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ELEMENTS OF LOGISTICS MANAGEMENTBMS Third year (first semester)

INTRODUCTION TO LOGISTICS. Chapter 1.

Definition:Logistics is the applied science of defining supporting systems and of planning andimplementing the acquisition and use of resources.

Categories of Logistics :1. Subsistence logistics :- basic necessities of life. it is relatively stable and predictable.2. operations logistics :- relatively constant and predictable. It starts from raw material utilization

during production and distribution of finished goods.3.systems logistics.:- it is all the resources required to keep the system in operation.

Supply chain concept:- It is an value addition concept. (a modern concept) It is managing the entireflow of information,material and services from raw materials suppliers throughfactories and warehouses to the end consumer.

Logistical Integration:- The application of logistics management principles frequently represents acompromise among conflicting interest within the enterprise. This concept hashelp develop areas like;

Total cost analysis.:-Systems approach. It is the view of an enterprise as an integration of functional areas working

towards common goal is considering that enterprise as a system.Customer service.:-Distribution channels.:-

Strategic concept of logistics: good firms do most things that all other firms do but they do these bettethan others i.e. competencies.

The three Cs model of competitive advantage : Company, its customers and its competitors. Theyadd value.

Logistics in the value chain: by Porter (1985). He differentiates between primary activities andsupport activities. He also differentiates 5 generic categories of

Primary activities:- Inbound logistics, operations, outbound logistics, marketingand sales and

services.Support activities:- procurement, Technology development, Human resourcesmanagement, Firm infrastructure.

Practical work study:

Q1. Define Logistics. ? And discuss about its concept in about 2 full pages with examples?Q2.Explain why you feel that logistic management is gaining importance in India?Q3.Explain functions of logistics? Operating objectives of logistics?

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ELEMENTS OF LOGISTICS MANAGEMENTBMS Third year (first semester)

INTEGRATED LOGISTICAL SYSYTEMS AND THE SUPPLY CHAIN (Chapter 2)

Integrated Logistics (IL) means performance of systems activity or functions co-operatively andnot in isolation. The concept is of continuous, uninterrupted flow of the product. All the logisticactivities must work together to move the product smoothly through the channel of distributionto the final customer. It ensures completion of the activity initiated and progressed by

procurement and marketing by making materials available for manufacturing and to thecustomer respectively.

The evolution of IL is due to :-1. Growing consumer awareness and the marketing concept.2. Automation. (Computers) & (Information and Technology advancement).3. Past failures: - recessions losses etc.4. Globalisation.5. growth of Just in Time (JIT), electronic data interchange (EDI),total quality management

(TQM),

Integration at functional level:- (Acquisition and storage of items ).1. Raw materials for the production in time.2. Semifinished goods storage till needed by production dept.3. Finished goods stored till needed by the customer.4. Spares and repairs storage.

Integration of the logistical elements:

Logistic management holds the responsibility of grouping together or integrating logistic elements sothat they best meet logistic objectives. Hence it has to coordinate:-Facility location and Networkdesign, Information, Transportation, Inventory, Warehousing, Packing and material handling.

Inventory flow for a manufacturing firm: (An example):- covers inbound logistics of procurementlogistics. Manufacturing support logistics (conversion/operation logistics) and Physical distributionlogistics (outbound logistics).

Strategically the objective/mission of logistics aims towards achieving a pre-agreed quality ofcustomer service through efficient operations. Integrated logistic system aims to fulfil theservice at the level required by the customer by performing the necessary operations aat thelowest possible total cost.

Supply chain Management:- A network of connected and interdependent organizations mutually

and cooperatively working together to control, manage and improvethe flow of materials and information from suppliers to end users.

Supply chain Integration :- Universityincoming students (RM)class sessions (transformationprocess) ---passing students (FG). The class is a subset of the wholeuniversity which itself is a system.

Key factors for successful implementation of Supply chain:-1. Managing of inventory. 2. Coordination of supply chain activities. 3.managing the two-directionalflow of information to ensure integrity, accuracy and availability of real time information.

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Practical work study:

Q1. What is the objective of logistics? Explain.?Q2. Explain drivers in reverse logistics?Q3.Explain logistics interface with marketing?Q4. Prepare flow chart of any manufacturing firms supply chain supply?