LOGISTICS and SUPPLY CHAIN MANAGEMENT (SCM)
Chapter -1 INTRODUCTION TO LOGISTICS MANAGEMENT
*BASIC CONCEPT OF LOGISTICS * NEEDS / IMPORTANCE OF INTEGRATED LOGISTICS
1 Total cost concept
1 Reduce logistic cost
2
System approach
2 Customer satisfaction
3
Integrated approach 3 Improve efficiency
*TYPES
OF LOGISTICS 4
Competitive advantage
1
Military logistics 5 Minimise wastage
2 Service logistics 6 Profitability
3 Event logistics 7 Flexibility
4 Business
logistics 8 Operational objectives
5 Inbound
logistics * OBJECTIVES OF LOGICSTICS
6
Outbound logistics
1 Minimum inventory
7
Reverse logistics 2 Improve customer service
8
Manufacturing support logistics 3
Cost reduction
*LOGISTICAL
COMPENTENCY 4
Capital reduction
HOW TO ACHIEVE LOGISTICAL COMPENTENCY ? 5 Minimum variance
1
Network design
6 Life cycle supports
2
Information management 7
Increased efficiency
3 Transportation
8 Quality improvement
4 Warehousing *NEED/IMPORTANCE OF
LOGISTICS/LOGISTICS MANAGEMENT
5 Material
handling 1 Transportation cost
6 Packaging 2 Efficiency
7 Reverse and
green logistics 3 Inventory management
4 Storage and material handling
5 Information technology
6 Growth of online retail business
7 Globalisation
Chapter - 2 INTRODUCTION TO SUPPLY CHAIN MANAGEMENT (SCM)
*OBJECTIVES/ ROLES OF SCM * ROLE
OF LOGISTICS IN SUPPLY CHAIN MANAGEMENT
1
Working efficiency 1 Demand forecasting
2
Quality improvement 2 Inventory control
3
Reduce operating cost 3 Warehouse
4
Better customer service 4 Transport
5 Distribution management 5
Material handling
6 Better co-ordination 6 Customer satisfaction
7 Inventory management 7 Logistics and purchasing
8 Management of suppliers 8 Reverse logistics
*FUNCTIONS OF SCM *CHANNEL
MANAGEMENT STRATEGIES /TECHNIQUES
1 Supply chain planning 1 Partnership with suppliers and
intermediaries
2 Demand forecasting 2 Use of technology
3 Purchasing 3 Vertical
integration
4 Manufacturing 4 Logistical support
5 Inventory management 5
Monitoring performance
6
Warehousing *OBJECTIVES/BENEFITS
OF SUPPLY CHAIN INTEGRATION
7 Transportation 1 Cost reduction
8 Distribution 2 Horizontal integration
*PARTICIPANTS OF SCM 3 Vertical integration
1 Supplier 4 Better customer service level
2
Producers or manufacturers 5 Integration
within the firm
3 Distributiors 6 E2E Visibility or supply chain visibility
4 Retailers 7 Reduce bullwhip effect
5
Customers 8
Extended enterprise
Chapter- 3 CUSTOMER SERVICE
KEY ELEMENT OF LOGISTICS
*OBJECTIVES/ IMPORTANCE/BENEFITS OF
CUSTOMER SERVICE
1
Increased sales and revenue *DIMENSIONS
OF CUSTOMERS SERVICE
2 Customer loyalty
an trust 1 Time
3 Competitive
advantage 2
Dependability
4 Customer
retention 3
Communication
5 Redressal of
complaints 4
Convenience
6 Cost of service
7 Add on service
8 Feedback
*ELEMENTS/COMPONENTS OF CUSTOMER SERVICE
1 Pre-transaction service
2 During
Transaction elements
3 Post- transaction element
*7 RIGHTS OF CUSTOMER SERVICE
1 Right product
2 Right quantity
3 Right condition
4 Right place
5 Right cost/price
6 Right time
7 Right customer
*STRATIGIES TO IMPROVE CUSTOMER SERVICE
1 Customer feedback
2 Build a strong customer service team
3 Good communication skills
4 Recognise good work
Chapter- 4 DEMAND FORECASTING
*OBJECTIVES/BENEFITS/IMPORTANCE OF DEMAND
FORECASTING
