WIPRO – E PERIPHERALS MYSORE

1. WIPRO – E PERIPHERALSMYSORE PRESENTATION ON LOGISTICS AND SUPPLY CHAIN MANAGEMENT

2. PRESENTATION BY V.VENUGOPALB.A., D.Com., CAIIB, PGDLSMGRADUATE IN SHIPPING STUDIES(VLADIVOSTOK, EARSTWHILE USSR)(TRAINED BY USSR NAVY)SPECIALIST IN LOGISTICS AND SHIPPINGEXPERIENCE – 41 EVENTFULL YEARSDIRECTOR EDUCATION WINGRAIGAD CHAMBER OF COMMERCE AND INDUSTRY

3. VISITING FACULTY • SIES COLLEGE OF MANAGEMENT STUDIES – NAVI MUMBAI • PILLAIS INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH – NAVI MUMBAI • MVIRDC WORLD TRADE CENTRE – MUMBAI • SELTEL INC. – NAVI MUMBAI • INTERNATIONAL INSTITUTE OF BUSINESS RESEARCH – PUNE • INSTITUTE OF LOGISTICS AND SHIPPING – NAVI MUMBAI

4. SCOPE OF SUBJECT • INTRODUCTION TO LOGISTICS • LOGISTICS DEFINED • OBJECTIVES OF LOGISTICS MANAGEMENT • FUNCTIONAL AREAS OF LOGISTICS • LOGISTICS OUTSOURCING • THIRD PARTY LOGISTICS • FOURTH PARTY LOGISTICS • LOGISTICS VALUE CHAIN • LOGISTICS PRIMARY ACTIVITIES • SUPPORT ACTIVITIES • LOGISTICS MISSION • SUPPLY CHAIN MANAGEMENT • SUPPLY CHAIN MANAGEMENT DEFINED • SUPPLY CHAIN TYPES

5. SCOPE OF SUBJECT (CONTD) • OBJECTIVES OF SUPPLY CHAIN MANAGEMENT • SUPPLY CHAIN CONSTITUENTS • SUPPLY CHAIN ACTIVITIES • SUPPLY CHAIN IMPLEMENTATION • WEB-CENTRIC SUPPLY CHAIN • WAREHOUSE OPERATIONS • TYPES OF WAREHOUSES • PACKING AND PACKAGING • MATERIAL HANDLING EQUIPMENTS • MULTIMODAL TRANSPORTATION • CONTAINERS • INCOTERMS • CONCLUSION

6. WHAT DO YOU UNDERSTAND BY LOGISTICS MANAGEMENT? • It is mainly a matter of operation. • Clubbed with Process & Procedures. • Monitored by Regulatory Bodies. • Logistics deals with: • Supply. • Storage. • Service. • While the fundamentals of Logistics remain same, the actual application will differ from product to product. • This is a vast result – oriented activity. • Lots of efforts needed for this subject.

7. LOGISTICS DEFINED The American Council of Logistics Management defines logistics as“the process of planning, implementing & controlling the efficient, cost effective flow & storage of raw materials, in – process inventory, finished goods & related information from point of origin to the point of consumption for the purpose of conforming to customers requirements.”

8. OBJECTIVES OF LOGISTICS MANAGEMENT. • Inventory Reduction. • Reliable & Consistent Delivery Performance. • Freight Economy. • Minimum Product Damages. • Quick Response. • Reverse Logistics.

9. LOGISTICS FUNCTIONAL AREAS • Facility Location and Network Design. • Information Management. • Transportation Management. • Inventory Management. • Warehouse Management. • Materials Handling. • Packaging. • Reverse Logistics.

10. 7 R’s – DEFINITIONS OF LOGISTICS • Right Product. • Right Customer. • Right Quantity • Right Condition • Right Place • Right Time • Right Cost These indicates the following role for Logistics.

11. ROLE OF LOGISTICS • Accurate interpretation of customer orders and / or marketing strategy. • Accurate interpretation of customer requirements or orders and / or marketing strategy as also providing manufacturing support. • Precise execution of the process of the product from point of origin to the point of requirement / consumption. • Suitable care of product from the point of origin to the point of consumption. • Efficiency to ensure the lowest cost during execution.

12. ROLE OF 3 PL & 4 PL • 3 PL means 3rd PARTY LOGISTICS. 4 PL means 4th PARTY LOGISTICS. • What is 3 PL?? • The trend which developed during 1990s, companies started focusing on the core competencies & outsourced their business support activities. This is nothing but a BPO activity. • What is 4 PL?? • 4 PL is nothing but an extension of 3 PL for further specializing in the BPO activity. • Parent companies are directly contracted with 3 PL companies but 4 PL agreements are not with parent companies but with 3 PL service provider.

