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Introduction to Logistics

Introduction to Logistics. “Ideal” Armed Forces of Mauryan Empire. (War) Elephants. Infantry. Cavalry. Chariots. Ancient Versus 1960s-70s. Manufacturing. Manufacturing Management Materials Management Distribution and Sales Management. Sales. Inventory Control. Distribution.

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Introduction to Logistics

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  1. Introduction to Logistics

  2. “Ideal” Armed Forces of Mauryan Empire (War) Elephants Infantry Cavalry Chariots

  3. Ancient Versus 1960s-70s Manufacturing • Manufacturing Management • Materials Management • Distribution and Sales Management Sales Inventory Control Distribution Procurement • The purpose of Cost Control • Resulted Price-based competition

  4. Support for Military Warfare Manufacturing • Transport • Supplies • Communications • Medical Aid Sales Inventory Control Distribution Procurement Note: Logistics has evolved significantly post-WWII with its integration in business and trade

  5. What was 1960s like for Business World? • Large number of players entering market • Too many products with lacking vision limited cash flow • Procurement, inventory, WIP, storage and warehousing, etc were all fragmented • Costs were out of control

  6. Ancient Versus 1980s Manufacturing • Manufacturing Management • Materials Management • Marketing and Distribution and Management Sales Inventory Control Distribution Procurement • The purpose of profit maximization, volume and cost reduction • Resulted in increased productivity, profitability and market share

  7. What was 1980s like for Business World? • Oil shocks and inflation • Production productivity was at all time low • Gradual change with regard to multi-national operations

  8. Ancient Versus 1990s Manufacturing • Vendor Management • Logistics • Customers Sales Inventory Control Distribution Procurement • The purpose of core competency • Resulted in customer value and harmonious relationship • Introduction to Supply Chain Management

  9. What was 1990s like for Business World? • Economic liberalization in many developing countries • Rapid innovations in science and technology • New inventory techniques like JIT • Companies developing core competency or competitive advantage. Logistics managers started recognizing customers as their business partners rather than traders • Emergence of third-party logistics service provider

  10. Why Core Competency Or Competitive Advantage? • A company has a competitive advantage over its competitors by having any or all of the following: • Cost Leadership • Differentiation • Innovation • Operational Effectiveness …this could lead to “Core Competency” It is not easy for competitors to imitate It can be reused widely for many products/services and markets It must contribute to the end consumer’s experienced benefits and the value of the product or service to its customers Advocated by C.K. Prahlad and Gary Hamel

  11. About Logistics • Comes from the French word “loger” which means ‘to lodge’ • According to Council of Logistics Management, “Logistics is 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 customer needs”

  12. Today’s Logistics - Military

  13. Today’s Logistics - Engineering

  14. Today’s Logistics – Business (Inbound & Outbound)

  15. Today’s Logistics - Event

  16. Today’s Logistics - Process

  17. Contact – bhaktij@gmail.com www.headscratchingnotes.net

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