LOGISTIC MANAGEMENT(OMGT65)

LESSON 1 STRUCTURAL DECISION

OPERATIONS STRATEGY WITHIN A FLEXIBILITY - long-term, high capital, investment
SINGLE ORGANIZATION decisions that occur less frequently but
CUSTOMIZATION have a lasting impact on the organization
COMPETITIVE PRIORITIES - ability to make a product to exactly fit INFRASTRUCTURAL DECISION
- relative rankings of what the company customer needs - short-term, more frequent, less capital
would like to achieve MASS CUSTOMIZATION intensive and easier to change or modify
COMPETITIVE CAPABILITIES - process which produced in high volume at
- relative effectiveness that the company is roughly same cost as standards products DIFFERENCE BETWEEN SERVICES AND
able to actually to achieve - but are customized to individual customer MANUFACTURING
tastes
COST VARIETY SERVICES
- ability to handle a wide range or - more intangible offerings that may include
LOW-COST OPERATIONS assortment of products without undue costs a tangible product, but that also include an
- provide a product or service that is less intangible offering.
expensive than similar offered by VOLUME FLEXIBILITY
competitors. - ability to adjust production volume either THREE FUNDAMENTAL DIFFERENCE:
up or down to meet fluctuations in demand 1. The nature of their output
QUALITY - tangible vs intangible
2. The degree customer contact and co-
CONSISTENT QUALITY OPERATIONS ROLE WITHIN BUSINESS production
- meeting the product specifications and the STRATEGY 3.Simultaneous production and
promises made to customer with high consumption (product only)
reliability BUSINESS STRATEGY
SUPERIOR QUALITY - defines the markets, products, and target SERVICE BUNDLE
- describing a product or services that customers and set both short- or long- term - the value-added physical and intangible
clearly is better than in one or more aspects objectives for the company items that an organization provides to the
MISSION STATEMENT customer
- defines why company exists, outlines its
TIME/DELIVERY core values, and seek to position the LESSON 2
company within the larger market DEFINITION OF LOGISTICS
ON TIME DELIVERY FUNCTIONAL STRATEGIES
- delivering a product when it is promised, - specify the core goals of each such as LOGISTICS
but not necessarily quickly operations, marketing, finance, IT, R&D, and - process of planning, implementing, and
DELIVERY SPEED so on controlling the efficient, effective flow and
- corporation offer to deliver a product or storage of goods, services
service faster than a competitors OPERATIONS DECISIONS AREAS - related information point of origin to point
PRODUCT DEVELOPMENT SPEED consumption
- refers to the time between generations on OPERATIONAL DECISION AREAS
major changes to a product - tactical tools that allow an organization to
achieve its priorities
 OBJECTIVES OF LOGISTICS - bridge connecting procurement to 5. INFORMATION AND CONTROL
MANAGEMENT distribution logistics - enterprises need to have access to the
3. DISTRIBUTION LOGISTICS real-time information and control over their
- to ensure all requirements of the customer - type of logistics that deliver the finished logistics operations
are met on time product to the customer - large enterprises uses specializes
- to coordinate with the third-party logistics 4. AFTER-SALE LOGISTICS software to keep track
(3PLs) - reverse delivery of damaged products from 6. ORDER PROCESSING
- to ensure timely dispatch of the products customers to the retailers - handling voluminous products to make
5. DISPOSALS LOGISTICS them reach the desired destination
IMPORTANCE OF LOGISTICS - removes and recycles the waste produced 7. CONSOLIDATION
MANAGEMENT during the production - accumulating packed products to loading
6. REVERSE LOGISTICS bays to be transported
1. QUALITY PRODUCTS - type of logistics that helps in revising
- logistics management enables products and materials ORDER PROCESSING CONSISTS OF
organizations to deliver quality products and 7. GLOBAL LOGISTICS THE FOLLOWING
services - type of logistics governs the logistics flow 1. PICKING
2. INCREASES TRANSPARENCY of products - taking and collecting products in specified
