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INTRODUCTION
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HISTORY
The word logistics has originated from the
Greek word logistikos and the Latin word
logisticus, meaning the science of
computing and calculating. In ancient times
it was used more in connection with the artof moving armies and supplies of food and
armaments to the war front.
so we can say that logistics is the art andscience of managing and controlling the
flow of goods, energy, information, other
resources.
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Contind
1. Early 1960s physical distribution
management(PDM)
2. Late 1970s logistics and total logistics3. Early 1990s logistics and business
process re-engineering(BPR)
4. Last 20 years supply chainmanagement(SCM) and its optimization
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Introduction of logistics
It is the management of all activities whichfacilitate movement and the co-ordination
of supply and demand in the creation of
time and place utility. Logistics is the branch of military science
having to do with procuring, maintaining
and transporting material, personnel. Logistics is the process of getting products
and services where they are required and
when they desired.
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Contind.
Since the modern days customers expect theproducts to be available at all times and
with the maximum freshness(in case of
perishable goods), companies need toensure that their logistics process matches
the highest standards.
Global companies operate in an intensivelycompetitive environment and hence, they
try to offer customers the best of products
and services with a competitive advantage.
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DEFINITON
The process of planning, implementing, and
controlling the efficient, cost-effective flow
and storage of goods, services, and relatedinformation, from point of origin to point of
consumption, for the purpose of conforming
to customer requirements.
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Components of logistics
Components of an Integrated Logistics
System
External Supply: links suppliers to operations
processInternal Operations: manages in-process
material flow
Physical Distribution: links operations processto customers
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Internal operations
Vary by industry & firm, but might include:
Processing
Purchasing
Production Planning & Control
Quality Assurance
Shipping
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Physical Distribution
Getting the right material to the right place at
the right time in the right quantity:
Traffic Management:
The selection, scheduling & control of carriers (e.g.:
trucks & rail) for both incoming & outgoing
materials & products
Distribution Management: The packaging, storing & handling of products in
transit to the end-user.
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External Suppliers
External suppliers provide the necessary raw materials,services, and component parts.
Purchased materials & services frequently represent 50%(or more) of the costs of goods sold.
Suppliers are frequently members of several supply chainsoften in different roles.
Tier one suppliers: Directly supplies materials orservices to the firm that does business with the finalcustomer
Tier two suppliers: Provides materials or services totier one suppliers
Tier three suppliers: Providers materials or services totier two suppliers
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Marketing
orientation
(competitive
advantage)
Time and
place utility
Efficient
movement to
customer
Proprietaryasset
Natural resources
(land, facilities, and
equipments)
Human resources
Financial resources
Information
resources
Management actions
Planning Implementation Control
Logistics Activities
Customer ServiceDemand forecasting
Distributioncommunications
Inventory control
Material handlingOrder Processing
Parts and servicesupport
Plant and warehouse siteselection
Procurement
Packaging
Return goods handling
Salvage and scrapdisposal
Traffic andtransportation
Warehousing and storage
Raw
materials
In-process
inventory
Finished
goods
Inputs into logistics
Suppliers
Logistics management
Customers
Outputs of
logistics
Components of
logistics management :
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Logistics as a part of supply
chain management
Logistics is the management of the flow of
goods, information and other resources
between the point of origin and the point of
consumption in order to meet therequirements of consumers frequently and
originally.
It involves the integration of information ,transportation, inventory, warehousing,
material handling and packaging, and
occasionally security.
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Contind. Logistics is a channel of supply chain which
adds the value of time and place utility.
Different definition-
logistics means having the right thing, at theright place, at the right time.
Logistics is defined as a business planningframework for the management of material,service, information and capital flows. It
includes the increasingly complex information,communication and control systems required intodays business environment.(Businessdefinition)
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Logistics - Science of managing (controlling) the movement and
storage ofgoods (or people) from acquisition to consumption.
Goods: Raw MaterialsFinal products, and everything in between.
Logistics for services & people similar to goods logistics.
Ex. Police, fire, ambulance, passenger airlines, taxi cabs, etc.
Movement = Transportation (between locations).
Storage = Inventory, Warehousing (at locations).
Difference between acquisition and consumption is a matter of space
and time.
NOTE: Logistics does not dealwith Technology of Production, such
as the design of machines and vehicles and the design of finished
products.
Focus: Best way to overcome space and time that separates acquisitionand consumption.
