CU-MCOM-SEM-III-Supply Chain and Logistic Management

MASTER OF COMMERCE SEMESTER III SUPPLY CHAIN AND LOGISTIC MANAGEMENT 1 CU IDOL SELF LEARNING MATERIAL (SLM)

First Published in 2021 All rights reserved. No Part of this book may be reproduced or transmitted, in any form or by any means, without permission in writing from Chandigarh University. Any person who does any unauthorized act in relation to this book may be liable to criminal prosecution and civil claims for damages. This book is meant for educational and learning purpose. The authors of the book has/have taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person in any manner whatsoever. In the event, Authors has/ have been unable to track any source and if any copyright has been inadvertently infringed, please notify the publisher in writing for corrective action. 2 CU IDOL SELF LEARNING MATERIAL (SLM)

CONTENT Unit 1 - Concept Of Logistics................................................................................................ 4 Unit 2 - Integrated Logistics ................................................................................................ 29 Unit 3 - Supply Chain Management .................................................................................... 47 Unit 4 – Demand Forecasting .............................................................................................. 74 Unit 5 – Inventory Management .......................................................................................... 93 Unit 6 – Material Handling................................................................................................ 117 Unit 7 – Material Storage System...................................................................................... 133 Unit 8 – Warehousing ....................................................................................................... 154 Unit 9 – Storehouse Operations And Control..................................................................... 171 Unit 10 – Logistical Packaging.......................................................................................... 190 Unit 11 – Transportation ................................................................................................... 204 Unit 12 – Customer Service: Key Element Of Logistics .................................................... 231 Unit 13 – Logistics Outsourcing ........................................................................................ 245 Unit 14 – E-Commerce Logistics ...................................................................................... 258 3 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 1- CONCEPT OF LOGISTICS STRUCTURE 1.0 Learning Objectives 1.1 Introduction 1.2 Concept of Logistics 1.3 Objectives of Logistics 1.4 Types of Logistics 1.4.1 Inbound Logistics 1.4.2 Outbound Logistics 1.4.3 Reverse Logistics 1.5 Evolution of Logistics 1.6 Role of Logistics in an Economy 1.7 Difference between Logistics and Supply Chain Management 1.8 Summary 1.9 Keywords 1.10 Learning Activity 1.11 Unit End Questions 1.12 References 1.0 LEARNING OBJECTIVES After studying this unit, you will be able to  Illustrate the concept of logistics.  Examine the types of logistics.  Explain the role of logistics in an economy. 1.1 INTRODUCTION Logistics is the word utilized once in a while; in this post let us talk about how the word and the entire cycle of Logistics have advanced. The word Logistics is the mix of two Latin words 'rationale' and 'static'. During the previous periods, Logistics was a tactical application. Nonetheless, it turned out to be more well-known at the hour of World War II and after that Logistics was seen and applied as a logical subject. When the venture organizations 4 CU IDOL SELF LEARNING MATERIAL (SLM)

comprehended the significance of Logistics, they began to exploit Logistics administrations. From the start of the 1960s until the current year the Logistics have continued advancing. Logistics can be effortlessly characterized as \"proficient arranging and execution of items, administrations, and data stream from the beginning stage (beginning) to the endpoint (clients) including transport, stockpiling, and control\". The globalization has expanded by the 1990s and organizations need to import and fare a ton. In this way transportation has become a significant factor for business. Each business considered transportation as a vital factor to keep up with them in the serious market and they controlled and incorporated vehicle frameworks. At the point when transportation was seen deliberately significant, the organizations began losing their portions of the overall industry. Logistics can be effectively characterized as \"proficient arranging and execution of items, administrations, and data stream from the beginning stage (beginning) to the endpoint (clients) including transport, stockpiling, and control\". The globalization has expanded by the 1990s and organizations need to import and fare a great deal. Along these lines transportation has become a significant factor for business. Each business considered transportation as a vital factor to keep up with them in the cutthroat market and they controlled and incorporated vehicle frameworks. At the point when transportation was seen deliberately significant, the organizations began losing their portions of the overall industry. To beat the previously mentioned circumstance and to keep up with market seriousness the field of Logistics the board' was arisen. Logistics the executives incorporates each phase of transportation from the start as far as possible. When the globalization has proceeded, each organization is either a purchaser or a vender. The objective for each business is to track down the briefest, quickest and most practical approach to sell their items from one side of the planet to the other. To purchase and sell items between nations they should depend more on Logistics. The explanation is that each country needs Logistics in light of the fact that each nation has become an expected market by then, at that point. So since the development, Logistics has a development pace of up to 20% consistently. Later the store network office was made inside the Logistics to offer total types of assistance starting from the intending to the furthest limit of the item cycle. This is the manner by which the total Logistics and inventory network the board business arose. It is blasting and will continue to blast for a long time to come. Demonstrating it to be a promising industry, you can protect yourself with the right work title in the field of Logistics and inventory network the board. Trans globe Academy is extraordinary compared to other Logistics and Supply Chain Management Institute that gives you a few Logistics and Supply Chain Management courses. Seek after yourself with the right course and get yourself found on a generously compensated work.. 1.2 CONCEPT OF LOGISTICS Logistics the board is a space of exploration that has been standing out enough to be noticed from academicians and experts in the course of the most recent twenty years since it might 5 CU IDOL SELF LEARNING MATERIAL (SLM)

