mis in logistics (3)

8/8/2019 MIS in Logistics (3)

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MIS in LogisticsMIS in Logistics

Presentation bySubin Sunny

Sunitha STara KoshyUma Pillai

Visakh SomanVishnu R



The Increased Importance of Logistics

A Reduction in Economic Regulation

Recognition by Prominent Non-Logisticians

Technological Advances

The Growing Power of Retailers

Globalization of Trade

Three objectives of logistics strategy:

Cost reduction (variable costs) Capital reduction (investment, fixed costs)

Service Improvement (may be at odds with

the above two objectives).



Logistics - Science of managing (controlling) the movement and

storage of goods (or people) from acquisition to consumption.

Goods: Raw Materialsp Final products, and everything in between.

Logistics for services & people similar to goods logistics.

Ex. Police, fire, ambulance, passenger airlines, taxi cabs, etc.

Movement = Transportation (betweenlocations).

Storage = Inventory, Warehousing (at

locations).

Difference between acquisition and consumption is a matter of space

and time.

Focus: Best way to overcome space and time that separates acquisition

and consumption.



1998 CLM DEFINITION OF LOGISTICS

«.is that part of the supply chain process that

plans, implements, and controls the efficient,

effective flow and storage of goods, services,

and related information from the point-of-

origin to the point-of-consumption in order to

meet customers' requirements.

Council of Logistics Management, 1998;

www.CLM1.org



Five Business SystemsFive Business Systems -- TightlyTightlyInterconnected Within The OrganizationInterconnected Within The Organization

MeasurementDecisions

Management

Systems

RewardDecisions

StrategicDecisions

TransportationDecisions

SourcingDecisions

InventoryDecisions

Logistics Systems{

Price

DecisionsPromotionDecisions Marketing

Systems

ProductDecisions

Place (How,where, how

much) }ProductionScheduling

Decisions

ProductionCapacity

Decisions

Shop Floor Decisions

Manufacturing

Systems}

Product

Design

Decisions

Process

Design

Decisions Engineering

Systems}

Copyright 2000 - All Rights Reserved



Activities and Logistics DecisionsActivities and Logistics Decisions

Transportationrate and contract negotiationmode and service selectionrouting and scheduling

Inventoriesfinished goods policies

supply schedulingshort term forecasting

Warehousingprivate vs. publicspace determinationwarehouse configurationStock layout and dock designstock placementCross-docking

Facility Location

determining location, numberand size of facilities

allocating demand to facilities

Customer Servicedetermining customer wantsdetermining customer responseto service changes

Materials Handling equipment selectionequipment replacementorder picking procedures

Packaging designOrder Processing

order procedure determination

Production Scheduling aggregate production quantitiessequencing and timing of

production runs



Management Information SystemsManagement Information Systems

Logistics Industry - Goal

y Logistics is the process of planning,implementing and coordinating to ensurephysical movement of merchandise fromcustomer to the intended recipient in a mannerthat is:

Timely Cost efficient Reliable

y These factors ensure sustainability of theorganization.



Primary Flow and ProcessesPrimary Flow and Processes

Sequence of processes vital to achievingthe goal of the Service Provider

Secondary Flows

Processes that aid the Primary Flow

Tracking Order Delivery Status Flow



Secondary Flows (contd.)Secondary Flows (contd.)

Inventory and Fleet Management (VMI)

Collection Process Flow



Customers and ExpectationsCustomers and Expectations

Customersy Senders include Retailers, Manufacturersy Recipients of the Good

Customer Expectationsy Cost Effective Deliveryy Consistent Tariffs across a range of Goods and Distancesy Delivery-on-Timey Global Reachy Flexible payment options for high-volume deliveriesy Delivery in ³as-is´ conditiony Feedback for communicating potential delays



External VariablesExternal Variables

External variables are factors outside the scope of theOrganization that affect its working.

They may not always lead to a negative impact.

For instance, if there is a sudden increase in shippingrequirements, there is an opportunity to scale theorganization, constrained only by the resources at theirdisposal.

y Weather Conditionsy Social and Political Conditionsy Legal Regulationsy External industry demandy Economic Factors



Industry Best PracticesIndustry Best Practices -- UPSUPS

y Identification of functions to be outsourced and effective partnersafter comprehensive ROI analysis

y Extensive use of technology for service providing IT enabled Enterprise Resource Planning services

Dynamic Supply Chain Monitoring using Radio Frequency Identification

y Adoption of Reverse Logistics to facilitate Asset Recovery Add value to sales returns

Redistribution of overstocked inventory

y Enhanced Customer Satisfaction through Customs Brokerage

(Ref: http://www.ups.com/)



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