Logistics and Reverse Logistics in Supply Chains
Knowing logistics in a supply chain is very important. It means understanding how goods move from where they start to where they end up, and how to manage resources and information to make sure things get delivered well. You also need to know about the different people and groups involved in the supply chain, like suppliers, manufacturers, distributors, retailers, and customers. This helps businesses make their supply chain work better and make customers happier.
Logistics is organising and managing the flow of goods, services or materials from their origin to their point of use (from point A to point B). It includes the planning and execution of efficient transportation, storage, and distribution networks.
Logistics is essential because it enables businesses to meet customer demand for products and services. Logistics helps companies improve their bottom line by reducing waste, inventory management, and shipping costs by ensuring that goods are delivered on time and in the correct quantities. Nevertheless, logistics
In addition, logistics plays a critical role in times of crisis. When natural disasters or other emergencies strike, the logistical network often ensures that essential supplies reach those most needed.
Difference between logistics and supply chain management ppt
Logistics vs. Supply Chain Management: Understanding the Differences by Dr Mandeep SainiSupply Chain and Logistics Definition
A supply chain is a network of businesses, individuals, activities, information, and resources involved in creating and delivering a product or service from the supplier to the end customer. It includes all the processes and activities involved in sourcing raw materials, manufacturing, transporting, storing, and distributing finished goods. The goal of a supply chain is to ensure that the right product is delivered to the right place at the right time and at the right cost.
Logistics in supply chain is the process of planning, implementing, and controlling the flow and storage of goods and services from the point of origin to the point of consumption. It involves managing the movement of materials, information, and resources to ensure that products are delivered to customers promptly and efficiently. Logistics in supply chain also includes activities such as transportation, warehousing, inventory management, and order processing. Logistics in supply chain management aims to optimize the supply chain and reduce costs while meeting customer demand and maintaining a high level of service.
Difference between logistics and supply chain management in tabular form
| No. | Logistics | Supply Chain Management |
|---|---|---|
| 1. | Focuses on transportation, warehousing, and distribution of goods and materials. | Encompasses a broader scope, including coordination and integration of various activities involved in the flow of goods, services, information, and finances. |
| 2. | Primarily concerned with the efficient movement of goods from one location to another. | Concerned with the entire network of activities involved in fulfilling customer demands, from sourcing raw materials to delivering the final product or service. |
| 3. | Emphasizes managing the physical flow of goods, such as inventory management and transportation optimization. | Focuses on managing the entire supply chain, including strategic planning, demand forecasting, supplier management, and customer relationship management. |
| 4. | Concentrates on tactical operations, such as order processing, packaging, and freight forwarding. | Involves strategic decision-making, collaboration with suppliers and customers, and long-term planning to achieve competitive advantages. |
| 5. | Has a narrower scope, typically within the boundaries of an organization or specific functions. | Involves cross-functional coordination and collaboration with external partners, such as suppliers, distributors, and customers, to optimize the overall supply chain performance. |
Define the Role of e Logistics in Supply Chain Operations.
Effective logistics management is critical for the efficient operation of any supply chain. This is where the concept of e-logistics comes into play. E-logistics refers to using digital technologies to streamline the flow of goods and services from manufacturers to end-users. It involves the integration of various technologies such as enterprise resource planning (ERP), warehouse management systems (WMS), transportation management systems (TMS), and electronic data interchange (EDI).
One of the primary benefits of e-logistics is that it enables real-time tracking of inventory and shipments. This means that supply chain managers can monitor the movement of goods at every stage, from the point of origin to the final destination. With this information, they can make informed decisions about inventory levels, delivery times, and transportation routes.
Another advantage of e-logistics is that it can reduce the overall cost of logistics in supply chain and operations. By automating certain processes, such as order tracking and inventory management, e-logistics can help reduce errors and delays, saving time and money. Additionally, it can help optimize transportation routes and reduce fuel consumption, which can further reduce costs.
