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LOG
LOG II S
S TICS
TICS
 L O G I S T
•
I C S
Logistics has existed
since the beginning
of civilization
• Raw material and
finished products had
always to be moved , though
on a small
scale
 L O G I S T
I C S
• Things began changing
with
advancement in
Transportation System
 L O G I S T
I C S
• Population moving from
Rural to Urban
areas and to business
centres
 L O G I S T
•I CN o lS
onger did
people live near
‘Production
centres’, nor
did production
take place
near
‘Residence centres’
 L O G I S T
•
I C S
That led to an increase in
‘ Geographical Distance ’
between Production Point an
Consumption Point and

‘ LOGISTICS ’ ga
importance
WHAT IS ‘
LOGISTICS ’ ? ...
 L O G I S
T I C S
• A general idea about logistics
is
“ Movement of Goods ”
Narrow concept
• Logistics support is
much more , much
wider and involves
multifarious activities
than mere handling of
products or goods
 L O G I S
T
Logistics I Management
is C S of :
• Cost effective flow of
goods and services

From Point of Origin

To Point of Consumption
 L O G I S
T I C S

GLOBALIZATI FREE COMPETTION

ON MARKET

7 R’s
 L O G I S
T I
SEVEN R ’ s C S
•The right
product , in
•The right
quantity , and
•The right
condition , at
•The right place ,
at
 L O G I S
ComponentsT ofI C S
Integrated
system ( ILS ) are :
Logistic

• External Suppliers ( Inbound

Logistics
• Internal
)
Operations
• Physical/ functions
Distribution
( Outbound Logistics )
External
External Internal
Distributors
Suppliers Operations/
(Outbound
(Inbound Log) Functions
Log)

INFORMATION
 L O G I S
• T I C
Logistics
increased
S received
has
‘ Management Attention ’
• Corporations are using
•
logistics as a
‘ Competitve weapon ’ to meet
challenges
of Global competition &
• Logistics has not only been
turbulent bee
recognized
business asenvironment
a group of important
functions but has important
 L O G I S
Some ofT the
I C S
emerging trends
in Logistics are :
• Increased awareness of strategic
Global of
•benefits supply
ILS chain
• 3 & 4 Party Logistics services
• Just in time logistics
• Availability of information
• Environmental sensitivity
• Collaboration and Visibility
Basic Concepts
of LOGISTICS
 Logistics
Logistics is the management of the flow of
goods and services between the point of
origin and the point of consumption in
order to meet the requirements of the
customers.
 Activities in
Logistics
• Facility location and its layout.
• Purchasing and procurement.
• Planning / manufacturing.
• Forecasting and order management.
• Ware housing.
 Activities in
Logistics
• Inventory management.
• Transportation / supply chain.
• Material handling and protective packaging.
• Integration of information about maintenance and
flow of goods.
 Supply Chain
Supply chain is the Logistics Network of
• Suppliers
• Manufacturers
• Warehouses
• Distribution centers
 Logistics Management
• The process of strategically managing the
procurement, movement and storage of materials,
parts and finished inventory through the
organisation.
 Business Logistics
• Business logistics is defined as a business
planning framework for the management of
material, service, information and capital flows
 Military Logistics
• The science of planning and carrying out the
movement and maintenance of forces.

• In military science, maintaining one's supply

lines
while disrupting those of the enemy is a crucial
 Third-Party Logistics
•Third-party logistics (3PL) involves using
external 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
 Reverse Logistics
•Goods or products returned from the consumer
point to the original supply point, for various
reasons.
•Bad delivery, over-supply, damage, expiry, failing
inspection tests at the customer point, goods
unsold etc.
•
 Logistic
Planning / Support
Functions

Affan Baig
 Key Perameters
There two key Parameters which
are:-
• Spportability

• Readiness
 Support functions
There are ten elements of
logistics support include:-
• Maintenance Planning

• Manpower and personnel

 Support functions
cont ’ d ....
• Supply Support

• Support equipment

• Technical Data
 Support functions
cont ’ d ....
• Training and Training Support

• Computer Resource Support

• Facilities
 Support functions
cont ’ d ....

• Packinging.Handling,Storage and
Transport

• Design Interface
 Main objectives
of Logistic
Supply Chain
 Objectives are .....

