Logistics and SCM Sector Growth in India

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WHAT IS LOGISTICS?

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Logistics is generally the detailed organization and implementation of a complex operation. In general, logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations.
 
The resources managed in logistics can include physical items such as food, materials, animals, equipment, and liquids as well as abstract items, such as time and information. The logistics of physical items usually involves the integration of information flow, material handling, production, packaging, inventory, transportation, warehousing, and often security.
 
In the military, logistics is concerned with maintaining army supply lines while disrupting those of the enemy, since an armed force without resources and transportation is defenseless. Military logistics was already practiced in the ancient world and as the modern military have a significant need for logistics solutions, advanced implementations have been developed. In military logistics, officers manage how and when to move resources to the places they are needed.
 
Logistics management is the part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer's requirements. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation in all logistics fields. A professional working in the field of logistics management is called a logistician.
 
ORIGINS AND DEFINITIONS
The prevalent view is that the term logistics comes from the late 19th century from French logistic (lodger means to lodge) and was first used by Baron de Jomini. Others attribute a Greek origin to the word: λ?γος, meaning reason or speech; λογιστικ?ς, meaning accountant or responsible for counting.
 
The Oxford English Dictionary defines logistics as "the branch of military science relating to procuring, maintaining and transporting material, personnel, and facilities". However, the New Oxford American Dictionary defines logistics as "the detailed coordination of a complex operation involving many people, facilities, or supplies," and the Oxford Dictionary online defines it as "the detailed organization and implementation of a complex operation". Logistics is a branch of engineering that creates "people systems" rather than "machine systems."
 
WHAT IS SUPPLY CHAIN MANAGEMENT?
Supply chain management (SCM) is the oversight of information, materials, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves integrating and coordinating these flows both within and among companies. It is said that the ultimate goal of any effective SCM system is to reduce inventory with the assumption that products are available when needed. As a solution for successful supply chain management, sophisticated software systems with Web interfaces are competing with Web-based application service providers who promise to provide part or all of the SCM service for companies who rent their service.
Supply chain management flows can be divided into three main flows:
 
The product flow
The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs.
 
The information flow
The information flow involves transmitting orders and updating the status of delivery.
 
The financial flow
The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements.
 
DIFFERENT TYPES OF SCM SOFTWARE?
There are two main types of SCM software
 
Planning applications
Planning applications use advanced algorithms to determine the best way to fill an order.
 
Execution applications.
Execution applications track the physical status of goods, the management of materials, and financial information involving all parties.
 
Punjab Regiment uses mules for carrying cargo in Burma during WWII. Animals have been used for logistic purposes by different people throughout history; the Roman army in particularly preferred mules over donkeys for their moving capacity.
 
In military science, maintaining one's supply lines while disrupting those of the enemy is crucial some would say the most crucial element of military strategy since an armed force without resources and transportation is defenseless.The military has a significant need for logistics solutions and so have developed advanced implementations. Integrated Logistics Support (ILS) is a discipline used in military industries to ensure an easily supportable system with a robust customer service (logistic) concept at the lowest cost and in line with (often high) reliability, availability, maintainability, and other requirements, as defined for the project.
 
Supply chain management in military logistics often deals with a number of variables in predicting cost, deterioration, consumption, and future demand. The United States Armed Forces' categorical supply classification was developed in such a way that categories of supply with similar consumption variables are grouped together for planning purposes. For instance, peacetime consumption of ammunition and fuel will be considerably lower than wartime consumption of these items, whereas other classes of supply such as subsistence and clothing have a relatively consistent consumption rate regardless of war or peace.
 
BUSINESS LOGISTICS
One definition of business logistics speaks of "having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer". Business logistics incorporates all industry sectors and aims to manage the fruition of project life cycles, resultant efficiencies and supply chain.
 
The term "business logistics" has evolved since the 1960s due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for professionals called "supply chain logisticians".
 
In business, logistics may have either an internal focus (inbound logistics) or an external focus (outbound logistics), covering the flow and storage of materials from point of origin to point of consumption (see supply-chain management). The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation, and the organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions to coordinate resources in an organization.
 
There are two fundamentally different forms of logistics: one optimizes a steady flow of material through a network of transport links and storage nodes, other coordinates a sequence of resources to carry out some project (e.g., restructuring a warehouse).
 
LOGISTICS FAMILIES AND METRICS
Inbound Logistics is one of the primary processes of logistics concentrating on purchasing and arranging the inbound movement of materials, parts, or finished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores.
 
Outbound logistics is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user.
 
Given the services performed by logisticians, the main fields of logistics can be broken down as follows:
 
Procurement logistics
Procurement logistics consists of activities such as market research, requirements planning, make-or-buy decisions, supplier management, ordering, and order controlling. The targets in procurement logistics might be contradictory: maximizing efficiency by concentrating on core competencies, outsourcing while maintaining the autonomy of the company, or minimizing procurement costs while maximizing security within the supply process.
 
Distribution logistics
Distribution logistics has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differ with the time, place, and quantity of consumption.
 
Disposal logistics
Disposal logistics has as its main function to reduce logistics cost(s) and enhance service(s) related to the disposal of waste produced during the operation of a business.
 
