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Lecture 02 : Logistics Stakeholders and Modern Logistics Concepts — Transcript

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0:01[Music]
0:22[Music]
0:25so hello dear friends so welcome again
0:28to nptl online certification course on
0:31Logistics and Supply Chain management so
0:33I'm Dr vikas takur assistant professor
0:36Department of humanities and social
0:38sciences IIT Kapur so uh in the first
0:41lecture we discussed about the basic
0:44concepts related to Logistics and then
0:48what are the uh different elements in
0:50the logistics right and we try to uh
0:54somehow we try to relate and we try to
0:56differentiate as well uh the logistics
0:59versus Supply management so today we'll
1:02continue uh next is the stakeholders in
1:05logistics right so this is uh all all
1:10the elements and stakeholders uh
1:13included in the logistics so you can see
1:17here uh if we'll start with the one end
1:21where our suppliers are there so this is
1:25not only the one layer of suppliers
1:27right like I I uh discussed discussed
1:30about the very basic example from where
1:33we are getting the raw material from for
1:35baking the bread and then we ended up
1:38with the uh with one organization who is
1:41extracting ore from the uh core and
1:45maybe some mining industry right from
1:47where we are getting the steel and then
1:49that steel is used as buyer in the tire
1:52manufacturing and we are getting Rubber
1:54and we are getting all other engines and
1:56other other kind of components we are
1:57using in the uh tractor right and so
2:02this is completely if you'll say so
2:04different so many layers are there so
2:06suppliers of suppliers are there in the
2:08logistics Network right so from these
2:12suppliers we need to uh actually we need
2:15to negotiate with these supplies related
2:18to the
2:20product related to the
2:23quantity related to the
2:25price related to the delivery
2:30right so these all functions are there
2:32when we are dealing with the suppliers
2:34right
2:35so uh as a manufacturing unit I need to
2:40uh ensure that there are sufficient
2:42number of suppliers for supplying these
2:45uh different P of components now there
2:48is always a uh debate is going on
2:51whether we should focus on single
2:53supplier versus multi suppliers so
2:56basically uh but my my personal opinion
3:00is if we are going for too many
3:02suppliers for the same component then
3:04also this is a problem if we are
3:06focusing only on one supplier then also
3:08there is a problem so we'll discuss this
3:11in detail but for now if we are focusing
3:15on only single supplier so let's say
3:17something goes wrong with that supplier
3:19it's not only some disaster is happening
3:21natural or man-made sometime maybe the
3:24equipment are not working sometime maybe
3:26there is Strike sometime different
3:28issues can be there and if we we we are
3:31just uh uh just relying on the simple uh
3:35when very single supplier so then there
3:37will be problem right our raw material
3:39supplier will uh Supply will be
3:41interrupted so in that case I should
3:45advise that we should have two three
3:47vendors or four vendors depending upon
3:49the criticality of the raw material if
3:51that raw material frequently facing some
3:55problem issues related to Quality
3:57related to delivery or maybe the raw
3:59material used for making that component
4:01is not readily available or other issues
4:04are there so maybe that number can
4:07increase to 5 to 7 but again too many
4:10vendors it's very difficult to retain
4:12all those vendors for a longer period of
4:14time the first point is whether you are
4:17able to give them large number of orders
4:21because if order quantity is also less
4:23how you will negotiate with respect to
4:26price if that quantity is not there
4:29obviously they will not be able to
4:31Target economies of scale so obviously
4:33they will be least interested doing
4:36business with the kind of organization
4:38which is not feeding them large orders
4:41right so so these are some of the issues
4:44with you know multi uh vendors but then
4:48there are pros and cons we'll discuss in
4:50detail in the later sessions right so
4:52this is you need to maintain a
4:53relationship with the suppliers as a
4:55logistics partner then procurement then
4:58procurement obviously will happen with
5:00the suppliers this is a process where
5:03you will be negotiating uh with respect
5:05to your order quantity order frequency
5:09volume and price right and then this is
5:12supplied to manufacturer where the final
5:15assembly of your final product is
5:18happening this is a kind of production
5:20line you can say or assembly line where
5:23we are usely converting our raw material
5:25into fgs finished
5:28goods okay so as a manufacturer this is
5:32not only one again like we have
5:35multi-layers in suppliers we can be
5:37having multi-layers in manufacturer as
5:40well there may be co-manufacturer there
5:42may be uh manufacturer who who are
