Supply chain management
logistics Definitions: Logistics management is that part of the supply chain which plans, implements and controls the efficient, 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 customers' requirements.
Logistics provides the means for the actual transfer of goods or services from the seller to the buyer. Once a product or service has been marketed and ordered, it is necessary to employ logistics to pack, deliver and manage the items for delivery. L=S+M+D (Logistics = Supply + Material Management + Distribution)
Elements of logistics and distribution Storage, warehousing and handling of materials WAREHOUSING
WAREHOUSES
DISRIBUTION DEPOTS
ORDER PROCESSING
Transport TRANSPORT
MODE
DELIVERY
LOAD PLANNING
ROUTE SCHEDULE
Transportation networks The transportation system links together suppliers with manufacturers and manufacturers with customers. Transportation is one of the key element of logistic system. The company has to determine what its warehouse configuration will be. eg. Mc Donald’s provide food items to its franchises around the world. It has warehouses in different countries to service different geographic areas.
Inventory INVENTORY
PRODUCT STOCK
LOCATION OF STOCK
QUALITY OF STOCK
Inventory channel SUPPLIERS BULK DELIVERY
CUSTOMERS LOCAL DELIVERY WAREHOUSING
RAW MATERIAL INVENTORY PRIMERY DISRIBUTION TRANSFER
PRODUCTION TRANSFER
FINISHED GOOD INVENTORY TRANSFER WORK IN PROGRESS INVENTORY AND ASSEMBLY
Information and control INFORMATION AND CONTROL
DESIGNING SYSTEM
CONTROL PROCEDURE
FORECASTING
Packaging and utilization PACKAGING
UNIT PACKING
TOTAL PACKAGING
HANDLING SYSTEM
To be effective , logistics companies need to implement key technologies, including communication tech, satellite tracking system, bar coding applications and automated materials handling systems.
Performance Quality An important aspects of logistics is performance quality. Quality is defined as meeting or exceeding the expectations of the customers.
Logistics and interrelationship with other function Value addition: Attitude towards distribution and logistics has changed over the past two decades. For a long time the view prevailed that various elements within logistics created additional cost for companies. Although there is a cost associated with the movement and storage of goods, it is now recognized that distribution and logistics contribute to the value of a product. Eg. Dell supplies a laptop within sixty minutes in the US, from the moment order is placed. Honda motors delivers car in Europe and North America in ten hrs. many mail order companies use logistics as a major weapon to win the market today.
Procurement: Procurement is one of the key links in the supply chain. It can have a significant influence on the overall success of the organization. Ensuring that there is a sufficient supply of raw materials of the required quality, at the right price, in the right place, at right time is crucial to any manufacturing plant. Procurement is not just about raw material. The following goods and services also need to be acquired:
1.
Utilities like gas, water, electricity and telephones
2.
Fuel including diesel and petrol
3.
Capital assets such as machinery, vehicles and building
4.
Stationary
5.
Consultancy services
6.
Outsourced services such as distribution contracts, IT services etc.
7.
IT equipments eg. Hardware, software and support system.
LOGISTICS of
Foodland provides Customized Distribution & Logistics services encompassing the entire supply chain, such as storage, handling and distribution solutions to various clients. The services are tailor made to suit each client’s requirements, which include organisations such as McDonald's and Radhakrishna Hospitality Services Pvt. Ltd. (RKHS)
Vision - mission Mission : Sustained customer delight through excellence in everything we do. Purpose : To be at the heart of the community by adding value in the food and allied business. Values : Customer is always right Respect for every individual Fair and ethical business practices Making things happen Fun to be with
everyday
Third party logistics handle bulk transportation of temperature sensitive products. Key Features: Dedicated to ‘cold chain’ movement The only logistics solution provider with expertise in handling agri – produce Total kilometer run per month is – 7,00,000 km Perishable tonnage handled per month – 7,000 tons Robust quality systems & processes First in the country to use multi temperature vehicles Use of innovative methods to ensure temperature integrity during transit Experienced staff – The BEST in the industry.
Supplier networks 1. 2. 3. 4. 5.
Companies logistics strategies are To reduce costs To improve quality To improve exposures to worldwide tech To improve the delivery of supplier process To strengthen the reliability of supply by supplementing domestics with foreign suppliers.
Inventory management in logistics Whether a company decides to source parts from inside to outside the company or from domestic or foreign sources, it need to manage the flow and storage of inventory. It includes raw material and parts sourced from suppliers, work in process and finished goods inventory inside the manufacturing plant and finished goods stored at a distribution centre. When a company sources parts from suppliers around the world, distance, time and uncertainty of the international political and economic environment can make it difficult for managers to manage inventory flows accurately.
Distribution strategy Foodland Associates are independent retailers who source their products from us and avail of retail solutions, wheter comprehensive or in part. They are classified into Bronze, Silver, Gold or Platinum Associates, and level of engagement is depending upon the scale of business. Needless to add, they offer their associates unique advantages - exclusive promotions, consumer schemes, loyalty bonus etc. To become a Foodland Associate, all they need to do is to get in touch with foodland Sales Representatives to avail of the multiple benefits that foodland offer.
Infrastructure-distribution centers Food Park, Kalamboli First of its kind in India Designed as per global standards The centre procures, value adds, stores and distributes various kinds of perishable and non-perishable food products
Food Park – Features Spread over 33,000 sq meters Multi Temperature Zones Integrated Facility – Storage and Value Addition capabilities under one roof Ensured / Guaranteed Food Safety Paradigm shift in the way food is handled in the supply chain in India First of its kind in the region Benchmarked against global standards Codex / USDA / PFA compliant Scalable Dedicated storage for specific categories Sanitation / Hygiene standards – Trash handling Air / Water Quality – Treatment Plant / ETP Ripening Rooms, Crate Wash Facilities, Blast Freezer, Flake Ice Machine Value Added Services – Processing of Vegetables & Fruits, Meat, Sea Food and Poultry Controls – Building Management System (BMS) 100 % Power Back Up
Infrastructure- vehicles
Over 200 vehicles of different sizes Can carry multi temperature products, such as Frozen (below -18ºC), Chilled (1ºC to 4ºC) & Ambient
Quality assurance& food safety At Foodland, Quality Assurance and Food Safety is a matter of choice, not chance Vegetarian / Non-Vegetarian Sensitivity: the storage areas for vegetarian and non-vegetarian products are completely segregated. Storage areas are designed according to the specific temperature needs of each product / category. In order to maintain product integrity, Compartmentalized transportation of products to eliminate cross contamination. On-the job training and Continuous Improvement Plan.
Summary A company supply chain encompasses the coordination of materials, information and funds from the initial raw material supplier to the ultimate customers. Logistics are material management is that part of the supply chain process that plan, implement, and control 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. The success of a global manufacturing strategy depends on compatibility, configuration, coordination and control.