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Lecture 20 : Logistics vs SCM — Transcript

by NPTEL IIT Kharagpur · 5,399 words · 834 segments · language en · Watch on YouTube

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0:01[Music]
0:22[Music]
0:26so hello dear friends welcome back to
0:28nptl online course on Logistics and
0:30Supply Chain management so till now we
0:33uh discussed about logistics part as
0:36major Focus right and so now we'll start
0:40our discussion on Supply Chain
0:41management so before going to supply
0:44chain management let us try to you know
0:47explore where are the boundaries lying
0:49when we are saying that uh Logistics is
0:52a different functional area and Supply
0:54Chain management is different functional
0:56area we'll also see how Logistics uh as
1:00functional area of Supply Chain
1:01management is working right so uh in
1:04this session we'll uh uh try to relate
1:08somewhere the logistics with Supply
1:10Chain management and defres as well
1:12right so we'll see uh what is Supply
1:15Chain management what is the role of
1:16Logistics in that and uh how are Supply
1:19Chain management and Logistics are the
1:22same or different and then if difference
1:24where are the key different points right
1:26we'll try to find out those and what are
1:28the logistical components in the supply
1:31chain and we'll finish this session on
1:33very uh small case study uh related to
1:37Logistics and Supply Chain
1:39management so uh this is uh uh Logistics
1:44or Supply Chain management many times
1:47people are using academicians
1:49researchers they are using
1:50interchangeably right so uh old Theory
1:54says that first the logistics uh concept
1:57came into picture and then over the time
2:01uh we matured the logistics component
2:03and then we converted it into Supply
2:05Chain management where we were thinking
2:07the whole chain as one one functional
2:10area and under that the logistics
2:13function is somewhere working right so
2:16uh with that concept many are still uh
2:19thinking that Logistics and Supply Chain
2:21management is still the same right so
2:23you can see the Supply Chain management
2:26uh in United State is more commonly
2:28known as logist ICS management right in
2:31Europe if we talk about
2:34so uh when uh the small survey was
2:37conducted and uh this the same concept
2:41was asked from many experts working in
2:43the domain so as per when and Johnson uh
2:47he said there is uh no difference today
2:50right so what we were doing as Logistics
2:53management earlier today we are doing as
2:55Supply Chain management so another study
2:58says that supply chain management
3:00incorporates the field of logistics
3:03right and Logistics is a number of
3:05subprocesses within Supply Chain
3:07management so in complete Supply Chain
3:09management there are so many small small
3:12Logistics management practices so let's
3:14talk about if transportation from
3:15supplier to manufacturing is happening
3:17that is one functional area under
3:19transportation and same Transportation
3:21related to outbound Logistics from the
3:24manufacturer to the customer then again
3:27another subprocess of uh under same area
3:31that is
3:32transportation so uh there is another
3:35statement a Supply Chain management
3:36compan is generally a third party
3:38operator managing the overall movement
3:41of the product whether inbound or
3:44outbound right so inbound outbound means
3:47uh if these are the raw material
3:53suppliers so from where
3:56the raw material is following to the
4:00manufacturer and from manufacturer the
4:02finished good is going to customer this
4:05is the simple suppli in structure we
4:07discussed many
4:08times now for this manufacturer inbound
4:12Logistics is this
4:15one and outbound Logistics is this
4:20one from the manufacturer to the
4:22customer right
4:24so uh this Logistics part is taking care
4:28if transport ration is happening here
4:31from the raw material supplier to
4:32manufacturer or storage is happening
4:35here from in between a raw material
4:37supplier and manufacturer then this is
4:40counted as uh inbound Logistics even if
4:44packaging of that raw material is
4:46happening here so that is also coming
4:48under inbound Logistics same functions
4:51if we are doing somewhere down the
4:53supply chain distribution Network we'll
4:55call those functions at outbound
4:58Logistics component right so very simple
5:01to understand so there are some again
5:03Viewpoint different Viewpoint
5:05traditional they say that Logistics is
5:08broader picture and in under that Supply
5:11Chain management is small picture but
5:14that is uh you know very old school of
5:16thought when we were uh first we
5:19identified that Logistics yes is a
5:23separate functional unit requires
5:25special attention somewhere in 1980s we
5:28realized that this is something cannot
5:30be ignored just to ensure the continuous
5:33supply of the raw material or the
