Sei sulla pagina 1di 17

LOGISTICS

In this fast moving business world national economies are getting integrated with world economies. This has forced the organizations the world over to re-evaluate their business process and the way they delivering products to the customer. Global buying and sourcing practices have undergone vast changes over past few years.

Today, products are sourced from different parts of the world, assembled at different location, and shipped to various destination to ensure customer satisfaction and squeeze out unproductive time and cost. Due to advancement in information and communication technology, the logistic has become an integral part of the business.

Logistics is a planning process and an information based activity directing the flow of material from source through production and distribution to the final customer.

Logistics is a major enabler for the growth of trade and commerce activity. The speed and reliability in distribution from place of production to the place of consumption will contribute to get extent in business. The logistics cost as a percentage of Gross Domestic Products of various countries is as follows

Country Korea China Japan Taiwan Malaysia India France UK USA

Logistics cost as a % of GDP 16 15 14 13 13 13 12 11 10

The logistic concept is based on the system approach. Logistics covers the following functional areas. 1. Information flow Order registration. Order checking and editing. Order processing. Coordination.

2. Warehousing
Load utilizing and packing. Site selection and network planning. Order picking and filling. Dispatch documentation.

3.Inventory control Material requirement planning. Inventory level decision for customer service objectives. 4. Packaging For handling and damage prevention. For communication. For inter-modal transportation.

4. Transportation Route planning. Mode selection. Vehicle scheduling.

In India , the situation is quite grave. ( Reference India Today 01 June 2009. Article by Nivedita Mukherjee ) For the Farm to Fork revolution to become reality, there has to be a seamless flow from what is sown in the fields to procurement, processing, storage, logistics and transport and retailing. Food worth Rs.58,000/- crore gets wasted every year, admitted by Government.

About 40% of farm is wasted due to inappropriate storage, lack of primary processing facilities and inefficient procurement There are several agencies / departments working in this field but under different ministries and they have no co-ordination among themselves In case of fruits the wastage is about 60%

Objectives of logistic management 1. Inventory reduction This adversely affect the profitability of the company.Prime objective of logistic to maintain the inventory minimum.small lot supplies are required to be done frequently. Inventory related cost will reduce drastically but transportation cost will go up marginally.

2. Reliable and consistent delivery performance


Timely delivery is crucial to the customer.There can be little variance in Plan versus Actual. But proper planning of transportation modes will reduce it. There should be consistency in delivery performance. This helps in building customer confidence and helps in creating long term relationship with the customer.

3.freight economy : Freight is a major cost element in logistics. This can be reduced by freight consolidation, appropriate route planning and load unitizing and long distance shipments

Minimum product damage Product damage adds to the cost. The reason for this is improper logical packing, frequent consignment handling etc. The mechanized material handling equipments and proper packaging will reduce the product damage.

Quick response This is related with the capability of the organization. The usages of latest technologies and fast communication systems improves the decision making capacity and reduces the response time.

Potrebbero piacerti anche