prompt diminished functional expenses, further developed conveyance execution and expanded consumer loyalty levels, in this way making. an association more aggressive as far as cost, quality, conveyance and adaptability. The significance of Logistics is expanding likewise because of globalization as increasingly more worldwide organizations (MNC) are sourcing, producing and dispersing on a worldwide scale, making their inventory binds exceptionally complex to oversee. Notwithstanding, re-appropriating Logistics exercises to experienced Logistics specialist co- ops (LSP), otherwise called outsider Logistics (3PL) suppliers, may empower organizations get extremely proficient and altered strategic help while themselves zeroing in on the centre authoritative exercises. Today, there are numerous huge worldwide LSPs that offer total store network arrangements across numerous assorted nations as far as their financial and worlds of politics. Aside from centre calculated exercises like transportation and warehousing, LSPs additionally offer worth added administrations like traditions freedom, cargo sending, import/send out administration, stock administration, gathering/establishment, bundling and marking, circulation, after deals support, switch Logistics, etc. By re-appropriating Logistics, organizations can use the skill of LSPs while focusing on their centre abilities. Logistics tasks have consistently been going with life in human social orders, albeit the extent of the expression \" Logistics \" as such would change additional time. It is most presumably of Greek beginning, which is shown by the implications of words, for example, logos - 'tallying' or 'reason', logistic - 'the specialty of estimation', logismos - 'computation', 'math', 'reflection'. They are additionally the wellspring of the idea of 'logistique', which is the French importance for transport, convenience and supply of troops, just as the beginning of the English word Logistics in its tactical sense. Doubtlessly, the family of Logistics is of military nature, as displayed by all scholars managing this region, albeit the writing likewise gives data about the job of the idea in the regular citizen circle. Doubtlessly, the family of Logistics is of military nature, as displayed by all scholars managing this region, albeit the writing likewise gives data about the job of the idea in the regular citizen circle. In the fifth century BC, in old Greece, Logistics was initially connected with the nonmilitary personnel life. With regards to Greek organization, accounts and the economy of that time, one might go over various names of performed capacities, for example, logistae, logeutai, eklogeis, to which specific scopes of duties and errands were allocated. The logistic work was performed by an individual chosen by casting a ballot (pointed by the hand) and, in the later period, by drawing parcels. Logistic were the greatest power controlling issues concerning funds and property. Without the endorsement of the monetary bills by this authority, an individual to whom they had a place couldn't leave the nation or take any situation in the organization. Also, such individual was denied of social equality and insusceptibilities. The standards of Logistics might be found in the main known composition, Art of War, credited to the extraordinary head of the Chinese, Sun Tzu (sixth - fifth century BC). In his appearance, he introduced an equilibrium of Logistics needs in the hour of war and the limit 6 CU IDOL SELF LEARNING MATERIAL (SLM)

of his own nation, and the recently acquired regions, to fulfil this need. Sun Tzu upheld arranging military tasks so that would not obliterate the homegrown financial potential. He would likewise portray a few standards of monetary associations in the tactical field, for instance food supply principles, or the standards of utilization of the nearby resources. Leon the Sixth, the Byzantine sovereign toward the start of the tenth century AD, composed a work in Greek, called The Sumaric Outline of Martial Arts, wherein, alongside system and strategies, he additionally recognized Logistics. The last should manage the estimations of walking distances of troops, and with the appraisal of foe landscape and forces. Leon the Sixth, the Byzantine sovereign toward the start of the tenth century AD, composed a work in Greek, called The Sumaric Outline of Martial Arts, where, alongside methodology and strategies, he additionally recognized Logistics. The last should manage the computations of walking distances of troops, and with the evaluation of foe landscape and forces. General A. H. Jominiin his work: Summary of the Art of War, distributed in 1837 in Paris, in the 6th part entitled: On Logistics or the Practical Art of Moving Armies, he relegates such cycles to Logistics as: area and providing of stockpiles, arranging and acknowledgment of walks, streets arrangement, sorting out method for transport and providing troops. He calls attention to that Napoleon's loss in the Russian lobby had been straightforwardly identified with the broken inventory framework, the underestimation of the job of transport and deficient association of the bases and the clean service4. According to the tactical perspective, under the term: Logistics, Jomini comprehended hierarchical and arranging endeavours of the overall base camp, planned to lead and order the military. He characterized Logistics as a down to earth specialty of development and supply of troops, transport, streets development and military stockpiles area and supply, which is portrayed by Logistics. Since that time, Logistics in military phrasing is perceived as transport measures the executives, arrangement, convenience and troops supply - the spaces of hypothesis and practice of military movement. It became far reaching during the Second World War. In the United States of America, chief of naval operations A. T. Mahanthe originator of the oceanic hypothesis and Logistics of maritime powers, highlighted the job of the monetary capability of a country in a contemporary conflict. He pointed out the tremendous significance of supply lines, fixed and gliding bases and loading fuel. In the United States of America, chief naval officer A. T. Mahanthe author of the oceanic hypothesis and Logistics of maritime powers, highlighted the job of the monetary capability of a country in a contemporary conflict. He pointed out the gigantic significance of supply lines, fixed and coasting bases and loading fuel5. An incredible legitimacy to the advancement of Logistics thought was put by G. C. Thorpewho is contemporarily viewed as the antecedent of American Logistics. In 1917 he distributed Pure Logistics: The Science of War Preparations, which gave logical grounds to the improvement of standards of down to earth working of Logistics. He hypothesized for Logistics to be incorporated with designing, organization and fix endeavours, just as with troops preparing. In addition to other things, Thorpe remembered for Logistics the cycle of the country financial readiness to war, the assembly of economy and the working of the 7 CU IDOL SELF LEARNING MATERIAL (SLM)