5:35finished goods or transportation of the
5:39uh product from one end to other end in
5:41that simple line we can understand so in
5:44that way Logistics is very very
5:46important and should be given special
5:49Focus if we are not competent enough to
5:52improve our Logistics performance let us
5:54Outsource to some of the stakeholders
5:57who are perfect in that right so same
6:00way in under that then Supply Chain
6:03management concept started we if we are
6:06doing something with the product
6:08renovation then is part of under
6:10Logistics we are maybe in one functional
6:13unit as a raw material supplier or sub
6:15assembly manufacturer or co-manufacturer
6:18or manufacturer so that is part of
6:20logistics within uh your manufacturing
6:23facility if you are handling the
6:25material that is also coming under
6:27Logistics Material Handling right so
6:29that was the old view but then then it
6:32was termed as there is no such separate
6:35term we should replace completely
6:37Logistics with the Supply Chain
6:38management which is we are doing right
6:40now it's a complete uh set of activities
6:44so there is no such different concept of
6:46logistics Logistics being sub part of
6:48Supply Chain management where uh most of
6:50the uh people who are working in this
6:52area they are thinking that this is a
6:54small part of Supply Chain management
6:56and obviously under Logistics
6:59uh if you see there are people who are
7:02saying that Logistics is separate Supply
7:04Chain management is separate functional
7:06unit but yes there are some common
7:08points on which they are working like
7:10common Point may be the
7:14performance
7:17productivity
7:20efficiency of delivering your finished
7:23goods from the source to the customer
7:28this this this is the common basic
7:31objective if we'll find out the
7:34intersectional area between Logistics
7:36and supply chain but if I'm talking
7:38about only Logistics this is physical
7:41transportation of the product from one
7:44point to other point warehousing of the
7:48product storage of the product sometime
7:51we are saying the
7:54information we are transforming uh
7:57transferring information in the channel
8:00that is also part of logistics if you
8:02are doing some value adding activities
8:04in the warehousing like packaging like
8:07kitting all those Services labeling so
8:11then is it is part of your Logistics
8:14management right but if we'll talk about
8:16Supply Chain management this all part is
8:20coming obviously under Supply Chain
8:22management if we are considering
8:23Logistics as part of Supply Chain
8:25management but what are the different
8:27activities here let's say R&D research
8:31and development if you are coming up
8:32with the new products from where you'll
8:34get the information that you are now
8:36going for the next product from your
8:38information Channel you are getting the
8:41information through your Logistics
8:43Network right and then you are feeling
8:45this realizing the need of coming up
8:47with new features in your product in
8:49your services because your competitors
8:51are doing the those things or maybe
8:53there are expectations from the customer
8:56then we are talking about the
8:57manufacturing
8:59then it is a part of supply chain we are
9:01not considering here the manufacturing
9:03if we are considering manufacturing
9:05basically we are dealing with some of
9:06the basic questions what is to be
9:10manufactured how much is to be
9:14manufactured where is to be
9:17manufactured and when we are going to
9:19manufacture these are some of the basic
9:21questions under manufacturing we'll deal
9:23with right if we are fixed with this
9:26product or industry we are going with we
9:29will find out the suppliers we'll
9:31develop the relationships all those
9:33stakeholders will try to find out right
9:36how much depending upon the how much
9:38order we are going to we are
9:39anticipating from the market again with
9:42the help of your the arm of logistics
9:45right and then when and where right so
9:49uh if you are having multiple models of
9:51the same product how much Model A is
9:54required B is required C is required
9:56that you will find out depending upon
9:59your forecasting model right so this is
10:02how we can see there are some functional
10:04units we are discussing especially in
10:06Supply Chain
10:07management and uh obviously the return
10:10Supply chains are also part of these two
10:12now if we are focusing on that part
10:15right returns coming from the market so
10:18you can see here uh what are the
10:20different functional areas related to
10:22Logistics and Supply Chain management so
10:25over the time now many people are
10:27realizing that this definition the
10:29boundaries are blurred now there is no
10:32such you can say uh difference between
10:36your Logistics and Supply Chain
10:38management but yes if you talk about
10:40Supply Chain management like I told you
