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

The current trends in International Trade

• Globalization has vastly increased the trade between countries

• Markets have transformed from domestic to Global• Manufacturing in low cost countries and selling to

consumers throughout the world has become a set trend

• Competition between companies in products and services have become extremely fierce and mind boggling

• Companies constantly endeavoring to improve the quality of their products and services for a larger share of the market

• Countries battling for economic supremacy and GDP growth

Impact of Globalization• Companies are striving to meet changing customer

demands in a market where products become outdated fast

• Success rate has become lower because far too many products are launched

• Customers opting for better value new products to old products

• Customer demands are increasing for world class products and services

How can companies turn competitive?

• 1.Produce world class products which are competitively priced and bear top quality

• 2.Reduce manufacturing costs • 3.Reduce distribution costs and reach

products on time to the markets• 4.Quickly respond to the market and

changing Customer requirements• 5.Ensure an effective supply chain and

Logistics Management

Definition of Logistics

• 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

Definition 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

WHAT IS THR ROLE OF A LOGISTICS MANAGER ?

LOGISTICS MANAGERS ENSURE THAT THE RIGHT PRODUCT,IN THE RIGHT QUANTITY,IN THE RIGHT CONDITION IS DELIVERED TO THE RIGHT CUSTOMER AT THE RIGHT PLACE AT THE RIGHT TIME AND AT THE RIGHT COST.

The key Drivers of Logistics Management

• Inventory Transportation

• Warehousing Packaging

• Information Technology

• Reverse Logistics

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 COUNTRY’S 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.

MILITARY LOGISTICS

• THE BRANCH OF MILITARY OPERATIONS THAT DEALS WITH PROCUREMENT,DISTRIBUTION,

MAINTENANCE, AND REPLACEMENT OF MATERIAL AND PERSONNEL.

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.

7 R’s 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• Automobile Industry• Textiles Industry• Indian postal service• Restaurants• Hotel Laundry Services• Ecommerce

Objectives of Logistics

• Reduction in Inventory costs

• Economy of freight-Reduce Transportation costs

• Timely delivery to customers

• Minimum damage to products

• Quicker and faster response to customers• Lower the cost of distribution to make • the selling price more competitive• Efficiency in warehousing and perfect stock

maintenance

Function of Logistics• Processing of orders received from the

customers• Inventory planning, control and management• Warehousing• Logistical Packaging • Transportation• Material handling and storage• Information

Logistics in three stages• Inbound Logistics before manufacturing

• Process logistics-Storage and movement

• Outbound Logistics after manufacturing-

3 PL Logistics services

• Transportation• Warehousing• Freight forwarding• Customs Clearance• Material handling• Shipping• Invoicing and Delivery• Many other value added services

THE GROWTH OF THE LOGISTICS INDUSTRY IN INDIA

• INCREASE IN TRADE POST LIBERALIZATION, FROM 250 MILLION TONNES TO 3000 MILLION TONNES IN 2011-12

• 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,PHAR-MACEUTICALS,TELECOMMUNICATIONS,ELECTRONICS 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 2013

• 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

LOGISTICS AS A CAREER

• WITH THE CHANGES IN THE GLOBAL BUSINESS ENVIRONMENT,THE NEED FOR WELL-EDUCATED,TALENTED PROFESSIONALS WITH MULTIPLE SKILLS HAS EMERGED

• LOGISTICS IS CRITICAL TO THE SUCCESS OF EVERY ORGANIZATION.MNC COMPANIES LIKE COCO-COLA,WALMART,NIKE AND COMPANIES IN RETAIL LIKE HINDUSTAN LEVER ATTRIBUTE THEIR SUCCESS TO THEIR GLOBAL LOGISTICAL SYSTEMS

WHAT DOES A CAREER IN LOGISTICS OFFER?

• JOB OPENINGS IN SEVERAL COMPANIES

• GOOD SALARIES AND PERKS

• UPWARD MOBILITY

• EXCITING OPPORTUNITIES IN INDIA AND WORLDWIDE

• INTERNATIONAL ASSIGNMENTS

• RESPECT IN INDUSTRY AND SOCIETY

THE END

• Logistics Management is therefore a fast growing Global industry offering tremendous scope for career development and leadership roles.

MANY THANKS and BEST WISHES Best