5:45preparing sub assemblies for that right
5:48so let's say if I'm manufacturing any
5:50home appliances right home appliances uh
5:53let's say we are manufacturing AC so we
5:56are not we are manufacturing AC so but
5:58we are not very good good with the
6:00handling of electronic componet whatever
6:02motherboard we are inserting inside
6:04programm control array we are inserting
6:06inside or electronic components whatever
6:08we are using inside right so because we
6:11are not good with that shouldering
6:12process embedding those electronic
6:15components on the board so what we can
6:17do is we can Outsource this to some co-
6:19manufacturer and that will be producing
6:21the sub assembly and will be giving one
6:24motherboard which we will be placing or
6:26fixing in the final casing of that AC
6:29right so there can be so many
6:31manufacturer in this finally this is
6:33that beautiful thing for which we all
6:36are fighting and we we are struggling
6:39day and night and making this beautiful
6:41thing happen and readily available for
6:44the customers so this product again how
6:48you are designing the
6:51features so obviously that information
6:54is also coming from the your Logistics
6:57partner depending upon the customer
7:01preferences then inventory you need to
7:03keep so that you can ensure the
7:06continuous supply to the market now this
7:10Supply to Market obviously depends upon
7:13demand as well so somewhere you need to
7:16meet the equilibrium between demand and
7:18supply and because always there is Gap
7:20so you need to maintain the inventory so
7:23we although we are focusing on zero
7:26inventory but yes that is something is a
7:29big question and where we can focus for
7:32zero inventory specifically so that also
7:35we'll discuss now the other player in
7:38the logistics uh management is your uh
7:43retail industry now Indian retail or
7:45other retail industry foreign retail
7:47industry also it's not always we are
7:49getting the organized retail sector
7:51right so we have organized retail
7:55industry as well and we have the
7:57fragmented retail industry small small
7:59small shops are are there right so as a
8:03logistics partner it is not important
8:06only that you are supplying to organized
8:08retail industry because they are the
8:10major players carrying the maximum share
8:12Indian market they are not carrying the
8:13maximum share because maximum share is
8:14taken by the fragmented retail shops
8:17right so uh but yes you need to meet the
8:20demand of the both right whether you are
8:23going for a local shop through local
8:24shop or you are going through some
8:26organized
8:28store so multibrand store onetop
8:31solution Market kind of things are there
8:33so next important thing which is
8:36contributing around 50 to 55% to your
8:39cost is your transportation and when
8:41we'll talk about transportation in
8:43detail so we will be talking about
8:45different modes of transportation
8:47whether you are going through air
8:49whether you are going through Road or
8:51you are going through ship or you are
8:53going to three right all these modes you
8:57will pick depending upon first is
8:59availability of infrastructure then if
9:01all are available then you'll see ship
9:04is maybe efficient economically maybe
9:07train is efficient economically but then
9:10you need to have that much
9:12infrastructure right you need you need
9:14to ensure the delivery also fast
9:16delivery so then if you are talking
9:18about same day delivery something air
9:20which is very expensive can be expensive
9:22so you have to go by air as well and
9:25road because this is taking the maximum
9:27share but it is not efficient it is not
9:30efficient because of the two reasons
9:32because the distance we are covering
9:34obviously the fuel cost and all that if
9:36we'll consider that is also very high
9:38but the other thing which is Major point
9:41is while we are going through Road
9:43Transportation there are so many delays
9:45there are so many planned unplanned
9:48delays we are depending upon the road
9:49condition accidents are happening
9:52weather conditions and then there is uh
9:56for documentation or clearing the
9:58boundaries from one state to other state
10:00all those documents you need to uh maybe
10:03text structure and all that very rigid
10:06text structure is there so you might
10:08have seen long cues of trucks standing
10:11on the uh border right so just waiting
10:14for clearance so this road
10:17Transportation since taking the maximum
10:19share but so many challenges are there
10:21as far as this Transportation mode is
10:23concerned talking about distribution
10:25Network already I told you whether you
10:27want your customer should visit to your
10:30retail shop or you want to deliver the
10:33your product to directly to the customer
10:36doorstep that is up to you which model
10:39you are offering which model your
10:41industry is offering you have to be
10:42competitive in that way so you have to
10:44take