10:42product Innovation and development is
10:44one part purchasing and sourcing so we
10:47were talking about the shifting of raw
10:50material from the suppliers to the
10:52manufacturer but how you will decide
10:54that this much quantity we are going to
10:57purchase from vendor a b c right so that
11:00allocation of order will come under
11:02Supply Chain management and how you will
11:04decide that this much order 60% order
11:07will go to uh your vendor a right so
11:10obviously you must be doing some vendor
11:13rating with respect to that vendor and
11:15depending upon the maybe the quality of
11:19the raw material he's providing the
11:21pricing he is giving you maybe the
11:23delivery schedules he is giving you are
11:27you are uh so comfortable all those
11:29parameters right so then you you decided
11:32to go with vendor a with the highest
11:35order sourcing so what are the part you
11:38are going to Outsource so that is also
11:40coming under your Supply Chain
11:42management then obviously manufacturing
11:44and operations where the assemblies are
11:46happening you are sourcing different sub
11:49assemblies different raw material
11:51components and then on that production
11:53line you are assembling all the parts
11:55and in the end packaging is being done
11:57and then we need the logistic istics and
11:59distribution services again so it is not
12:01that here only Logistics is required in
12:04the raw material supply also Logistics
12:06services are required and then customer
12:09service if you are delivering a door
12:11step if installation of that product is
12:13required if demonstration of that
12:15product is required or maybe under
12:18warranty guarantee if any Replacements
12:20are coming back so those also you will
12:22take care and then Global deployment we
12:25talked about the international market so
12:27if you are working glob your products
12:30either you are sending the outbound
12:32Logistics to Global Market or you are
12:36ensuring your inbound Logistics from the
12:38global market both way then you have to
12:40go for Global deployment of your Supply
12:42Chain management right so then uh we can
12:47again say that uh this by Michigan State
12:50University supply chain Logistics
12:52involves collaboration between firms
12:56suppliers customers and other partners
12:59as a means of boosting efficiency right
13:02and providing the value to the customer
13:05so this whole set of activities the only
13:08purpose is we should deliver the quality
13:11products with the maximum value possible
13:15and with the highest efficiency so that
13:18we can minimize the cost of operation
13:20delivering the product manufacturing the
13:22product and if we can do so we will be
13:26more competent uh with respect to our
13:28compet because then we will be having
13:30extra margin maybe that margin we can
13:33share with the customers as some offers
13:36or maybe we can keep that margin with us
13:39for further expansion right so all
13:42stakeholders are part of that because in
13:45Supply Chain management this is kind of
13:48system concept system view concept where
13:51we are saying that if from the raw
13:54material to the End customer how you are
13:57reaching with your product right if
14:00there is a profit of maybe $10 right so
14:03this $10 will be shared with the
14:06suppliers as well manufacturer as well
14:08wholesaler retailer distributor with all
14:12the stakeholder this profit of $10 will
14:16be shared right so this is a system view
14:19of Supply Chain management if loss will
14:22be shared through all the supply chain
14:23so I cannot say as a manufacturer that I
14:27am cost efficient
14:30I'm claiming in the market that I am
14:33cost efficient with minimum uh if I'm
14:36talking about maybe uh go aivo or maybe
14:42uh your
14:44exigo so they are claiming that cheapest
14:46flight you will get or hotels you will
14:48get right so if I'm saying that I have
14:51to ensure through all the stakeholders
14:55that you should get the cheapest rate on
14:58the go Vivo or make my trip or EXO right
15:02so then in that case the hotel Services
15:05providers they should also somewhere
15:07compromise with that if you are saying
15:09that you are not cost efficient you are
15:11very responsive right kind of player if
15:15you'll ask for gym in the hotel we'll
15:17provide you if you ask for swimming pool
15:19in the hotel we'll provide you if you
15:21ask for uh uh dining in the room will
15:25provide all the services whatever extra
15:27Services you need if you want those
15:29Services we are going to provide you as
15:32this is the promise coming right or if
15:34you are cancelling your uh hotel in the
15:37last hour as well so even then the
15:40refund will be done but then this
15:42promise as make my trip or go if you're
15:45are making that is only possible if your
15:48suppliers are ready to do that if the
15:50hotel uh the property owner person he is
15:54also uh ready for that so then that