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Logistics embodies the effort to deliver:the right product
in the right quantity
in the right conditionto the right place
at the right time
for the right customerat the right cost
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Objectives of logistics Cost reduction (variable costs)
Capital reduction (investment, fixed costs)
Service Improvement (may be at odds with
the above two objectives).
Inventory reduction
Reliable and consistent performance Minimum product damages
Quick responses
Delivering customer services-
(a)Customers must be given more importance than thegoods and services that have to be delivered.
(b)Product and services are of significance to the customers
only when they are available to them exactly when
customers need them.
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Contind..(c) Organizations should focus more on profitability
than on sales volumes. The number of transactionsis a better measure of profitability than the volume
of sale.
Reducing the total distribution costs
Reducing the cycle time
Rapid response
Minimum variance Movement consolidation
Quality improvement
Life cycle support
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Decisions in logistics
The various decisions in logistics
management that need examination for anintegrated system are-
Product design
Plant location Choice of markets/ sources
Production structure
Distribution/ dealer network design
Location of warehouses
Plant layout
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Contind..
Allocation decisions
Production planning
Inventory management-stoking levels
Transportation mode choice, shipment sizeand routing decisions and transportcontracting
Packaging
Material handling
Warehouse operations
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Classification of logistics
logistics can be classified on the basis ofdifferent dimensions:-
Inbound and outbound logistics
Private vs. public Single vs. multiple plants
Nature of the product
Made to stock vs. made to order
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Contind.
1. Inbound and outbound logistics- Most of the organization have to mange
their outbound logistics( that is, physically
distributing the products to the customersfrom the factory)
Whereas inbound logistics are limited to
the purchasing function. the logistics ofpurchased products are generally managed
by the vendors.
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Contind
There are exceptions to this, like the steelindustry which is backward integrated,thereby managing their inbound (rawmaterial) logistics also. managing inbound
logistics to some extent has got otherbenefits such as better control of productionplanning and reducing uncertainties.
A further advantage of managing bothinbound and outbound logistics is the costsavings possible when the two movementsare coordinated.
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The Increased Importance of Logistics
A Reduction in Economic Regulation
Recognition by Prominent Non-Logisticians
Technological Advances
The Growing Power of Retailers Globalization of Trade
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Logistics cost
The performance of a supply chain can be
illustrated with the help of total logistics cost.
To define the logistics cost, one must define the
desired outputs from the logistics system and then
seek to identify the costs associated withproviding those outputs.
The manager must understand how the behavior
of one cost differs from the behavior of another
cost and for running a logistics system requiresthe manager to understand and use a variety of
cost information.
The cost of logistics varies from industry to
industry.
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Contind.
Cost can be divided in many ways: Fixed,variable and semi-variable, Cash and non cash,
direct and indirect. Each of these costs may
reveal important and information for making
logistics decisions.
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The important elements of logistics
cost are:- Product inventory at source
Pipeline inventory
Product inventory at warehouses and dealers
Transit losses/ insurance
storage losses/ insurance
Handling and warehouses operations
Packaging Transportation
Customers shopping
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Transport Cost Characteristics
Rail
High fixed costs, low variable costs
High volumes result in lower per unit (variable) costs
Highway
Lower fixed costs (dont need to own or maintain roads)
Higher unit costs than rail due to lower capacity per truck
Terminal expenses and line-haul expenses Water
High terminal (port) costs and high equipment costs (both fixed)
Very low unit costs
Air
Substantial fixed costs Variable costs depend highly on distance traveled
Pipeline
Highest proportion of fixed cost of any mode due to pipelineownership and maintenance and extremely low variable costs
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Logistics functions
Logistics is not a single term actually it is ablend of number of activities or functions:-
Order processing
Inventory managementWarehousing transportation
Material handling
Logistical packaging
Information
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Contind.
1. Order processing- This activity consists of the
following steps: Order checking for any deviations in agreed or negotiated
firms.
Prices, payments and delivery terms.
Checking the availability of materials in stocks
Production and material scheduling for shortages
Acknowledging the order, indicating deviations, if any.
C ti d
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Contind2. Inventory management- IM maintaining the requisite inventory stocks to meet customer
requirements while simultaneously ensuring that its carrying cost is aslow as possible.
The inventory is the greatest culprit in the overall supply chain of the
firm because of its huge carrying cost, which indirectly eat away the
profits. It consists of the cost of financing the inventory, insurance, storage,
losses, damages.