Three main objectives

• Cost Reduction

• Capital Reduction

• Service Improvement
Globalization of
Logistics

Muhammad Sohail
 Globalization of Market
•Global companies manufacture and sell
product around the world.
•Consumer have benefited from
globalization due to competition.
•Importance of logistics has increased
in global business.
•Example: P&G, Toyota, Pepsi
 Containerized Shipping
•Where to locate production facility:
( Storage Centers, retail outlets)
•Heavy industries require large amount
of space.
•Light industries are located near to
customer.
•Containerized shipping had eased the
job of location.
 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.
 Supply chain Security
•Supply chain challenges can be
overcome by addressing three
following areas:

1.Supply Chain Visibility.

2.Supply Chain Control.
3.Supply Chain Collaboration.
 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.
 Supply Chain Control
•Complexity of supply chain has led to
the loss of control over full
manufacturing process.

•Company must define a critical

criteria that supplier must meet.
 Supply Chain Collaboration
•In today’s global environment,
isolation is not an option.

•Companies must consider suppliers as

business partners and should create
an environment where information is
shared.

•Sharing of information involves to

define requirements, specifications
and results.
 Internet/Communication
•Internet has led to quick solutions to
complex problems of globalization.

•Growth of global trades over the years

is due to internet and improvement in
logistics.

•Access to timely information is very

important in global logistics.
 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.
 Counterfeit Goods and Pirated
Software
•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 you
mother ”

•Need regulatory measure to protect the

interest of brand manufactures.
 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.
 Customers Satisfaction
•Availability of required parts where
needed.
•On time performance.
•Meeting and exceeding end-user
expectations is an important
competitive advantages.
•Customer satisfaction can increase
revenue and improves retention.
CHALLENGES OF FUTUR
&
ANALYSIS

BREAKTHROUGH
&
STRATEGIC CHOICES

Waheed Malik
 Challenges of Future
& Analysis
 Challenges of Future
& Analysis
• Logistic planner cannot continue
to operate Supply Chain and
Logistics processes in a
Historical Way of
manufacturing and delivering
•the Globalization
products of world
Economies and emergence
of business from recession has
put additional pressure on
Supply Chain Management and
Logistic Applications
 Challenges of Future
scaricty
& Analysis
Global Impact

• Suppliers will be increasingly

vulnerable to
Govt Regulations thus Leading to
Higher Component and Energy
•
Cost
• The fact that Companies need to
stay at top of
 Challenges of Future
& Analysis
Global Supply Chain
• As the dynamics of manufacturing
in modern day change, Brand
Owners are becoming more and more
dependent on Outsourced, Global
Suppliers & Contract
Manufacturers to reduce cost
•
•

• Dependence on Global Supply

Chain , introduces greater risk of
poor Product Quality
 Challenges of Future
& Analysising
Environmental Screening

• Global Supply Chain will be at Risk

from increasing intensity of major
Storms and Flooding
• High Sea levels from melting
polar ice - Problems at Sea Ports
lenges
Challenges
of Future
of Future
& Anal
Ana
Analysis
& Environmental
Screening
• Disruptive events like
eruption of Icelandic Volcano
2010, increased security
concerns & industrial actions
all over the world have pushed
more – Companies to turn to
IT
• Understanding of
environment at customer level
 Challenges of Future
Analysis Availability
&Information
• Availability of internet & Supply
Chain and Logistics improvement -
Containerized Shipping
• Thus Companies can locate any where
and work with multiple partners to
serve market needs
• ? Companies to handles rigors &
challenges of doing business
overseas and how best can
incorporate information in their
 Challenges of Future
Eepaffect on
& Analysis
Training & Trained
Manpower
• Logistics today has become a
specialist function
•
• Need to have proper trained
manpower with technology support
to make logistics success in
the business
 Challenges of Future
& Analysis s
Oil Prices
• Economic activity is deeply linked
with volatile oil prices
• Increasing scarcity of fossil
based fuel – boosting transportation
costs significantly
• Low wages and lesser regulatory
advantages are being offset by
cost of shipping
• Depleted stocks of oil in China
coupled with driver’s crisis and
regulatory uncertainty – deep affect on
 Challenges of Future
& Analysis s
Customer Needs
• Need to identify and measure
customer requirement
• Customer service is realistic and
when reaches 95% - cost increases
exponentially
• Getting customer service right is
- Understanding what customer
needs and how it is delivered and
under what line cost drivers
 Challenges of Future
Analysis
&Threat s
/ Challenges of
• Rivals
Most of the sales and customer
Software/Hardware transfers are
handled electronically through
marketing/sales & development
offices
• Ensure that no product are
shipped to terrorist countries OR to
Competitors companies or individuals
So as Not to Loose
Competitive Advantage in
 Challenges of Future
& Analysis s
Location Analysis
• Cost per item/case in terms of
total Supply Chain cost must be
visible
• Supply Chain Cost, In bound Cost,
Storage Cost, Delivery Cost and
variation between product group and
customergroup
• Location Analysis – Crucial
decision
Where to locate manufacturing
 Challenges of Future
& Analysis s
3 PL / 4 PL
• Specialized 3PL / 4PL can improve
business processes by streamlining
streamlinin,
the positioning and distribution of
spares around the world
• 3PL / 4PL lead to cut cost by
maximizing inventory levels and
creating transportation efficiencies
• Help strengthen customer
relationships by business growth &
 Challenges of Future
Eepaffect on
& Analysis
Actionable Visibility
• Innovation of electronic product
codes (RFID) and what is happening
in the stores ?
•