safeguard business. Thusly, Logistics illegal entered the spaces of action associated with nonmilitary personnel life, awaiting the front and the reinforcement into one. A significant commitment to the logistics was made by a British resident, G. C. Shaw, who in 1938 distributed a monograph: Supply in Modern War. In this work, he focused on setting up standards of supply, transportation, and misuse of arms in the field. A progressive change in the specialized headway of the Armed Forces hardware, which occurred in the interwar period with its beginnings during World War I, caused changes in military strategies. Shaw saw a logical inconsistency between the Logistics need of troops brought about by the 'technicalization' of the military, and the restricted effectiveness of the still-existent 'old' arrangement of Logistics support. The innovative improvement of the military forced new necessities on the logistics framework, giving it additional opportunities simultaneously. A significant commitment to the logistics was made by a British resident, G. C. Shaw, who in 1938 distributed a monograph: Supply in Modern War. In this work, he focused on setting up standards of supply, transportation, and abuse of arms in the field. A progressive change in the specialized headway of the Armed Forces gear, which occurred in the interwar period with its beginnings during World War I, caused changes in military strategies. Shaw saw a logical inconsistency between the logistics need of troops brought about by the 'technicalization' of the military, and the restricted effectiveness of the still-existent 'old' arrangement of Logistics support. The mechanical improvement of the military forced new prerequisites on the logistics framework, giving it additional opportunities simultaneously. Shaw planned four standards of Armed Forces supplies: independence, restricted independence, the supplementation from the reinforcement and neighbourhood supplementation. A large number of Shaw's ideas tracked down their reasonable application in Logistics working in World War II. His examination of the job of extra parts and fix methods for battle association, alongside the ideas of material and procedural normalization, are, additionally today, an illustration of good Logistics thinking. During the Second World War, the USA Department of Defence set up interdisciplinary groups, the undertaking of which was to foster numerical arranging models and apply them to take care of the logistics issues of the American armed force keen on supply of materials for military movement support, productively planned in existence. The issues requiring goal were the area and supply of capacity focuses and transportation issues. In American organization, a term generally used to depict a wide scope of non-battle activities, particularly associated with provisions, transport, structural designing and care and departure of the wiped out and wounded\". The logistic models and types of framework investigation have been viably utilized by the military inspired by logistic support for military tasks, facilitated in reality. Nonetheless, in the post-war financial practice, they were disregarded or neglected, as by and by, there were no conditions good for their utilization. The expanding post-war need for products made the supervisors centre around satisfying the need. In writing, one may likewise discover the assessment that the converging of military logistic experience into the regular citizen circle straightforwardly after World War II, was 8 CU IDOL SELF LEARNING MATERIAL (SLM)

incomprehensible because of the absence of hardware (such ase.g. PCs today) and its significant expense and exertion of hand estimations, coming about because of this lack of means. The tactical idea of \" logistic \", alongside a critical piece of the extent of exercises associated with this term, have been moved into the regular citizen economy by American directors just as late as in mid 50s. Before all else, rather than \"logistic\" the term utilized was Physical Distribution Management. An unmistakable advancement accompanied the utilization of PCs and quantitative techniques in dispersion, when the downturn would constrain decrease and more tight control of the expenses. Then, at that point, a created market economy forced the utilization of military Logistics in regular citizen action, as confirmed by phrasing. Logistic would grow step by step. In proficient writing, we might discover a few ways to deal with the issue. Thus, E. Gołembska gives one of the potential arrangements of logistic phases of improvement. Currently, I think, we may distinguish four stages. Stage one  It applies to the time of the 1950s and prior. It is the period when the maker's market is predominant. logistics activities are fragmentary, logistics segments are not incorporated, nor are they dependent on a solitary idea. Here, we are to manage the accompanying circles.  Buy and supply, associated with activities, for example, estimating the interest, arranging needs, determination of supply sources, association of procurement, accumulating, stock; stockpiling, including: transport the board, stockpiling, bundling the executives; circulation, including: the board of supply orders, loading completed products, transport and client assistance. The above exercises were not identified with one single reason, however isolated inside the organization structure; every circle was a different division. Stage Two It covers the period from the start of the 1950s to the 1970s and applies to when the situation of the buyer market was reinforcing in the market economy nations. The quickly developing stockpile must be changed in accordance with the necessities of the requesting client. In this period, complex logistics arrangements show up which includes  Physical dispersion (associated with conveying the item to the client, at the ideal opportunity and with determined cost).  Materials the executives (containing the space of procurement and supply, the alleged materials dissemination). 9 CU IDOL SELF LEARNING MATERIAL (SLM)

 All things considered, be that as it may, both these regions were dealt with independently. Materials the executives were connected to supply administrations, while conveyance - to the deals. Stage Three It is the 1980s and 1990s. In this period, the stockpile and appropriation regions become facilitated, as one sound logistics activity. All logistics endeavours and methodology are as of now seen as a framework, with their target to amplify the benefits, fortify the situation available and adjust deftly to the evolving climate. The exercises did inside the organization are arranged towards the assurance of vital destinations inside the organization. In this period, present day IT arrangements are utilized, useful in critical thinking, while at the same time carrying out current techniques and the executives’ devices, similar to the accompanying.  Automatic identification (bar codes)  JiT (Just in Time)  Material resource planning (MRP)  ABC - Activity based counting, a method based on cost accounting activities. Stage Four It was begun in the year 1990s and later, logistics extends past the actual organization. It concerns the progression of labour and products, alongside going with data. It involves:  Micro-logistics  Meta-logistics.  Macro-logistics  Euro-logistics  Global logistics The logistics of this period creates basing on data frameworks, neighbourhood (LAN), wide region organizations (WAN), Internet and Intranet. Machines and robots wipe out human's work. Current electronic business sectors emerge, where business-to-business (B2B) exchanges are made between organizations, or business-to-client (B2C) bargains are closed by means of the Internet. Present day logistics, with a mission to meet the organization targets, utilizes the data assets of the endeavour and makes an information base explicitly for its requirements. A database for the needs of logistics consists of the following elements. 10 CU IDOL SELF LEARNING MATERIAL (SLM)