1 Short term forecasting
2 Long term forecasting
3 Anticipate demand
4 Resource allocation
5 Budget preparation
6 Evaluate performance
7 Helps government
*APPROACHES TO FORECASTING
1 Top down approach
2 Bottom up approach
Chapter 5 PACKAGING
*IMPORTANCE
/OBJECTIVES OF LOGISTICS PACKAGING *FUNCTIONS /BENEFITS OF
PACKAGING
1
Protection
1 Product identification
2
Storage
2 Product protication
3
Information
3 Convenience
4
Product differentiation
4 Communication
5
Promotion 5
Tracking
6
Distribution
6 Packaging cost
7
Apportionment
8
Containtment
*TYPES
OF PACKAGING *UNITISATION /
PALLETISATION/ CONTAINERISATION
1
Paper / Paperboard
1 Unitisation
2
Natural material
2 Palletisation /
Pallets for unitization
3
Plastic
3 Containerisation
4
Aluminium packaging 4 Cube
minimisation
5
Glass/ Jars
6
Wood
7
Steel
Chapter 6 MATERIALS
HANDLING
*NATURE AND FEATURES OF
MH *SELECTION OF MATERIALS
HANDLING EQUIPMENTS/SYSTEM
1
Objectives 1 Equipment selection principle
2
Uniqueness
2 Type of material
3
Comprehensive term 3 Value and
volume of materials to be moved
4
Scope 4 Planned
layout
5
Funtions
5 Type of production
6 Cost
consideration
7 Frequency of material movement
8 safety standard
*EQUIPMENTS
USED FOR MATERIALS HANDLING
1
Storage handling equipments
2
Transport equipments for material handling
3
Cranes
4
Industrial trucks
5
Identification and control equipments
6
Atuomated storage and retrieval system
Chapter 7 WAREHOUSING
*NATURE
/FEATURE/CHARACTERISTICS OF WAREHOUSING
*FUNTIONS/FUNTIONALITY OF WAREHOUSING
1
Integral part of logistic
1 Receiving goods
2 Maintain smooth flow of goods 2 Sorting goods for storage
3
Holds or store the goods
3 Storage of goods
4
Creates time and place utility
4 Protection of goods
5
Provides value adding services
5 Creating buffer stock
6
Components of warehousing 6 Processing of
goods
7 Consolidation or assembling
8
Breaking the bulk
*TYPES
OF WAREHOUSES
* FACTORS AFFECTING
WAREHOUSING
1
Private warehouses 1
Location
2
Public warehouses 2
Storage
3
Bonded warehouses 3 Material handling equipments
4
Contract warehouses 4
Operations planning
5
Government warehouses 5
Customer focus
6
Co-operative warehouses 6
Professionalism in opertions
7 Reduced order cycle time
8 Measurements of performance
Chapter 8 TRANSPORTATION
*MEANING
AND FEATURES OF TANSPORT
* NEEDS /ADVANTAHES OF TRANSPORT
1 Creates a physical link 1
Maintains smooth flow of inventories
2
Creates place utility
2 Helps in meeting customer
demands
3
Creates time utility
3 Expands the market presence
4 Add value to product
4 Competitive advantage
5
Geographical specialization 5 Enables
geographical specialization
6
Variety of function
6 Temporary storeage
7
Involves considerable cost 7
Business objectives
*PARTICIPANTS
IN TRANSPORT SYSTEM
*TYPES OF CARRIERS IN TRANSPORTATION SYSTEM
1
Consignor(shipper)
1 Common carriers
2
Consignee (receiver/destination party) 2 Contract carriers
3
Carriers and agents
3 Private carriers
4
Government 4 Exempt carriers
5
Internet
6
Public / consumer
*MODESOF
TRANPORTATION
1
Road transport
2
Rail transport
3
Air transport
4
Water transport
5
Pipeline transport
6
Ropeways
7
Intermodal transport/multi mode transport
8
Package carriers
chapter 9. Inventory management (Im)
*
Objectives of inventory MANAGEMENT.