10:46that so talking about these small terms
10:49already uh I have discussed quickly
10:51we'll go through order placement which
10:53customer will place the order right for
10:55goods or services highlighted on your uh
10:58website your portal or whatever
10:59interactive medium you platform you have
11:01provided to the customer order is
11:04processed as a seller you will uh record
11:07the order and you will start processing
11:08the order then Inventory management
11:11obviously to avoid the stock stock out
11:13rate and also the excess inventory is
11:17also avoided right and then whenever you
11:21are reaching that let's say this is the
11:24inventory level and then you start
11:26depleting your inventory because you are
11:27meeting the demand so in entry will
11:29start depleting so you need to decide
11:32which one is the Safety stock at this
11:34Safety stock again you need to place the
11:36order and you need to replenish the
11:38inventory at this level so again
11:40inventory will start replenishing uh
11:42sorry depleting so then that means again
11:44you need to replenish this so this
11:46customer this cycle will keep on going
11:50right and we'll ensure uh that inventory
11:54is always there to meet the either your
11:58expected demand or unexpected demand
12:01warehousing is another very very
12:03important element why I'm saying because
12:05it is strategic location we are defining
12:08how many warehouses should be there
12:10right so because we are storing that and
12:14the other concept is we should locate
12:16warehouses maybe near to our final
12:18customer so that we can easily and
12:21speedily deliver the end uh the product
12:24to the End customer right but then again
12:27the efficiency is one part if we have so
12:29many different facilities so cost will
12:31be there in warehouses instead of one we
12:34have five warehouses so obviously that
12:36much Manpower is required obviously
12:38those many instruments are required that
12:40much infrastructure is required and
12:42obviously inventory level will also
12:44increase because instead of maintaining
12:46inventory at one level now we are
12:48maintaining inventory at five different
12:50locations and why this is strategic
12:52location once you start investing into
12:55this kind of decision this is a
12:57long-term decision you cannot withdraw
13:00overnight right because this includes
13:02uge investment is there in terms of when
13:05you are making investment into your
13:07fixed assets then picking and packing
13:10obviously your order will be picked from
13:12the inventory and your Distributing
13:14partner will be Distributing to the End
13:17customer so Transportation so
13:20transportation of packed orders from
13:22warehouses to the destination will be
13:24ensured and again as I told you mode of
13:26transportation are important so deliv
13:29dely that depends upon whether you are
13:30going for last mile delivery or
13:33customers are visiting your location
13:35right so as per whatever customers are
13:37recording their addresses so usually you
13:40might have seen when we are going on
13:42Amazon website or flip cart so you can
13:44quickly check the availability whether
13:46that availability is there in your PIN
13:48code or not right so that is another
13:50service point which is being evaluated
13:52for any e-commerce player whether you
13:55are uh uh giving your services in that
13:58area or not not right so obviously they
14:00are trying to cover up as many PIN codes
14:03as possible but yes so this is not one
14:07day game so when these e-commerce
14:09website they started operating in India
14:12so firstly they started collaborating
14:14with the other players which are
14:16traditionally not into this kind of
14:18business but they have the network like
14:21Indian post office because Indian post
14:23office is a kind of uh delivery can be a
14:26kind of delivery partner which is having
14:29office in almost all the PIN codes they
14:31they are covering all the PIN codes
14:33right so if you want the uh delivery to
14:36every End customer so then obviously the
14:39best uh maybe strategic decision maybe
14:43you can collaborate but then how much
14:44control you have speed quality those all
14:48things are there so they uh these all
14:50e-commerce player they started
14:52developing their own uh Network
14:54distribution Network right so then order
14:57tracking is something now if you go for
15:00Indian uh Postal Services they are also
15:03providing you tracking ID earlier it was
15:06not there but now you can also track
15:07that but you just imagine the tracking
15:10speed or the information provided with
15:13the Amazon or flip cart or eBay or
15:16Mantra any any e-commerce player or
15:18zomato when you are using your daily uh
15:22items from there right so though that
15:25much level you cannot expect from uh
15:28this very traditional kind of speed post
15:31services or the normal uh maybe post
15:34Services
15:35right so order tracking is something