15:57means the complete integration of all
16:00the stakeholders required so we have
16:02seen what is logistics and we defined
16:06that this is the physical uh flow of uh
16:09products and services one one point to
16:11other point maybe from the point of
16:13origon to the point of consumption or
16:15maybe from the consumption to origin
16:18back if we are talking about the reverse
16:19supply chain right and related
16:22information also sometimes because this
16:24information is required to manage the
16:27inventory to figure out the Demand right
16:29so that demand can be met with the
16:33Supply right so this is uh under
16:37Logistics we talked about majorly we
16:39talked about three functional area one
16:42is transportation another one is
16:44warehousing packaging and one more thing
16:46is is distribution final
16:49distribution right so these are some of
16:52the parts we discussed under Logistics
16:55now Logistics includes demand planning
16:58in entry management Transportation Fleet
17:01Management Material Handling and
17:02customer order fulfillment so let us
17:05understand this in two different
17:07concepts one is inbound Logistics other
17:09one is outbound Logistics already I
17:12talked about whatever as manufacturer F
17:15sitting here whatever it takes to
17:18deliver the product to the End customer
17:21it is outbound
17:26Logistics and to shift that raw material
17:29from the raw material suppliers it is
17:31known as inbound
17:34Logistics so the only thing is when we
17:38are talking about inbound Logistics we
17:40are talking about the transportation of
17:41the raw material we are talking about
17:43storage of the raw material and we are
17:45talking about final distribution of the
17:48that raw material to the production
17:50lines and production lines are not only
17:52at one place maybe we have five
17:55different manufacturing facilities in
17:56India so that those five different
18:00manufacturing facilities will be fed
18:02using all those suppliers and in the
18:05same manufacturing facility if we have
18:07multiple production lines so that raw
18:10material same component maybe will be
18:12fed to all the production lines if the
18:15same material is required or same
18:17dimensions are required if is there any
18:19change with the dimension so as per that
18:22as per the requirement of the design of
18:24that product so we'll Supply the uh
18:27inbound Logistics so this is is the
18:29concept outbound Logistics all these
18:31functional three different functional
18:33areas Transportation distribution
18:35storage in in between so that is
18:38outbound Logistics here when very
18:40beautiful concept I'll try to uh
18:44highlight here let's say I'm the
18:49manufacturer or the supplier of the
18:52product right
18:56and I'm following two different
18:59structure one is the customer is sitting
19:01here and raw material supplier is
19:04here this is let's say uh 10 km distance
19:08this is 5 km distance the other part is
19:12same manufacturer here this is 5 km now
19:15and the this one is 10 km to the
19:19customer
19:20right now if I'll ask you which one is
19:23more efficient so you can see here is
19:26inbound Logistics distance is high
19:28higher than outbound Logistics distance
19:31right in this case inbound Logistics
19:34distance is lesser than outbound
19:36Logistics distance now you might have
19:37seen if we are ordering through Amazon
19:40or flip cart or anything especially
19:43talking about heavy item let's say
19:44furniture so what they are doing they
19:46are preparing the whole furniture and
19:49then dismantling that furniture and
19:51again at the location either they are
19:54arranging again the uh assembly of that
19:57furniture or maybe they are giving Easy
20:00instructions so that at your end you can
20:02easily install now if you are following
20:06this kind of structure where outbound
20:08Logistics is traveling less distance to
20:12uh compared to your inbound Logistics
20:14this is more cost efficient which you
20:16can understand because if I'm maybe
20:19transporting 10
20:21cars through this container maybe one
20:25container taking eight or 10 cars right
20:28but in this case if I'll talk about 10
20:31containers they can carry maybe more
20:33than 200 Cars raw material because that
20:36is dismantled so that means once it is
20:39dismantled not the final product with
20:41the packaging it will take less space
20:44right so in lesser capacity I can
20:47transport maximum material so we try to
20:50follow this kind of network where the
20:53outbound logistic distance is lesser
20:55because that will give you cost
20:57efficient Network work because outbound
21:00Logistics require more space so this is
21:03costly right so we try to set up our
21:06manufacturing Factories near to the
21:09customer location or market so that in
21:11the end the final product will reach
21:14with the
21:16minimum uh distance should travel
21:18minimum distance right so what are the