The average cost of inventory carrying varies from 10-25% of the total
inventory per year, depending on the products.
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3. Warehousing- the major decisions in warehousing are asfollows:
Location of warehouses
Number of warehouses
Size of the warehouse
Warehouse layout design of the building of warehouse Ownership of the warehouse
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4.Transportation-
After the order is placed, the transportation is not complete till thegoods are physically moved to the customers place.
The physical movements of goods through various transportation
modes.
5. Material handling and Storage system- The speed of inventory movement across the supply chain depends
on the material handling methods.
The choice of storage system is important in maximizing space
utilization in the warehouse.
The material handling system should support the shortage system
for speedy movement of goods in and out of the warehouse.
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6. Logistical packaging-
Logistical or industrial packaging is a critical element in the
physical distribution of the product, which influences theefficiency of the logistical system.
It differs from product packaging, which is based on marketing
objectives.
The utilization of load has a major bearing on logisticalpackaging with regard to packaging costs.
7. Information-
Logistics is basically an information, based activity of inventory
movement across the supply chain. The use if IT tools for information identification, access, storage,
analysis, retrieval and decision support in logistics is helping
business firms to enhance their competitveness.
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Models in logistics management
Various quantitative models from operationsresearch literature can be used to address thedecisions areas in logistics.
1. Forecasting models- these models allowprediction of demand based on past data or other
parameters that are independently available. Theyenable better planning, given the lead timenecessary for response.
2. Mathematical programming models- under
this model, there are three models. Location model
Allocation model
Distribution network design models
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Contind..
(a) Location model- these models help in planning the optimal
location of plants or warehouses,
considering the inbound and outboundtransportation costs and infrastructure cost
at the locations.
Such models can be solved as an integerprogramme or sometimes as a linear
programme.
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Contind(b) Allocation models-
these models help in optimally allocating
commodities from sources to destinations in a
multi-source multi-destination environment.
For ex- a product that is manufactured in 15 plantsand distributed through 30 warehouses could use
such a model for optimal allocation.
The costs considered for optimization are
production costs, transportation costs andwarehousing costs. The constraints considered can
be due to demand, capacity, route restriction etc.
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Contind..
(c) Distribution network design models- These models are usually comprehensive in nature,
deciding between a two, three or even four stage
distribution network, location of warehouses and
break bulk points, and sometimes even the
transportation mode choice.
The models optimize total distribution costs
including transportation, warehousing andhandling, and inventory.
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contind.
3. Inventory models-the inventories that aredirectly
affected due to outbound logistics are:(a) buffer stocks to take care of uncertainties at finished
goods, warehouse and retail
(b) Shipment and batching inventories at finished goods,
warehouse and retail
Pipeline inventory (primary and secondary)Trade-offs between inventory and other decisions in
logistics would be: Inventory vs. transportation cost
Inventory vs. stockout cost
Inventory vs. spoilage and material handling cost
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Contind.Issues like
(i) Shipment size(ii) Supplying to one or many points in one shipment
(iii) Single location vs. multiple location stocking directly
relate to inventory and transportation cost4. Routing model-
These models allow optimal routing on a
transportation network from a given source to
destination.
The simplest model is called the shortest path problem.
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Contind
Decision support system (DSS) that interactively
use the expertise of the decision maker by
providing graphical support through a map are
also very useful in such decisions.
5.Scheduling model-
These models enable allocation of resources to
particular activities.
Depending on the criteria of interest and number
of resources, the models help evaluate
appropriate rules for allocation.
Five Business Systems Tightly Interconnected
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Five Business Systems - Tightly Interconnected
Within The Organization
Measurement
Decisions
Management
Systems
Reward
Decisions
Strategic
Decisions
TransportationDecisions
Sourcing
Decisions
Inventory
Decisions
LogisticsSystems{Price
DecisionsPromotion
DecisionsMarketing
Systems
Product
Decisions
Place (How,
where, how
much) }ProductionScheduling
Decisions
Production
Capacity
Decisions
Shop Floor
Decisions
ManufacturingSystems}
Product
Design
Decisions
Process
Design
Decisions Engineering
Systems}
Copyright 2000 - All Rights Reserved
Logistics Planning
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Logistics Planning
Decide what, when, how in three levels:
Strategic long range > 1 year
Tactical - < 1 year horizon
Operational frequently on hourly or daily basis
Examples of Decisions
Type Strategic Tactical Operational
Location
Transportation
Order Processing(CS)
#Facilities, size,location
Mode
Selecting order entrysystem
Inventory positioning
Seasonal Service Mix
Priority rules forcustomers
Routing
Replenishment Qtyand timing
Expediting orders
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Routes of Goods
Goods atshippers
Freightforwarderwarehous
e
Airtermina
l
planeair
Freight
forwarderwarehous
e
Goods at
consignees
Container
terminal vessel
sea Maychangetranspor-tationmodes
truck
landrailway
land barge
mid-streampier
bulk goodssea
let us guess
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Vehicle Routing
Find best vehicle route(s) to serve a set of orders fromcustomers.
