LOGISTICS

That part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services and related information from the point of order to the point of consumption in order to meet customers requirements
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What is Logistics?
Logistics is defined as the process of movement of materials and products into, through and out of a firm.

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LOGISTICS FLOW CHART

S U P P L I E R S
T R A N S P O R T A T I O N

SALES FUNCTIO N (SUPPLIE R) PURCHA SING FUNCTIO N (CUSTOM ER) T R A N S P O R T A

PURCHASI NG FUNCTION (DISTRIBU TOR) W A R E H O U S I N

SALES FUNCTION (DISTRIBU TOR)

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THE LOGISTICS CHANNEL

Suppliers Sales (supplier) Transportation Purchasing (distributor) Warehousing Sales (distributor) Transportation Purchasing (customer)
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CROSS FUNCTIONAL NATURE OF LOGISTICS

u Front

end - Distributor Purchasing and Supplier Marketing Interface - Warehousing and Transportation end - Customer Contact (Marketing)

u Middle u Back

FRONT END

MIDDLE

BACK END

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Seven Rs

Ensuring the availability of the

Right product Right quantity Right condition Right Place Right time Right customer Right cost

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Logistics Activities: Transportation - physical movement or flow of goods Storage - inventory management and warehousing Packaging - affected by product and transportation Materials handling - movement in, from, and within a warehouse

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Logistics Activities

Order fulfillment - completing customer orders, affects lead time Forecasting - predicting inventory necessary to fulfill customer demand Production planning - product necessary to cover market Purchasing - procurement of supplies, affects transportation
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LOGISTICS VS SUPPLY CHAIN

Logistics is 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 purpose of conforming to customer requirements. SCM is integration of all activities associated with flow and transformation of goods from raw materials to end user. SCM includes information flow through improved supply chain relationships to achieve competitive 7/16/12 advantage.

LOGISTICS MISSION

Right goods or services at right place at right time. Low cost High return on investment Product / service utility

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THANK YOU

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