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