Logistics & Supply Chain Management

1. Logistics & Supply Chain Management Logistics: The word has originated from the Greek word logistikos and the word logisticus, meaning the science of computing and calculating Philip Kotler, Marketing Management of Pearson Education, USA, Defines logistics as:- The process of planning, implementing, and controlling the physical flows of materials and finished goods from point of origin to point of use to meet the customer’s need at a profit. American Council of Logistics Management, USA, Defines logistics as:- The process of planning implementing, and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customers requirement”. Martin Christopher of London, UK, Says:- Logistics is essentially a planning process and an information based activity

2. Logistics-A ‘System’ Concept The logistics concept is based on the ‘system’ approach. Logistics recognizes that all the activities across the business process are interdependent and needs close coordination and these are to be managed as system and not as functional silos.

3. ‘Logistics & SCM (Mix Bag) • Information Flow • Order registration • Order checking and editing • Order processing • Coordination • Packaging • For handling & damage prevention • For communication • For inter-modal transportation • Warehousing • Material Storage • Load unitizing & material handling • Site selection and network planning • Order picking and filling • Dispatch documentation • Transportation • Route planning • Mode selection • Vehicle scheduling • Inventory Control • Material requirement planning • Inventory level decisions for • Customer service objectives • Logistics has to achieve two polemic goals • Customer satisfaction • Least cost This is possible only when all logistics functions are working as unified system to achieve the common goal

4. Scope of Logistics The scope of logistics ranges from the management of various area of work, which is comprising of following:- • Warehousing & Distribution • Inventory Management • Transportation • Packaging • Import & Export • MIS

5. Warehousing & Distribution • Warehousing & Distribution is not just simple act of storing & transporting items, rather a package of services that enables the smooth running of the wheels of any organization. • Logistics must be in constant touch with the user departments, in order to provide uninterrupted services to all.

6. Warehousing Management • Broadly warehouse management can be divided into three fronts • Business Front (WH-Function, Planning and Operations) • Non-Business Front (WH-Administration, Human Resource, Fleet Management and House keeping) • Management Front

7. Warehouse Business Front Function, Planning and Operations Conveyor Weighing machine Striping machine High voltage stapler Filler unit or Hooper Bar coding machine CCTV Digital camera Equipment Export Local Space Planning Sales Order Processing Shifting of old Material to old Spare yard Clearing of obsolete Material kept in W/H Height of the Racks Segregation of Bin Distance between two Rack Yellow Marking In whole Warehouse Import LPO SRN Warehouse Planning Inward Stacking Warehouse Operations ABC Analysis FIFO FMFO LIFO Picking Packing Miscellaneous Physical Counting Scanning if scanner available Damage/Shortage Report GRN or MRN Single Order Picking Batch order Picking Assembly Picking Product customize Packing Fragile Packing Normal Packing

8. Warehouse Non-Business Front Warehouse Administration, Human Resource, Fleet Management and House Keeping • Warehouse Human Resource • Development of WH-Personnel • Quarterly performance appraisal • Discipline in WH & Working area • Rewards & Punishment Warehouse Administration • Office Administration • Attendance of WH-Crew • Start of work • Security • Leave • Stationary • House keeping • Cleaning • Daily, Weekly and Mass • Rodent, Pest and Insect Control • Monthly, Quarterly and Yearly • Fumigation- As advised by the expert Fleet Management • Docs & Taxes • R/C, Road permits, Road taxes, fitness and Insurance papers • Class & Size • No of Trucks, Horse & Trailers, fork lift, cranes and bus • Fire Fighting • Class of fire can take place in WH • No and location of fire extinguisher available • Hose points and water supply • Instituting fire fighting team and training to WH crew • Log Book • Route plan, meter reading( IN/OUT), Driver’s Name • Maintenance • Routine Maintenance • Minor repairs • Major repairs • Over haul • Accidental case

9. Warehouse Management Front Q-What Management wants from Warehouse as monthly report? A-A brief report, which helps the management for future plan. • Warehouse Management Information System • Total warehousing area in Sq.ft. • Occupied area as on date in Sq.ft. • Over all tonnage handled for the month • Import Consignment handled for the month • Export Consignment handled for the month • Local purchase handled for the month • SRN handled • Number of carton generated for the month • Number of delivery in month • Number of sales order processed for the month • Goods damage report • Packing material used and purchased • Fleet status • Status of Equipment & Machinery in warehouse • General Maintenance • Expenditure for the month • Suggestion if any

10. Distribution Even before a product is ready for market, management should determine what methods and route will be used for distribution. It means establishing strategies for the products • Distribution Channels • Physical Distribution

11. Distribution Channels M C (Two Level) M R C (Three Level) M R C W (Four Level) M A W R C (Five Level) A= Agent C=Consumer M=Manufacturer R=Retailer W=Wholesaler