21:20objectives we talked about right time
21:23right place right quality right price
21:25and right product and right customer
21:28right so these are the objectives so
21:31when we we are delivering the final
21:33product and then you can say in the end
21:34we need to maintain the supply demand
21:37equilibrium with our Logistics
21:40activities how are supply chain and
21:43Logistics are the same already I talked
21:45about in the intersectional part both
21:47are focusing on Goods services and
21:50information how it is flowing through
21:52the network the ultimate aim is which
21:56obviously the Company Success will be
21:58related uh only when our customers are
22:01more satisfied there is positive
22:03correlation obviously customers are
22:05loyal customers are more satisfied will
22:07be more loyal customers and then in the
22:10end your success of the company in that
22:13way will be higher and the obviously the
22:15purpose here is the efficient and
22:20effective delivery of the product
22:23through our Logistics distribution
22:25Network right and same is the objective
22:27of your Supply Chain management as well
22:29so let's talk about some of the key
22:31differences between Logistics and Supply
22:33Chain
22:34management so this complete is a model
22:38which is giving you you know if you'll
22:40take care of all the sub activities in
22:42that model will drive the competitive
22:44advantage and it is a relatively new
22:46term which has again uh coming from the
22:50logistics only right so and will provide
22:53you the competitive advantage and if we
22:55talk about what are the different
22:56activities production in inventory labor
22:59planning material facility management
23:02manufacturing delivery of goods and
23:03services right so in logistics we were
23:06not talking about how you are converting
23:07the raw material into finished one that
23:09is part of this facility management
23:12where you need to locate the facilities
23:14where are you you are going to locate
23:16your manufacturing facility your
23:18warehouses these are kind of decision
23:20we'll discuss in Supply Chain management
23:22which are very very important part how
23:24you should design your Logistics
23:26outbound Logistics inbound Logistics
23:28just one example I highlighted in the
23:30last slide right so that is very much
23:33part of your supply chain we never
23:35talked about the labor planning how
23:37we'll do that this is part of this right
23:39materials how designing of the product
23:42product design is the first step will
23:45give you the idea how you'll work with
23:48the supply chain then not only product
23:51design what is going to be the process
23:53design so that will also give you idea
23:56what are the components required and if
23:59once components are finalized what type
24:00of
24:02manufacturing uh assemblies are required
24:04production lines how you'll design your
24:06showlow that all part is under Supply
24:09Chain management and we in logistics we
24:11have focused only on the physical
24:13distribution Transportation right we
24:15talked about so that is a little old
24:18concept again Supply Chain management
24:20controls the development of raw material
24:22into finished one and then finally that
24:25finished goods are how those goods are
24:28transfer to the Final End customer and
24:30if any returns are there how we can do
24:33that as well so K is one logistician who
24:37also coined the term of Lo Supply Chain
24:40management uh so in in his findings he
24:44he has explained how this logistic
24:46concept is matured now and we need to
24:48add some more functional area into that
24:51right so then uh we can just go through
24:53cost and uh efficient deliveries and
24:56this obviously we talked about when we
24:57talked about the history of logistics we
24:59talked about how it has come from the
25:01military operations we after World War 2
25:04we realized that so in a better way if
25:07will take care of our Logistics uh
25:09functions so we will be more productive
25:11and on
25:13time while Logistics are important to
25:16supply chain in supply chain what
25:18differently we are talking about we are
25:20talking about coming up with new
25:22products from where you will get the
25:23idea of coming up with the new product
25:25obviously your logistic partner will
25:26give you information that distribution
25:28Network right and then you need to be uh
25:33you need to deliver right products at
25:34the right time how you can do that
25:36through your logistic Network only when
25:38you are ensuring the smooth supply of
25:40the raw material and then you can ensure
25:42the final delivery on time right
25:44reducing cost and improving efficiency
25:47this will happen only when you are
25:48implementing lean Logistics right where
25:50you are removing all the non-v value
25:52adding activities and if you are
25:55minimizing those you can increase the
25:57customer loyality because you will be
