information about logistics

2. What is Logistics?
 Logistics is the management of the flow of resources
between the point of origin and the point of destination in
order to meet some requirements
 Planning implementing and controlling the physical flow
of material and finished goods from point of origin to point
of use to meet customer`s need at a profit
 It is an interface between two companies which will fulfill
the requirements
 logistics can include physical items such as food, materials,
equipment, liquids etc…

3. Why Logistics?
 It allows for a smoother flow of company processes and
procedures increase performance
 Brings profits to company
 Increases efficiency

4. Examples

5. HISTORY
 The word logistic has originated from Greek word
‘Logistikos’ and the Latin word ‘Logisticus’ which means
science of computing & calculating
 During World War II logistics gained importance in army
operations covering the movement of supplies , men &
equipment across the border today
 It has acquired the wider meaning and is used in the
business for the movement of material from suppliers to
the manufacturer and finally the finished goods to the
consumers

6. Part of SCM

7. SCM
 Supply chain management (SCM) is the management
of a network of interconnected businesses involved in
the provision of product and service packages required
by the end customers in a supply chain
 Logistics is part of this SCM which plays an important
role of capturing information from start of a process to
end of the process

8. Logistics in different Areas
 Logistic recognizes that all the activities of material movement
across the business process are interdependent and needs close
coordination and these are to be maintained as a system and not
the functional Silos.
 System is shown as logistic Mix including following functional
Areas
 Order Processing
 Information Flow
 Warehousing
 Inventory control
 Packaging
 Transportation

9. Order Processing
 Technical details,price,delivery period,payment
terms,taxes etc…
 Checking the availability of material in stock
 Production & material scheduling for shortage

10. Information Flow
 It is basically information based activity of inventory
movement across the supply chain
 This function is required to facilitate the following
information needs
 Order Registration
 Order checking & editing
 Order processing
 Coordination means to integrate the total supply
chain of the company with informational needs as to
time ,quantity, value e.g Lead time, rate of
consumption , delivery schedule & price of the
material , Transportation time & cost etc.

11. Inventory management
 Minimum raw materials to make products
 It involves…
 How much to order
 When to order
 Purchase Control
 Stores control

12. Transportation
 Movement of goods from supplier to buyer
 Transportation is the most fundamental and important
component of logistic
 It involves mainly in…
A. Mode of transportation
B. Own fleet or Outsourcing
C. Route Planning
D. Vehicle scheduling

13. Warehousing
 A warehouse is a commercial building for storage of
goods. Warehouses are used by manufacturers,
importers, exporters, wholesalers, transport
businesses, customs, etc.
 It involves….
A. Material Storage Function
B. Material Handling Function
C. Information Handling Function

14. Objectives of Logistic management
 Inventory Reduction
 Reliable and consistent delivery performance
 Freight economy
 Minimum product damage
 quick Response