Finally, logistics in supply chain can improve customer satisfaction by providing greater visibility into the supply chain. Customers can track their orders in real-time and receive notifications about delivery times. This can help build trust and loyalty, leading to repeat business.
Overall, logistics in supply chain is essential to any modern supply chain operation. By leveraging digital technologies, supply chain managers can streamline logistics processes, reduce costs, and improve customer satisfaction.
Understanding e-Logistics ppt
Understanding E-Logistics: A Comprehensive Overview by Dr Mandeep SainiWhat are 3 Types of Logistics in Supply Chains
Logistics can be generally classified into three types: inbound, outbound, and internal.
Inbound Logistics in Supply Chains
Inbound logistics in supply chain is the process that brings raw materials and components into a company and its warehouse, and from there, the finished products are distributed to retailers and other customers. It’s an essential part of any business and especially crucial for companies that manufacture or assemble products. Inbound logistics must be efficient and timely to keep production running smoothly. Several factors to consider when designing an inbound logistics in supply chain system include transportation, inventory management, and order processing.
Inbound logistics systems ensure that stock orders are communicated efficiently to keep production running smoothly. Inbound logistics is a branch of SCM which manages all the processes involved in moving goods from supplier to customer. The supply chain is typically divided into stages: planning and purchasing, production, transportation and delivery.
Outbound Logistics in Supply Chains
Outbound logistics in supply chain is the process of getting finished products to customers. This includes transportation, warehousing, and order fulfilment. Outbound logistics in supply chain aims to deliver products to customers quickly and efficiently. Outbound logistics can be complex, and ensuring that all aspects function smoothly is essential. Managing inventory is one of the biggest challenges in outbound logistics (especially for small businesses). Inventory can significantly burden companies, so planning and having enough supplies is essential.
Internal Logistics in Supply Chains
Internal logistics in supply chain can be defined as the process of organising and managing the flow of goods and materials within a company. This process is essential to ensure that products are delivered promptly and efficiently to customers. Poor internal logistics can lead to stockouts, missed deliveries, and dissatisfied customers. Some factors must be considered when organising a company’s goods flow. These include the type of products sold, the order in which products are produced, inventory levels, and delivery schedules. The goal is to optimise the flow of goods to be delivered to customers as quickly and efficiently as possible.
The Role of Logistics in Supply Chains
Logistics in supply chain is organising and managing the flow of resources into and out of business. Effective logistics can help companies to reduce costs, improve efficiency, and increase profits. There are several different aspects of logistics that companies need to consider, including transportation, inventory management, and order fulfilment. The first step in creating a better logistics system is understanding the business processes that will be affected.
For example, a warehouse manager may need to know how many pallets are used at any one time and how much inventory is stored on each pallet. The warehouse manager can use this information to determine if the warehouse needs additional storage space or should be reorganised to decrease the amount of inventory stored on pallets. A logistics system is created by mapping the current business processes to procedures and rules. These regulations and policies can determine what will happen, such as when orders are received or shipped. The systems created will also provide the inventory, sales, and production management with greater access to information, which they can use to make better business decisions.
How do Logistics Affect the Economy?
Logistics in supply chain is the process that determines what to produce, where to produce it, and when to produce it. It also deals with the storage and movement of goods. Logistics aims to ensure that products are delivered to consumers promptly and cheaply.
The efficient management of logistics in supply chain is critical for the success of any economy. A poorly managed logistics system can lead to shortages of essential goods and increased prices. Conversely, a well-run logistics system can help businesses keep costs down and ensure that products are available to consumers when needed.
In recent years, technological improvements have made it possible for businesses to track their inventory more closely and make better decisions about production and distribution. This has helped companies become more efficient and competitive in the global marketplace. Businesses and consumers tend to have different perspectives on the subject of logistics. Consumers often think of logistics as how products are shipped and delivered, but many businesses consider manufacturing and distribution as part of their logistical strategy.
Challenges faced by the logistics in supply chains
The logistics industry is responsible for the efficient and timely flow of goods and services from suppliers to customers. The industry has faced several challenges recently, including increased competition, rising costs, and labour shortages. In addition, the growth of e-commerce has placed new demands on the industry.