25:59most of the time on time right unique
26:01value proposition how you are coming
26:03with the new ideas and how um how you
26:07are providing a means to deliver Goods
26:09in a cost uh effective locations right
26:12and in in production also if we are
26:14talking about we should set up our
26:16facilities where we we are more you know
26:18cost effective what are the logistics
26:21components of the supply chain so
26:23information is one thing which I talked
26:25about uh we are collecting through your
26:28uh Logistics distribution Network what
26:30is the status of the items whether it is
26:32shipped it is in the
26:34warehouse what is the inventory status
26:36so that all will record here right so
26:39then storage is part of your Logistics
26:42which is very important for supply chain
26:43to ensure the com smooth supply chain
26:46operations if you are maintaining that
26:49storage only then you can say that you
26:51are never stock out and you are
26:53maintaining that minimum level to meet
26:54the requirement so warehousing is again
26:59uh you can add some key Val uh value
27:02adding activities in warehousing other
27:04than picking packing and handling the
27:06product you can sometimes if you are
27:08receiving the returns also how you can
27:10ensure the uh resale of uh the same
27:13product right so and then again kitting
27:16and leveling kind of uh value adding
27:19activities you can do in the warehousing
27:21Material Handling usually we use this
27:23term to handle the material within one
27:26facility if manufacturing facility
27:28is here we are converting raw material
27:30into finished one so how we are moving
27:32the material from store Department to
27:34production Department then production
27:36department is moving the material on the
27:38production line finally it is shipped to
27:40the uh outgoing quality control they are
27:43checking and then it is moved to a
27:45dispatch area from where maybe the
27:48loading will be done so this is in in
27:50that manufacturing unit this is how
27:52handling is been done packaging again
27:55you need to ensure the minimum space
27:58should be utilized and cost you can
28:00minimize in that way but you need not to
28:02damage in that way if you're minimizing
28:04the packaging but that should not go in
28:06that way that you are damaging the final
28:08product how efficiently you are
28:10utilizing the transportation routes the
28:12vehicles the warehousing capacity the
28:15distribution and Mild delivery how you
28:17can be in that way uh efficient and uh
28:20utilizing the resources fully inventory
28:23control when we we have planned our
28:27demand with respect to the Supply right
28:30so then we can control the inventory
28:32whether you are talking about raw
28:33material inventory finished one or
28:35semi-finished one so transportation is
28:37Again part of your Supply Chain
28:39management which will ensure the final
28:42product movement or maybe the raw
28:43material movement as well and then you
28:46have as Transportation manager you have
28:48to take the decision uh related to your
28:51Intermodal Transportation Network
28:53because then that cost component will
28:55come into picture so role of log istics
28:58within supply chain supply chain if we
29:00are talking about planning how Logistics
29:02will play role we need to plan
29:04information that information will be
29:05provided by the logistics Network and
29:08then inventory controlling how we'll
29:10maintain how much inventory we'll
29:12maintain if we are talking about
29:13sourcing then information Material
29:16Handling and transportation are the
29:18major part uh against the sourcing in
29:20manufacturing within manufacturing also
29:22you are storing you are uh handling the
29:25material you are shipping the material
29:26from one stage to other state
29:28warehousing utilization right packaging
29:31Transportation those all things you are
29:33doing under Logistics delivery again
29:36this information is required warehousing
29:39inventory packaging Transportation all
29:41these things are required which are part
29:43of your logistics for delivering the
29:45product and returning again all those
29:48function what youever you are doing as
29:50part of logistics to ship the product
29:52from the raw material supplier to End
29:54customer so same you will be doing for
29:56maybe getting the a after the end of use
29:59of that product or maybe after d uh
30:02damaging that product or maybe recycling
30:05uh or you are going for refurbishment of
30:07that product then Logistics component
30:09will come into picture so this is one
30:12small case study of geodis so that is a
30:15logistic service
30:16provider and uh uh they addressed uh
30:20some of the challenges where small
30:22online retailers they were facing right
30:25and when we are talking about small
30:26online retailers so first thing is they
30:29are not sure about the Demand right
