Final Logistics Presentation

8/6/2019 Final Logistics Presentation

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O G I S TO G I S TC SC SO G I SO G I SC SC SO G I SO G I SC SC S


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I N T R O D U C T I O NN T R O D U C T I O NT OO

LOGOG IS TICSICS


LOGOG IS TICSICS


LOGOG IS TICSICS
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O G I S TO G I S TC SC S h i n g s b e g a n c h a n g i n gh i n g s b e g a n c h a n g i n gi t hi t h d v a n c e m e n t i nd v a n c e m e n t i nr a n s p o r t a t i o nr a n s p o r t a t i o n S y s t e my s t e m


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O G I S TO G I S TC SC S

opulation moving fromopulation moving fromural to Urbanural to Urban reas and to businessreas and to businesscentresentres



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O G I S TO G I S TC SC S o l o n g e r d i do l o n g e r d i de o p l e l i v e n e a re o p l e l i v e n e a r

r o d u c t i o nr o d u c t i o nc e n t r e se n t r e s , or, ori d p r o d u c t i o ni d p r o d u c t i o n

ake placeake placee a re a r

e s i d e n c e c e n t r e se s i d e n c e c e n t r e s



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O G I S TO G I S TC SC S hat led to an increase inhat led to an increase in eographical Distanceeographical Distance etween Production Point aetween Production Point a

onsumption Point andonsumption Point andLOGISTICSOGISTICS gimportancemportance



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O G I SO G I SI C SI C S general idea about logisticsgeneral idea about logisticsss ovement of Goodsovement of Goods

arrow conceptarrow concept ogistics support isogistics support isuch moreuch more , uchuch iderider nd involvesnd involvesultifarious activitiesultifarious activities han mere handling ofhan mere handling ofroducts or goodsroducts or goods

O G I SO G I SI C SI C S


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O G I SO G I SI C SI C SO G I SO G I SI C SI C S :ogistics is Management of ost effective flow ofost effective flow ofoods and servicesoods and services

romrom oint of Originoint of Originoo oint of Consumptionoint of Consumption


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GLOBALIZATILOBALIZATIONN REEREEMARKETARKET COMPETTIONOMPETTION

7 R s



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O G I SI C SEVEN R s

he right,roduct in he right,uantity and

he right,ondition at he right ,laceat

EVEN R sO G I SI C SO G I SO G I SI C SI C S


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O G I SO G I SI C SI C Somponents of Integrated Logisticomponents of Integrated Logistic( ) :ystem ILS are( ) :ystem ILS are xternal Suppliersxternal Suppliers (InbounnbounLogisticsogistics ) nternalnternal

/perations functionsperations functions hysical Distributionhysical Distribution( utbound Logisticsutbound Logistics )External

Suppliers

(Inbound Log)

InternalOperations/

Functions

ExternalDistributors

(OutboundLog)

INFORMATION



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O G I SO G I SI C SI C S ogistics has receivedogistics has receivedncreasedncreased anagement Attentionanagement Attention

orporations are usingorporations are usingogistics as aogistics as a ompetitve weaponompetitve weapon o meet o meethallengeshallenges &f Global competition &f Global competitionurbulenturbulent usiness environmentusiness environment ogistics has not only beeogistics has not only beeecognized asecognized as roup of importantroup of important

functionsunctions ut hasut has mportantmportant



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ome of theome of the merging trendsmerging trends:n Logistics are:n Logistics are

ncreased awareness ofncreased awareness of trategictrategicenefits of ILSenefits of ILS lobal supply chainlobal supply chain & 4 Party& 4 Party ogistics servicesogistics services ustust n timen time logisticsogistics vailability ofvailability of informationnformation Environmentalnvironmentalsensitivitysensitivity Collaborationollaboration ndnd Visibilityisibility

O G I SO G I SI C SI C SO G I SO G I SI C SI C S


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asic Conceptsf LOGISTICS


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LogisticsLogistics is the management of the flow ofgoods and services between the point of

origin and the point of consumption in

order to meet the requirements of the.customers


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ctivities inLogistics .Facility location and its layout .Purchasing and procurement / .Planning manufacturing .Forecasting and order management . Ware housing


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ctivities inLogistics .Inventory management Transportation / supply chain.

Material handling and protective packaging.

Integration of information about maintenance andflow of goods.


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Supply Chain

Supply chain is the Logistics Network of Suppliers

Manufacturers

Warehouses Distribution centers


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Business Logistics

Business logistics is defined as a businessplanning framework for the management of

material, service, information and capital flows


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Military Logistics

The science of planning and carrying out themovement and maintenance of forces.

