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Lecture 1.pptx
1. Raashid Yusuph
Muslim University of Morogoro
Faculty of Business Administration
DEPARTMENT OF PROCUREMENT AND LOGISTICS MANAGEMENT
Email – ghollohtz@gmail.com
Phone: +255 625959568
BAT 06209 – Elements of Logistics and Inventory Control
3/21/2023
Compiled and presented by: Mr. Raashid Yusuph
2. COURSE CONTENTS
1. Introduction to Logistics.
2. Managing Logistics.
3. Logistics outsourcing.
4. Global logistics.
5. Introduction to inventory control.
3/21/2023
Compiled and presented by: Mr. Raashid Yusuph
3. Mode of assessment
Course work:
Test 1 10%
Test 2 10%
Assignment 10%
Panel 10%
TOTAL 40%
Final Examination 60%
3/21/2023
Compiled and presented by: Mr. Raashid Yusuph
4. OVERVIEW OF BUSINESS LOGISTICS
SUPPLIER
Manufacture
(Producer)
CONSUMER
Transportation Physical Distribution
Reverse Logistics Reverse Logistics
Inbound Logistics Outbound Logistics
Store Warehouse
Information Flow
Physical Flow
Cash Flow
Upward Stream Downward Stream
Logistic Management
5. Logistics Process of planning, implementing, and controlling the
efficient, effective flow and storage of goods, services and
related information from point of origin to point of consumption
(Inter.logistic council, 1991)
Physical
Flow
Information
Flow
Fund Flow LOGISTIC
6. Logistics concerns the efficient transfer of goods from the
source of supply through the place of manufacture to the point
of consumption in a cost-effective way whilst providing an
acceptable service to the customer (Rushton, 2006)
Logistics is the management of all activities which facilitate
movement and the co-ordination of supply and demand in the
creation of time and place utility (Hesket et al,1973)
OVERVIEW OF BUSINESS LOGISTICS
7. Supply chain is the system of organizations, people,
activities, information and resources involved in moving
a product or service from supplier to customer.
Supply chain consists of the series of activities and
organizations that materials move through on their
journey from initial suppliers to final customers
(Waters, 2003)
OVERVIEW OF BUSINESS LOGISTICS
8. Supply chain is a network of facilities and distribution options
that performs the functions of procurement of materials,
transformation of these materials into intermediate and
finished products, and the distribution of these finished
products to customers (Harrison, 1995).
OVERVIEW OF BUSINESS LOGISTICS
9. Supply chain Management is the coordination of
production, inventory, location, and transportation among
the participants in a supply chain to achieve the best mix of
responsiveness and efficiency for the market being served.
(Hugos M, 2003)
OVERVIEW OF BUSINESS LOGISTICS
11. TYPES OF LOGISTICS/SCOPE
Inbound Logistic refers to the flow of goods from
source of supply to the organization or production site.
Inbound Logistic involves activities associated with
receiving and storing of materials, disseminating inputs
from suppliers, inspection, inventory management and
transport management (Blanchard, 2007).
13. TYPES OF LOGISTICS/SCOPE
Outbound Logistic refers flow of finished goods from
the organization to the end customer
Outbound Logistic these are the activities associated
with collecting, storing, and physically distributing the
product to buyers (Blanchard, 2007).
15. TYPES OF LOGISTICS/SCOPE
Reverse Logistics is the process of moving returned
goods from their consumer destination for the purpose
of capturing value or proper disposal (Blanchard,
2007).
Involves returns of re-usable containers and
packages to the suppliers e.g. outer cartons, purchase
returns.
16. LOGISTIC ACTIVITIES
Procurement or purchasing
Source Identification and Selection
Supplier relationship management
Contract Management
Inward transport
Mode of transport
Type of delivery operation
Load planning
Route schedule
17. LOGISTIC ACTIVITIES
Warehousing/storage
Location of warehouses
Number and size of distribution depots
Type of operation e.g. fixed or random location system
Inventory management
What to stock
How much to stock
Where to stock
When to stock
18. LOGISTIC ACTIVITIES
Material Handling
Manual equipments
Mechanized equipments
Automated Equipments
Packaging and Unitization
Unit load
protective packaging
handling systems – etc.
