obsolescence 7 S. O. S. (Seasonal and Off-Seasonal) Nature of supplies, and seasonality Procurement and holding strategies for seasonal items like agricultural products 8 X. Y. Z. . Inventory value of items in store To review the inventories, their uses etc. . At scheduled intervals

Transportation of goods from point of origin to point of consumption depend Upon the demand of market, therefore we must give due consider to following: - • Route Planning • Mode Selection & Location • Vehicles Scheduling

Packaging of Products Packaging provides advantages in the • Distribution • Marketing • Protection • Preservation

Import & Export of Goods Import Sea Commercial Invoice Packing list Certificate of Origin CE Certificate (In case of used Machinery & Plant) Insurance Bill of lading Air IEC Number & Customs Regulation Commercial Invoice Packing list Certificate of Origin CE Certificate (In case of used Machinery & Plant) Insurance Copy of AWB

Import & Export of Goods Export Air Sea Shipping Bill Packing list Invoice Insurance IEC Number & Customs Regulation AWB Packing List Invoice Insurance

Logistics Information System (On Monthly Basis) Regional Movement of Material Product wise Inventory level Overall Tonnage Handled Value of Inventory No of sales order processed Import & Export Shipment in transit No of sales returns Import & Export Tonnage No of local delivery Payment of Sea Freight Pending delivery Payment Air Freight Packing material used & Purchased Status of Vehicles, Equipment & Machinery Budget Forecast • Projections for any major investment • Vehicles operating expenditure • General Operating expenditure • Repair & Maintenance • Staff welfare, Training & Development

Assumption of present Warehouse Status MHE Store

Inspection Area Physical Counting SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs Depot Manager Room Data entry room Documentation/ Records Room Crew Changing Room, Rest Room SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs Proposed Mother Warehouse Checking of docs. / Materials and random Check of invoice items Of Material Inward Gate & Security Outward Gate & Security Legend Entry restricted after this point Outflow of material from warehouse Inflow of material in warehouse Racking System Gangway Fire Extinguisher

Assumption of Present Manpower Logistics Manager Warehouse In Charge Import & Export In Charge Warehouse Supervisor Shipping Coordinator Warehouse Crew Drivers Document assistant Airport & Sea Port Boys Assistant Manager Inventory Controller Budget Forecast General Administration & HR

Proposed Manpower Plan (Keeping Business Growth in Mind) Group Logistics Head Logistics Manager Shipping Manager Controller-Inventory Cum Accountant Warehouse Manager-Product A WH-Ops Officer WH-Supervisor WH-Crew Driver Warehouse Manager-Product B WH-Ops Officer WH-Supervisor WH-Crew Driver Warehouse Manager-Product C WH-Ops Officer WH-Supervisor WH-Crew Driver Warehouse Manager-Product D WH-Ops Officer WH-Supervisor WH-Crew Driver Common House Keeping Common IT Support Common HR & Administration Manpower Plan is projected based on discussion during interview, KRA & KPI of each employee is ready

How I am most suitable candidate? l l l l l I am a hardcore logistician I have experience of Middle East and have visited various country I am proactive and a good implementer I have handled different types of product I was part of ERP implementation in two Org. I am good in designing SOP & Strategy I have both management as well as line manager experience I am aggressive in implementation process I am good negotiator I have fair academic and professional experience

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