Logistics Cost Management
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LOGISTICS COST MANAGEMENT Revenue, Cost & Margins
LOGISTICS COST MANAGEMENT
PRESENTED BY: NAME OF THE STUDENT ANITA AGARWAL DHAWAL AMBANI SUSHMA BHANDARI KIRAN BHILARE NILESH DESAI SANJOG DEVRUKHKAR BHAKTI JOSHI
ROLL NUMBER 02 03 04 06 10 11 14
MFM SEM – I (2008-11)
PRESENTED TO:
MISS GITIKA MAYANK
LOGISTICS MANAGEMENT INDUSTRY SEGMENT
Logistics Management is that part of Supply Chain Management that 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.
ACTIVITIES / PRODUCTS INVOLVED
Customs Clearance
Transportation
Warehousing (Multi location Invoicing)
Distribution & Transportation
CORE COMPETENCY AREA CORE COMPETENCY AREA Warehousing and Distribution ( Handled by self ) OTHER SERVICES To be Outsourcers on cost plus basis
Customs Clearance: By appointing external Custom House Agent
Primary Transportation: By riding available market capacities
Warehousing: By deploying own resources in Warehouses
Distribution: Take responsibility and manage through vendor
Business Model & Products Air customs Clearance
Movement from Port to Customers
Consolidation centre
Movement from Manufacturer to Warehouse
Customer Manufacturer
Distribution & Transportation Délivre to end Customer
Sea customs Clearance & Supplier s abroad
Custom Clearance from Transportation of Sea port Cleared cargo
Transportation of manufactured good
Warehousing of manufactured goods
Transportation of warehoused goods
Final Delivery
COST MODEL
Controlling office Common resources for managing overall business. Cost to be apportioned over each contract Resources in Location specific Activity will by part of operating cost of location. Core activity like Warehousing, will have detailed costing resources by resources. Outsourced activity will by cost plus hence only services hiring cost is considered. Each contract will have 10% overheads to take care of common resources cost. Business will be operated at nominal margin of 10 % to establish in market, as entry strategy.
INITIAL FOOTPRINT
Controlling Office in Mumbai
Operating locations & Branches Offices at -Mumbai - Chennai - Bangalore - Delhi - Kolkata
CONTROLLING OFFICE RESOURCES
Office 2000 sq ft
Manpower General Manager Head all India CC Head all India Transportation Head all India Warehousing and distribution Head Finance Support staff for all 5 above
OPERATING LOCATION BRANCH RESOURCES
Office 500 sq ft
Manpower - Branch Manager - Customs Clearance - Business Development - /Operations Manager - Warehouse Manager - Proposals & Business Development Executive
-
INITIAL CORPUS REQUIRED
Four months equivalent operating cost reflected in Revenue progression sheet & Capital Expenditure involved in Core / Warehousing activity.
INR 0000000
ASSUMPTIONS – REVENUE & COST
Customs Clearance Additional Business acquisition 20% per month Primary Transportation is with reference to Customs Clearance and will grow at same rate. Warehousing Revenue is steady and not growing throughout the year as capacity created is fix. To increase / add warehousing Revenue additional Capital expenditure need to be planned. Head Office / Controlling Office Overhead are equally apportioned over all branches. Branch Office overheads are apportioned only over business under that branch.
DETAILED ACTIVITY COSTING Core Activity : Warehousing
Warehousing Cost Model – 1
REVENUE PROGRESSION
Year to Date (YTD) and Year End Outlook (YEO)
Revenue, Cost, Margin by Activity
Break even level for Business
Refer Revenue Progression sheet Revenue Working-1.xls
STATUTORY COMPLIANCE
ANALYSIS OF YEAR END OUTLOOK
Product wise Profitability
Branch wise Profitability
Break even for each branch
Break even for all India Business
Each partner to present one branch.
PLAN FOR NEXT YEAR
Out of other three outsourced Activities convert one activity to be handled in house through your own resources.
Carryout detailed study on Resources and Costing for Customs Clearance.
Start Inducting Resources in Company suits to this business plan.