15:38these days is very very important the
15:40customers are just clicking the order
15:42placing the order and they just want to
15:44get the information whether the order
15:46has been accepted whether the order has
15:48been processed dispatched if dispatched
15:51where it is right now because as a
15:54customer we have limited time and we are
15:56keeping the things for the last hour and
15:58then for last hour only who are giving
16:01us all those services and making all
16:04those promises that will deliver you
16:06within 30 minutes we'll go for only
16:08those players right and then customer
16:11service I talked about all the services
16:14which are providing the product or
16:15services to your doorstep but this is
16:17something after sales returns so returns
16:20can happen because of two three reasons
16:23F first is you simply did not like the
16:25product and then again one click and you
16:28are sending it back back so this is a
16:30big big challenge for us but yes with
16:33one click you can send it back another
16:35thing is if the product is not
16:37functioning properly so it is under
16:40warranty Guaranty period again we need
16:42to provide the spare parts we need to
16:44pick the product we need to repair the
16:45product or maybe the engineer is
16:48visiting the customer site right or the
16:51third thing is which is leading towards
16:54sustainability so what is happening in
16:57the end stage of of life so end of life
17:02what you are doing with that product if
17:04you are promising something with the
17:06customer at the end stage we'll take
17:08your product we'll be compensated in
17:10somewhere maybe right or we'll try to
17:13maybe again renovate that product
17:16will'll try to because any product life
17:19if you talk about AC if you talk about
17:21refrigerator you are using if you talk
17:23about fan if you talk about all those
17:25appliances you are using only majorly 3
17:28four five components are there depending
17:30on the product which are age limited
17:32right rest if you talk about all other
17:34components screw inside you are using
17:36you can use for years together the
17:39casing body plastic parts you are using
17:41you can use years together the wire you
17:43are using here so the only limited age
17:47product uh components you need to
17:49identify maybe the motor of the uh that
17:53appliances or whatever product you are
17:55using maybe the capacitor maybe the
17:58other very crucial components right so
18:01how you can extend the life of those
18:03components or maybe you can simply
18:06replace those uh uh those products who
18:09are failing because of their age so you
18:12can simply replace those many components
18:14may not be again we can apply 020 rule
18:17so those 20% of the components you can
18:20easily replace then feedback and
18:22Improvement you might have seen after
18:25every packet we are delivering to you so
18:28again you customers are being asked
18:30whether the delivery was okay whether
18:32you you were served the hot food quality
18:35of food all those things even if I'm not
18:38responsible for uh the food quality even
18:41then I will be rated for that right so
18:44that is something uh some parameters are
18:46beyond control but if I'm taking only
18:48this as logistic partner right if I'm
18:52only the logistics uh means the delivery
18:55partner right if I'm taking it this as
18:57complete system so that
18:59uh that that complete feedback is
19:01important
19:03right so now the logistics management if
19:07we'll talk about it is uh the planning
19:10implementation and control of the
19:12movement and storage of goods services
19:15and related information already we
19:16discussed about it and when we are
19:19talking about the movement it should be
19:21efficient and effective flow of material
19:24we have to ensure the smooth Supply
19:27right and then it entails strategizing
19:30executing and overseeing the flow and
19:33storage of goods and services and
19:35related information across the supply
19:37chain so obviously in the end we once
19:40the system is set up then we'll go for
19:42the optimization of this movement of
19:45goods or the flow of information
19:48whatever we are capturing through that
19:51Network so Logistics management plays a
19:54pivotal role in uh maintaining the
19:57seamless operation of Supply chains and
20:00empowering business to attain their
20:02operational and strategic goals right so
20:04if quickly we'll talk about the
20:06advantages if we are managing our
20:08Logistics effectively first is
20:10efficiency obviously uh efficiency will
20:13be improved because we will if we have
20:16proper planning we have the
20:19uh plan a plan B plan C we can uh reduce
20:23the impact of the interruptions that
20:25interruptions can be in terms of
20:27disaster natural disaster floods
20:29earthquakes can be anything or maybe
20:31man-made disasters like or maybe
20:34shutdowns right because of recent
20:36covid-19 pandemic so those all things we
20:39can manage efficiently if we have that