Best route may be
minimum cost, minimum distance, or
minimum travel time.
Orders may be Delivery from depot to customer.
Pickup at customer and return to depot.
Pickup at one place and deliver to another place.
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Bullwhip Effect
The bullwhip effect is the uncertainty
caused from distorted information flowing
up and down the supply chain.
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Who is affected?
Who is affected? Nearly all industries are
affected! Firms that experience largevariations in demand are at risk. Firms that
depend on suppliers upstream or
distributors and retailers downstream maybe at risk.
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Results of the bullwhip effect :
Results of the bullwhip effect Excess
inventories Problems with quality Increased
raw material costs Overtime expenses
Increased shipping costs
Results of the bullwhip effect - continued.
Lost customer service Lengthened lead time
Lost sales Unnecessary adjusted capacity
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Causes of the bullwhip effect :
Causes of the bullwhip effect Un-forecasted
sales promotions Sales incentives Lack ofcustomer confidence Customers turning
back sales orders Freight incentives
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Moral of the story :
Moral of the story Distorted information
along the supply chain caused inventory
levels to increase along the supply chainwhich may result in increased inventory
costs, poor customer service, adjusted
capacity and many other problemsassociated with the bullwhip effect.
W h t
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Warehouse management
Introduction
Warehousing is the function of storing goods to
bridge the time gap between their production and
demand and thus, leads to time and place utility. As a part of marketing strategy, warehousing offers
better customer service than competitors who rely
on price competition.
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Definition
As per Bombay warehouse act, 1959
Warehouse means any building, structure or other
protected enclosure, which is used for the purposeof storing goods on behalf of the depositors but
does include cloakroom attached to hotels, railway
station and the premises of other public carrier
alike.
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Need for warehousing
Warehousing necessary due to the following reasons:
i. Seasonal production
ii. Seasonal demand
iii.Large-scale production
iv.Quick supply
v. Continuous production
vi.Price stabilization
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Function of warehousing
There are following functions:
a) Storage of goods
b) Protection of goods
c) Risk bearing
d) financing
e) Processing
f) Grading and branding
g) Transportation
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Types of warehouses
In order to meet their requirement, various types ofwarehouses came into existence, which may be
classified as follows:
I. Private warehouses
II.Public warehouses
III.Government warehouses
IV.Bonded warehouses
V.Co-operative warehouses
Characteristics of Ideal
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Characteristics of Ideal
warehousesAny warehouse is said to be an ideal warehouse, if itpossesses certain characteristics, which are given below:
It should be located at a convenient place.
Mechanical appliances should be used because thisreduces the wastages in handling and also minimizes
handling cost.
Adequate space should be available in order to keep the
goods in proper order.
It should have cold storage facilities.
Ex-parishable items
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Contind.
Proper arrangements should be there to protect the goods
from sunlight, rain, wind, dust, moisture and pests.
Security should be there to avoid the theft of goods.
The building should be fitted with latest fire fitting
equipment to avoid loss of goods to fire.
Sufficient parking space should be there inside the
premises.
Importance/ benefits of
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Importance/ benefits of
warehousing
1. Economic benefits
Consolidation
Break bulk and cross dock Processing/ postponement
stockpiling
2. Service benefits-In this we consider the timeand place capability of the overall logisticssystem.
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Warehouse operating principles
There are three principles which are revelent:
1. Design criteria
2. Handling technology3. Storage plan
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Planning the warehouse layout
When a new warehouse layout is proposed, a detailedplanning process should be followed to ensure thesuccess of the project.
this process should include the following six steps:
a. Define objectives
b. Collect information
c. Analysis
d. Create plan
e. Implementation
f. Post implementation
Di t ib ti t
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Distribution management
Introduction
A vital element of supply chain management is the
management and monitoring of the distribution channels.