 The information source (logistics measures, logistics subsystems of the organization, its nearer and more far off encompassing along the production network).  The clients (the whole production network).  The associations with the addressed reality (instruments for preparing, update, making augmentations, looking and adjustment of information; apparatuses for introducing acquired data, as a request or report; markers and measures). Supply chains are not just the component of the customary substance structure, yet additionally of virtual and organization organizations. Their working depends on IT organizations, worldwide electronic mail and on coordinated administration frameworks, including logistics. The main stage would here be associated with actual dispersion, when in the hour of the 60s and 70s different components persuaded the organizations to take endeavours which would assist with overseeing actual conveyance all the more viably, Among different exercises, one would discover.  Widening the range of assortment.  Increasing shipment fares.  Production of higher value products. In the second stage in the 1970s and 1980s came the idea to combine the spheres of supply and distribution. The factors that would motivate such proceedings included:  The deregulation of transport.  The emergence of local competition.  Searching abroad for supply sources.  Economic factors (economic crisis, competition). The third stage - the 80s, the 90s and later, is the improvement of IT advancements; the Internet, the Extranet and current, incorporated administration frameworks. Supply chains, in view of organization and virtual organizations, become a cutting edge apparatus to battle rivalry and keep up with one's situation available. 1.3 OBJECTIVES OF LOGISTICS All outsider logistic organizations deserving at least moderate respect should have an unmistakable arrangement of objectives and targets. These should address the logistic business overall just as impact various offices, workers, clients, or advertising endeavours, independently. With that in mind, we will take a gander at each to make a clearer picture for each logistic association out there hoping to improve. For some random inventory network to 11 CU IDOL SELF LEARNING MATERIAL (SLM)

be compelling, it is basic that outsider logistic organizations meet a few inner logistic objectives and destinations. These business objectives incorporate:  Increasing efficiency  Rapid response  Fewer unexpected events  Minimum inventory  Reduced transportation and logistics cost  Quality improvement Increased Efficiency Expanding effectiveness for both inbound and outbound logistics and transportation ought to consistently be a main concern for each logistics association. To do as such, they should foster practical transportation rates while, simultaneously, lessening overhead, cost-per-request handling, and stock. By working intimately with a transportation supplier, distribution centre activities like cycles, design, and stream can be improved fundamentally. To expand productivity, consider having the seller perform esteem added administrations like bundling or quality investigations. This will assist with getting any mistakes at the source. Similarly, structure a two-way transporter connection with them to share best practices, patterns, and openings. Rapid Response Like proficiency, consumer loyalty assumes a critical part in the general achievement of a logistics organization. To fulfil your client care objectives quickly, consider a fast reaction approach. On account of the present innovation, you would now be able to delay numerous logistics activities to the latest second possible. This implies that you can dispense with inordinate inventories that were typically amassed fully expecting client necessities. You can likewise move your functional accentuation from an expectant stance and advance toward reacting to client necessities dependent on a conveyance to-conveyance premise. Fewer Unexpected Events Surprising occasions can occur with each part of strategic tasks. An unforeseen disturbance during assembling, merchandise showing up harmed at their last objective, delays with the client request receipt, or wrong conveyance, would all be able to bring about sat around and assets. Customarily, these unanticipated occasions were tended to by setting up security loads of stock or by utilizing a significant expense transport mode. All the more as of late, these 12 CU IDOL SELF LEARNING MATERIAL (SLM)

have been supplanted with complex programming, fit for accomplishing a positive logistics frameworks control. Contingent upon how much an organization figures out how to limit these occasions, its calculated usefulness will likewise remain to improve. It is, along these lines, to everybody's greatest advantage to keep any unanticipated conditions at least. Minimum Inventory While on the subject of essentials and unforeseen occasions, stock administration is basic. Eventually, planning to keep these occasions at any rate will likewise include resource responsibility and relative turn speed. This turn speed means the pace of stock use throughout a given timeframe. Stock accessibility and high turnover rates demonstrate that your stocks are utilized viably. The goal of lessening stock sending to the least potential levels likewise attempts to fulfil clients and lower the complete logistics cost. The idea of Zero Inventory has been acquiring some foothold as of late as chiefs look to decrease stock sending. This kind of approach will have some distinct advantages. At the point when inventories are diminished to their least potential levels, different functional imperfections and shortcomings additionally begin to show themselves. All things considered, having a stock gives its very own few advantages. With regards to economies of scale, especially in assembling or acquirement, inventories can create ROI. Regardless, the goal is to diminish the stock to the most minimal conceivable level, while likewise accomplishing the ideal functional destinations. Reduced Transportation Cost One of the significant expenses related with logistics is transportation. Bringing down the expense of transportation requires development union. Recollect that transportation costs are straightforwardly affected by the kind of item being dispatched, the size of the shipment, and the distance. Numerous logistics frameworks that give superior, excellent help regularly rely upon high velocity, little shipment transportation. This normally includes some significant pitfalls. When in doubt, the bigger the shipment, and the more extended the distance, the lower the transportation cost per unit. In this manner, having programming fit for gathering little shipments for solidified development is great. Quality Improvement Another objective that should be viewed in a serious way is long haul quality improvement, expanding deals and boosting consumer loyalty. Indeed, all out quality administration (TQM) has become a significant pattern all through the business scene. In the event that an item becomes blemished out of the blue or on the other hand if 13 CU IDOL SELF LEARNING MATERIAL (SLM)

administration guarantees are not kept, there's not a lot that should be possible about it according to a logistics viewpoint. Once exhausted, logistics costs can't be switched. What's more, when quality falls flat, the strategic execution will quite often should be rehashed or switched. Thusly, logistics should perform to excellent principles. The issue emerges when calculated activities are completed nonstop and across tremendous topographical regions. It's especially hard to keep a zero-imperfection execution in this sort of situation. Moreover, a significant part of the work will be done outside of a manager's vision. Everyone realizes that it's undeniably more expensive to improve a client request because of an inaccurate shipment or on the way item harms than to take care of business the first run through. Takeaway These are, in enormous, the primary objectives and goals each logistics association should hope to accomplish. It is consequently why they ought to likewise hope to receive a transportation the executives programming (TMS) and cargo the board that will best suit their necessities. As we said previously, it's likewise useful to work with master shipping organizations fit for offering you that product, just as any remaining administrations that will assist you with accomplishing your objectives all the more rapidly and viably. Maybe than managing everything yourself, you can depend on your logistics accomplice to share the heap, trade thoughts and best practices, and assist you with advancing your cycles for shared accomplishment. With Logistics Titans, you will approach the best programming available just as a group to coordinate. Our TMS won't just give you all you require as far as highlights and advantages, but at the same time it's for nothing. Get in touch with us today for more data. Inventory Reduction Stock is the greatest guilty party in unfavourably influencing the goals of logistics the executives at the main concern of an undertaking. Through a monetary bookkeeping point of view, stock is a resource and doesn't cause any apparent inconvenience in any event, when it is loaded in an abundance amount. Customarily, firms have conveyed an abundance of stock to expand phenomenal client support. Be that as it may, stock as a resource expects speculation to have it. The assets contributed are obstructed and can't be utilized for some other useful reason. Reliable and Consistent Delivery Performance 14 CU IDOL SELF LEARNING MATERIAL (SLM)

