LOGISTICS

KAVINDRA
PANT

Definition
Logisticsis
themanagementof the flow of
things between the point of
origin and the point of
consumption in order to meet
requirements of customers or
corporations.

7R

Right
Right
Right
Right
Right
Right
Right

product
quantity
condition
place
time
customer
price

Transportation

Warehousing

Transportation

Customers

Information
flows

Factory

Transportation

Vendors/plants/ports
Warehousing

CR (2004) Prentice Hall, Inc.

Transportation

Dickson Chiu 2006

1-2

SCM-4

Historical Background
The word logistics has originated
from Greek word Logist ikos and the
latin word Logisticus which means
science of computing and
calculating.

1PL,2PL,3PL and 4PL

Logistics

Scope of logistics
Country

% of GDP

Korea

16

China

15

Japan

14

India

13

France

12

UK

11

USA

10

Top players in logistics

DHL
Blue dart
TNT express
Agrawal packers and movers
UPS
Fed Ex
DTDC
Gati

Elements of logistics
management
1.
2.
3.
4.
5.
6.
7.
8.

Customer order processing

Location analysis
Inventory control
Material handling
Packaging
Transportation
Warehousing
Customer service

Major Transportation
Modes
Road
Water
Rail
Air
Pipeline

Road
Strengths
Flexibility to pick up and deliver where and
when needed
Often the best balance between
cost/flexibility and delivery
reliability/speed
Can deliver straight to the customer
Can be available 24/7
Weaknesses
Not the fastest
Not the cheapest

Water
Strengths
Highly cost effective for bulky items
Works best for high weight-to-value items
Most effective when linked into multimodal
system
Weaknesses
Limited locations
Relatively poor delivery reliability/speed
Often limited operating hours at docks

Air
Strengths
Quickest delivery over longer distances
Works best for low weight-to-value items
Weaknesses
Often the most expensive, particularly on
a per pound basis

Rail
Strengths
Highly cost effective for bulky items
Can be most effective when linked into
multimodal system
Better delivery reliability/speed than water
Weaknesses
Limited locations, but better than water
mode.

Logistics Goals

Rapid response capability

Minimum variance
Minimum inventory expense
Consolidated shipments
High quality
Product life cycle support

Logistics strategies

Coordinating functions
Substituting information for inventory
Reducing number of partners
Pooling risk

Issues Related to
Logistics
Too many hands
1.Shippers
2.Logistic service providers
3.Logistic hubs
. Poor quality infrastructure
. Low technology adoption
. Natural

Case study
NMTBSA:(Mumbai Dabbawala)
History :1890
Avg. literacy rate : 8th grade schooling
Total area coverage : 60km2
Employee strength : 5000
Numbers of tiffin : 2,00,000 tiffin boxes
i.e. 4,00,000 transactions per day
Time taken : 3 hours

Error rate : 1 in a million transaction

Cost of service : Rs. 200 per month
Turnover : Rs. 50 crore
Earning : Rs.5000-6000 per month

Coding System

10:34-11:20 am

This time period is actually the

journey time.
The dabbawalas load the wooden
crates filled with tiffins onto the
luggage or goods compartment in the
train. Generally they choose to occupy
last compartment of train

11:20am 12:30pm

At this stage the unloading takes

place at the destination station.
Re-arrangement of tiffins takes place
as per the destination area and
destination building.

 In a particular areas with high

density of customers a special crate
is dedicated to the area.This crate
carries 150 tiffins and is driven by 34 dubbawalas.

1:15-2:00pm

Here on begins the collection process

where the dabbawalas have to pick
up the tiffins from the offices where
they had delivered almost an hour
before.

Return Journey
2:00-2:30pm
The group members meet for the segregation as per
the destination suburb.
2:48-3:30pm
The return journey by train where the group finally
meets up after the days routine of dispatching and
collecting from various destination offices.
3:30-4:00pm
This is the stage where the final shorting and dispatch
takes place. The group meets at origin station and
they finally short out the tiffins as per the origin area.

Some Achievements
World record in Best Time
Management
Name in GUNNIES book of world
records
Registered with Ripley's Believe It or
Not!