20:42strong network of suppliers
20:45manufacturers and our the next
20:47stakeholders delivery Partners so we can
20:49always reach to our customer efficiently
20:53cost reduction obviously if I can
20:55optimize the Transportation Route so
20:57best route as per traffic best route as
21:00per distance right as per road condition
21:03as well so if I'll pick the best route
21:05obviously I will be cost efficient I'll
21:07be saving time as well during the
21:09transportation then obviously Warehouse
21:11operation and inventory levels this
21:13Warehouse operation and inventory levels
21:15I'll show we'll discuss in detail about
21:18this but now we are going towards where
21:21these warehouses will be totally
21:23man-free there will be no human being
21:25involved in the warehouse operation
21:27Roberts will be working we'll be
21:29maintaining the inventory we'll be
21:31updating the inventory so in that way we
21:34can utilize the maximum space within the
21:37warehouse because that only space will
21:40be left out the minimum space for the
21:42movement of those robots right or we
21:45have the lifts automatically lifts right
21:47so those we can use and we can uh reduce
21:51the cost Manpower cost as well and 24
21:54into 7 the uh those machines can work
21:57obviously customers satisfaction if they
21:59are manually we are handling the
22:01products we may damage the products
22:03right always we are not able to take the
22:06uh precautions right if electronic
22:08components sometime we are handling or
22:10fragile components we are handling we
22:12may break so that happens in the
22:14inventory also this comes under material
22:16handling cost where we are damaging
22:18while handling we are damaging the
22:20products as well right so that is also
22:22cost and sometime these damaged products
22:25are finally shipped to the End customer
22:27so then there is a big question for
22:30customer satisfaction right so with that
22:32quality of product timely delivery of
22:34the goods so efficient Logistics
22:37management will lead to your customer
22:40satisfaction and obviously if they are
22:42satisfied they will be uh loyal
22:45customers to us and will help us
22:48providing the Competitive Edge over the
22:50others because we are superior in terms
22:52of providing the services we are
22:54providing the fastest delivery possible
22:57and we are also very efficient right so
23:00these are some of the advantages then
23:02risk management if we have the proper
23:05planning Logistics management we have
23:07inventory in the warehouses so that risk
23:11of stockouts we can avoid Transportation
23:14delay if raw material is coming on the
23:17way something goes wrong right so even
23:19we have that Safety stock we can still
23:22continue the production line we don't
23:24want that 500 workers who are working on
23:28that one production line they will just
23:30sit idle just because of we we are not
23:32having one screw or maybe we are not
23:35having the other component glass we are
23:37using inside the car steering wheel we
23:39are not having or gearing gear box we
23:42are not having maybe the component is
23:44very small but until we'll plug that
23:46component in the final product we cannot
23:48say that this is finished right and if
23:50it is a kind of uh uh product kind of
23:54layout is there so if let's say we are
23:57falling short of inventory at 15th stage
24:00so all the stages after 15th stage will
24:02be interrupted because if we'll not
24:04perform that operation we cannot go for
24:06the next one because all other are
24:08depending on the preceding one so that
24:11way also we can avoid the risk and then
24:14resource optimization we'll go for
24:16proper management we can resources in
24:19terms of vehicles because now we have
24:22proper routing plans so we can uh
24:25optimize the vehicles in the proper way
24:28warehouse space we can manage if we have
24:30automation kind of system Manpower we
24:33can optimize these resources we can
24:36optimize efficiently and profit uh
24:39profitability so the next point is
24:42Market
24:44expansion so Market expansion is one
24:47thing if you are going for your product
24:50is only possible when you have Logistics
24:53distribution Network up to that market
24:54this is as simple as that if you don't
24:56have shop to the end point point there
24:58is no point of expanding the market or
25:01maybe ad advertising your product to
25:03that particular Market because you those
25:06people don't have the access to your
25:08product so first to advertise that
25:11product in a particular area you should
25:13have your distribution Network that's
25:15why so many collaboration in India also
25:18happened just because of uh foreign
25:21companies they came here they wanted to
25:23set up their manufacturing hubs here but
25:26because this this because huge network
25:29is required to Distributing the product
25:31to the End customer that's why the
25:34reason is the collaboration between