13. THIRD PARTY LOGISTICS The Evolution Logistics Outsourcing is explained here under: • Future 4 PL • Early ’00 3 PL • Late 90’s Complex Logistics System • Mid 90’s Warehousing transportation Related services • Early 90’s Transportation Services Logistics Outsourcing

14. VALUE CHAIN ACTIVITIES BY PORTER (1985) • The value chain of Porter (1985) is composed of value activities and a margin, which is achieved by these activities. Value activities can be divided into physically & technically different groups of activities. Porter differentiates between primary activities and support activities. Primary activities are those which are directed at the physical transformation & handling of the final products, which the company delivers to its customers. Support activities enable & support the primary activities. They can be directed at supporting one of the primary activities as well as supporting the whole primary process. • Porter differentiates between 5 generic categories of primary activities: • 1. Inbound Logistics 2. Operation 3. Outbound Logistics • 4. Marketing & Sales & 5. Services. • Support Activities are grouped into 4 categories: • 1. Procurement 2. Technology Development • 3. Human Resource Management & 4. Firm Infrastructure.

15. THE MISSION OF LOGISTICS YOU ARE NOW AWARE OF THE FACT THAT A FIRM ACHIEVES COMPETITIVE ADVANTAGE OVER ITS COMPETITORS BY FULFILLING CUSTOMER REQUIREMENTS (VALUE ADVANTAGE OR EFFECTIVENESS) THE LOWEST COST (PRODUCTIVITY ADVANTAGES OR EFFECIENCY). STRATEGICALLY, LOGISTICS AIMS TOWARDS ACHEIVING A PREVIOUSLY AGREED UPON QUALITY OF CUSTOMER SERVICE THROUGH EFFICIENT OPERATIONS. THUS, INTEGRATED LOGISTICAL SYSTEMS AIM TO FULFILL THE SERVICE AT THE LEVEL REQUIRED BY THE CUSTOMER BY PERFORMING THE NECESSARY OPERATIONS AT THE LOWEST POSSIBLE TOTAL COST.

16. WHAT IS SUPPLY CHAIN A supply chain includes all the process that add customer desired value to material and bring it to the customer. This value gets added at various stages of the journey that material takes till it reaches the customer. Supply chain encompasses all these value adding stages. SCM DEFINED- Cisco SCM aims to increase sales, reduce costs, & make full use of asset by streamlining the interaction & communication of all participants along the supply chain. SCM solutions use networking technology to link suppliers, distributors & business partners to better satisfy the end customer, while feeding real time data about customer demand into the partner’s production & distribution process.

17. S.C.M & LOGISTICS INTEGRATEDSUPPLY CHAIN MANAGEMENT – A system through which the supply is moving. LOGISTICS – A concept / operation through which the goods are moved.In the whole operation, S.C.M cannot deliver without the help of Logistics but not vice versa.SCMLOGISTICS

18. SUPPLY CHAIN TYPES • Raw Supply Chain • Ripe Supply Chain • Internal Supply Chain • Extended Supply Chain • Self Monitored Supply Chain • Outsourced Supply Chain • Production Oriented Supply Chain • Financial Oriented Supply Chain • Market Oriented Supply Chain • Value Chains (Complete Supply Chains)

19. OBJECTIVES OF SCM The most important objective is unification of all the functions & activities that are required throughout the product life cycle from lust to dust. This unification or integration allows a smooth passage of information & products throughout the system. Managing the complete product life cycle includes managing the design, source, make & delivery. The principal objectives are • To reduce the physical supply chain links • To define supply chain responsibilities to a specific core service competency. • To decrease the time & cost of getting end user products in volume to markets worldwide.

20. SCM CONSTITUENTS • Information • Supply • Production • Distribution • Supply Stock (Inventory)

21. SCM ACTIVITIES • Plan • Source • Make • Deliver • Return

22. SCM IMPLEMENTATION Supply Chain is a function of how each product travels from its origin to destination & this is completely product specific, supply chain also has to be accordingly designed & implemented. The integration process composed of materials, services, information & cash within a company as well within the network of companies or organisations that manufacture & deliver the products & services from initial sources to end users. The challenge is for firms to internalise the approach throughout their firms & their trading partners in end to end total supply chains. The move is from ENTERPRISE to IMMEDIATE EXTENDED to TOTAL END TO END Supply chain thinking. Successful supply chain implementation projects reveals the following 4 commonalities: • Crafting Project Vision • 2. Managing Organisational Change • Right Implementation Approach • Managing Technical Challenges

