LOGISTICS- ROLE IN THE ECONOMY / ORGANIZATION

Contents
THE ORIGIN OF LOGISTICS DEFINITIONS OF LOGISTICS EXAMPLES OF LOGISTICS SOLUTIONS

OBJECTIVES OF LOGISTICS
FUNCTIONS OF LOGISTICS SCOPE OF LOGISTICS LOGISTICS INDUSTRY IN INDIA

Introduction to Logistics
LOGISTICS IN MILITARY WAR FARE LOGISTICS IN BUSINESS INDIAS ECONOMIC DEVELOPMENT AND GLOBALIZATION OF MARKETS

The Evolution of Logistics

LOGISTICS AS A DISCIPLINE STARTED WITH THE EUROPEAN ARMED FORCES.
DURING TIMES OF WAR MAINTAINING ONES SUPPLY LINES WHILE DISRUPTING THOSE OF THE ENEMY IS A CRUCIAL ELEMENT OF MILITARY STRATEGY.

SOLDIERS MOVED FROM THEIR BASE TO A FORWARD POSITION AND ALONG WITH THEM ARMS,AMMUNITION,FOOD,EQUIPMENT HAD TO BE MOVED QUICKLY WITHOUT ANY ERRORS OR OMISSIONS.

 WARS WERE WON OR LOST DEPENDING UPON THE STRENGTH OF A COUNTRYS LOGISTICS CAPABILITY OR THE LACK OF IT.

IN TODAY'S GLOBALIZED COMPETITION AND BUSINESS WARFARE, COMPANIES EITHER SURVIVE OR PERISH DEPENDING UPON THE STRENGTH OF THEIR LOGISTICS CAPABILITIES.

Business Logistics

THE TERM LOGISTICS IS EXTENSIVELY USED IN BUSINESS TODAY AND MANY COMPANIES ATTACH GREAT IMPORTANCE TO LOGISTICS .

COMPANIES ARE INCREASINGLY FOCUSSING ON PROCESSES LIKE CRM ISCM AND SRM TO IMPROVE THEIR QUALITY COST AND DELIVERY TO FULFIL THE REQUIREMENT OF THEIR CUSTOMERS AND CAPTURE A LARGER SHARE OF THE MARKET.

PERFORM OR PERISH EQUALLY APPLIES TO COMPANIES AND EMPLOYEES.

Definitions of Logistics
THE BRANCH OF MILITARY SCIENCE HAVING TO DO WITH PROCURING , MAINTAINING AND TRANSPORTING MATERIAL, PERSONNEL AND FACILITIES

LOGISTICS OR PHYSICAL DISTRIBUTION REFERS TO THE ART OF MANAGING THE FLOW OF PRODUCTS OR MATERIAL FROM PRODUCER OR SUPPLIER TO THE CUSTOMER OR USER AND IS THUS CONCERNED WITH THE CREATION OF TIME AND PLACE UTILITY

Definitions of Logistics
Logistics is the process of planning,implementing,and controlling the efficient cost effective flow and storage of Raw materials, Semi-finished, Finished goods and related information from point of origin to point of consumption for the purpose of conforming to Customers requirements - American Council of Logistics management

THE FLOW OF GOODS.

SUPPLIER MANUFACTURER

DISTRIBUTOR
RETAILER CUSTOMER

7 Rs of Logistics management
Logistics management is concerned with getting the Right product, in the Right quantity, in the Right condition, to the Right place, at the Right time, to the Right Customer and at the Right cost.

Examples of Logistics Solutions

Dhabawallas of Mumbai Engineering Industry Textiles Industry Indian postal service Restaurants

Objectives of Logistics
Reduction in Inventory Economy of freight Reliability in delivery to customers Minimum damage to products Quicker and faster response to customers Three Rs-Right quantity,Right place and Right time Customer satisfaction

Function of Logistics
Processing of orders received from the customers Inventory planning and management Warehousing Packaging Transportation Deliveries

Scope of Logistics
Delivery within and beyond the boundaries of countries Business houses focusing on Core activities and outsourcing Logistics Efficient Logistics management enhances profitability Repeat orders owing to efficient Logistics management Enhances reputation of the company for timely delivery in good order and condition

Logistics in three stages

Inbound Logistics before manufacturing Process logistics-Storage and movement

Outbound Logistics after manufacturingWarehousing,Transportation,Inventory Management