12. Physical Distribution Channels Once Organization establishes the channel distribution, then physical distribution must arranged as per commodities, it consists of all the activities concerned with moving the right amount of the right products to the right place at the right time. Rope way Pipe Line Rail Road Sea Air Bulk Commodities Import & Export Bulk fluids Ores & Mined Bulk & Packaged High value & Perishable

13. Process of Distribution Management M A N U F A C T U R E S S U P P L I E R S Hub B-S E C O N D A R Y L O G I S T I C S A-P R I M A R Y L O G I S T I C S Warehouses & Distributions Centers Company Stores Clients Clients Hub

14. Inventory As whole • The basic objective of any inventory management is to determine the right quantity to be procured, in order to release the capital for more productive use • The determination of the right quantity assumes tremendous importance, satisfying the conflicting view of • Not too much • Not too little • At minimum total cost • Increased profitability • The effective inventory management is necessary to ensure adequate supplies at optimum cost as inventory act cushion between supply and demand

15. Inventory Management Classification of Inventory Operational Purpose Financial Reporting Purpose • Production Inventories • Raw Materials • Bought out Components • MRO (Maintenance, Repair and Operating) • Consumables • Spare Parts • Work in Process (Semi-Finished products found at various stages in the production process) • Finished Goods Inventories • Packaging Materials • Finished goods • Goods in Transit (GIT)- Materials ordered and • paid for but not yet received and taken into store • Stores-All materials physically held in the store • Work in Process (WIP)- Materials issued to the • Shop-floor which have not yet became FG • Stock in Trade (SIT)- Finished goods, ready for • sales

16. Different Types of Inventory Control

17. Transportation Transportation of goods from point of origin to point of consumption depend Upon the demand of market, therefore we must give due consider to following:- • Route Planning • Mode Selection & Location • Vehicles Scheduling

18. Packaging of Products • Packaging provides advantages in the • Distribution • Marketing • Protection • Preservation

19. Import & Export of Goods Import Sea Air Commercial Invoice Packing list Certificate of Origin CE Certificate (In case of used Machinery & Plant) Insurance Bill of lading Commercial Invoice Packing list Certificate of Origin CE Certificate (In case of used Machinery & Plant) Insurance Copy of AWB IEC Number & Customs Regulation

20. Import & Export of Goods Export Air Sea Shipping Bill Shipping Bill AWB Packing list IEC Number & Customs Regulation Packing List Invoice Invoice Insurance Insurance

21. Logistics Information System(On Monthly Basis) Regional Movement of Material Product wise Inventory level Overall Tonnage Handled Value of Inventory No of sales order processed Import & Export Shipment in transit No of sales returns Import & Export Tonnage No of local delivery Payment of Sea Freight Payment Air Freight Pending delivery • Budget Forecast • Projections for any major investment • Vehicles operating expenditure • General Operating expenditure • Repair & Maintenance • Staff welfare, Training & Development Packing material used & Purchased Status of Vehicles, Equipment & Machinery

22. MHE Store Assumption of present Warehouse Status

23. Proposed Mother Warehouse SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs Depot Manager Room Data entry room Documentation/ Records Room Crew Changing Room, Rest Room Checking of docs./ Materials and random Check of invoice items Inspection Area Physical Counting Of Material Inward Gate & Security Outward Gate & Security Legend Entry restricted after this point Racking System Outflow of material from warehouse Gangway Inflow of material in warehouse Fire Extinguisher

24. Assumption of Present Manpower Logistics Manager Assistant Manager Warehouse In Charge Import & Export In Charge Inventory Controller Warehouse Supervisor Shipping Coordinator Budget Forecast Warehouse Crew Document assistant General Administration & HR Drivers Airport & Sea Port Boys

25. Proposed Manpower Plan (Keeping Business Growth in Mind) Group Logistics Head Logistics Manager Shipping Manager Controller-Inventory Cum Accountant WH-Ops Officer WH-Supervisor WH-Crew Driver Warehouse Manager-Product A Warehouse Manager-Product B WH-Ops Officer WH-Supervisor WH-Crew Driver Warehouse Manager-Product C WH-Ops Officer WH-Supervisor WH-Crew Driver Warehouse Manager-Product D WH-Ops Officer WH-Supervisor WH-Crew Driver Common House Keeping Common IT Support Common HR & Administration Manpower Plan is projected based on discussion during interview, KRA & KPI of each employee is ready

26. How I am most suitable candidate? • I am a hardcore logistician • I have experience of Middle East and have visited various country • I am proactive and a good implementer • I have handled different types of product • I was part of ERP implementation in two Org. • I am good in designing SOP & Strategy • I have both management as well as line manager experience • I am aggressive in implementation process • I am good negotiator • I have fair academic and professional experience

27. Thank you