25:35hiroa maruti Suzuki so Honda was very
25:39good with the technology uh in two
25:41wheelers hero already they were into uh
25:44hero Cycles so they were having worst
25:47network to cover almost all uh reasons
25:51in India so Honda thought it's good
25:54opportunity we can collaborate with hero
25:56we can just exploit their or utilize
25:59their distribution Network so this is
26:01how you can go for the Market
26:05expansion so then comes the part of
26:07logistics designing and management so
26:11again when we are saying designing and
26:13management so obviously we need to take
26:15care of the first stakeholder who
26:18suppliers how many suppliers you want is
26:20the first point then how many
26:22manufacturing plants will be there let's
26:25say we are having two manufacturing
26:26plants now maybe the same model whatever
26:30model M1 we are manufacturing here we
26:32are manufacturing M1 here as well right
26:35so whatever raw material for M1 is
26:37required let's say this raw material is
26:39coming from supplier one so this raw
26:42material will go to uh from supplier one
26:46will go to your plan two as well right
26:50so that means you need to design the
26:53distribution Network you need to take
26:55care of your the first two uh
26:58stakeholder first is your supplier and
27:01which supplier is going to supply which
27:03plant plant means the manufacturing
27:05facility once you are ready with your
27:08finished goods now they are ready to be
27:10shipped so here you are loading those uh
27:14uh final product and now they are ready
27:17to ship to the Final Destination and
27:19final destinations are your warehouses
27:22now again this distance how you will
27:25cover is important right this distance
27:29which mode you will pick to cover this
27:31distance will Define your cost function
27:34your quality your speed everything we
27:36discussed earlier so now these are the
27:40warehouses again because strategic
27:42location we have done for uh deciding
27:45the warehouse facilities and not only
27:48the location but also the capacity of
27:52that warehouse because again we want to
27:56utilize the maximum
27:59capacity so maximum capacity utilization
28:03we need to
28:06ensure right so uh what is the customer
28:10potential in the different markets
28:12depending upon that we'll assign that
28:15these location will be served using this
28:17Warehouse right so this is overall
28:20distribution network but again uh we
28:24have separate session on designing
28:26distribution Network we'll take care of
28:28all the elements in that right so
28:31Logistics design and management again
28:33involves the strategic planning
28:35coordination and execution of various
28:37processes within the supply chain to
28:39ensure the efficient flow of good
28:41information and resources from the point
28:43of oron to the point of consumption it
28:47passes the activities such as inventory
28:49management warehousing Transportation
28:52order processing and
28:54distribution so effective Logistics
28:57design we'll say only when we are able
28:59to minimize the cost customer
29:01satisfaction is maximized and we are
29:03taking care of the sustainability
29:05parameter and we can uh mitigate all the
29:08risks right on the way already we
29:10discussed little bit about what can be
29:12the risks right we need to analyze the
29:14demand patterns and accordingly we need
29:16to decide the transportation mode we
29:19need to define the inventory level at
29:21different warehouses because that demand
29:24patterns will help us to find out uh how
29:26much inventory we need to
29:28uh place at particular storage location
29:32and obviously tracking when you are
29:33tracking and monitoring continuously
29:35you'll come up with the feedback kind of
29:37thing and then we can go for the further
29:40Improvement in the overall supply chain
29:43so now Logistics design and management
29:46let us explore some key core elements in
29:48that so already we talked about
29:50strategic planning because it's a
29:51longterm planning how you will set up
29:53your facilities warehouses mode of
29:56transportation that all is a call for
29:59your top level management and you need
30:02to align your business strategies
30:04whether you are going for expansion if
30:06you're going for expansion so you need
30:08to expand your warehouses your
30:10facilities right in that way so
30:12Inventory management is another key
30:14element and that we already discussed
30:16about we need to balance the supply and
30:19demand how we can do that we need to
30:22forecast properly and we'll see what are
30:24the different forecasting techniques in
30:26the subsequent sections and we'll try to
30:28optimize and be cost effective in
30:31managing your stock obviously warehouse
30:33management we need to uh manage the
30:37capacity of the warehouse more
30:39efficiently and maximum utilization of
30:42the capacity should be
30:44insured and
30:46Transportation uh depending upon
30:48infrastructure depending upon the uh