Strategies for Success in the Logistics in supply chains
Logistics in supply chains has a critical and significant impact on a company’s overall performance. Companies need to have an effective strategy to succeed in the logistics industry. Several key components to a successful logistics strategy include transportation, warehouse and inventory management, and order fulfilment. Companies can improve their efficiency and optimise their operations by focusing on these areas. Today, the industry is increasingly competitive. As a result, companies that can adapt to these challenges and respond to changing customer preferences will have an advantage over those that do not.
Transportation Management
Transportation management in supply chains is managing the transportation of goods from one point to another. This can include organising shipments, ensuring that goods are delivered on time and in good condition, and tracking inventory. Transportation management in logistics and supply chains can be complex, especially for companies with high shipments. A sound transportation management system can help automate many of these tasks and make the process more efficient.
For a business to succeed, the goods and products being transported must be delivered on time and properly. Transportation management also involves tracking, monitoring, and auditing the progress of shipments. This allows businesses to keep tabs on where their products are and how they are transported. By doing so, companies can troubleshoot any transportation issues and ensure their products are delivered as efficiently as possible.
Warehouse and Inventory Management
Warehouses and inventory are critical for any business. A well-run warehouse can help a company keep up with customer demand, while an inefficient warehouse can lead to stockouts and lost sales. To correctly manage a warehouse and its inventory, companies should consider the following:
1. What items will be stored in the warehouse?
The warehouse will store various items, including food, clothing, and furniture. The food will be held in the refrigerated and frozen sections of the warehouse. The dress will be stored in the warehouse’s men’s, women’s, and children’s areas. And the furniture will be held in the warehouse’s living room, bedroom, and dining room sections.
2. How much space is needed to stock each type of item?
No matter what kind of store you run, stocking the right amount of merchandise is essential to your success. But what’s the right amount? And how much space do you need to store each type of item?
The first step is determining how much inventory your store will need on average. This number will vary depending on your business, but a good starting point is to calculate how many items you think each customer will purchase on average during their visit.
Once you have that number, you can begin to divvy up your space based on the types of items you plan to sell. For example, if you sell clothing, you’ll need more space for shirts and pants than for accessories. You will need more space for novels than textbooks if you sell books.
Best Practices in Warehouse and Inventory Management by Dr Mandeep Saini3. What is the layout of the warehouse?
The layout of a warehouse is essential to its function. There are many ways to lay out a warehouse, but there are some general principles that all warehouses should follow. The most important consideration when designing a warehouse layout is the flow of goods. The form should be prepared to make it easy for workers to move goods around the warehouse and ensure they are transported efficiently.
4. How will orders be filled?
It’s no secret that the way orders are filled can significantly impact a company’s profitability. Warehouse management aims to define various order-filling methods and provide an overview of their respective pros and cons.
In business, warehouse management aims to fill orders quickly and efficiently. Various order-filling methods can be used in warehouses, each with advantages and disadvantages. To decide which way is best for a particular warehouse, the strengths and weaknesses of each method must be considered.
The first order-filling method we’ll discuss is FIFO, which stands for “first in, first out.” This approach involves filling orders from the oldest ones first. FIFO is often used in conjunction with inventory management systems that use a lot or serial numbers to track items.
The second order-filling method we’ll discuss is LIFO, which stands for “last in, first out.” This approach is the opposite of FIFO and involves first filling orders from the newest ones.
5. What is the process for receiving new inventory?
When a company needs inventory, it must go through a process to receive the new merchandise. The process begins with the company’s purchasing department creating a purchase order. This document is then sent to the supplier, who will send the products to the company. The products must be inspected and verified against the purchase order upon delivery. Only after approval can the products be stored in the company’s warehouse.
