0:18 Logistics it is defined as the Art and
0:20 Science of obtaining producing and
0:22 distributing material and product in the
0:26 proper place and improper quantities
0:28 Logistics management it is the part of
0:31 Supply Chain management that plans
0:33 implements and controls the efficient
0:36 effective forward and reverse flow and
0:39 storage of goods services and related
0:42 information between the point of origin
0:44 and the point of consumption in order to
0:49 requirements difference between supply
0:52 chain and Logistics transforming a raw
0:55 material into products and getting it to
0:58 customers is supply chain whereas
0:59 movement of materials in the supply
1:01 supply chain is
1:05 logistics the seven RS of logistics the
1:07 most popular concepts of logistics
1:09 management is the concept of the seven
1:11 RS it is concerned with getting the
1:14 right product in the right quantity in
1:16 the right condition at the right place
1:19 at the right time to the right customer
1:21 and at the right
1:25 price Logistics functions following the
1:28 areas of logistics management contribute
1:30 to an integrated approach to Logistics
1:33 within Supply Chain management
1:35 Transportation many modes of
1:37 transportation play a role in the
1:39 movement of goods through Supply chains
1:43 via air Rail Road water or pipeline
1:46 selecting the most efficient combination
1:48 improves the value created for customers
1:50 customers
1:53 warehousing when inventory is not on the
1:55 move between locations it may have to
1:57 spend some time in a warehouse
2:00 warehousing is the activities related to
2:02 receiving storing and shipping materials
2:06 to and from production or distribution
2:09 locations third and fourth-party
2:11 Logistics third-party Logistics
2:13 providers actually perform or manage one
2:17 or more Logistics Services fourth party
2:19 providers are Logistics Specialists and
2:22 play the role of general contractor by
2:24 taking over the entire Logistics
2:26 function for an
2:29 organization reverse Logistics it is a
2:32 way to handle the return Reuse Recycling
2:34 or disposal of products that make the
2:43 supplier Logistics value proposition
2:45 managers must be able to balance
2:47 Logistics costs against the appropriate
2:50 level of customer service Logistics are
2:52 usually managed as an integrated effort
2:54 to achieve customer satisfaction at the
2:58 lowest total cost therefore service and
3:01 cost minimization are two key elements
3:04 in logistics value
3:07 proposition Logistics goals and
3:09 strategies Logistics shares the goal of
3:12 Supply Chain management to meet customer
3:14 requirements there are a number of
3:16 logistics goals that most experts agree
3:19 on respond rapidly to changes in the
3:22 market or customer orders minimize
3:26 variances in logistics service minimize
3:29 inventory to reduce costs consolidate
3:31 product mve movent by grouping shipments
3:34 maintain high quality and engage in
3:37 continuous Improvement and support the
3:39 entire product life cycle and the
3:41 reverse Logistics supply
3:44 chain an effective Logistics strategy
3:47 depends on the following tactics
3:49 coordinating functions that is
3:51 transportation management integrating
3:54 the supply chain substituting
3:56 information for inventory reducing
3:59 supply chain Partners to an effective
4:00 minimum number
4:07 risks substituting information for
4:09 inventory it is one of the tactics used
4:12 to design effective Logistics strategy
4:15 it requires taking a series of steps to
4:17 construct the logistics
4:20 Network step one locate in the right
4:22 countries first identify all
4:25 geographical locations and then analyze
4:27 your forward and reverse chains to see
4:29 if selecting different Geographic
4:31 locations could make the logistics
4:33 function more efficient and
4:36 effective step two develop an effective
4:39 export import strategy determine the
4:42 volume of freight and units that are
4:44 imports and exports and decide where to
4:47 place inventory for strategic
4:50 Advantage step three select Warehouse
4:52 locations determine the number of
4:55 warehouses calculate optimal distance
4:57 from markets and establish the most
4:59 effective placement of warehouses around
5:00 the world
5:03 World step four select Transportation
5:06 modes and carriers determine the mix of
5:08 Transportation modes that will most
5:11 efficiently connect suppliers producers
5:13 warehouses Distributors and
5:16 customers step five select the right
5:19 number of Partners select the minimum
5:21 number of firms Freight forwarders and
5:24 third or fourth party Logistics to
5:26 manage forward and reverse
5:29 Logistics step six develop date
5:32 of-the-art Information Systems it
5:34 reduces inventory costs by accurately
5:37 and rapidly tracking demand information
5:44 goods substituting information for
5:46 inventory it is another tactic used to
5:49 design effective Logistics strategy
5:52 physical inventory can be replaced by
5:54 better information in the following ways
5:57 improve Communications talk with
5:59 suppliers regularly and discuss plans
6:03 with them collaborate with suppliers use
6:05 continuous Improvement tools and share
6:08 observations about Trends track
6:10 inventory precisely it could be done by
6:14 using GPS and barcode systems keep
6:16 inventory in transit it reduces
6:19 inventory costs for example cross
6:22 docking use postponement centers avoid
6:25 filling warehouses with the wrong mix of
6:27 finished goods by setting up
6:29 postponement centers to delay product
6:32 assembly until an actual order has been
6:35 received mix shipments to match customer
6:38 needs match deliveries more precisely to
6:40 customer needs by mixing different skews
6:43 on the same pallet and by mixing pallets
6:44 from different
6:46 suppliers and don't wait in line at
6:49 Customs reduce the time spent in customs
6:51 by clearing Freight while still on the
6:58 air reducing supply chain Partners to an
7:01 effective number the more Partners there
7:03 are in the chain the more difficult and
7:06 expensive the chain is to manage
7:08 consider a supply chain of three
7:11 echelons between Factory and customers
7:14 two Factory warehouses nine wholesale
7:18 warehouses and 350 retail stores
7:20 reducing the number of Partners reduces
7:23 operating costs cycle time and inventory
7:26 holding costs when consider reducing the
7:28 logistic Partners look for an entire
7:31 etalon such as all the wholesale
7:34 warehouses or factory warehouses but if
7:36 you eliminate all Partners you would be
7:40 back to the vertical integration
7:43 strategy pooling risks when
7:45 manufacturers and retailers experience
7:48 High variability in demand for their
7:50 products they can pull together common
7:52 inventory components associated with a
7:55 broad family of products to buffer the
7:57 overall burden of having to deploy
7:59 inventory for each discrete product
8:02 this is called pooling risks this
8:04 reduces storage costs and risks of
8:07 stockouts by consolidating stock in centralized
8:09 centralized
8:12 warehouses flow of goods and information
8:15 these flows exist in each supply chain
8:18 Enterprise must have internal process
8:20 integration and collaboration between
8:22 functions as well as alignment and
8:25 integration across the supply chain
8:27 customer information flows through the
8:31 Enterprise via orders sales activity and
8:33 forecasts value added flow of goods
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