In fact, the vast majority of product manufactures are
unable to sell directly to customers, as it would be way toocostly for them.
The bigger the producer, the more intermediaries should
be used in order to have a cost effective operation.
The distribution centre is a new idea at the advent of
logistics and supply chain management, referring to
dynamic, full service warehouse primarily related to the
market.
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Definition of Distribution centre
The movements of goods rather than their
storage and other customer orientedlogistical services such as sales, market
intelligence, documentation called the
distribution centre.
L l f h l di t ib ti
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Levels of channel distribution
membership
There are three levels of channel distribution:
1. Intensive- A large majority of resellers are
stocking the product.2. Selective- This is a normal pattern, only suitable
resellers are selling the product.
3. Exclusive- In this only selected resellers are
permitted to sell the product( this is usually one
seller per geographical region)
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Purchasing and Vendor
Management
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Introduction
The new attention given to purchasing begun in themid-1970s, when firms such as chemical
manufactures experienced serious commodity
shortages. Hence in the global competitive
scenario, there has been a dramatic increase in theattention of the top management in the purchasing
and sourcing management because outsourcing of
materials have become need of the hour for
sustainable growth and competitive effectiveness.
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Purchasing
Purchasing is the procurement of the
materials, supplies, machines, tools and
operation of a manufacturing plant.
Alford & Beatty
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Basic concepts
Purchasing refers to a business or organization
attempting for acquiring goods or services to
accomplish the goals of the enterprises.
The word purchasing is not used interchangeably
with the word procurement, since procurement
typically includes expediting(promptness), supplier
quality and logistics in addition to purchasing.
Obj ti f h i
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Objectives of purchasing
Maintaining
continuity of
supply
Maintenance
standardsquality
Avoidance of
duplication waste
and obsolesce
Maintenance
of companys
good image
Developing
alternativesources of
supply
Maintenance of
companys
competitive
position
Factors influencing purchase
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Factors influencing purchase
decision
1. Alternatives
2. Quality
3. Price4. After sales service
5. Availability of spare parts
I t f h i
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Importance of purchasing
Efficient
administr
ation
The quality
of final
product
Increasing inprofitability
Optimumutilization
of capital
Delivery
in time
Centralized vs Decentralized
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Centralized vs. Decentralized
purchasing
Introduction
This topic basically deals with decisions aboutthe purchasing policies defining the purchasing
authorities and the resultant responsibilities.
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Centralized purchasing
Centralized purchasing is a method of procurement of all
types of materials, supplies and equipments etc.through a
single departments under the direct control and
superintendence of one responsible person.
He/ she is directly accountable to the top management for
all the duties falling within the broad area of purchasefunction.
Contind
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Contind
A company has to follow the centralized
purchasing of materials for ensuring proper
materials control as well as efficient store
keeping.
Under this system, the purchasing departmentpurchases the required materials for all the
departments and branches of the company
In such organizations sometimes regional orbranch purchasing agents are employed to make
purchases in the local markets.
C ti d
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Contind
Under this policy of centralized purchasing all types ofpurchase in a single-plant organization are made by the
central buying section, who are authorized to decide on
the source of supply, negotiate scattered plant locations,
all purchases are made by the central buying section ofthe head office.
They are doing so under the superintendence and thecontrol of the centralized purchasing departments.
Advantages of CP
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Advantages of CP Cost will be less and managed efficiently
Tap the advantage of the skills of buying staff Take the advantage of quantity discount (Bulk quantity)
Direct contact with supplier will eliminate the
intermediaries
Develop and maintain the good relation with the suppliers
It will reduce the inventory carrying cost
The receiving of large supply through consolidated orders
reduces the transportation cost per unit The cost of order processing are reduced substantially due
to the few orders of large quantities
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The service of an efficient , specialized and
experienced purchase executive can be obtained. Transportation costs can be reduced because bulk
quantity of materials purchased.
Centralized purchasing discourages duplications ofefforts.
Centralized purchasing helps to maintain uniformity
in purchasing policies. Centralized purchasing helps to minimize the
investment on inventory.
Di d f CP
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Disadvantages of CP
Centralized standards procedures may result in delays in
receiving the materials.