Logistics Solutions under one roof

Transportation Warehousing Freight forwarding Customs Clearance Shipment Tracking Delivery

Logistics Industry in India

Key drivers of growth Strong economic growth Sharp increase in Trade Increased out sourcing Regional and National warehouses Express Delivery Industry

THE GROWTH OF THE LOGISTICS INDUSTRY IN INDIA

 INCREASE IN TRADE POST LIBERALIZATION, FROM 250 MILLION TONNES TO 3000 MILLION TONNES IN 2010-11

INDIAN ECONOMY GROWING AT ABOUT 8 PERCENT EVERY FIVE YEARS WITH SERVICES CONTRIBUTING ABOUT 55 PERCENT TO GDP,MANUFACTURING 30 PERCENT AND AGRICULTURE 15 PERCENT
INDIA WITH ITS LARGE MARKET SIZE AND OTHER ADVANTAGES EMERGING AS A MANUFACTURING HUB.

 GLOBALIZATION-COMPANIES CAN MANUFACTURE AND SELL IN ANY PART OF THE WORLD INDIA EMERGING AS THE WORLDS RETAIL MARKET WITH MANY LARGE WORLD RETAILERS ENTERING INDIA RISING INCOME OF INDIA'S MIDDLE CLASS AND UPPER MIDDLE CLASS LEADING TO AN EXPLOSION OF MALLS, HYPER MARKETS, MEGA SHOPPING CENTERS,BEAUTY PARLOURS ETC

 ECONOMIC GROWTH IN RURAL INDIA HAS RISEN INCOME LEVELS IN OUR RURAL POPULATION WITH INCREASED CONSUMPTION OF GOODS AND SERVICES INCREASING FLOW OF FOREIGN INVESTMENTS IN INFRASTRUCTURE,AUTOMOBILES,RETAIL,FOOD,PH ARMACEUTICALS,TELECOMMUNICATIONS,ELECTRONI CS AND OTHER INDUSTRIES. THE GROWTH OF E-COMMERCE WARRANTS A SUBSTANTIAL INCREASE IN WAREHOUSING AND TRANSPORTATION.

The Role and importance of Logistics

WITH GLOBALIZATION OF MARKETS AND GLOBAL COMPETITION THE PERFORMANCE OF THE INDIAN ECONOMY WOULD ESSENTIALLY DEPEND UPON HER LOGISTICS CAPABILITIES.
LOGISTICS INDUSTRY GROWING AT ABOUT 15 PERCENT EVERY YEAR WITH REVENUES TOUCHING ABOUT USD 125 BILLION IN 2012 FOREIGN GLOBAL COMPANIES DOMINATING IN INDIA'S LOGISTICS INDUSTRY WITH MASSIVE INVESTMENTS

 LOGISTICS BEING A SUNRISE INDUSTRY IN INDIA, KNOWLEDGE AND SKILLS ARE BEING DEVELOPED THROUGH MANY INSTITUTIONS.

WITH DOMESTIC AND FOREIGN INVESTMENTS IN LOGISTICS INFRASTRUCTURE, A SOLID FOUNDATION HAS BEEN ESTABLISHED FOR THE GROWTH OF THE LOGISTICS INDUSTRY.
WITH GLOBALIZATION AND DEVELOPING LOGISTICS SKILLS, COMPANIES ARE FOCUSSING ON THEIR CORE MANUFACTURING PROCESSES AND OUTSOURCING ALL LOGISTICS ACTIVITIES.

 INDIAN COMPANIES TODAY OUTSOURCE ABOUT 52 PERCENT OF THEIR LOGISTICS REQUIREMENT TO 3 PL COMPANIES .

THE 3 PL INDUSTRY HAS ACHIEVED MASSIVE GROWTH IN THE LAST DECADE AND GROWING AT ABOUT 20 PERCENT.
THE NUMBER OF EMPLOYEES IN THE LOGISTICS SECTOR IN INDIA IS ESTIMATED AT 4.5 MILLION AND THE NUMBERS ARE GROWING

Questions QUESTIONS
Give a suitable definition for Business Logistics? Where did Logistics First originate from and why? Explain the origin of Logistics and its importance in todays business? Outline some of the Rs in Logistics such as Right product? What are the objectives of Logistics?

 Explain the functions of Logistics? What is meant by Inbound Logistics and Outbound Logistics? Mention some of the services provided by Logistics companies? Outline the role and importance of Logistics In India?