On-time conveyance is critical to the client to keep up with his creation plan. The client isn't keen on a quicker conveyance of the material in front of the creation plan. This space of activity is dependent upon difference. In any case, appropriate anticipating transportation modes and stock accessibility alongside a variety factor will decrease the change. Different goals of logistics the board ought to be consistency in conveyance execution; this will assist with building client certainty for keeping a drawn out relationship. Freight Economy Cargo is a significant expense component in logistics cost. This can be diminished by embracing measures, for example, cargo solidification, transport mode choice, course arranging, load unitizing and significant distance shipments. Item harms add to the logistics cost. The justification item harms is inappropriate calculated bundling, continuous transfer taking care of the shortfall of burden unitizing, etc. Utilization of motorized material taking care of hardware, load unitization, and appropriate strategic bundling will diminish the item harm and satisfy the destinations of logistics the board. Quick Response This is identified with the capacity of a firm to stretch out the support of the client in the most limited time period. Utilization of the most recent advances in data handling and correspondences will improve the dynamic capacity as far as precision and time, empowering the endeavour to be sufficiently adaptable to satisfy the client necessities in volumes and assortments in the briefest time span, consequently satisfy the destinations of logistics the board too. 1.4 TYPES OF LOGISTICS Below are the detail explanation of the type of logistics. 1.4.1 Inbound Logistics As the name recommends, inbound logistics is worried about exercises identified with the approaching progression of assets expected to make an item or an assistance. Inbound logistics cycles might incorporate overseeing providers, expenses, stock, and transportation to guarantee the right parts or subassemblies show up in your industrial facility on schedule. Inbound logistics is by and large complex since many parts are coming in to make one eventual outcome, along these lines, it will in general be more unpredictable than outbound stream. 15 CU IDOL SELF LEARNING MATERIAL (SLM)

Acquirement is the significant component in inbound logistics as it manages sourcing and shipping crude materials from the provider to purchaser's processing plant. The size and nature of acquirement influences inbound logistics from multiple points of view. For instance, an organization who buy basic things, for example, office supplies doesn't need a lot of assets to deal with its inbound logistics. While a firm who purchases hardware or transitory merchandise from abroad would have a complex inbound logistics as items should be dealt with, put away, and moved by required taking care of, bundling, or temperature. There are hazards related with inbound logistics. In 2020, the Covid pandemic that begins of China has seriously upset the worldwide inventory chains. As lockdowns have executed in many nations to contain the flare-up, travel and assembling exercises have closure causing such a lot of imperative in moving items openly in the worldwide production network. Organizations requesting crude materials from different nations had experienced creation and shipment delays. To reduce risks and improve your inbound logistics, it is best to Conduct a Supply Chain Mapping Recognize and guide out your material sources. Where did they come from? Utilize an accounting page or programming to show your guide for complete full inventory network perceivability. Find Alternative Sources Examination possible providers from different areas. Influence the information accumulated in the inventory network planning. Match your necessities with the possible providers to guarantee the seller meets your store network needs. Match your necessities with the possible providers to guarantee the merchant meets your production network needs. Determine Challenges and Opportunities Decide potential dangers every provider and provider's providers (level 1, 2, 3) are presented to Identify imperatives - long lead time, administrative, provider responsiveness, capacity, and so on Recognize requirements - long lead time, administrative, provider responsiveness, ability, and so on Foster intends to address requirements (for example discover choices to diminish lead time and cost) Discover potential providers you think can uphold your prerequisites Engage immediate or aberrant providers for development endeavours. Strategic Distribution Location for Inbound Shipments Locate distribution centre close to shipping ports and Locate distribution centre close to manufacturing sites. 16 CU IDOL SELF LEARNING MATERIAL (SLM)

1.4.2 Outbound Logistics Outbound logistics alludes to exercises in conveying the perfect item at the perfect opportunity to clients at any rate cost. Consumer loyalty is the essential target of outbound logistics, that is the reason numerous associations particularly online business organizations are going after last-mile or same-day conveyance to their clients. Organizations draw out their incentive to their clients and back it up with their outbound logistics ability. Circulation framework assumes a basic part in outbound logistics. The dispersion channels and transportation framework should uphold the worth the organization is attempting to give to clients (for example fast reaction to the client, client assistance level, and so on) The commonness of internet business in the retail business strengthens the requirement for an upgraded outbound logistics stream. Retail internet business area works vigorously in outbound logistics than some other ventures. Take a gander at Amazon, Walmart, and Lazada, they make striking strides enhancing innovations and building offices to speed up their logistics execution. 1.4.3 Reverse Logistics Switch logistics is the way toward moving items from end-client back to the beginning to recuperate esteem or for appropriate removal. The worth is recovered from items recuperated from clients through improve, renovation, reuse, scrap reusing, or government motivating forces for recyclable items. A restored iPhone is a genuine illustration of converse logistics. On the off chance that an iPhone offered to the client is found imperfect inside the guarantee period, the client returns it to the transporter arrange and afterward send it back to the Apple processing plant for repairing. Apple examines the iPhone to decide the issue and supplant it with new parts or programming. Another iPhone is then named with another chronic or model number for exchanging. A restored iPhone is exchanged to the client, subsequently, making worth to Apple. Item returns come in various structures including the business return, review, restoration, or item's finish of-life. Organizations should have frameworks and foundation in dealing with gets back to limit recuperation costs, increment recovered worth, and increment perceivability. In web based business retail industry, the increasing return rates cause retailers to experience the ill effects of expenses related with returns since clients get discounted for returned items (particularly occasional products) that can't be exchanged at the first cost because of mileage, outdated nature, or harm. Executing a merchandise exchange can alleviate switch logistics costs as it controls and cut off points clients from bringing goods back. 17 CU IDOL SELF LEARNING MATERIAL (SLM)