6. How often should inventory be checked and updated?
Inventory is a necessary part of all businesses, and it’s essential to ensure that it is accurate and current. The frequency with which you should check and update your inventory depends on various factors, including the size, the type of inventory, how often it changes, and how quickly you need to access it. You should check your inventory at least once weekly and update it as required. However, if your business is seasonal or there are significant changes in your inventory regularly, you may need to check and update more often than that.
This process ensures the company has enough supplies, so it does not have to purchase new materials.
Order fulfilment in Logistics
Order fulfilment is a process that is necessary to ensure customers receive the products they ordered promptly. The order fulfilment process begins when the customer places an order and ends when the customer gets the product. Many factors must be considered during order fulfilment, such as shipping times, inventory levels, and delivery options. Ensuring smooth order fulfilment is critical to maintaining a satisfied customer base.
Customers often have complaints about their order fulfilment process. What are some of the issues that customers may complain about?
It’s no secret that customers quickly complain about logistics in supply chains. Research has shown that 89% of customers will leave negative feedback after a bad experience. So, what are some of the most common issues customers complain about? Below are some of the top complaints, along with tips on how to avoid them.
Unhappy Customers with products or services
This is the number one complaint businesses deal with, and various factors can cause it. Maybe the customer feels like they didn’t get what they ordered, or the product wasn’t made well. Or perhaps they had a bad experience with customer service – like being ignored or feeling like they were talked down to.
Poor quality of products and services
This includes everything from products that are low quality to services that were delivered poorly. Maybe the product arrived damaged, or the service was performed incorrectly.
What steps should be taken to improve the order fulfilment process?
Businesses can do a few key things to improve the process when ordering fulfilment. Implementing the right strategies in logistics in supply chain and streamlining the process, and ensuring everything is well-organized can help improve order fulfilment times and accuracy. Additionally, companies should ensure that their employees are adequately trained in order fulfilment procedures to prevent mistakes. Finally, companies should continually test and refine their order fulfilment processes to find ways to improve them.
How can you improve the order fulfilment process for product distribution?
Logistics in supply chain management can significantly improve the order fulfilment process for the product. There are three main ways that management can help in this process: communication, planning, and execution.
Communication is vital in any business operation. Clear communication is essential to ensure everyone is on the same page and understands their role in the fulfilment process. This includes communicating any changes or updates to the process as they happen.
Planning is also essential. Good planning will help ensure that all the necessary steps are taken to fulfil an order and that there are no bottlenecks. This includes forecasting demand and ensuring sufficient stock is on hand to meet customer demand.
Execution is the final piece of the puzzle. Good execution is crucial to success. This includes taking action when a customer orders and handling it carefully. It also means fulfilling orders on time and accurately. Lastly, it means delivering the right product at the right time to the right customer. A good fulfilment process ensures that the customer has their effect in such a way that they are happy with it.
What are the 7 R’s of logistics?
7R’s in Logistics Management ppt (swipe <– | –> and enlarge)
Seven R’s of Logistics Management by Dr Mandeep Saini| No. | R’s in Logistics | Description |
|---|---|---|
| 1. | Right product | Ensuring the correct product is delivered to the appropriate location at the designated time. |
| 2. | Right quantity | Ensuring the accurate quantity of products is delivered to fulfill customer requirements. |
| 3. | Right condition | Ensuring products are delivered in proper condition without any damage or defects. |
| 4. | Right place | Ensuring products are delivered to the correct location, such as a warehouse, retail store, or customer’s doorstep. |
| 5. | Right time | Ensuring products are delivered promptly to meet customer demands and expectations. |
| 6. | Right customer | Ensuring products are delivered to the intended customer, whether it is a business or an individual. |
| 7. | Right cost | Ensuring logistics costs are optimized to provide value to both the customer and the company. By adhering to these 7 R’s, logistics can be streamlined to achieve maximum efficiency and customer satisfaction. |
Reverse Logistics in Supply Chain
The concept of reverse logistics and the 5 R’s associated with it?
