Logistics Transport and warehouse Management

Transcription

1 Logistics Transport and warehouse Management 1

2 As per Public procurement policy Micro, Small and Medium enterprises are encouraged to participate and supply goods and services to Government Departments and Public Sector undertakings Policy based on principles of competitiveness, sound procurement factors, fair equitable transparent procedure and competitive cost effective products. In this scenario industries are required to provide world class products with latest technology. In order to manufacture and supply these goods, latest technology has to be acquired and understood by the industry. 2

3 To meet this standard requirements industries may have to resolve to import of components, systems and equipments to manufacture and supply goods to Government and Public sector agencies. To buy and import competitive technology / product, industry must source from different countries. Industry can make use of internet media, catalogues and other symposium where global information regarding latest technology and products are available. The understanding of Logistics, Import procedure and the applicable INCO terms in the trade is much essential for the global procurement. 3

4 SUPPLY CHAIN MANAGEMENT INTRODUCTION: During 1960 s the focus of manufacturing information system was inventory control. Material requirement planning MRP became prevalent During 1970 s to manage production scheduling. this system was used to break down the production Master Schedule for the end product into time sequenced requirements for sub-assemblies, components, and raw materials planning and procurement. During 1980 s MRP broadened and began to incorporate other functions such as Sales and distribution. With more digital capabilities and functionality departments developed systems separately using software designed to meet their needs of specific business processes. It was difficult to track the progress, and communication between departments was relatively slow and cumbersome. These larger and more integrated systems are referred to as MRPII (Manufacturing Resources Planning) 4

5 The supply chain activities are presently practiced by various industries and establishments differently. The different industry verticals scenarios are: Made to order Made to stock Continuous production Process industry Pharmaceuticals Consumer Goods etc., 5

6 LOGISTICS MANAGEMENT : Logistics means: 1. Having the right goods and services at the right place and at the right time. 2. Business-planning framework for the Management of material, service, information and capital flows. 3. In Military Operations deals with procurement, contribution, maintenance and replacement of Material and Personnel. 4. The process of planning, implementing and controlling the efficient, effective flow and storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to Customer requirements. This definition includes in bound, out bound, internal and external movement and return of Material. 5. Management, Distribution of Products and Services and Information. It deals with cost effective flow of Material and Information. It also deals with Planning, Implementation, Procurement, Maintenance, Manufacturing and Distribution. 6. Environmental analysis, planning, structure, plan implementation and control of the logistics program. These aspects evolve a concept called SUPPLY CHAIN MANAGEMENT.

7 Transportation and warehousing plays a major part in the SCM: Transportation mode: Road Rail Air Freight Post Sea Freight Courier Ware housing: Private warehouse Public warehouse 3rd party warehouse Free trade zones 7

8 SCM deals with operational efficiency reducing organizations cost and enhancing customer service. THE ELEMENTS OF SUPPLY CHAIN MANAGEMENT : Materials Management Inbound Logistics Physical Distribution (OUT BOUND) Communication Network Supply Chain Management is an approach to efficiently integrate suppliers, manufacturers, warehouses and stores, so that the goods and services are produced and distributed at the right quantities, to the right location and at the right time. 8

9 * Suppliers Procurement system Production system Order management system Customers Lead-time Leveled production Supply-demand adjustment Short delivery lead-time Demand fluctuation *Order entry/reception and procurement through the Internet *Quick linkage of customer order to manufacturing and procurement orders, and scheduling of them

10 Customer SUPPLY CHAIN LOOP Sales Purchasing Producing Delivering Suppliers Procurement Cycles Manufacting Support Cycle Materials/ Suppliers Source Component Parts Firm Assembly Plant Customer Market Retailer/ Distributor Distributor/ Wholesaler Warehouse Physical Distribution Cycle

11 TYPES OF SCM : PUSH Based SCM : This deals with producing the goods first and then look for market follow a policy to thrust down to the customers. This leads to inability to meet changing demand pattern, the obsolescence, excess inventories, variable production batches and an inaccessible service level. PULL Based SCM : This analysis is to find out whether or not there is a customer, how much the Customer wants, when and how he wants and how much he is willing to pay. This is done through market survey research. The manufacturing activities depend on the input from the market. This matches with the customer demand provides efficient control of goods and services distribution and flow of information. 11