1.5 EVOLUTION OF LOGISTICS The advancement of logistics and Supply Chain Management (SCM) during the 1990s can be followed back to \"actual appropriation the board\" during the 1970s when there was no coordination among the different elements of an association, and each was resolved to achieve its own objective. This near-sighted methodology then, at that point changed into \"coordinated calculated administration\" during the 1980s that required the joining of different capacities to accomplish a framework wide level headed. Store network Management (SCM) further extends this extension by including the providers and clients into the hierarchical overlap, and planning the progression of materials and data from the acquisition of crude materials to the utilization of completed products. The destinations of Supply Chain Management (SCM) are to kill redundancies, and decrease process duration and stock to give better client assistance at lower cost. The centre has moved from the \"portion of the market\" worldview to the \"portion of the client worldview, wherein the objective is to make \"client esteem\" prompting expanded corporate benefit, investor esteem, and supported upper hand over the long haul. Logistics includes getting, in the correct way, the right item, in the right amount and right quality, in the perfect spot at the perfect time, for the perfect client at the perfect expense. The strategic organization comprises of the providers, the retailer and the clients. The reason for an incorporated strategic organization in a store network is to satisfy client arranges through giving spot utility to convey items and administrations to end clients. The spot utility is accomplished by dealing with various key elements of an inventory network. The capacities incorporate:  Demand management  Inventory management  Transportation  Warehousing  Order processing  Information management Logistics is a key empowering influence of store network cooperation. Further developing execution in this field permits supply chains to build their effectiveness fundamentally and help to make advancements in various regions. In this specific situation, a significant errand is to discover constructions and approaches which empower a wide range of execution the board in logistics and supply chains for a superior satisfaction of client needs. Store network the executives is a cross-work approach including dealing with the development of crude materials into an association, certain parts of the inner handling of 18 CU IDOL SELF LEARNING MATERIAL (SLM)

materials into completed products, and the development of completed merchandise out of the association and at the end-shopper. As associations endeavour to zero in on centre abilities and turning out to be more adaptable, they decrease their responsibility for materials sources and conveyance channels. These capacities are progressively being moved to different substances that can play out the exercises better or more expense adequately. The impact is to expand the quantity of associations engaged with fulfilling client interest, while lessening the executive’s control of day by day logistics tasks. Not so much control but rather more inventory network accomplices prompted the production of store network the executives’ ideas. The motivation behind store network the executives is to further develop trust and coordinated effort among store network accomplices, in this manner further developing stock perceivability and the speed of stock development. 1.6 ROLE OF LOGISTICS IN AN ECONOMY Logistics is quite possibly the main essential businesses for any monetary development as it is the administration of the progression of items from the spot of their starting point to the spot of their utilization, consequently the business likewise includes the combination of material taking care of, warehousing, bundling, transportation, dispatching security, stock administration, inventory network the executives, acquisition, and customs administration. The worldwide logistics industry basically includes an intricate scope of cargo and load related transportation areas, like delivery, warehousing, messenger, and street/rail/airship cargo. Agreeing the report from C and M Research, the complete worldwide logistics market arrived at a worth of about $4 trillion out of 2013, addressing a practically 10% of worldwide GDP. The worldwide transportation administrations market is quickest developing area with more 7% year on year development since 2011, presently it is relied upon to produce income of 3.8% trillion out of 2016. The US as of now represents more than a 42% of worldwide transportation administrations area. The worldwide air transportation administrations industry has been encountering a decrease in development rate since 2012, while the aircraft market is relied upon to reach £137 billion by 2017. After created around $194 billion of every 2011, the worldwide rail cargo industry had a yearly development pace of over 6% until 2015, and the business development will increment to a yearly pace of 8%, coming to $286 billion by 2016, anticipated by Market Line. The business utilization volumes have stayed the development of 4% year on year. Street cargo industry is so far the main portion in the worldwide logistics industry addressing more than 74% of the general business as far as worth. The worldwide street cargo market is required to top £2.2 trillion of every 2015, which is a 28% expansion more than 5 years’ time frame since 2010. The US addresses for 56% of the world street cargo area as far as worth. The worldwide delivery industry is relied upon to outperform 730 million TEUs by 2017, as per Global Industry Analysts. Delivery compartments is as of now the significant method of worldwide exchanging, the market execution is helped by the expanding request of exchange, 19 CU IDOL SELF LEARNING MATERIAL (SLM)

interests in port terminal offices, and the ascending of worldwide sea transport organizations. Over the course of the following not many years, the worldwide transportation area is relied upon to become mostly because of the rising interest for oil and melted gas in Asian nations. The Logistics area in INDIA has today become a space of need. One prime justification the very comes from the explanation that long stretches of high development in the Indian economy have brought about a critical ascent in the volume of cargo traffic moved. The huge volume of traffic has accommodated development openings in all features of logistics including transportation, warehousing, cargo sending, express freight conveyance, holder administrations, dispatching administrations and so on The development way likewise recommends that increment request is being put on the area to give the arrangements needed to supporting future development. Strength of the calculated area is probably going to be one of the critical determinants of the speed of things to come development of the economy. The market size of the v area in INDIA is assessed to be between USD 90-125 billion. Given that the Indian economy has developed to over USD 1.73 trillion, these appraisals may as of now be well underneath the real size of the business. Sources assesses that the business utilizes more than 45 million individuals and is going at the pace of 15% with sub-area developing at even 30-40% per annum. Because of these reasons the Indian logistics area is seen as quite possibly the most appealing on the planet. Ongoing arrangements by the public authority draw in a solid development region for logistics later on. Regardless of holding guarantee the logistics area in India stays buried in a few intricacies which have the capability of keeping it down. These remembers huge failures for transportation, helpless state of capacity foundation, complex duty structure, low pace of innovation appropriation, and helpless abilities of logistics proficient. The interest for FMCG and electronic items in India has been developing at the extremely high speed. A few MNCs from assorted businesses have shown developing revenue in setting up top notch producing offices in India to oblige the homegrown market just as for the fare market. Building up assembling offices in India has been an essential move to lessen their assembling expenses and take into account the growing Indian market. The Indian car industry is well en route to become one of the world's significant auto assembling centres. Since the liberation and opening up of the car business, the business has seen huge changes and encountered an extraordinary blast. Strategic is the foundation of the economy, giving the productive, practical progression of merchandise on which other business areas depends. The logistics business in India is advancing quickly and it is the transaction of foundation, innovation, and new sorts of specialist organizations that will characterize whether the business can assist its clients with diminishing their logistics costs and offer productive types of assistance. Regardless of frail financial opinions, the logistics and warehousing industry kept on seeing development generally because of development exhaustively, E-trade and assembling areas. The logistics area is relied upon to develop at around 10-15% in the period 2014-2015. With 20 CU IDOL SELF LEARNING MATERIAL (SLM)

