introduction to logistics. “ideal” armed forces of mauryan empire infantry cavalry (war)...

Introduction to Logistics

“Ideal” Armed Forces of Mauryan EmpireInfantry

Cavalry

(War) Elephants

Chariots

Ancient Versus 1960s-70s• Manufacturing

Management• Materials Management• Distribution and Sales

Management

Procurement

Inventory Control

Manufacturing

Sales

Distribution

• The purpose of Cost Control

• Resulted Price-based competition

Support for Military Warfare

• Transport• Supplies• Communications• Medical Aid

Note: Logistics has evolved significantly post-WWII with its integration in business and trade

Procurement

Inventory Control

Manufacturing

Sales

Distribution

What was 1960s like for Business World?

• Large number of players entering market• Too many products with lacking vision limited

cash flow• Procurement, inventory, WIP, storage and

warehousing, etc were all fragmented• Costs were out of control

Ancient Versus 1980s• Manufacturing

Management• Materials Management• Marketing and Distribution

and Management

Procurement

Inventory Control

Manufacturing

Sales

Distribution

• The purpose of profit maximization, volume and cost reduction

• Resulted in increased productivity, profitability and market share

What was 1980s like for Business World?

• Oil shocks and inflation• Production productivity was at all time low• Gradual change with regard to multi-national

operations

Ancient Versus 1990s

• Vendor Management• Logistics• Customers

Procurement

Inventory Control

Manufacturing

Sales

Distribution

• The purpose of core competency• Resulted in customer value and

harmonious relationship• Introduction to Supply Chain

Management

What was 1990s like for Business World?

• Economic liberalization in many developing countries

• Rapid innovations in science and technology• New inventory techniques like JIT• Companies developing core competency or

competitive advantage. Logistics managers started recognizing customers as their business partners rather than traders

• Emergence of third-party logistics service provider

Why Core Competency Or Competitive Advantage?

• A company has a competitive advantage over its competitors by having any or all of the following:– Cost Leadership– Differentiation– Innovation– Operational Effectiveness

…this could lead to “Core Competency”1. It is not easy for competitors to imitate2. It can be reused widely for many products/services and markets3. It must contribute to the end consumer’s experienced benefits

and the value of the product or service to its customersAdvocated by C.K. Prahlad and Gary Hamel

About Logistics

• Comes from the French word “loger” which means ‘to lodge’

• According to Council of Logistics Management, “Logistics is the process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer needs”

Today’s Logistics - Military

CAPABILITIES SERVICESOperational Readiness FuelSustainability Rations

Spare PartsMaintenanceOrdinanceMailMedical Supplies

Today’s Logistics - Engineering

CAPABILITIES SERVICESDesign for Supportability

Operational Readiness

Integrated logistics supportTradeoffsLife-cycle cost management

SustainabilityProduct Support

Today’s Logistics – Business (Inbound & Outbound)

CAPABILITIES SERVICES(Inbound)Continuous flowWorld-class suppliersShipment TrackingTransportation NetworkInventory ManagementMaterials Handling

(Inbound)Minimal inventoryReliable DeliveriesWarehousing activitiesResponsive to requirements

(Outbound)Customer-drivenComputer Systems (?)Regional distribution systemsValue-added servicesShipment TrackingCarrier ManagementInformation Accuracy

(Outbound)Order fill rateOrder cycleDamage free deliveryLiberal return policyOn-time deliveryCustomer satisfaction

Today’s Logistics - EventCAPABILITIES SERVICES

Pre-event planning and stagingSupportCleanup (asset withdrawal)

Equipment in placeSupplies in placeFacilities operationalInventory management Asset control and protectionFlexible responseParticipant supports servicesSpectator support servicesMedia support servicesRedeployment after avant

Today’s Logistics - Process

CAPABILITIES SERVICES(example) Bus TransportationAsset Procurement – vehicle maintenance, Route design, Time schedules, fuel contracts, Safety plans

Transportation to School

Contact – bhaktij@gmail.com

www.headscratchingnotes.net