12 CONTEMPORARY ISSUES Homemaker Ship : The supplier is treated as extension of customer with the emphasis on continuity in supplies with the long-term contracts. Cross Docking: This deals with effective removal of warehouse facilities. Product is directly transferred from manufacturer to customer just in time. Third Party Logistics: This uses an outside company to execute the required functions and product distribution and materials management. Outsourcing: This means handing over certain Logistics related to manufacturing to another company, this enhances strategic growth adding technological strength and meeting market access. Risk Pooling : This involves the concept of centralized warehousing to reduce safety stock and avoid inventory. 12

13 VALUE ADDED SERVICES: Order taking - production inventory levels Payment info in B2B - Visa, MasterCard, etc. Low inventory levels - automatic ordering Order to manufacturing - generate a list of needed resources & their availability Changes in an order - transmit to suppliers and their suppliers Tracking systems - available to customers 13

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15 International Commercial Terms (Incoterms 2010 ICC) 15

16 INCO TERMS 2010: INCOTERMS ARE A SET OF INTERNATIONAL COMMERCIAL TERMS RULES ESTABLISHED BY ICC (INTERNATIONAL CHAMBER OF COMMERCE) FOR INTERPRETATION OF TRADE TERMS USED IN FOREIGN TRADE 16

17 The Rules for any mode or modes of Transport: EXW Ex Works FCA Free Carrier CPT Carriage Paid TO CIP Carriage and Insurance Paid TO DAT Delivered At Terminal DAP Delivered At Place DDP Delivered Duty Paid The rules for Sea and inland waterways Transport: FAS Free Alongside Ship FOB Free On Board CFR Cost and Freight CIF Cost Insurance and Freight 17

18 e-procurement & Internet Trading 18

19 E-Procurement: Using internet / intranet based information system software to coordinate supplier selection, buying, inventory management, shipping,distribution, and delivery monitoring and payment processing The Process of using internet based information systems for doing the procurement activities of: Tendering Obtaining the bids Comparison of the bids Negotiation of price Awarding the contract Sourcing Delivery notification Goods receipt information Payment information Auctioning Reverse auction

20 E-Procurement Streamlines procurement process Speeds up and improves communications Increases procurement speed Eliminates non-value added activities Improves accuracy and transparency Reduces order processing cycle time Improves payment process Enables procurement at competitive prices

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22 Types of E-procurement: E-Sourcing: Use of information system to establish new sources for procurement. Review of catalogues, new Technologies, Industry trends, market shares, and collaboration. E-Tendering: Conducting Tenders like open tenders, limited tenders and restricted tenders. On line bidding process and auctions E-Informing: Communicating with Suppliers for obtaining data sheets, order acknowledgements, delivery schedules, invoice details and payment details. E-Reverse Auction: Establishing floor price for bulk procurements and obtaining maximum reduction in prices through reverse auction among the bidders Web based ERP: This will enable to form network of your enterprises in various locations and plan your procurement requirements and use inventory across

23 E-Commerce: Buying and Selling of goods and services over electronic system / internet Purchasing Selling and exchanging goods and services over a computer network system / internet in which all transactions are done electronically. Types of E-commerce: B2B Business to business Transactions between Companies B2C Business to Consumer Involves selling from Companies to consumers directly. Consumers view data and details and specification over the internet and buying physical goods and services over the internet and receiving the goods.

24 B2G Business to Government Commercial transactions between companies and Government. using online applications for public procurement, obtaining Licenses, paying taxes, obtaining passport, ID cards and other Government operations. C2C Consumer to Consumer Commercial transactions using internet between individuals. Buying and selling of goods and services and exchanges G2C Government to Consumers e-governance, Providing facilities to public citizens through government web sites. Information about government department services to public, welfare schemes, providing subsidies, providing application forms for various amenities, Collection of taxes, and other payments towards government services, like electricity, water etc. 24

25 G2B Government to Business Government providing services and information to business organizations with regard to tenders, application submission for approvals and other functions of trade. 25

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