Global logistics

presented by:

bhupathiraju.vijay varma(131415)

pranaya biswal(131341)

ganne.ravi teja(131410)

saradhi rama chandhra(132339)

B.ravi teja(131343)

G.indira teja(131350)

logistics

• The overall management of the way resources are obtained, stored and moved to the locations where they are required. Logistics management entails identifying potential suppliers and distributors; evaluating how accessible and effective they are and establishing relationships and signing contracts with the companies who offer the best combination of price and service. A company might also choose to handle its own logistics if it is cost-effective to do so.

Global Logistics:

Global logistics is the design and management of a system that controls the forward and reverse flow of materials, services, and information into, through, and out of the international corporation.

Through the implementation of international logistics, the firm can implement cost-saving programs such as just-in-time (JIT), electronic data interchange (EDI) etc.

The two phases of the movement of materials include:

Timely movement of materials, parts, and supplies.

Timely movement of the firm’s physical product to its customers.

Role of Global Logistics

Globalization helped in doing business beyond the national boundary

The world has become global village in real sense

Internet has made easy to do business across the globe

Speed and Efficiency in the movement of goods is focused more.

Global operations of business increase the complexity of logistics.

Complexity of a Typical Global Supply Chain

Supplier

Roadways Roadways

Freight

Forwarder

Customs

Agent

Port

Ocean

liner

Airways

Roadways

Road+

Rail

RDCCustomer’s

Warehouse

Customer

(Retailer)

ConsumerHome

Plant

Transportation Infrastructure

A firm’s logistics platform is determined by a location’s ease and convenience of market reach under favorable cost circumstances.

The public sector’s investment priorities, safety regulations, tax incentives, and transport policies can have major effects on the international logistics decisions of firms.

The logistics manager must learn about existing and planned infrastructures abroad and at home and factor them into the firm’s strategy.

Liner Service

Bulk Service Tramp Service

Vessels Used in Ocean Shipping

Liner Service – is a service that operates within a schedule and has a fixed port rotation with published dates of calls at the advertised ports

A Tramp Service or tramper on the other hand is a ship that has no fixed routing or itinerary or schedule and is available at short notice (or fixture) to load any cargo from any port to any port..

Bulk Service: It is engaged in the transfer of dry bulk commodities from rail and truck to dock.

Airfreight

Airfreight is available to and from most countries, including the developing world.

40 percent of the world’s manufactured travel by air.

Items that are high-value or high in size tend to travel by air.

Considerations for Selecting a Mode of Transport

Transit Time

Predictability

Cost

Non-economic Factors

In many ways, international supply chain management is the same as domestic supply chain management spread over a larger geographic area.

However, international supply chain networks can provide a wealth of additional opportunities if they are managed effectively.

Types of systems :

International distribution systems:

Manufacturing occurs domestically, but distribution and marketing takes place overseas.

International suppliers:

Raw materials and components are furnished by foreign suppliers, but final assembly is performed domestically.

Offshore manufacturing:

The product is typically sourced and manufactured in a single foreign location, and then shipped back to domestic warehouses for sale and distribution.

Fully integrated global supply chain:

Here products are supplied, manufactured and distributed from various facilities located throughout the world.

Supply chain without national boundaries.

The true value of global supply chain lies here.

Dynamic Forces of Global Logistics

The firms adopt different orientations with varying intensities due to the dynamic behavior of the global business environment.

RESOURCES

Resource Oriented Logistics:Emphasis towards optimal use of resources -- capital,

materials and peopleFocuses on the relationship between the functional and the geographical

Optimize

Resources

Functional Geographical

Information Oriented LogisticsEmphasis towards optimal use of information.Focuses on the relationship between the sectorial and the geographical dimensions.

GeographicalSectorial

Optimal

Performance

User Oriented LogisticsEmphasis on the final customer.Using all the supply chain partners to bring their expertise in order to best service the customer.User oriented focus brings about flexibility in the logistics channel.

Customer

Factors Pushing Global Logistics

Technological

Advances

Emergence of

Global Markets

Global Cost

Forces

Political & Macro-

economic factors

How is Global Logistics creating Change:

The management has to consider the Global economy

Logistics operations perceived more as Service Provider for cost minimization

Service in the Industry becoming more important than Cost Saving

Logistics activities no longer limited to moving products through the Supply Chain but as an Information Provider for the SC.

Companies moving away from Vertical Integration and towards Supply Chain Integration, with Logistics activities provided externally.

Benefits due to Globalization of Logistics:

Globalization is necessary for long-term survival

Diversity of markets increasing giving rise toStandardization across international marketsProduct diversity

Ability to access multiple sources of technology

Ability to set up strategic alliances and R & D