Scribd
Upload
120 views

Logistics and Transportation

Logistics involves planning and managing the flow of goods from suppliers to customers. It plays a critical role in customer satisfaction and corporate profitability. Key aspects of logistics include transportation via various modes like sea, land, rail, and air; distribution networks; inventory management; warehousing; and materials handling. Logistics planning aims to optimize location strategies, transportation strategies, and inventory strategies. Decision making in logistics considers issues like order processing, stock location and levels, and transport modes.

Uploaded by

Yandex Prithu
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
120 views

Logistics and Transportation

Logistics involves planning and managing the flow of goods from suppliers to customers. It plays a critical role in customer satisfaction and corporate profitability. Key aspects of logistics include transportation via various modes like sea, land, rail, and air; distribution networks; inventory management; warehousing; and materials handling. Logistics planning aims to optimize location strategies, transportation strategies, and inventory strategies. Decision making in logistics considers issues like order processing, stock location and levels, and transport modes.

Uploaded by

Yandex Prithu
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 27

LOGISTICS

Topics
• Definition & Origin of logistics

• Role of logistics in an organization

• Planning and Decision Making

• Distribution Network

• Warehousing

• Transportation (Sea , Land, Rail , Air)


Basic Concept and Origin

• The term logistics is attested in English from


1846 and is from French : Logistique.

• It was popularized by military officer and writer


Antoine-Henri Jomini.

• It means the art of managing the flow of raw


material and finished goods from source to user.
Role of Logistics in an Organization
• Logistics in an organization are considered as a continuation of
marketing.
• It focuses on core (direct delivery , operations) and support
(technology, infrastructure) activities.
• It plays a critical role in each of the three critical elements of
marketing concept.
Customer Satisfaction

Integrated Effort Corporate Profit


Planning
• It’s the process that creates value by timing and positioning.

• Logistics planning serves to link and synchronize the overall firm’s management
integrated through a facility network.

• It’s combination of inventory, transportation, warehousing, material handling and


packaging.

• It’s subdivided into 3 strategies Location, Transportation, Inventory.


Planning Triangle

Transport Strategy
Inventory Strategy 1. Modes of transport
1.Inventory Levels 2. Scheduling
2. Deployment of 3.Shipment Size
inventories Customer
3. Control Methods
Service
Goals

Location Strategy
1. Location of facilities
2.Assignment of stock to source points
3.Private/Public Warehousing
Decision Making
Q. How should orders be handled ?
A. “Order processing" is the term generally used to describe
the process or the work flow associated with the picking, packing and
delivery of the packed item to a shipping carrier.
Q. Where should stock be located ?
B. “Warehousing” is the act of storing goods that will be sold or
distributed later.
Q. How much stock should be held?
C. “Inventory” means the stock of goods available or held for sale in
the ordinary course of business.
Decision Making
Q. How should goods be shipped?
A. Transport, or transportation, is moving people or things from one
place to another place.
Distribution Network
Physical Distribution
• A distribution network is an interconnected group of storage facilities and
transportation systems
• It receive inventories of goods and then deliver them to customers. 
Outsourcing
• Logistics outsourcing is defined as engaging a logistic service provider to carry
out and manage your company’s logistics requirements. 
• It do not have the managerial authority within the marketing channel.
Objectives of Distribution

Meeting standards Reducing Reducing


of customer service distribution cost Completion Time
• Timeliness • Warehousing cost • Faster processing
• Accuracy against inventory for increased
• Material cost v/s customer service
Transportation
• Distribution cost
v/s customer
service standards
Functions of Distribution
Functions

Inventory Materials
Order Processing Warehousing Transportation
Management Handling
• Picking • Develop and • Unit Loading • Private • Intermodal
• Sorting Maintain • Containerization • Public Transportation
products • Distribution • Freight
• Just-in-Time Centre Forwarders
• Mega Carriers
Order Processing
It’s a sequential process involving :-

• Picking-consists in taking and collecting articles in a specified quantity


before shipment to satisfy customers' orders.

• Sorting- process that separates items according to destination.

• Consolidation-gathering packages into loading units for


transportation, control and bill of lading.
Inventory Management
• It refers to the process of ordering, storing and using a company’s inventory

• It include the management of raw materials, components and finished products

• It’s objective is to minimize inventory costs yet to have on sufficient supply of


goods.

• Just in Time (JIT) also known as Toyota Production System (TPS).

• It’s primary objective aimed at reducing times from suppliers to customers.


• The physical handling of products in warehousing
Materials operations and the transportation.
Handling
• From points of production to points of consumption

• Unit loading combines individual items placed on pallets


and handled by pallet jack or forklift truck.

• Containerization is the use of standardized shipping


containers to facilitate transfer with efficiency and
security.
Warehousing
• It’s the act of storing goods where raw materials or manufactured
goods are stored prior to their sale.

• It creates time utility by bridging the gap between production and


consumption.
Functions
• Receiving
• Identifying
• Sorting
• Dispatching (Storage)
• Holding
• Recalling
• Assembly
• Dispatching (Shipments)
Types of Warehouses
• Private warehouse:- It’s company
operated warehouses for storing
and shipping products.

• Public Warehouses:-These
warehouses are a specialized
business establishment that
provide storage facilities to the
general public for a certain
charge.
Types of Warehouses

Distribution Centers
• A building used to receive and
temporarily store goods that will be
shipped to various destination points.

• Massive retail chains own and operate


their own distribution centers.

• A distribution center are package


handling center, warehouse or
fulfillment center.
Transportations
• Transportation is moving things from one place to another place
Five mode of Transportation-
 Roadways- A road is an identifiable route way or path between two or
more places. Various methods like buses , auto , trucks , cargos.
Transportations
• Railways-Rail transport is also known as train transport. It is a means
of transport, on vehicles which run on tracks (rails or railroads).
• Rail transport is an enabler of economic progress, used to mobilize
goods as well as people.
Transportations
• Airways:-The movement of passengers and cargo by aircraft such as
airplanes and helicopters.
• In India its underdeveloped and underutilized and acts as a feeder or
supporting transport means.
Transportations
• Waterways:-Water transport is the process of moving people, goods,
etc. by barge, boat, ship or sailboat over a sea, ocean, lake, canal, river,
etc.

This Photo by Unknown Author is licensed under CC BY-NC-ND


This Photo by Unknown Author is licensed under CC BY-SA
Transportations
• Pipelines:- Pipe-lines are the specialized means of transportation
designed to move the items like crude-oil, petroleum, chemicals and
gas.
Coordinating Transportations
• Intermodal transportations is the movement of cargo from origin to
destination by several modes of transport in combination.
Coordinating Transportations
• Freight forwarders play a vital role in the movement of goods from one
place to another. Act as essential go-betweens in the import/export process
and provide assistance to individuals, commercial organizations
• Mega carriers:-A freight transport company offering many shipment
methods, such as rail, truck, and air service.
Coordinating Transportations

This Photo by Unknown Author is licensed under CC BY-SA

You might also like