• Brought Actionable Visibility in

inventory management
• Improvement by taking out some of
human resources from Supply Chain
 BREAKTHROUGH
&
STRATEGIC CHOICES
Breakthrough & Strategic
i
choices
Mounting pressure and Challenges
force business entities to make
changes to their Logistic and
Supply Chain operations in a most
formidable way so as to continue
to enjoy a Sustainable Competitive
Advantage
Breakthrough & Strategic
choices
Some of the breakthrough strategic
choices to improve logistics
operation are :
• Create unique supply chain
configurations that align
with business / company ’ s strategic
objectives
Operation Outsourcin Channel
s g Strategy
Strategy Strategy

Customer Reduce
Service Asset
Network Uncertaint
Strategy y
Breakthrough & Strategic
•
choices
View the Supply chain as a
Strategic Asset and a
Differentiator by
1 . Forecasting
2 . Collaborating
3 . Integrating

Wal - Mart ’ s partnership with

Proctor & Gamble to
automatically replenish inventory
Dell ’ sinnovative direct - to -
customer sales & build - to - order
Breakthrough & Strategic
choices
• Brand owners must embrace
techniques and technologies that
allow them to collaborate with
their suppliers and contract
manufactures and give them
•
Breakthrough & Strategic
choices
• China where world ’ s
manufacturing is outsourced – is
becoming concerned with
environmental degrading
• Capitalize on those
opportunities while staying
complaint that the logistics and
supply chain are not degrading
the environment and stay to the
right side of the regulatory
requirements
Breakthrough & Strategic
choices
• Develop and make suppliers of
material and services , aware to
work and respond as a link in
logistics including Reverse
Logistics

• Information flow is crux -

Make logistics IT based
operation
Breakthrough & Strategic
choices
• Train , develop and maintain
a team of logistics experts
and make it a part of
strategy developer
• R & D to continue reducing
reliance on people, where
feasible and same be
replaced by functions of
technolog
• Prices of fossil fuel need
Breakthrough & Strategic
choices
• Mission critical service
solution must provide Strategic
Inventory Management and
expediting parts Deployment ,
Control and Visibility with
Focused Customer Satisfaction
& Service Profitability

• Need to focus on Ware House,

Inventory and Transportation
Cost for overall reduction in
cost
Breakthrough & Strategic
•
choices
Production facilities must
be located close to suppliers
of Raw Resources / Supplies ,
Skilled Labour &
Transportation to Customers
• Logistics System must have
 Reliability
 Flexibility
 Saleable and customized
service
 Support uninterrupted
business with Speed,
Breakthrough & Strategic
choices
• No one enterprise
Controls the entire
Supply Chain
•
• Business unit needs a
Collaborative Environment
to affect improvement in
the Logistics Operations and
Practices
•
• Becoming more innovative
TODAY’S MARKET PLACE REQUIRES
• PERSONALIIZED contents & services
for customers

• COLLABORATIVE PLANNING with design

partners, distributors & suppliers
•
• REAL-TIME COMMITMENTSfor design,
production, inventory & transportation
capacity
•
• FLEXIBLE LOGISTIC OPTIONSto ensure
timely fulfilment of requirement

• ORDER TRACKING AND REPORTING across

multiple vendors and carriers
 L O G I S
T I
SEVEN R ’ s C S
•The right
product , in
•The right
quantity , and
•The right
condition , at
•The right place ,
at