In military science, maintaining one's supplylines

while disrupting those of the enemy is a crucial


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Third-Party Logistics

Third-party logistics (3PL) involves usingexternal organizations to execute logistics

activities that have traditionally been performed

within an organization itself.

Third party logistics includes any form of

outsourcing of logistics activities


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Reverse Logistics

Goods or products returned from the consumerpoint to the original supply point, for variousreasons.

Bad delivery, over-supply, damage, expiry, failinginspection tests at the customer point, goodsunsold etc.


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ogisticogistic/lanning Supportlanning SupportFunctionsunctions


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ey Perametersey Perameters

Spportabilitypportability Readinesseadiness

here two key Parameters whichhere two key Parameters which:-re:-re


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upport functionsupport functions

aintenance Planningaintenance Planning anpower and personnelanpower and personnel

here are ten elements ofhere are ten elements of:-ogistics support include:-ogistics support include


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upport functionsupport functions . . . .ont d. . . .ont d upply Supportupply Support upport equipmentupport equipment

echnical Dataechnical Data


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upport functionsupport functions . . . .ont d. . . .ont d raining and Training Supportraining and Training Support omputer Resource Supportomputer Resource Support Facilitiesacilities


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upport functionsupport functions . . . .ont d. . . .ont d . ,ackinging Handling Storage and,ackinging Handling Storage andTransportransport

esign Interfaceesign Interface


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ain objectivesain objectivesff ogisticogisticupply Chainupply Chain


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. . . . .bjectives are. . . . .bjectives arehree main objectiveshree main objectives

ost Reductionost Reduction

ervice Improvementervice Improvement apital Reductionapital Reduction


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Containerized Shipping

: Where to locate production facility( , )Storage Centers retail outlets

Heavy industries require large amount

.of spaceLight industries are located near to

.customer

Containerized shipping had eased the

.job of location


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Supply Chain Security

Supply chain security is the.responsibility of all parties

Marketing authorization is responsible.for safe and effective product

Brand owner seek innovative approaches

that will improve product quality and.reduce cost


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Supply chain Security

Supply chain challenges can beovercome by addressing three

:following areas

.1 .Supply Chain Visibility

.2 .Supply Chain Control

.3

.Supply Chain Collaboration


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Supply Chain Visibility

-As brand owners outsource non core,competencies they have lost control.over quality

For Example Boeing

Brand owner must receive parts from.supplier after inspection


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Supply Chain Control

Complexity of supply chain has led tothe loss of control over full

.manufacturing process

Company must define a critical.criteria that supplier must meet


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Supply Chain Collaboration ,In today s global environment

.isolation is not an option

Companies must consider suppliers as

business partners and should createan environment where information is

.shared

Sharing of information involves to,define requirements specifications

.and results


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/Internet Communication

Internet has led to quick solutions to.complex problems of globalization

Growth of global trades over the yearsis due to internet and improvement in.logistics

Access to timely information is very.important in global logistics


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Rising Cost of Fuel

International business is deeply.linked with oil and diesel prices

Declining of fossil based oil is.boosting transportation cost

Low wages and lesser regulatory

advantage are being offset by cost of.shipping


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Counterfeit Goods and PiratedSoftware

Pirated software is a global issue.these days

- %15 20 of all goods in China are.counterfeit

There is a saying in China

We can copy everything except youmother

Need regulatory measure to protect the

.interest of brand manufactures


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Regulatory Measures

.Regional trade associations: , ,For example ASEAN SAFTA NAFTA

The associations had led to increasing.harmonization of standards

Products can move easily across

.national boundaries


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Customers Satisfaction

Availability of required parts where.needed

.On time performance

-Meeting and exceeding end userexpectations is an important

competitive .advantages

Customer satisfaction can increase.revenue and improves retention


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HALLENGES OF FUTUHALLENGES OF FUTU& ANALYSISNALYSIS

aheed Mali

REAKTHROUGHREAKTHROUGH&TRATEGIC CHOICESTRATEGIC CHOICES


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hallenges of Futurehallenges of Future& Analysis Analysis