- logistics management enables 8. DOMESTIC LOGISTICS quantity prior to the shipping the orders for
organizations to get an insight into every - deals with the flow of goods within one customers
stage of the products country, but may extend across multiple 2. SORTING
3. INCREASES REVENUE states - process of separating goods as per their
- an organization can identify the weak link destination
either during production or in the finished COMPONENTS OF LOGISTICS 3. PACKAGING INFORMATION
products MANAGEMENT - includes weight, label, and pack products
4. ON-TIME DELIVERY 1. STORAGE, WAREHOUSE, AND *OUTER PACKAGING
- making the product reach the target MATERIALS HANDLING - weight, usage and specification of the
market so as to meet the customer’s - important aspect of these elements are product
demand warehouse, location, storage type and - packaging explicitly mention date of
5. CUSTOMER SATISFACTION materials handling equipment manufacturing, batch number, expiry date
- satisfied customer is an asset to the 2. PACKAGING
organization - involves transportation of merchandise
and reduces the possibility of damage LOGISTICS ACTIVITIES IN THE
TYPES OF LOGISTICS caused during transit. MANUFACTURING ORGANIZATION
1. PROCUREMENT LOGISTICS 3. INVENTORY
- type of logistics that includes activities - refers to the stock of materials in retail 1. ORDER TAKING
such as planning, requirements conducting organization 2. INVENTORY
market research, evaluating purchase 4. TRANSPORTATION 3. WAREHOUSE
decisions, managing supplies and placing - ensures timely delivery of merchandises 4. TRANPORTATION
orders from supplies to the warehouses from 5. MATERIAL HANDLING
2. PRODUCTION LOGISTICS warehouses to the distribution 6. PACKAGING
- type of logistics that includes production of 7. INFORMATION SHARING
goods
LESSON 3 KUDREMUKH IRON ORE PROJECT DOCUMENTS USED IN
- deliver one fires over a distance of 67 TRANSPORTATION
CONCEPT OF TRANSPORTATION kilometers by the western ghats
- movement of people, goods, and animals 1. BILL OF LADING
from one place to another SAMUEL VAN SYCKEL (1870) (PIPELINE) - stands as proof that it is the carrier
- first used to transport petroleum from one responsibility of loading the goods for
COMPONENTS OF TRANSPORTATION place to another delivery
- document contains all relevant details
1. INFRASTRUCTURE 3. RAIL TRANSPORT regarding the goods
- include roads and terminal facilities bus - railways is the first option because it is 2. CONSIGNMENT NOTE
stands, railways, and pipelines widely connected with different states of the - document that certifies that a particular
- construction of ports for sea and air modes country carrier will be responsible for carrying goods
2. VEHICLES 4. AIRPORT TRANSPORT - require a valid signature of the carrier
- tangible and moving devices which carries - biggest and the most expensive mode of - document is non-transferable
both people and commodities transport 3. SEA WAYBILL
3. OPERATION - only used to move goods which are highly - document that only shows the receipt of
- operated by public and private individuals perishables and values goods
or companies 5. SEA TRANSPORT - signed by person who responsible to
4. POLICY - involves transporting goods and people transporting goods via seaport
- to maintain order and discipline in the through water mode 4. AIR WAYBILL
transportation system *Ship, boat, barges, and sailboats - document explicitly mentions the prices
SERVICES PROVIDED BY SEA - states that the goods will be effectively
MODES OF TRANSPORTATION TRANSPORT transferred once they enter the flight
- transport FCL (FULL CONTAINER LOAD) 5. RAIL CONSIGNMENT
1. ROAD TRANSPORT 20 to 40 feet sizes - referred as international consignment note
- suitable mode for moving goods from one - transport LCL (LESS THAN CONTAINER - proof specifies that a particular rail
place to another LOAD) transport of goods in a single carriage is responsible for taking the
- delivers good at the doorstep of the container contract of delivering good
customer - archive important and relevant 6. DELIVERY ORDER
ADVANTAGES documentation - states that a particular good carrier has
1. door to door - provide customs and brokerage services been ordered
