DISTRIBUTION MANAGEMENTDISTRIBUTION MANAGEMENT

LECTURE 1 –LECTURE 1 –INTRODUCTION TO LOGISTICS & DISTRIBUTIONINTRODUCTION TO LOGISTICS & DISTRIBUTION

HUMAYUN AKHTARHUMAYUN AKHTAR

Let’s get to know each Let’s get to know each other…..other…..

• Myself !Myself !

• You !You !

• The The Subject !Subject !

WHO AM I ?WHO AM I ? Humayun Akhtar AwanHumayun Akhtar Awan

National Engineering & Scientific Commission (NESCOM), National Engineering & Scientific Commission (NESCOM), Government of Pakistan, IslamabadGovernment of Pakistan, Islamabad

Project Director – Project Director – Programme Mgmt. / Technology IntegrationProgramme Mgmt. / Technology Integration

Qualifications:Qualifications: MS (Engineering Management)MS (Engineering Management) BS (Mechanical Engineering)BS (Mechanical Engineering) ISO 9000 QMS Lead AuditorISO 9000 QMS Lead Auditor

Prior Experience:Prior Experience: Allied Engineering & Services Ltd (CATERPILLAR)Allied Engineering & Services Ltd (CATERPILLAR)-Industrial -Industrial

SalesSales Pakistan Tobacco Company Limited (British American Tobacco Pakistan Tobacco Company Limited (British American Tobacco

– BAT) – – BAT) – Manufacturing / TQM / QMSManufacturing / TQM / QMS Freelance Consultant – Freelance Consultant – Quality Management SystemsQuality Management Systems Packages Limited – Packages Limited – Production / ERPProduction / ERP JWT Asiatic Advertising JWT Asiatic Advertising – Client Services– Client Services Fauji Foundation Fauji Foundation – Production / Quality Assurance– Production / Quality Assurance

TRAINING / TEACHING EXPERIENCETRAINING / TEACHING EXPERIENCE

Lead Trainer on Contract / Proposal Management, Supply Chain Management / Project Management and Warehouse Management at Air University, Islamabad

WTO, ITC and UN Trainer on Supply Chain Management Guest Trainer for NRSP on Strategic Planning Visiting Faculty Member / Thesis Supervisor for Post-Grad and Under-

Grad (MS, MBA, MPA & BBA) 2006 onwards: Iqra University Fatima Jinnah Women University Army Public College of Management Sciences SZABIST, Islamabad Bahria University Management Development Institute (MDI)

Subjects taught to date: Innovation & Technology Management Supply Chain Management Project Management & Project Constraints Strategic Management Operations Research / Management Global Outsourcing Total Quality Management Strategic HRM / Managing Organizations Knowledge Management Project Quality & Communication Management Project Risk Management Project Procurement Management Production & Operations Management Project Review, Assurance & Governance

Introduce yourself Introduce yourself

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I am………………………….I am………………………….

My qualifications ………….My qualifications ………….

I work for ………………….I work for ………………….

………… ………… motivates me motivates me mostmost

I wish I was…………….I wish I was…………….

My goals through this My goals through this coursecourse

Goals in LIFEGoals in LIFE

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Scope & DefinitionScope & Definition

INTRODUCTIONINTRODUCTION

Some of the different names that have been applied to Some of the different names that have been applied to distribution and logistics include:distribution and logistics include:• • physical distribution;physical distribution;

• • logistics;logistics;

• • business logistics;business logistics;

• • materials management;materials management;

• • procurement and supply;procurement and supply;

• • product flow;product flow;

• • marketing logistics;marketing logistics;

• • supply chain management;supply chain management;

• • demand chain management;demand chain management;and there are several more.and there are several more.

INTRODUCTIONINTRODUCTION

One quite widely accepted definition that uses some of these One quite widely accepted definition that uses some of these terms also helps to describe one of the key relationships. This is terms also helps to describe one of the key relationships. This is as follows:as follows:

Logistics = Materials management + DistributionLogistics = Materials management + Distribution

Supply Chain = Suppliers + Logistics + CustomersSupply Chain = Suppliers + Logistics + Customers

Logistics and the supply chain are concerned with Logistics and the supply chain are concerned with physicalphysical and and informationinformation flows and storage from raw material through to the flows and storage from raw material through to the final distribution of the finished product. Thus, supply and final distribution of the finished product. Thus, supply and materials management represents the storage and flows into materials management represents the storage and flows into and through the production process, while distribution and through the production process, while distribution represents the storage and flows from the final production point represents the storage and flows from the final production point through to the customer or end user.through to the customer or end user.

Flow Representation of Logistics – Flow Representation of Logistics – FMCG ManufacturerFMCG Manufacturer

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Logistics is the management of all activities which facilitate Logistics is the management of all activities which facilitate movement and the coordination of supply and demand in movement and the coordination of supply and demand in the creation of time and place utility. the creation of time and place utility. (Hesket, Glaskowsky and (Hesket, Glaskowsky and Ivie, 1973)Ivie, 1973)

Logistics is the art and science of managing and controlling Logistics is the art and science of managing and controlling the flow of goods, energy, information and other resources. the flow of goods, energy, information and other resources. (Wikipedia)(Wikipedia)

Logistics management is the planning, implementation and Logistics management is the planning, implementation and control of the efficient, effective forward and reverse flow control of the efficient, effective forward and reverse flow and storage of goods, services and related information and storage of goods, services and related information between the point of origin and the point of consumption in between the point of origin and the point of consumption in order to meet customer requirements. order to meet customer requirements. (Wikipedia, 2006)(Wikipedia, 2006)

Logistics is. . . the positioning of resource at the right time, Logistics is. . . the positioning of resource at the right time, in the right place, at the right cost, at the right quality. in the right place, at the right cost, at the right quality. (Chartered Institute of Logistics and Transport (UK), 2005)(Chartered Institute of Logistics and Transport (UK), 2005)

key areas representing the majorkey areas representing the majorcomponents of distribution and components of distribution and

logisticslogistics These will include transport, warehousing, inventory, These will include transport, warehousing, inventory,

packaging and information.packaging and information.

Logistics costs as a percentage Logistics costs as a percentage of GDP for selected countriesof GDP for selected countries

THANK YOUTHANK YOU