30:51mode of delivery how much fast delivery
30:54is required for particular item how much
30:57cost you can bear for that quality level
31:00required so that will decide your
31:03transportation order processing once you
31:07enter the order from the customer side
31:09you will start processing and you will
31:10start Distributing to last mild delivery
31:13using your fastest Network and
31:16minimizing the cost right and then
31:18obviously to ensure that you should be
31:20equipped with the latest technology and
31:22in that you'll talk about RFID uh this
31:26this is a huge you know intervention
31:28technological intervention RFID where
31:31you can quickly scan the product barcode
31:35and then you can just locate the where
31:37the item is whether the item is depleted
31:41on the inventory shelf or you need to
31:43produce more so that you can
31:46easily uh track with the help of
31:48technology so I talked about UAB UNM
31:51aial Vehicles where you can deliver your
31:54uh uh uh packets uh through airspace and
31:59uh within 30 minutes that is possible
32:01using this and then GPS enabled services
32:04to optimize to monitor uh the movement
32:08of your goods through the network so
32:10continuous Improvement obviously when
32:12we'll talk about all these parameters
32:14elements factors we'll develop some kpis
32:17and then we can identify those kpis and
32:19we'll work on those kpis there are some
32:22Modern Logistics Concepts so we'll not
32:25discuss in detail in this SE session but
32:28yes just brief introduction about that
32:30we can go for first very important is
32:33and obviously requires our detailed
32:36observation on that but quickly lean
32:39Logistics is one concept where we'll try
32:42to reduce the waste in the logistics
32:45part waste of extra Transportation waste
32:48of inventory waste of extra movement of
32:51the material waste of overprocess waste
32:54of over production waiting time so
32:57anything these kind of waste we'll
33:00discuss in detail and then we'll try to
33:03make our Logistics as lean as possible
33:06only will minimize the waste will add
33:09directly to the profit this is for sure
33:11the second concept is uh which is not
33:14very new quite old now just in time but
33:17again we need to Define what are those
33:19items for which we can go for just in
33:21time kind of system right maybe if there
33:24are small components and the price is
33:26not very high you can store those
33:28components right but if components are
33:31very costly right and adding maybe only
33:33those 20% components which are adding
33:36again 8020 rule which are adding towards
33:3880% of the cost right so then you can go
33:42for up to some extent you can go for
33:44just in time so for ensuring just in
33:47time you need to align your uh suppliers
33:51near to your manufacturing unit right
33:54and in that way your demand prediction
33:57should be very very uh accurate and then
34:01only you can design kind of system right
34:03where you are not thinking of of keeping
34:06any inventory the next concept is aile
34:09logistics which is again the evolution
34:11of uh your Logistics function where we
34:14are talking about the flexibility and
34:16responsiveness right so we need to have
34:19Dynamic Supply
34:20chains how we can have Dynamic supply
34:23chain when we are continuously feeding
34:26the information to to the supply chain
34:29stakeholders who are taking the
34:30decisions based on that information only
34:33then we can quickly response right if
34:35anything goes wrong at the customer end
34:37we should record it why the customer
34:39received the damaged packaging why the
34:42customer is not happy with the product
34:44delivered why the customer is not happy
34:47with the returns right so this this is
34:50only possible when we have quick system
34:53of information sharing right and any
34:56disruption is happening we have the
34:58second plan right so only then we can
35:01say we can explore the opportunities and
35:03we can grab those opportunities the next
35:06concept the modern concept is Green
35:08Logistics because uh the customers now
35:11not uh yeah there are some restrictions
35:15from the uh so many regulator regulatory
35:18authorities are there who are
35:19continuously focusing on uh uh going for
35:24green products green supply chain and
35:26Green Logistics and obviously we need to
35:29minimize the carbon footprint that is
35:31the sole purpose right so in that
35:35campaign many customers the common man
35:38is also finding theirself very relevant
35:42only then they can contribute towards
35:44reducing the total carbon footprint
35:45right so they also want to uh you know
35:49minimize this is the latest one Cas
35:51study I have gone through where in if
35:53you talk about European market US market
35:56DW Nations C customers are preferring
35:59the delivery Partners or the e-commerce
36:01players who are doing the last mile
36:04delivery using any electronic vehicle or
36:07Cycles so they are placing more orders