this forward looking disposition and guarantee of development and upgrades, the help arranged logistics is good to go to grow past the skylines in the later 50% of this decade, using this financial year as its platform. 1.7 DIFFERENCE BETWEEN LOGISTICS AND SUPPLY CHAIN MANAGEMENT The lines isolating inventory network the board from logistics can seem obscured, and the two ideas are frequently alluded to conversely. However albeit a cooperative relationship exists, each has particularly various capacities and purposes, included specific errands and obligations. Think about a store network as an organization—of makers, providers, wholesalers, retailers, and so forth—instead of a progression of explicit capacitieslogistics, then again, is all the more promptly unmistakable; it alludes to the exercises engaged with moving merchandise starting with one point then onto the next inside an inventory network. Basically logistics issmall amount of production network the executives; the last mentioned, an umbrella term used to depict a whole business theory, enveloping all inside and outer store network measures, including logistics. As yet scratching your head? You are in good company. Here's a more top to bottom, visual examination of the distinction among logistics and production network the executives, including definitions, measures, purposes, sets of expectations, and advancements associated with both. For some logistics teachers, scientists and professionals, production network the board (SCM) has been the ''Grande energy'' of ongoing occasions. Scholastic diaries have been dispatched (for example Production network Management: An International Journal) or renamed (for example Diary of Supply Chain Management), SCM degree and testament programs have been made, teachers and supervisors have been retitled, and examination interests have moved toward SCM. In any case, LaLondeinquired: ''Does inventory network the board truly exist?'' Other creators alert that SCM might turn out to be simply one more administration trendor even a ''parochial field for an organization of expert specialists''. In the midst of this disarray, SkjoettLarsennoticed that the SCM ''idea isn't distinct''. As per Cooper''research is expected to characterize and extend the limits of inventory network the board''. The hazy applied limits of SCM make it hard to plan instructive and research programs in SCM without huge cross-over with different fields like logistics, advertising, tasks the board and buying. Besides, it is troublesome if not difficult to carry out SCM except if it is clear cut. Where are the theoretical limits to be attracted directing examination on or executing SCM? Should investigate be possible straightforwardly on SCM, or must the idea be separated, for centre around its highlights? This paper endeavours to set caps for the SCM idea, utilizing logistics=SCM specialists' appraisals of key ideas, points and methods. This works with comprehension of the highlights of SCM—and its applied limits. The paper is 21 CU IDOL SELF LEARNING MATERIAL (SLM)

coordinated as follows. Following the Introduction, the subsequent area momentarily examines meanings of SCM from the writing, and creates four viewpoints on the fit among SCM and logistics. The third segment reports aftereffects of a study of worldwide specialists. The paper closes with a conversation on ramifications of the investigation for logistics instructors, scientists and professionals As indicated by Stock and Lambert, SCM ''is the reconciliation of key business measures from end client through unique providers that gives items, administrations, and data that add an incentive for clients and different partners''. Christopher recommended a relationship perspective on SCM, characterized as ''the administration of upstream and downstream associations with providers and clients to convey better client esteem at less expense than the inventory network all in all''. The key is overseeing connections—like the frameworks thought of positive synergistic impacts made through linkages—as opposed to streamlining singular parts of the framework. The frameworks approach centres not just around the parts (for example capacities or exercises), yet in addition on how they are connected. SCM has likewise propelled another Council of Logistics Management (CLM) meaning of logistics as ''that piece of the inventory network measure that plans, carries out, and controls the proficient, powerful stream and capacity of products, benefits, and related data from the starting place to the mark of utilization to meet clients' necessities. Be that as it may, there is absence of concurrence on how SCM is identified with logistics. Following are four calculated points of view on SCM versus logistics: conservative, relabelling, unionist and between sectionists. The points of view are talked about momentarily underneath. The writers recognized these points of view while perusing and talking about the developing SCM writing. The relabelling point of view basically renames logistics; what was logistics is currently SCM. Lenders and Fearondepict logistics the board, or inventory network the executives'' as a hierarchical procedure. Tanexamine an advancement of logistics vinto ''incorporated logistics, which is currently regularly called ''SCM''. In addition, as per Jones and RileySCM strategies ''manage the arranging and control of complete materials streams from providers through end clients''. This idea of SCM covers vigorously with the CLM meaning of logistics. All the more as of late, Simchi-Leviadmitted that they ''don't recognize logistics and inventory network the executives''. They additionally use production network and logistics network as interchangeable terms. Relabelling limits the extent of SCM, since SCM rises to logistics. In the realm of logistics practice, last year's logistics examiner'' might be the current year's ''SCM investigator'', with no adjustment of set of working responsibilities. Gam Melgaard and Larsonrevealed aftereffects of a review of inventory network directors. The overview incorporated the accompanying open-finished inquiry: ''Please momentarily portray what a production network administrator does''. A huge gathering of reactions to this inquiry mirrored the relabelling point of view (inventory network director as logistics administrator). A choice of such reactions follows. Following every definition, the respondent's business is in 22 CU IDOL SELF LEARNING MATERIAL (SLM)