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ogistic planner cannot continueogistic planner cannot continueo operateo operate upplyupply hain andhain andogisticsogistics rocesses in arocesses in aistorical Wayistorical Way ffanufacturing and deliveringanufacturing and deliveringhe productshe products lobalization of worldlobalization of world conomies andconomies and mergencemergence

f business from recessionf business from recession as asutut dditional pressure ondditional pressure onupply Chainupply Chain Managementanagement nd ndogistic Applicationsogistic Applications

hallenges of Futurehallenges of Future& Analysis Analysis


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scaricty hallenges of Futurehallenges of Future& Analysis Analysis

lobal Impactlobal Impact uppliers will be increasinglyulnerable toovt Regulations hus eading toigher omponent and EnergyCost

he fact that Companies need to


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s the dynamics of manufacturings the dynamics of manufacturingn modern dayn modern day ,hange,hange randrandwnerswners re becoming more andre becoming more and oreoreependent onependent on ,utsourced Globalutsourced Globaluppliersuppliers & ontract ontract

Manufacturersanufacturers o reduce cost o reduce cost ependence on Global Supplyependence on Global Supply,hain,hain ntroduces greater risk ofntroduces greater risk of

hallenges of Futurehallenges of Future& Analysis Analysislobal Supply Chainlobal Supply Chain


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ing

lobal Supply Chain will be atlobal Supply Chain will be at iskiskrom increasingrom increasing ntensity ofntensity of ajorajor torms and Floodingtorms and Flooding

igh Sea levelsigh Sea levels rom meltingrom melting-olar ice -olar ice roblems atroblems at ea Portsea Ports

nvironmental Screeningnvironmental Screening hallenges of Futurehallenges of Future& Analysis Analysis


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isruptive eventsisruptive events ikeikeruption ofruption of celandiccelandic olcanoolcano,010,010 ncreased ncreased ecurityecurityconcernsoncerns& ndustrialndustrial actionsctionsll over the world havell over the world have ushedushedore Companies to turn toore Companies to turn toITT

nderstanding ofnderstanding of

&nges of Future Ana&nges of Future Ana hallenges of Futurehallenges of Future& Analysis Analysis nvironmentalnvironmentalScreeningcreening


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vailability ofvailability of nternetnternet & upplyupplyhainhain ndnd ogisticsogistics -mprovement -mprovementontainerized Shippingontainerized Shipping hus Companies canhus Companies can locateocate ny whereny wherend worknd work ithith ultiple partnersultiple partners ooerve market needserve market needs ompanies to handlesompanies to handles &igors &igorshallengeshallenges ff oing businessoing businessverseas and how best canverseas and how best can

hallenges of Futurehallenges of Future& Analysis Analysisnformation Availabilitynformation Availability


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Eepaffect on

ogistics today has become aogistics today has become apecialist functionpecialist function

eed to have propereed to have proper rainedrainedanpower withanpower with technologyechnology upportupporto make logisticso make logistics uccess inuccess inhe businesshe business

&raining Trained&raining TrainedManpoweranpower hallenges of Futurehallenges of Future& Analysis Analysis


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s hallenges of Futurehallenges of Future& Analysis Analysisil Pricesil Prices

conomic activity is deeply linkedconomic activity is deeply linkedithith olatile oilolatile oil pricesrices ncreasingncreasing scarcitycarcity f fossilf fossil

ased fuel ased fuel oostingoosting ransportationransportation ostsosts significantlyignificantly ow wagesow wages ndnd esser regulatoryesser regulatoryadvantagesdvantages rere eing offset byeing offset byost of shippingost of shipping epletedepleted tocks of oil in Chinatocks of oil in Chinaoupled withoupled with river sriver s risisrisis ndnd


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s

eed toeed to dentify and measuredentify and measureustomerustomer requirementequirement ustomer service is realistic andustomer service is realistic and%hen reaches 95%hen reaches 95 - ost increasesost increasesexponentiallyxponentially etting customer service right isetting customer service right is- nderstanding nderstanding hat customerhat customerneedseeds ndnd owow t is delivered andt is delivered and

hallenges of Futurehallenges of Future& Analysis Analysisustomer Needsustomer Needs


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s

ost of theost of the salesales nd customernd customer/oftware Hardwareoftware Hardware transfersransfers rereandledandled lectronicallylectronically hroughhrough/ &arketing sales &arketing sales evelopmentevelopmentofficesffices

nsure that no product arensure that no product arehipped tohipped to erroristerrorist countriesountries R toR toompetitors companiesompetitors companies rr individualsndividualso as Not to Looseo as Not to Looseompetitive Advantage inompetitive Advantage in

hallenges of Futurehallenges of Future& Analysis Analysis/hreat Challenges of/hreat Challenges ofRivalsivals