36:09with those kind of players right so in
36:12that way we have to be maybe
36:14eco-friendly when we are using fuels
36:17Vehicles maximum utilization should be
36:19there and renewable energy sources we
36:21should be using the ne next thing is
36:24collaborative Logistics so obviously
36:27because
36:28so many interaction points are there
36:30between different stakeholders like we
36:32explore the supply chain of uh bread
36:35right how you are manufacturing bread so
36:39this only possible when you are having
36:41collaborative Logistics Network right so
36:43that is another Point collaborative
36:46collaboration cooperation can only be
36:48ensured when you have very strong
36:50relationship with the suppliers not only
36:53suppliers but all the stakeholders in
36:54the supply chain right for that you
36:57should be having very quick in sharing
36:59the information so one complete channel
37:02of information sharing should be shared
37:04with all the stakeholders Omni Channel
37:06Logistics there we are now we cannot say
37:08that we'll sell our product using our
37:11own website right so if Indigo will say
37:13this that we'll sell our tickets through
37:15only Indigo website that thing will not
37:18work right so indigo is selling through
37:20make my trip indigo is selling through
37:22go aivo through exigo through their
37:25personal website through IRCTC through
37:27through so many different platforms
37:29right so when demand is so segregated
37:32coming from anywhere right so in the end
37:35as service provider you are limited with
37:37the capacity maybe seats are 130 seats
37:40are there in one plane right how you are
37:42then meeting the demand coming from
37:44different channels so in that way your
37:47information system has to be very very
37:49strong right how you are tracking the
37:51things should be very very strong so
37:53this will happen only when you have the
37:56input from the market you have proper
37:58inventory with you seats number of seats
38:00you have and then you have flexible
38:02fulfillment options right and these are
38:05ensured through synchronized Logistics
38:09process then reverse Logistics is next
38:12concept when the customers are not happy
38:15with the uh products so they can return
38:18and I told you the two three things they
38:21can return just because they are not
38:23liking the product they can return
38:25because it is damaged or maybe is not
38:28working properly or once it is used
38:30fully they want to recycle remanufacture
38:34or reuse that so in that way how you can
38:36help that so that it can be uh uh as as
38:41a maybe circular economy kind of concept
38:44we can Implement for that in the end
38:46we'll talk about the supply chain
38:48visibility and towards the end of this
38:51uh uh whole course we'll be seeing that
38:54there are so many different platforms
38:57and uh uh latest technological
39:00developments which we we need to be uh
39:03updated with those technology uh in with
39:06those technological interventions only
39:08then we can survive in the market right
39:11so for getting quick
39:13information if you have that latest
39:15information you can manage all your
39:18Logistics all around right your you can
39:21manage your distribution part your
39:22transportation part how much you need to
39:24store in the bearhouse which model you
39:26need toore store right what are the
39:28preferences if you talk about the
39:30reasonal basis if you have that
39:32information close connection with the uh
39:35customer and then once you start
39:37supplying the product that visibility
39:39throughout the supply chain customer
39:41wants they want to track where my packet
39:44is right now right so that visibility
39:47you can only offer if you have the uh
39:50latest technological intervention within
39:53you so in the end we can conclude that
39:55Logistics design and manage ment is a
39:58dynamic field requiring meticulous
40:00planning and execution to facilitate the
40:03smooth flow of goods information and
40:06resources among the various stakeholders
40:08so all the stakeholders we need to take
40:11care we need to integrate and then we
40:13need to ensure that not only the
40:16resources or product is passing through
40:19smoothly through all those stakeholders
40:21but that information should also pass so
40:24that we can take the you know
40:26information supported decision for
40:29further making the further deliveries so
40:31uh these are the some of the latest
40:34development when we talk about uh uh uh
40:37Logistics management and uh I have tried
40:41including one session on each of this
40:44because it is very important as far as
40:46the the latest trends in the industry
40:48concerned and as well as the research
40:51going on right so these are some of the
40:54uh uh reference books you can refer and
40:57and uh uh already I have uh named these
41:00books and the content has been prepared
41:02from uh these slides so thank you very
41:05much

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