19. LOGISTIC ACTIVITIES
Physical distribution
Types of distribution strategies
Types of distribution channels
Information and control
design of systems
control procedures
forecasting
20. Why Manage Logistic/PDM
The Primary purpose is to achieve:
1. Customer service - through creation of time and
place utility
2. Competitive advantage
3. Cost-effectiveness
4. Operational efficiency
21. Why Manage Logistic/PDM
The operational purpose is to ensure:
1. Rapid response
Related with a firm’s capability to satisfy customer needs in a
timely manner.
The results is removal of excessive inventories.
2. Minimum inventory
Maintaining inventory is expensive and requires scarce capital.
One goal of logistics is to maintain supply continuity with the
minimum inventory investment possible.
22. Why Manage Logistic/PDM
3. Consolidated movement
The most significant logistical costs are
incurred in transportation.
Transport cost is directly related to the type
of product, size of shipment and distance
23. Why Manage Logistic/PDM
4. Improvement in quality
Total Quality Management has become an important
commitment in all departments of industry.
5. Life cycle support
Logistics enhance reverse of non used, hazardous items
and recycle items to be returned back on time for proper
handling.
Close loop.
24. Upstream –Supplier side
Downstream – Customer Side
Tiers of Suppliers/customers -SCM
28. Evolution of Logistics
1. Fragmentation 1960: This era was known as fragmentation
because every thing that done was disintegrated (no
coordination among functions)
2. Evolving Integration : At this stage of time new concepts of
Logistical management were evolving.
3. Total Integration : In the present scenario because of
technological advances logistics has evolved as part of
management.
31. Transportation mode
RAIL TRANSPORT
Advantages
It is a convenient mode of transport for travelling long distance.
It is a relatively faster than road transport.
It is suitable for carrying heavy goods in large quantities over long
distances.
Its operation is less effected by adverse weathers conditions like
rain,flood,fog,etc.
32. Transportation mode
Limitation of railway transports
It is relative expensive for carrying goods and passengers over short
distances.
It is not available in remote parts of the country.
It provides service according to fixed time schedule and is not flexible for
loading or unloading of goods at any place.
It involves heavy losses of life as well as goods incase of accident.
33. Transportation Mode
ROAD TRANSPORT
Advantages
It is relatively cheaper mode of transport as compared to other modes.
Perishable goods can be transported at a fasters speed by road carries over a short
distance.
It is flexible at any destination it provide door-to –door service.
It helps people to travel and carry goods from one place to another ,in places which are not
connected by means of transport like hill areas.
Limitations of road transport
Due to limited carrying capacity road transport is not economical for long distance
transportation of goods.
Transportation of heavy goods or goods in bulk by road involves high cost.
34. Water
We can see many different types of transport in the water.
35. Mode of Transportation
WATER TRANSPORT
Advantages
It is relatively economical mode of transport for bulky and heavy goods .
It is safe mode of transport with respect to occurrence of accidents.
The cost of maintaining and constructing routes is very low most of them are naturally made.
It promote international trade.
disadvantages
The depth and navigability of rivers and canal vary an thus ,affect operation of different
transport vessels.
It is slow moving mode of transport and there fore not suitable for transport of perishable
goods.
It is adversely affected by weather conditions.
Sea transport requires large investments on ships and their maintenance.
36. Air
We can see many different types of transport in the sky.
37. Mode of Transportation
Air transport
Advantages;
It is a fastest mode of transport
It is very useful in transporting goods and passengers to the area
which are not accessible by any means .
It is the most convenient mode of transport during calamities.
It provide vital support to the national security and defense.
38. Transportation mode
Disadvantages of air transport
It is relative more expensive mode of transport
It is not suitable for transporting heavy and bulky goods.
It is affected by adverse weather conditions.
It is not suitable for short distance travel.
In case of accidents, it result tin heavy losses of goods ,properties and
life.
39. Mode Selection
The selection of transportation mode based on the following
factors…
Safe
Environmentally Friendly.
Cost.
Security.
Reliability.
Capacity
E.t.c.
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Compiled and Presented by Mr. Raashid Yusuph 40