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s

/ost per item case in terms of/ost per item case in terms ofotal Supply Chainotal Supply Chain ost must beost must bevisibleisible upply Chainupply Chain ,ost,ost n boundn bound ,ost,ostStoragetorage ,ost,ost Deliveryelivery ost andost andariation betweenariation between roductroduct rouproup andnd

ustomergroupustomergroup ocation Analysisocation Analysis rucial rucialdecisionecision

ocation Analysisocation Analysis hallenges of Futurehallenges of Future& Analysis Analysis


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s

/pecialized 3PL 4PL can/pecialized 3PL 4PL can mprovemproveusinessusiness processesrocesses ,y streamlinin,y streamlininhehe ositioning andositioning and distributionistribution f f pares around the worldpares around the world /PL 4PL lead to cut cost by/PL 4PL lead to cut cost byaximizingaximizing nventorynventory levelsevels ndndreatingreating ransportation efficienciesransportation efficiencies elp strengthenelp strengthen ustomerustomer

hallenges of Futurehallenges of Future& Analysis Analysis/PL 4 PL/PL 4 PL


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ome of theome of the reakthrough strategicreakthrough strategicchoiceshoices o improve logisticso improve logistics:peration are :peration are

reatereate nique supply chainnique supply chainconfigurationsonfigurations hat alignhat align/ ith business company s strategic/ ith business company s strategicobjectivesbjectives

&reakthrough Strategic&reakthrough Strategicchoiceshoices

Operations

Strategy

Outsourcing

Strategy

ChannelStrategy

CustomerService

Strategy

AssetNetwork

ReduceUncertaint

y


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iew the Supply chain as aiew the Supply chain as atrategic Assettrategic Asset nd and aDifferentiatorifferentiator y y

.. Forecastingorecasting

.. Collaboratingollaborating.. Integratingntegrating- al Mart sal Mart s artnership withartnership with

&roctor Gamble&roctor Gamble ooutomatically replenishutomatically replenish inventoryinventoryell sell s nnovativennovative - -irect to- -irect to

ustomer salesustomer sales uild to orderuild to order



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rand owners must embracerand owners must embraceechniques and technologiesechniques and technologies hathatllow them tollow them to collaborateollaborate ithithheirheir uppliers and contractuppliers and contractmanufacturesanufactures nd give themnd give them


reakthrough Strategic


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Chinahina here world shere world sanufacturing isanufacturing is utsourced isutsourced isecomingecoming oncerned withoncerned withnvironmentalnvironmental degradingegrading

apitalize on thosepportunities hile stayingomplaint that the logistics andupply chain re not egradinghe environment nd stay to height side of the regulatory

requirements

&reakthrough Strategic&choiceshoices

reakthrough Strategic


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evelop and make suppliers ofaterial and ,ervices ware toork and respond as a link nogistics including everseLogistics nformation flow -s crux

ake logistics IT asedoperation

&reakthrough Strategic&choiceshoices


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,rain develop and maintainteam of ogistics expertsnd make it a art oftrategy developer & D o continue educingeliance on people , hereeasible and same beeplaced by functions oftechnolog


reakthrough Strategicreakthrough Strategic


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ission critical serviceolution must rovide trategicnventory Management ndxpediting ,arts DeploymentControl and Visibility ithocused Customer Satisfaction& ervice Profitability eed to focus on are House ,Inventory nd ransportationCost or overall eduction in

&&choiceshoices


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roduction facilities uste ocated close o uppliers/ ,f Raw Resources Supplieskilled &abourransportation to Customers

ogistics System must have Reliability Flexibility aleable and customizedservice upport uninterrupted



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o one enterpriseo one enterpriseontrols the entireupply Chain usiness unit eeds aollaborative Environmento affect improvement inhe ogistics Operations ndPractices

ecoming ore innovative


TODAY S MARKET PLACE REQUIRESTODAY S MARKET PLACE REQUIRES


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TODAY S MARKET PLACE REQUIRESTODAY S MARKET PLACE REQUIRES

PERSONALIIZED &contents services&contents services

for customersfor customers

COLLABORATIVE PLANNING with designwith design,partners,partners &distributors suppliers&distributors suppliers

-REAL TIME COMMITMENTS ,for design,for design

,production,production &inventory transportation&inventory transportationcapacitycapacity

FLEXIBLE LOGISTIC OPTIONS to ensureto ensuretimelytimely fulfilment of requirementfulfilment of requirement

ORDER TRACKING AND REPORTINGacrossacross

multiplemultiple vendors and carriersvendors and carriers


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O G I SI C SEVEN R s he right,roduct in he right,uantity and he right,ondition at he right ,lace

EVEN R sO G I SI C S


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Final Logistics Presentation

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