2. flexibility - provide cargo delivery which includes door - responsibility of delivering of goods is
3. reliability to door services accepted
4. reaching remote places 7. DOCK RECEIPT
5. speed 6. MULTI-MODEL TR ANSPORT - states that goods have been received by
- combination of different modes of transport the carrier
2. PIPELINE TRANSPORT (SAMUEL) - truck, ships, train, airplanes - proof of the goods being ready for
- first person to develop pipeline transport shipment
8. SHIPPING GUARANTEE
STANDARD OIL COMPANY - provided by banks in writing, stating the
- petroleum, transported via pipeline other safety of goods
things like iron ores, natural gases
 -crucial player of the entire container - insulated from inside and outside to
9. PACKING NOTE OR LIST shipping process protect the commodities
- detailed invoice that is attached to the - the one who help in covering risks, which 2. INSULATED SHIPPING CONTAINERS
goods form part of transportation - kind of thermal containers
- provides information regarding 5. FREIGHT FORWARDERS - difference being that there are no devices
transportation details such as mode - mediators between the seller and the used for controlling the temperature
10. PROOF OF DELIVERY buyer 3. REFRIGERATED SHIPPING
- states that the goods have been received - involved in the logistics activities with other CONTAINERS
by the customers parties involve - types of containers is regulated by
6. INTERMODAL TRANSPORT iceboxes or liquid gases
LESSON 4 PROVIDER 4. MECHANICALLY REFRIGERATED
- facilitate the movement of CONTAINERS
CONCEPT OF CONTAINERISATION cargoes/container from the place of - types of containers come with temperature
production or warehouse to the ports regulation and require an external supply of
CONTAINERISATION power to maintain the temperature
- system wherein intermodal freight is BENEFITS OF CONTAINERISATION
transported by using intermodal containers GENERAL PURPOSE CONTAINERS
of standard sizes and shape 1. STANDARDIZATION
- established in 1930’s, cargo was carried - modes and equipment are used to handle 1. DRY CONTAINERS
out using primitive methods in the North standard transport products at very stage of - types of containers are fully covered from
Atlantic coastal tracks its movement all sides and are like huge boxes
- in 1995, Malcolm Mclean came up with a 2. FLEXIBILITY standardized by ISO
new idea and method of shipping gods by - carry goods of different shapes, sizes, 2. OPEN-TOP CONTAINERS
removing the body. Completely removed the quality, and nature - types of containers come with a top which
manual work in handling the cargo 3. COSTS can be easily removed
- reduced by using containerization 3. FLAT-RACK
INTERNATIONAL CONTAINER SHIPPING compared to traditional means, containers - types of containers come with detachable
PROCESS are 20% less expensive and collapsible sides
4. WAREHOUSING 4. CLOSE VENTILATED CONTAINERS
1. IMPORTERS - containers are in the themselves moving - types of containers used for protecting the
- are buyers and identify the suppliers warehouses of products which act as goods from a high level of humidity and
around the world and place an order for the storage for commodities moisture
purchase 5. SECURITY AND SAFETY 5. HEATED CONTAINERS
2. EXPORTERS - containers are packed in such a way that - types of containers are used for goods
- are sellers and ones whom the buyers nobody can identify what kind of and how which are required to be kept at a higher
contact and asks for supply of goods much of goods temperature to keep them safe
3. BANKS 6. NAMED CARGO CONTAINERS
- third parties who have a very important SPECIFIC PURPOSE CONTAINERS - types of containers used to transport
role to play in the whole process of products such as cars, poultry, livestock,
container 1. THERMAL CONTAINERS and other
- support the finances, control the goods - also known as reefers 7. DRY BULK CONTAINERS
4. INSURANCE ORGANIZATION
- the purpose of transporting products which
do not require any kind of external
packaging, such as grains and other dry
food stuffs

8. TANK CONTAINERS
- these containers are typically used for
storage and transport of liquid products