30:31sometime it is coming sometime it is not
30:33coming so then setting up complete
30:35different Channel separately is a big
30:38question for those small players and
30:40then seasonal fluctuations you need to
30:42maybe sometime increase the volume
30:43sometime you need to you know reduce the
30:46uh Supply so how as one player you can
30:50uh you know survive during those
30:52challenges so this jice will help you to
30:55uh survive those things and will will
30:58help you to maintain the accurate
31:00inventory levels and will ensure that
31:03you will be not stock out and also you
31:05are not uh in uh keeping the excess
31:08inventories right and uh we'll ensure
31:11that that uh next day delivery or
31:14two-day delivery can happen so they are
31:16providing the fast and reliable uh
31:18fulfillment and their if we talk about
31:21their uh fulfillment accuracy I think
31:24that is somewhere 91% you can see so
31:28many small players are you know
31:29collaborating with them they are helping
31:31them to demand forecast planning and in
31:34that way when you are having the exact
31:37information and they are having
31:39providing those multiple Solutions right
31:41and if you are having exact information
31:43related to forecasting so you can
31:45obviously plan your inventory when you
31:47need to scale up right when you need to
31:49scale down your warehouses as per that
31:52only you can manage but because this is
31:54the player who is having multiple uh
31:57client so they can easily maintain if
31:59today you are reducing your order maybe
32:01from some other player uh they can
32:03utilize the unutilized
32:05capacity so finally through optimized
32:08shipping practices they will also give
32:11you that solution uh during your
32:14transportation they will pick those
32:15routs they will Design the capacity of
32:18the container as per your design of of
32:21the packaging final packaging of the
32:23product so that it should take the
32:25minimum cost and also the delivery times
32:28those delivery times can be insured
32:29which you are always promising with your
32:32uh customers then uh this small
32:35Outsource facility and transport into
32:37now into multicountry Network we
32:40throughout uh you know World many small
32:43players are attached with them and
32:46because the 91% fulfillment rate so with
32:49the European customers so you can say
32:51that how reliable and cost efficient it
32:54is uh with this right so these kind of
32:57uh uh players are also there now who can
33:00handle if you are very small uh retail
33:03shop how you can attach with those big
33:06players and same is the case of if you
33:08are having one taxi only one car right
33:10and you want to operate as taxi right as
33:13that uh you want to use as taxi so if
33:16you will individually operate in the
33:18market so obviously those many uh orders
33:21may not come rides may not come right so
33:24in that way if you are connecting
33:25yourself with the Ola or Uber so then
33:28the utilization rate will be higher
33:30right so same is the case with this also
33:32so here we can conclude that Logistics
33:36is very much part of Supply Chain
33:38management and your smooth supply chain
33:41operation can be ensured only when the
33:43three basic functions under Logistics
33:45are doing perfectly fine first is the
33:48transportation is happening on time
33:50second thing is the storage whenever it
33:53is required you are maintaining that
33:55Safety stock so that you you you are not
33:58you are never saying your customer know
33:59that we are out of stock right and
34:01finally the distribution of the product
34:03how it is happening to the End customer
34:06with that how you are improving the in
34:08experience of the customer right but yes
34:10because with now is the era where uh so
34:13many
34:14different uh Solutions we are talking
34:17about so many different platforms we are
34:19talking about different softwares for
34:21managing your distribution to manage
34:23your uh sourcing to manage your
34:26manufacturing to manage your inventory
34:28to manage your warehousing
34:30Transportation different softwares are
34:32there right but then we need to
34:34integrate all those into one platform
34:37how beautifully we can do that so that
34:39the overall customer experience can be
34:42uh
34:42enhanced and we can deliver the product
34:45or services in more cost effective and
34:47efficient way so that's all when uh we
34:50can talk about this Logistics and Supply
34:53Chain management so these are some
34:55references and books so simp
34:58is one very good uh you can refer for
35:01further readings and then the way enan
35:03fundamental of Supply Chain management
35:05Sunil Chopra and Peter Mandel is again
35:08uh on Supply Chain management strategy
35:10planning and operations so these are
35:12some of the references you can go
35:13through so thank you very much

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