23. WEB-CENTRIC SUPPLY CHAIN • The internet enabled e-business applications have integrated internet with all branches of supply chain & emerged as the most cost effective means of supply chain operations. E-BUSINESS APPLICATIONS • E-Commerce • E-Procurement • E-Collaboration

24. WAREHOUSE OPERATIONS GODOWN A mere conventional storage place WAREHOUSE • A strategic inventory storage space • Part of a SCM • Hub of logistics activity • Software based (IT) regular operation to serve the SCM partners & end users • Reports to management through MIS

25. TYPES OF WAREHOUSES • Public Warehouse • Private Warehouse • Bonded Warehouse Mostly conducted by 3PL Operators.

26. PROTECTIVE PACKAGING CONCEPT PACKING – Is nothing but wrapping PACKAGING – The material used for wrapping. PACKAGE – The wrapped merchandise. TYPES OF PACKING • Industrial • Commercial

27. PROTECTIVE PACKAGING LOGISTICAL FUNCTIONS • CONTAINMENT – Keeping together – space related. • PROTECTION – Product characteristics + logistical hazard = package protection • UTILIZATION – Productivity + Efficiency of Total Logistics System = Loading, Stacking, etc • COMMUNICATION – Bar coding/Handling Symbols, etc

28. MATERIAL HANDLING EQUIPMENTS Handling equipments are built under global specifications. Some of the equipments are: • Pallet Trolley • Fork Lift • Grabbers • Cranes / Lifts • Port Equipments – Quay Cranes – Rail Mounted Gantry Cranes – Rail & Tyre Straddle Carriers (Stakers)

29. MULTIMODAL TRANSPORTATION MODES OF TRANSPORTS • Road • Rail • Air • Sea • Pipeline Multimodal Transportation of Goods Act, 1993 • On 16th Oct. 1992, President of India promulgated the MTG Ordinance, 1992 • The Ordinance received the status of an Act on 2nd April 1993 • This made the movement of goods much easy under single documentation.

30. CONTAINERISATION Container is nothing but a box to stack the merchandise & it is available in different sizes. • 20 ft x 8 ft x 8 ft • 20 ft x 8 ft x 8.5 ft • 40 ft x 8 ft x 8ft • 40 ft x 8ft x 8.5ft • 40 ft x 8 ft x 9.5 ft known as HIGH CUBE UNIT LOAD A 20 ft container is considered as 1 TEU in shipping. A 40 ft container is considered as 1 FEU i.e. 2 TEU’s.

31. TYPES OF CONTAINERS • General Cargo Container – Packed Cargo • Reefer Container – Perishable – Flowers, etc • Insulated Containers – Vegetables, etc – Dry Ice • Ventilated Containers – Apertures on sides – fruits, roots, onions, etc • Bulk Container • Tank Container • Open Top Container • Side Open Containers • Flat Racks • Car Containers • Pen Container (for livestock)

32. INCOTERMS • INTERNATIONAL COMMERCIAL TERMINOLGIES WITH INTERNATIONAL MEANINGS & IMPLICATIONS • CLASSIFICATION GROUP C – MAIN CARRIAGE PAID CFR – Cost & Freight CIF – Cost, Insurance & Freight CPT – Carriage Paid To CIP – Carriage & Insurance Paid To GROUP D – ARRIVAL DAF - Delivered at Frontier DES – Delivered Ex Ship DEQ – Delivered Ex Quay DDU – Delivered Duty Unpaid DDP – Delivered Duty Paid

33. INCOTERMS GROUP E – DEPARTURE EXW – Ex Works GROUP F – MAIN CARRIAGE UNPAID FCA – Free Carrier FAS – Free Alongside Ship FOB – Free on Board

34. THANK YOU

35. CONCLUSION Participants may please note that the foregoings are only a part introduction of this vast operational subject. Each topic has to be studied in depth to acquire professional knowledge to become an effective member of your logistics team. INSTITUTE OF LOGISTICS AND SHIPPING (MYSORE) DIPLOMA IN LOGISTICS & SHIPPING is the appropriate preliminary study one should undergo to get accustomed with this subject which is now available in Mysore conducted by ILS (Mysore) in association with Raigad Chamber of Commerce & Industry which is Government of India, Ministry of Commerce & Industry, Director General Foreign Trade approved Chamber of Commerce operating in Navi Mumbai, Maharashtra. Interested may contact Mr. M. N. SURESH, DIRECTOR, ILS (MYSORE). Tel. No. 6452645 Mob: 9448455870