LOGISTICS MANAGEMENT AND EMERGING TRENDS

ByKritika – 47

Madhujith T.H - 49

Logistics is that part of the supply chain process that plans, implements and controls the effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet the customer’s requirements.

Elements Transportation – air, water, land Warehousing Inventory Management Packing and Utilization Information and communication

Importance of Logistics Management Transportation costs Large retailers, low distribution costs –

eg. Metro Cash and Carry Deregulation – e.g. Fiat – Tata Changing strategies – eg Toyota Way Technology – eg. Wal-Mart, DELL Globalization

0% fuel 0% technology 0% investment 0% dispute 99.9999 % performance 100% customer satisfaction

THE WONDER OF MUMBAI DABBAWALAS

‘The Show must go on’

What is NMTBSA?? Nutan Mumbai tiffin box supply

Association. It started in 1880 – british raj Total area coverage is 60 kms. 5000 employees Each person working is a share holder 4,00,000 transactions per day Time taken – 3hrs.

Six sigma performance ISO 2000 certified Error rate 1 in 16 million transactions. Technological backup: Nil Cost of service: Rs. 200/month

How do they do it??

Organisational structure

Logistic management

Executive committee

(5 members)

Team of 20 to 25 people headed by a

group leader

Individual dabawalas=30

tiffins/day

Logistic Management 9.30 am The “pick up” people pick up the tiffin

boxes from house wives

10.34 – 11.20 am This period is actually the journey time. Dabbawalas load the wooden crates

filled with tiffin box in the luggage and goods compartment.

11.20 to 12.30 pmThe unloading takes place at the

destination station.The “delivery” people unload the boxes

from the trainAnd re-arrangement of tiffin boxes are

done as per the coding.

12.30 to 1.00 – lunch time

Coding

The coding indicates the originating rail station the destination station the building name the floor number of delivery POKA-YOKE techbique- color indicates

the group responsible for collecting dabba at particular point.

1.15 to 2.00 pm

Here begins the collection process.

The dabawalas collect the tiffin from the offices where they have delivered almost an hour back.

2.00 to 2.30 pm

the return journey

The group members meet at the segregation as per the destination.

2.48 to 3.30 pm

The return journey by train

Group finally meets up after the day’s routine of dispatching and collecting from various destination offices.

3.30 to 4.20pmHere the final sorting and dispatching

takes place.The group finally meets up at the origin

stationThe tiffins are finally sorted out as per their

original areas. This is again done through the coding process.

Latest Trend The Web site (www.mydabbawala.com)

– online booking on line poll

Booking through SMS

The royal visit Prince of Wales

Sir Richard Branson, chairman of Virgin

Atlantic Airlines.

CASE STUDYEvery day Amul collects 447,000 litres of milk from

2.12 million farmers, converts the milk into branded, packaged products, and delivers goods worth Rs 6

crore (Rs 60 million) to over 500,000 retail outlets across the country

GCMMF Gujarat Cooperative Milk Marketing

Federation (GCMMF) is the largest food product marketing organization of India.

aims to provide good returns to the farmers and also to fulfil the requirements of consumers by giving them quality products

has 42 regional distribution centers in India, serves over 500,000 retail outlets and exports to more than 15 countries

Problems to be addressed: Logistics in collection of: 6 lts of milk everyday from 10600 separate villages

Logistics in co ordination of : storing ,processing and delivering the

milk.

Suppliers Logistics: Weighing the milk Determining the fat content Calculation of purchase price

The Need formulate an IT plan

Integrate its existing applications with ICT tools

Connect its regional and field offices through e-media

Implementation Amul started implementing ERP in

phases.

Automatic milk collection system units (AMCSU) at village societies were installed to automate milk producers logistics.

At milk collection counter - farmer drops the card

- milk is weighed

- calculates amount due to farmer

- value of milk is printed

Amul connected its zonal and regional offices through VSATs.

Amul is also using GIS (geographic information system) for business planning and collection process.

IIM-A provided Amul with a software-Dairy information system kiosk(DISK) to facilitate data analysis and decision support in improving milk collection.

Indian Railways

Largest network under management Revenues: 12 billion $ Passengers: 14 million/day (approx) Freight: 2 million tons/day (approx) Manpower: 1.4 million

Indian Railways Contd…. Track – 63000 km

Around 7000 – 8000 stations

Freight: 2 million tons/day (approx)

Long Range Decision Support Systems

Used to manage and plan strategies for IR

Implemented in 1998 Public – private partnership

World bank + IR personnel + overseas consultants

Powerful tool for pre-feasibility investment analysis for networks

Long Range Decision Support Systems Contd…. Based on traffic projections over the

next two decades Uses- Simulation Models Optimization tools GIS based interface Develop ‘what if scenarios’ Demand and supply side

PROJECT IDENTIFICATION

FACILITYPERFORMANCE

TRAFFIC FORECASTING

MARKET ANALYSIS

TRAFFIC ASSIGNMENT

COST BENEFIT ANALYSIS

FINANCIAL FORECASTING

LRDSS MODEL

SUPPLY ANALYSIS DEMAND ANALYSIS

Solutions Providers

New Needs, New Players Solutions Providers – with the

increased importance of logistics management, a new market opened and there are companies that solve the logistics management problems.OracleInfosysFedEx – case studyDHL etc

Solutions Providers

Oracle – Transportation Management Systems

It integrates and streamlines - transportation planning, execution,

freight payment, and business process automation

Single application

Oracle – Transportation Management Systems

Oracle Transportation Management - Lowers transportation costs Improves customer service and asset

utilization

Solutions Providers Infosys – Master Data Management

Enables Logistics Service Providers (LSPs) to efficiently manage revenues, expenditure, shipment, and large ERP implementations.

IBM – RFID later case study

Emerging Trends

1.Case Study: FedEX started Virtual Order – Online B2B site.

Shippers can setup an online catalog of goods that consumers can order from.

FedEx setup Express Distribution Centres like Dubai, Philipines.

FedEX systems are fully integrated with that of the shippers

Customer places the order.

Shippers notified

Order Enters into FedEx network.

Order collected from a variety of shippers.

Within 48 hours delivery to customer

Mainly for High Value, low weight goods like electronic and medical goods

Case Study:

Emerging Trends2. Two Dimensional Bar Codes

1D BarCode

2D BarCode

2. Two Dimensional Bar Codes

1D barcode contains only vertical lines 2d barcodes contain both horizontal and

vertical lines Can store information of an entire

freight Uses laser scanners to read. Currently

not available.

3. Going Green

Use software that minimizes carbon emissions and cost savings

Eg – by incorporating algorithms that include data about location and date to consolidate shipments by size, product compatibility and trailer types

3. Going Green

Case Study:

DHL’s green initiative by implementing multi site ISO 14001

Bought 1.3 billion Euros worth of new fleet― Planes quieter, more fuel efficient Reduced carbon dioxide emissions by 6.864

tons Improved waste management

Over 53% general solid waste recycled

4. RFIDTwo types: Active – contains battery and transmits

signals Passive – no battery, requires external

source Famous example :Wal – Mart

RFID Services

Integrate real-time data capture with business processes to reduce time to market

Track mobile assets to reduce loss and theft

Optimally manage work in process and logistics networks

Build a secure, responsive and flexible supply chain—to ultimately deliver value to your end customers