When overseeing the process of reverse logistics in supply chains, one must carefully consider the 5 Rs: Returns, Replacement, Repair, Resell, and Recycle. Each of these actions is essential in ensuring that products are efficiently and effectively managed economically and environmentally. By diligently attending to each of the 5 Rs, businesses can maximize their resources, minimize waste, and ultimately create sustainable and profitable operations.
Returns – When a customer returns a product, it is important to have a clear and efficient process in place to manage the return. This includes determining the reason for the return, inspecting the product for any damage, and deciding whether the product can be resold or needs to be recycled.
Replacement – Sometimes, a customer may request a replacement for a defective or damaged product. Ensuring that replacement products are readily available and that the replacement process is quick and simple can help to maintain customer satisfaction.
Repair – When a product can be repaired, it is often more cost-effective than replacing it. A reliable repair process can help extend product life and reduce waste.
Resell – If a returned or refurbished product is in good condition, it can often be resold at a reduced price. A resell process can help recoup some of the cost of returned or refurbished products and reduce waste.
Recycle – When products reach the end of their useful life, it is important to have a recycling process in place to minimize waste and reduce the environmental impact of the supply chain. This can include recycling materials such as plastics, metals, and paper.
Five R’s of Reverse Logistics in Supply Chain by Dr Mandeep SainiFuture of Logistics
Logistics in supply chains is the process that involves the planning, coordination, and execution of the efficient movement and storage of goods from their origin to their destination. Goods may be moved by truck, rail, air, or sea. The future of logistics is bright, with new technological advances every day.
Some of the newer technologies used in logistics include drones for package delivery, 3D printing for on-demand production, and driverless vehicles. These technologies are changing the way goods are transported and delivered. They are also making the process more efficient and cost-effective.
The future of logistics looks promising with these new technologies being developed and implemented. They are making the process faster, easier, and more cost-effective. This is good news for businesses and consumers alike. In the past, trucks picked up shipments and delivered them to their destination. The process was slow and inefficient. There was much wasted time in the delivery process. Drivers also needed to be present at each delivery location.
Logistics Providers: What is a logistics company?
For Logistics in Supply Chains, Logistics companies play a crucial role in transporting and storing goods. From small-scale local businesses to large multinational corporations like Clipper Logistics, GXO Logistics, and CEVA Logistics, these companies offer various services to ensure that their client’s goods are transported efficiently and stored safely.
With their expertise in managing complex supply chains, logistics companies help businesses of all sizes to streamline their operations and achieve their goals. Whether transporting goods across the globe or storing them in secure warehouses, logistics companies are essential to the modern economy.
Is Logistics and Supply Chain Management a Good Career?
Choosing a career in Logistics and Supply Chain Management is a great choice. This field involves planning and carrying out the movement of goods from where they start to where they end up, making sure everything runs smoothly. It’s a crucial part of business success and offers lots of chances to grow and develop.
Logistics and Supply Chain Management Jobs
Visit the page for tips to get Jobs in Logistics and Supply Chain domain.
Top 5 UK Universities offering Master of Science in Logistics and Supply Chain Management near Manchester
| No. | University Name | Programme Offered | International Student Fees (GBP) |
|---|---|---|---|
| 1. | The University of Manchester | MSc Operations, Project and Supply Chain Management | Visit Page |
| 2. | The University of Salford | MSc Operations and Supply Chain Management MSc Procurement, Logistics and Supply Chain Management | Visit Page |
| 3. | Manchester Metropolitan University | MSc Operations and Supply Chain Management | Visit Page |
| 4. | The University of Bolton** | MSc Logistics and Supply Chain Management | Visit Page |
| 5. | The University of Manchester**** | MSc Operations and Supply Chain Management | Visit Page |
Please note that international student fees can vary depending on factors such as the specific programme, study duration, and scholarship opportunities. It is advisable to visit the respective university websites for the most accurate and up-to-date information on international student fees.
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2 Comments
Thank you Dr. Mandeep for writing Understanding e-Logistics. I have learnt the best practices in Warehouse operations, in terms of implementing an efficient and effective logistics and supply chain systems to ensure customer order fulfilment.
Thanks a lot Efemena.
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