1.
Customer satisfaction.
2.
Minimum / inventory.
3.
Minimum investment.
4.
Customer service.
5.
Minimise risk of loss.
6.
Maintain production level.
7.
Minimise wastage.
8.
Buffer stock.
* INVENTORY FUNCTIONS.
1.
Decoupling inventory.
2.
Balancing demand and supply.
3.
Avoiding shortages and stockouts.
4.
Quantity of discounts.
5.
Economies of Lot sizes.
* TECHNIQUES OF INVENTORY CONTROL
1. Traditional
methods of inventory control.
2. Modern methods
of inventory control.
A. Economic order
quantity. (EOQ)
B. Re-order Level.
(ROL)
C. Fixed stock
levels.
D. Selective
inventory control.
1.
ABC analysis.
2.
VED analysis.
3.
SDE analysis.
4.
FSN analysis.
5.
XYZ analysis.
6.
MNG analysis.
7.
SOS analysis.
8.
HML analysis.
9.
GOLF analysis.
E. Computer based
inventory control systems.
1.
Materials requirement planning (MRP-1).
2.
Manufacturing resource planning (MRP-11).
3.
Distribution requirement planning (DRP-1).
4.
Distribution resource planning (DRP-2).
5.
Just-in-Time supply scheduling.
6.
Kanban.
7.
QR , CR and AR ( Response Based Inventory Control).
* IMPORTANT
INVENTORY CONCEPTS.
1.
Inventory.
2.
Inventory policy.
3.
Service level.
4.
Understocking cost.
5.
Overstocking cost.
6.
Order cycle time.
7.
Fill rate.
8.
Order fill rate.
Chapter 10. LOGISTICS COSTING.
*CHARACTERISTICS OF IDEAL PERFORMANCE
MEASUREMENT SYSTEM.
1.
Objectives of the system.
2.
Cost / service reconciliation.
3.
Knowledge based reporting.
4.
Exception based reporting.
* TYPES OF SUPPLY CHAIN PERFORMANCE
MEASURES.
1.
Activity based measures.
2.
Process based measures.
3.
Internal performance measurement.
4.
External performance measurement.
5.
Comprehensive supply chain measurement.
* NEED / IMPORTANCE OF LNA
1.
Customer service requirements.
2.
Location shifting.
3.
Change in corporate ownership.
4.
Cost factor.
5.
Competitive capabilities.
6.
Organisational change.
7.
Network analysis.
8.
Quick response.
* FACTORS INFLUENCING LOGISTICAL
NETWORK DESIGN DECISION.
1.
Location and distance
2.
Current and future demand.
3.
Political factors.
4.
Competitive factors.
5.
Mode of transportation.
6.
Economies of scale.
7.
Strategic factors.
8.
Convenience strategy.
(i)
TESCO EXTRA.
(ii)
TESCO EXPRESS.
(iii)
TESCO METRO.
*LOGISTICS / SUPPLY CHAIN NETWORK
DESIGN PROCESS.
STEPS
/ STAGES AND NETWORK DESIGNING PPROCESS.
1.
Appointment of network Re-engineering team.
2.
Logistics / supply chain audit.
3.
Evaluate alternatives.
4.
Facility location analysis.
5.
Finalize network and facility location.
6.
Develop implementation plan.
*TRANSPORTATION NETWORK DESIGN.
A. Direct shipment network.
B. Direct shipping with milk runs.
C. All shipments via distribution centre
(DC).
D. All shipments via distribution centre using milk runs.
E. Cross docking.
F. Tailored / customised network.
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