It may be the case that centralized purchasing staff maynot be specialized in buying technical items.
In case of multi plants unit located at distant places, it
may not be possible to tap the local resources.
D t li d h i
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Decentralized purchasing
Decentralized purchasing refers to purchasing materials byall departments and branches independently to fulfill their
needs.
Such a purchasing occurs when departments and branches
purchase separately and individually. Under this purchasing, there is no one purchasing manger
who has the right to purchase materials for all
departments and divisions.
This type of purchasing can overcome the defects of
centralized purchasing because it helps to purchase the
materials immediately in case of an urgent situation.
Ad t f DP
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Advantages of DP
Materials can be purchased by each department locally
as and when required
Materials are purchased in right quantity of right quality
for each department easily
No heavy investment is required initially
Purchase orders can be placed quickly
The replacement of defective materials takes little time
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Disadvantages of DP
Organization losses the benefit of a bulk purchase.
Specialized knowledge may be lacking in purchasing
staff.
There is a chance of over and under purchasing of
materials.
Less chances of effective control of materials.
Lack of proper co-ordination and co-operation among
various departments.
Purchasing policies
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g p
The purchasing function is influenced by certain policies:
the policies are-
1. Ancillary development
2. Make or buy decision
3. Speculative buying
4. Vendor rating
5. Ethics in purchasing
6. Reciprocity7. Purchasing for employees
8. Gifts
9. Value analysis
Functions of purchase department
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p p
Checking of requisition
Procurements of stores
Selection of suppliers
Issuing tenders and obtaining quotations
Negotiating contracts
Checking legal conditions of the contracts
Verification and passing of suppliers
Maintenance of purchase records
Maintenance of vendor performance records
Developments of reliable and alternate sources of supply.
Vendor management
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Ve do ge e In todays competitive market place, many companies
have moved from a single vendor to a multi-vendorplatform.
Managing the numerous individuals and companies you
do business with is crucial for developing valuable
relationships.
Two major points of vendor management:
a) To improve the vendor management process, it is
important to track and evaluate vendors on a regular basis.b) It will also allow you to proactively take measures to
seize opportunities.
Vendor selection process
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Vendor selection process
Step 1- Analyze the business requirementsStep 2- Vendor search
Step 3- Request for proposal and Request for
quotationStep 4- Proposal evaluation and vendor selection
Step 5- Contract negotiation strategies
Step 6- Contract negotiation mistakes
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Single vendor concept
Why do some organizations adopt a singlevendor approach while others are morecomfortable with multiple vendors?
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Their decision to have a single vendor or multiple onesdepends on the concerned areas of operations, services or
procurement.
For some of the products and services (for example,
hardware AMC and facilities management), companies
have the policy of appointing a single vendor
But, at the same time, there are those who follow the multi-
vendor approach in majority of areas like hardwareprocurement, software development, and other services.
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T G Dhandapani, CIO, Sundaram-Clayton Ltd (SCL)Adaptive & TVS Motors said, We generally prefer to
move with a single (strategic) vendor concept and follow
it for many of the product procurement and services. It
helps in building strategic relationship with the vendorthat will pay in the long run.
Further commenting on this, Madhusudhan Mendu R,
(WT01-CIO Office & Operations) Wipro said, We
follow both single vendor as well as multi-vendor
(mostly dual) strategies.
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There are some fundamental principles that generallygovern the vendor selection and management policy.
1. Firstly, the company needs to decide the specific areas
where they should adopt a single or a multi-vendor
approach before engaging new vendors.
2. Secondly, rating of the performance and success of any
particular project is a must.
3. Thirdly, the decision-makers should try to see what canbring some amount of innovation and value addition
through the vendors they work with.
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We evaluate the vendors on technical parameters first,
where price does not figure at all and then
subsequently, only the proposals of technically
qualified vendors are further evaluated on commercial
terms"
- Shubhojit Roy
IT-Head, SBI Mutual Fund
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We generally prefer to move with single (strategic)vendor concept and follow it for many of the product
procurement and services. It helps in building strategic
relationship with the vendor that will pay in the long
run"- T G Dhandapani
CIO, Sundaram-Clayton Ltd (SCL) Adapative &
TVS Motors
P f i l d lti l
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Pros of single and multiple
vendors A single vendor helps in standardization,
less transactions and reduces operations
overhead. On the other hand, multiple vendors build
competitiveness and is meant forspecific
business requirements
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