LSCM 1

Basics of
Logistics
Manageme
nt
Session 1
Insights
∙ Introduction to physical distribution.

∙ Logistics management and its elements.
∙ Modern concepts in logistics
∙ Role of logistics in strategy
2
Introduction
Physical distribution is the science of

Business Logistics whereby the proper
amount of the right kind of product is
made available at the place where
demand for it exists.
Viewed in this light, physical
distribution is key link between
manufacturing and demand creation. 3
Physical distribution refers to the
movement of finished goods from a
company's distribution and fulfillment
network to the end user.
In ecommerce, physical distribution

involves several ecommerce supply chain
activities including warehousing,
inventory control, order processing, retail
4
Logistics Management
The way to get
started is to quit
talking and begin
doing.
Walt Disney
6
Logistics refers to the overall process of managing how resources are
acquired, stored, and transported to their final destination. ... The term
is now used widely in the business sector, particularly by companies in the
manufacturing sectors, to refer to how resources are handled and moved
along the supply chain.
7
Logistics
+ The management of logistics can involve some or all of the following business functions,
including:
• Inbound transportation.
• Outbound transportation.
• Fleet management.
• Warehousing.
• Materials handling.
• Order fulfillment.
• Inventory management.
• Demand planning.
SYSTEM concept
Logistics system (LS) is a network of

organizations, people, activities, information,
and resources involved in the physical flow of
products from supplier to customer.
Objectives of logistics management
• Minimize Manufacturing Costs.

• Efficient Flow of Operations.
• Better Communication Flow.
• Provides Competitive Edge.
• Better Inventory Management.
• Logistics Management Solution.
+ The General objectives of the logistics can be summarized as:
• Cost reduction
• Capital reduction
• Service improvement
+ The specific objective of an ideal logistics system is to ensure the flow of supply to the buyer,
the:
• right product
• right quantities and assortments
• right places
• right time
• right cost / price and,
• right condition
Elements of Logistics Management
Storage ,warehousing Information and

and materials Packaging and
control
handling unitization Inventory Transport
12
Modern concepts in Logistics
Through data collection, analysis, and
Radio-frequency Identity (RFID) chips have demand forecasting, the company has made Another modern trend in logistics is the use
promised to provide real-time tracking massive strides in operational efﬁciencies and of wearable devices by employees to take
information cost savings. inventory and maintain data in real time
Omnichannel Shipping Artiﬁcial Intelligence
RFID Big Data Wearable devices
Warehouse to consumer and back All of this is designed to eliminate human

Supplier to consumer and back error in locating shipments and moving the
cargo from one place to another.
Store to consumer and back
Distribution center to consumer and back
13
Role of Logistics in Strategy
• Inbound Logistics. Inbound logistics is sourcing and transporting raw material from
a supplier to the buyer's manufacturing unit.
• Outbound Logistics. ... Outbound logistics is transporting and delivering the
finished product in time to the customer.
• Reverse Logistics. Products returning from customers fall under the reverse logistics
category, also known as the aftermarket supply chain.
• Distribution Logistics : The connection between production and market is
distribution logistics, also known as transport or sale logistics.
• Third Party Logistics.: companies are employed by the manufacturer to outsource
warehousing and delivery to the end customer.
• Fourth Party Logistics: In Fourth Party Logistics, 4PLs in short, are involved in
assessing, designing, running, and measuring solutions for customers.
14
Role ….
The main role of logistics in supply chain management is primarily

to increase the overall value of each delivery, which is identified
by customer satisfaction. This means that the reduction and
optimization of labor resources must be tied in with keeping up a
certain level of quality customer service.
15
Role …
• Ensure the right people in your organization are aware of changes in the
supply chain
• Involve the right number of warehouses or distribution centres
• Measure the frequency that products should leave each warehouse or
distribution center
• Regular reviews to find out if the logistics partnerships are working well
for you and your customers
• Regular strategy revisions for optimization
16
Thank you
17

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Basics of

∙ Introduction to physical distribution.

Physical distribution is the science of

In ecommerce, physical distribution

Logistics system (LS) is a network of

• Minimize Manufacturing Costs.

Storage ,warehousing Information and

Omnichannel Shipping Artiﬁcial Intelligence

RFID Big Data Wearable devices

Warehouse to consumer and back All of this is designed to eliminate human

The main role of logistics in supply chain management is primarily

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