LOGISTICS

1
LOGISTICS

• Supply Chain Management
• Distribution Logistics
• Single Country Single Market
• Dependable Mode of Transport
• Safe Arrival of Goods
• Reasonable Time
• Reasonable Cost
• Such Solution Not Viable For Global Markets
• Correct Quantity of Product in Required Time
  Frame
• Physical Distribution Process as Integrated System

2
LOGISTICS

• Supply Chain Management
• Distribution Logistics
• Global Markets
• Multi Modal Transport
• Trans-shipments
• Regulatory Authorities
• Pilferage
• Damages
• Quality Issues, Storage at Different Climatic
  Conditions
• Control

3
LOGISTICS

• Supply Chain Management
• Sea Air
• Transport Costs 31,790 127,160
• Transit Time 21 Days 3 Days
• In-Transit Inventory 44,289 6,328
• Finance Cost
• Total Trans. Cost 76.079 133,487
• WareHsg. Inventory 126,540
• WareHsg. Rent 6,500
• Real Physical D.C. 209,119 133,487
• 44,000 Units, Value 7.7 m, SGP to LA, Finance
  Cost 10 i.e.2,109 per day, Inventory of 30 days
  at SGP and LA

4
LOGISTICS

• Supply Chain Management
• Distribution Logistics
• The management of resources to supply the product
  and services needs of the end consumer
  encompassing the supply chain of any physical
  products and the exchange processes involved
• RM ? Mfgr. / Producer of Goods or Services
  ? Importer (Intermediary or Wholesaler or
  Stockist) ? Retailer ? Consumer
• Traditional Distribution Chain
• Linear chain, unidirectional
• Passive Customer at the other end

5
LOGISTICS

• Supply Chain Management
• Distribution Logistics
• Limited Channel
• Mfgr. / Producer of Goods or Services
• ? Importer ? Retailer ? Consumer
• Direct Channel
• Mfgr. / Producer of Goods or Services
  
• ? Consumer

6
LOGISTICS

• Supply Chain Management
• Distribution Logistics
• Flow
• Physical Flow, Ownership Flow, Service
  Flow, Information Flow, Payment Flow, Promotion
  Flow
• Good logistics or SCM techniques needed to
  ensure smoother movement of merchandise till it
  reaches the consumer
• Customer satisfaction at acceptable costs

7
LOGISTICS

• Logistics
• Logistic is the process of strategically
  managing the procurement, movement, and storage
  of materials, parts, and finished inventory
  through the organisation and its marketing
  channels in such a way that the current and
  future profitability are maximised through the
  cost effective fulfillment of orders
• Procure, Store and Transport in cost
  effective manner

8
LOGISTICS

• Logistics
• Movement of Goods from Exporter to Importer and
  From Importer to Exporter
• FCL
• LCL
• Volume
• Weight

9
LOGISTICS

• Logistics
• Cost Structure
• Total Distribution Cost
• TDC TC FC CC IC HC PC MC
• TC - Transport Cost - Substantial Fixed Cost
  element.
• Capacity to match volumes
• Centralised Distribution
• Route Planning
• Optimal Schedules
• Back Haul
• Use of software

10
LOGISTICS

• Logistics
• Cost Structure
• Total Distribution Cost
• TDC TC FC CC IC HC PC MC
• FC Facility Cost
• Warehousing, capital cost and running cost
  related to infrastructure and internal systems to
  store and pick up stocks
• RDC in low cost area
• Use of Information Systems, Electronic Data
  Interchange
• Warehouse Management System like radio links.
  Reduction in wage bill Refer to HR

11
LOGISTICS

• Logistics
• Cost Structure
• Total Distribution Cost
• TDC TC FC CC IC HC PC MC
• CC Communication Cost Cost associated with
  EDI and other communication through the chain.
  These are administrative costs
• IC Inventory Cost Direct capital cost for
  goods purchased and Opportunity cost for carrying
  inventory. These are cost associated with
  maintenance and replenishment of inventory

12
LOGISTICS

• Logistics
• Cost Structure
• Total Distribution Cost
• TDC TC FC CC IC HC PC MC
• HC Handling Cost Cost associated with
  Damage, Pilferage, Deterioration of stocks
• PC Packaging Cost Repacking, shrink wrapping,
  pallets, boxes, containers, tapes, labels etc

13
LOGISTICS

• Logistics
• Cost Structure
• Total Distribution Cost
• TDC TC FC CC IC HC PC MC
• MC Management Cost Cost associated
  Management of the chain. Ranging from security
  system to storage conditions to HR, Finance and
  almost everything where managerial input is
  needed

14
LOGISTICS

• SCM
• IT in SCM
• Goldmine - Tanishq
• 60 Boutiques, 32 CF, 29 Cities
• Challenges
• Reduction in cycle time, increasing efficiency,
  cost reduction in tracking movement of goods and
  sales indenting, order status, sales visibility,
  communication (reports) and exception reporting

15
LOGISTICS

• SCM
• IT in SCM
• Goods in Transit
• Details of dispatches to CF and Boutiques,
  Tracking stock returns, Monitor loss of goods and
  stocks in transit
• Indenting
• Automate ordering by boutiques, Online product
  catalogues and price lists, Stock replenshments,
  shop specific customer specific indents, POS
  indenting for each variant as per track record

16
LOGISTICS

• SCM
• IT in SCM
• Order Status
• Visibility of status of orders placed by
  boutiques, daily synchronization with factory and
  web-based solution, No emails
• Sales Visibility
• Sales visibility has improved, helps management
  in evaluating marketing programmes and promotions
  at boutique level by category and price band.
  Best sellers are also available on line

17
LOGISTICS

• SCM
• IT in SCM
• Communication and Exception Reporting
• Platform for dissemination of information through
  uploads, bulletin boards, Market information.
  40,000 variants interaction is vital
• Future Plans
• To set up bench mark for the industry. Use of
  relevant business information in real time in the
  boutiques during a customer touch

18
LOGISTICS

• SCM
• IT in SCM
• UPS
• FEDEX
• DHL
• Complete Logistic Management
• Door to Door Delivery Around The World
• WareHousing, Inventory, Labour Technology
• Integrate Supplies from Various Countries and
• Despatch, Reduces Time, Inventory, Tracking
• And Much More