BIBLIOGRAPHY
www.google.com www.wikipedia.org Expert Personnel from Logistic Industry
LOGISTICS COST MANAGEMENT
PRESENTED BY: NAME OF THE STUDENT ANITA AGARWAL DHAWAL AMBANI SUSHMA BHANDARI KIRAN BHILARE NILESH DESAI SANJOG DEVRUKHKAR BHAKTI JOSHI
ROLL NUMBER 02 03 04 06 10 11 14
MFM SEM – I (2008-11)
PRESENTED TO:
MISS GITIKA MAYANK
LOGISTICS MANAGEMENT INDUSTRY SEGMENT
Logistics Management is that part of Supply Chain Management that 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.
ACTIVITIES / PRODUCTS INVOLVED
Customs Clearance
Transportation
Warehousing (Multi location Invoicing)
Distribution & Transportation
CORE COMPETENCY AREA CORE COMPETENCY AREA Warehousing and Distribution ( Handled by self ) OTHER SERVICES To be Outsourcers on cost plus basis
Customs Clearance: By appointing external Custom House Agent
Primary Transportation: By riding available market capacities
Warehousing: By deploying own resources in Warehouses
Distribution: Take responsibility and manage through vendor
Business Model & Products Air customs Clearance
Movement from Port to Customers
Consolidation centre
Movement from Manufacturer to Warehouse
Customer Manufacturer
Distribution & Transportation Délivre to end Customer
Sea customs Clearance & Supplier s abroad
Custom Clearance from Transportation of Sea port Cleared cargo
Transportation of manufactured good
Warehousing of manufactured goods
Transportation of warehoused goods
Final Delivery
COST MODEL
Controlling office Common resources for managing overall business. Cost to be apportioned over each contract Resources in Location specific Activity will by part of operating cost of location. Core activity like Warehousing, will have detailed costing resources by resources. Outsourced activity will by cost plus hence only services hiring cost is considered. Each contract will have 10% overheads to take care of common resources cost. Business will be operated at nominal margin of 10 % to establish in market, as entry strategy.
INITIAL FOOTPRINT
Controlling Office in Mumbai
Operating locations & Branches Offices at -Mumbai - Chennai - Bangalore - Delhi - Kolkata
CONTROLLING OFFICE RESOURCES
Office 2000 sq ft
Manpower General Manager Head all India CC Head all India Transportation Head all India Warehousing and distribution Head Finance Support staff for all 5 above
OPERATING LOCATION BRANCH RESOURCES
Office 500 sq ft
Manpower - Branch Manager - Customs Clearance - Business Development - /Operations Manager - Warehouse Manager - Proposals & Business Development Executive
-
INITIAL CORPUS REQUIRED
Four months equivalent operating cost reflected in Revenue progression sheet & Capital Expenditure involved in Core / Warehousing activity.
INR 0000000
ASSUMPTIONS – REVENUE & COST
Customs Clearance Additional Business acquisition 20% per month Primary Transportation is with reference to Customs Clearance and will grow at same rate. Warehousing Revenue is steady and not growing throughout the year as capacity created is fix. To increase / add warehousing Revenue additional Capital expenditure need to be planned. Head Office / Controlling Office Overhead are equally apportioned over all branches. Branch Office overheads are apportioned only over business under that branch.
DETAILED ACTIVITY COSTING Core Activity : Warehousing
Warehousing Cost Model – 1
REVENUE PROGRESSION
Year to Date (YTD) and Year End Outlook (YEO)
Revenue, Cost, Margin by Activity
Break even level for Business
Refer Revenue Progression sheet Revenue Working-1.xls
STATUTORY COMPLIANCE
ANALYSIS OF YEAR END OUTLOOK
Product wise Profitability
Branch wise Profitability
Break even for each branch
Break even for all India Business
Each partner to present one branch.
PLAN FOR NEXT YEAR
Out of other three outsourced Activities convert one activity to be handled in house through your own resources.
Carryout detailed study on Resources and Costing for Customs Clearance.
Start Inducting Resources in Company suits to this business plan.
BIBLIOGRAPHY
www.google.com www.wikipedia.org Expert Personnel from Logistic Industry
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