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MARKET LOGISTICS

SUPPLY CHAIN MANAGEMENT

FUNCTION OF MM
MATERIALS PLANNING AND CONTROL PURCHASING STORES AND INVENTORY CONTROL

LOGISTIC
THE PROCUREMENT ,MAINTENANCE , DISTRIBUTION AND REPLACEMENT OF PERSONNEL AND MATERIALS. The process of planning , implementing and controlling the efficient , effective flow of goods , services and related information from the point of origin to the point of consumption for the purpose of confirming to customer requirements

SCOPE OF LOGISTIC
MARKETS IN WHICH THE CO. OPERATES PLANT LOCATION AND LEYOUT OWN PRODUCTION OR OUT SOURCING COST AND SERVICE LEVEL CUSTOMER SERVICE POLICIES WIDTH OF THE DISTRIBUTION NETWORK LOCATION AND MANAGEMENT OF STORAGE FACILITY CHOICES OF MODE OF TRANSPORT , SELECTION AND MANAGEMENT OF CARRIERS. PACKAGING DECISIONS THAT DIRECTLY IMPACT STORAGE AND TRANSPORTATION

KEY LOGISTICS ACTIVITIES


CUSTOMER SERVICE DEMAND FORECASTING DISTRIBUTION AND COMMN. INVENTORY CONTROL MATERIALS HANDLING ORDER PROCESSING AFTER SALES PARTS & SERVICE SUPPORT PLANT AND WARE HOUSE SITE LOCATION PROCUREMENT PACKING RETURNED GOODS HANDLING SALVAGE AND SCRAP DISPOSAL TRAFFIC AND TRANSPORTATION WAREHOUSING AND STORAGE

INBOUND OR UPSTREAM LOGISTICS


RECEIVING , STORING AND ISSUING INPUTS & TAKING CARE OF
MATERIALS HANDLING INVENTORY CONTROL INBOUND QUALITY INSPECTION ALONGWITH THE QUALITY CONTROL FUNCTION SCHEDULING OF PRODUCTION TO MANAGE ISSUES RETURN OF UNACCEPTABLE MATERIALS BACK TO SUPPLIERS

OUTBOUND & DOWNSTREAM LOGISTICS


COLLECTING , STORING , DISPATCHING & PHYSICALLY DISTRIBUTING THE FINISHED GOODS TO THE BUYERS/ DISRIBUTION CHANNELS/CONSUMERS AND INCLUDES:::::::--------

OUTBOUND & DOWNSTREAM LOGISTICS


ORDER PROCESSING MATERIALS HANDLING OF FINISHED GOODS WARE HOUSING BOTH IN THE PLANT AND IN THE FIELD DELIVERY VEHICLE OPERATIONS AND SCHEDULING SHIPPING AND RELATED DOCUMENTATION

SUPPLY CHAIN MANAGEMENT


THE PROCESS OF PLANNING , IMPLEMENTING , AND CONTROLLING THE EFFICIENT , COST EFFECTIVE FLOW AND STORAGE OF RAW MATERIALS ,FINISHED GOODS AND RELATED INFORMATION FROM THE POINT OF ORIGIN TO THE POINT OF CONSUMPTION FOR THE PURPOSE OF CONFORMING TO THE CUSTOMER REQUIREMENTS

SUPPLY CHAIN MANAGEMENT


FOCUSES ON ::::;
SCM CREATES THE PROCESSES TO FULFILL CUSTOMER SERVICE NEEDS. RELATES PHYSICAL INFRASTRUCTURE REQUIREMENT TO SUPPORT THE OPERATIONS LIKE PLANTS , WH & TRANSPORT HELPS IN MAXIMISING THE SERVICE LEVEL.

SUPPLY CHAIN INTEGRATION


RELIABLE DEMAND MANAGEMENT HIGH CUSTOMER SERVICE LEVELS REDUCED LEAD TIMES OPTIMUM WORKING CAPITAL COSTS OPTIMUM SUPPLY CHAIN COSTS

INTEGRATED SUPPLY CHAIN MANAGEMENT


CUSTOMER ANALYSIS PURCHASING AND SUPPLIER PARTNERING INVENTORY MANAGEMENT AND CONTROL DEMAND & LEAD TIME MANAGEMENT MATERIALS MANAGEMENT MANUFACTURING / RE MANUFACTURING ASSEMBLY STORAGE AND TRANSPORTATION ORDER FULFILLMENT CUSTOMER ANALYSIS

LOGISTIC AND MARKETING


PRODUCT DESIGN PRICING MARKET AND DEMAND FORECAST CUSTOMER SERVICE POLICIES NUMBER AND LOCATION OF WH INVENTORY POLICIES ORDER PROCESSING

FOCUS AREA OF LOGISTIC AND SCM


INVENTORY MANAGEMENT STORAGE AND WAREHOUSING TRANSPORTATION

SOME FACTS
IT HAS BEEN ESTIMATED THAT 12-14% OF INDIAS GDP COMPRISES LOGISTIC COST , WHICH IS ABOUT $6 BILLION ( ABOUT Rs.26000 CRORE). THIS IS TWICE THE IDEAL PERCENTAGE OF 6-9 % AND COMPARES POORLY WITH THE US , WHICH BROUGHT DOWN ITS LOGISTICS SPENDING FROM 17% OF ITS GDP IN 1990 TO 8% IN 2002.

SOME FACTS
The time taken for goods to reach the shelves from the shop floor is about 6-12 weeks in India while , in China , the job is done in 2-3 weeks

SOME FACTS
The Indian economy can grow at an additional 1-2 % if its ports, roads and railways are improved. The cost of moving cargo (Freight rate and handling fees) is 6% of the landed cost globally while in India it is 11% -among the costliest in the world.

SOME FACTS
Congestion , fragmentation ,over regulation and a weak transport network are holding back the logistics industry in India

SOME FACTS
Improvements in Supply Chain includes :------

Redesigning the global physical network , collaborative forecasting operations and eprocurement.

ADVANTAGES IN SCM
EFFICIENT CONSUMER RESPONSE CONTINUOUS REPLENISHMENT QUICK RESPONSE LOGISTICS HANDLING FUNCTIONAL AND INNOVATIVE PRODUCTS BENCH MARKING

I.T. IN LOGISTIC
The data base could contain external data , customer orders , in bound logistic, internal data on production and inventory The planning function includes strategy planning , demand forecasting , stock management and planning production by location , product and customer requirement.

I.T. IN LOGISTIC
Control function means customer service levels , vendor performance rating , transporter performance rating and the system performance. Co-ordination for production scheduling and sales and marketing planning. Customer service includes communication, customer order status , stock availability by product and location.

ELECTRONIC DATA INTERCHANGE


REDUCED PAPER WORK REDUCTION IN MANUAL PROCESSING IMPROVES ACCURACY IMPROVED SPEED OF DATA TRANSMISSION AND ORDER RECEIPTS REDUCED EFFORTS IN DATA ENTRY , FILING AND SO ON PROACTIVE CONTRIBUTION BY PURCHASE IS POSSIBLE THE COST OF ORDER PLACEMENT, PROCESSING & HANDLING CAN GET REDUCED INFORMATION AVAILABILITY IS ALMOST INSTANTANEOUS. IMPROVED ACCURACY AND REDUCED ORDER CYCLE TIME HAS A POSITIVE EFFECT ON THE INVENTORY LEVEL.

E-PAYMENT
CORE BANKING CMS RTGS E-TRANSFER ON LINE PAYMENT SYSTEM