RAM LOGISTICS
RAM Logistics (see also Logistic engineering) combines both business logistics and military logistics since it is concerned with highly complicated technological systems for which Reliability, Availability, and Maintainability are essential, ex: weapon systems and military supercomputers.
 
Green Logistics
Green Logistics describes all attempts to measure and minimize the ecological impact of logistics activities. This includes all activities of the forward and reverse flows. This can be achieved through intermodal freight transport, path optimization, vehicle saturation and city logistics.
 
Asset Control Logistics
Asset Control Logistics: companies in the retail channels, both organized retailers, and suppliers, often deploy assets required for the display, preservation, promotion of their products. Some examples are refrigerators, stands, display monitors, seasonal equipment, poster stands & frames.
 
Production Logistics
The term production logistics describes logistic processes within a value-adding system (ex: factory or amine). Production logistics aims to ensure that each machine and workstation receives the right product in the right quantity and quality at the right time. The concern is with production, testing, transportation, storage, and supply. Production logistics can operate in existing as well as new plants: since manufacturing in an existing plant is a constantly changing process, machines are exchanged and new ones added, which gives the opportunity to improve the production logistics system accordingly.[8] Production logistics provides the means to achieve customer response and capital efficiency. Production logistics becomes more important with decreasing batch sizes. In many industries (e.g. mobile phones), the short-term goal is a batch size of one, allowing even a single customer's demand to be fulfilled efficiently. Track and tracing, which is an essential part of production logistics due to product safety and reliability issues, is also gaining importance, especially in the automotive and medical industries.
 
Emergency Logistics
Emergency logistics (or Humanitarian Logistics) is a term used by the logistics, supply chain, and manufacturing industries to denote specific time-critical modes of transport used to move goods or objects rapidly in the event of an emergency. The reason for enlisting emergency logistics services could be a production delay or anticipated production delay, or an urgent need for specialized equipment to prevent events such as aircraft being grounded (also known as "aircraft on ground"—AOG), ships being delayed, or telecommunications failure. Humanitarian logistics involves governments, the military, aid agencies, donors, non-governmental organizations and emergency logistics services are typically sourced from a specialist provider.
 
Construction Logistics
Construction Logistics is known to mankind since ancient times. As the various human civilizations tried to build the best possible works of construction for living and protection. Now the construction logistics emerged as vital part of the construction. In the past few years, construction logistics has emerged as a different field of knowledge and study within the subject of supply chain management and logistics.
 
Reverse logistics
Reverse logistics denotes all those operations related to the reuse of products and materials. The reverse logistics process includes the management and the sale of surpluses, as well as products being returned to vendors from buyers. Reverse logistics stands for all operations related to the reuse of products and materials. It is "the process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. The opposite of reverse logistics is forward logistics."
 
Digital logistics
It is driven by a new generation of web-based, enterprise logistics applications that enable collaboration and optimization, leveraging a central logistics information backbone that provides visibility across the enterprise and extended supply chain.
 
LOGISTICS AUTOMATION
It is the application of automated machinery or computer software to improve the efficiency of logistics operations. Typically this refers to operations within a warehouse or distribution center with broader tasks undertaken by supply chain management systems and enterprise resource planning systems.
 
Industrial machinery can typically identify products through either Bar Code or RFID technologies. Information in traditional barcodes is stored as a sequence of black and white bars varying in width, which when read by the laser is translated into a digital sequence, which according to fixed rules can be converted into a decimal number or other data. Sometimes information in a barcode can be transmitted through radio frequency, more typically radio transmission is used in RFID tags. A RFID tag is a card containing a memory chip and an antenna which transmits signals to a reader. RFID may be found on merchandise, animals, vehicles, and people as well.
Logistics: profession and organizations
 
WHO IS LOGISTICIAN?
He is a professional logistics practitioner. Professional logisticians are often certified by professional associations. One can either work in a pure logistics company, such as a shipping line, airport, or freight forwarder or within the logistics department of a company. However, as mentioned above, logistics is a broad field, encompassing procurement, production, distribution, and disposal activities. Hence, career perspectives are broad as well. A new trend in the industry is the 4PL, or fourth-party logistics, firms, consulting companies offering logistics services.
 
Marcep Inc. focus is to deliver initiatives and activities which ensure a competent and safe workforce training for the industry both now and in the future. these are some training which we have conducted successfully.
 
  • Certified Supply Chain Professional: Review Course (In-House)
  • The Fundamentals of Supply Chain Management
  • Advanced Supply Chain Management
  • International Purchasing Made Simple
  • Supply Chain Management - Skills for Current Practitioners
  • Basics of Supply Chain Management (BSCM)
  • Advanced Certificate in Supply Chain Management
  • MRPII/ ERP and Supply Chain Management – An Overview
  • Lean Supply Chains & Business Process Improvements
  • Leading Complex Change in the Supply Chain.
  • Materials and Supply Chain Management
  • The Retail Supply Chain: managing those vital relationships
  • Effective Stock Control
  • Best Practice Procurement

Logistics and SCM Inventory and Warehouse | Distribution logistics | Reverse logistics | MILITARY LOGISTICS | WHAT IS SUPPLY CHAIN MANAGEMENT | RAM LOGISTICS | Production Logistics | A partial list of 2 days and 3 days training on SCM & Logistics

For any of consultancy or in-house training contact us on 022-30210100 or email us on techsupport@marcepinc.com

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