brackets. An inventory network chief ''deals with all of or a segment of, the way toward getting the right item to the perfect spot at the perfect time in the right amounts for the right expense with the right quality'' (staggered promoting or MLM organization); ''SCMs arrange the stream among plant and the client'' (buyer bundled products producer); SCM ''enhances, changes logistics measures into upper hand'' (retailer); ''a production network administrator oversees logistics exercises inside the production network'' (logistics specialist co-op). This viewpoint regards logistics as a piece of SCM; SCM totally subsumes logistics. Giunipero and Brandcommunicated this view with the accompanying assertion: ''SCM is more than logistics. In the limit, SCM subsumes a significant part of the conventional business college educational program, including logistics, promoting, tasks the board and buying. As per Konezny and Beskowthe segments of SCM are: logistics (stock, warehousing, bundling, circulation, transportation, client care, buying, creation arranging and request estimating); key arranging; data innovation; advertising; and deals. Others foster SCM as an interdisciplinary idea drawing on fields like advertising, financial aspects, logistics and authoritative conduct. Additionally, Newinferred that review social, political and moral parts of SCM. For certain creators, the term ''SCM'' alone isn't sufficient! For example, Sandelandscharacterizes absolute SCM as ''gathering and abusing quality data for all business regions, like money, showcasing, and human asset arranging''. Stock and Lambertrecommend ''inventory network the board is the administration of eight key business measures. i. Client relationship the executives ii. Client support the executives iii. Request the executives iv. Request satisfaction v. Fabricating stream the board vi. Acquirement vii. Item advancement and commercialization, and viii. Returns These cycles subsume or incorporate a lot of logistics, buying, promoting and tasks the executives. As per Mentzer ''all the conventional business capacities ought to be remembered for the interaction of SCM''. In their model of SCM, these customary business capacities are advertising, deals, innovative work, gauging, creation, buying, logistics, data frameworks, money and client care. An association receiving the unionist point of view may begin by making another significant level position: Director or Vice President of SCM. At least, logistics, buying and a few components of promoting would answer to this SCM leader. Under a more extensive unionist system the top inventory network chief would have CEO- like obligations. Gam Melgaard and Larsonadditionally tracked down an enormous gathering of reactions mirroring the unionist point of view (inventory network administrator with wide 23 CU IDOL SELF LEARNING MATERIAL (SLM)

obligations). A choice of such reactions follows. Once more, following every definition, the respondent's business is in enclosures. Store network administrators are associated with ''dealing with the progression of items, administrations, data and cash across a drawn out big business—at least three organizations: provider, client and central organization'' (inventory network counselling); ''works with obtainment, assembling, deals and client assistance gatherings to guarantee advanced progression of materials from our providers through our clients'' (lubricant=chemical added substance creator); ''this position ought to have the option to see the sourcing of crude material, transportation inbound to plants, warehousing and receipt, setting of crude material stock levels, completed merchandise stock level at plants, transportation to appropriation. 1.8 SUMMARY  The fate of the Indian Logistics Industry lies at last in offers for the client. Worth arrangements can be designed just if the mind boggling strands of inventory network together consistently. These arrangements are required to order a premium yet in addition include some major disadvantages. The expense cognizant Indian market initially must be made to see the value in the worth of premium administrations first. This would result a decrease in cost down the line.  Deficiencies referenced above are taken out. Logistics organizations can use further economies of scale when tasks are extended. This might expect enterprises to work together with logistics specialist organizations to sustain their organizations, perhaps in a way the car business in India supported the auto-part organizations. What's to come is brilliant for logistics industry in India-the assumption is that a tipping point for the business will before long be arrived at which will move it to more noteworthy statures.  Results of the overview offer help for the four points of view model, for example logisticians can be bunched into four gatherings on the logistics versus SCM issue. The last area expands on this experimental finding, with suggestions for logistics instructors, analysts and specialists.  The four points of view on logistics opposite SCM recommend an assortment of reactions to the SCM wonder by logistics teachers. As the name infers, labellers are probably going to show the normal, worn out logistics the board course under another name: ''SCM''. Unionists may eliminate logistics the board from the educational program—and cover the fundamentals of logistics in another SCM course; or, they might hold the logistics the executive’s course, and make a SCM course to grow further the cross functional, between authoritative nature of ''key'' logistics and related practical regions (for example advertising, buying and activities the executives). 24 CU IDOL SELF LEARNING MATERIAL (SLM)

 In the limit, a unionist may battle to rebuild (and rename) the College of Business Administration as the ''College of SCM''. Between sectionists would support an interdisciplinary SCM major, maybe with group instructed, cross-utilitarian SCM courses split into modules. These modules might be lined up with customary capacities (for example logistics and promoting) or situated at practical interfaces. At long last, conservatives would either do nothing by any stretch of the imagination, or essentially add a SCM talk to the logistics the executive’s course.  A number of fascinating examination questions stay on coordinating SCM into the logistics gathering or scholarly office—and into business colleges. Will conservatives and unionists cooperate in the logisticsSCM division? (Review that the previous position SCM altogether inside logistics, while the last do the inverse.) Traditionalists might oppose the chance to become ''Professors of SCM''. How could between sectionists approach offering SCM to key interface disciplines, like showcasing and activities the executives? Surely, is logistics the right discipline to lead the SCM charge?  The review results likewise offer direction for the teacher educating both SCM and logistics the board. A few subjects and procedures appear to be best shrouded in a logistics the board course (for example transportation), while others fit better in SCM (for example peace promotion). Then again different points and procedures show up at the convergence of logistics and SCM (for example client support and stock administration). Instructors could utilize the study as an apparatus to help with making each course exceptional, while showing understudies the connections among SCM and logistics. 1.9 KEYWORDS  Logistics: Physical flow that consists of transportation, warehousing, packaging and handling, and service flow that includes customs clearance, insurance, supervision, and stock and order management.  Logistics Management: A supply chain process stage that involves effective and efficient planning, implementation and control of forward and backward flow, and warehousing of goods, services and relevant information between manufacturing and consumption points so as to meet customer needs.  Material Requisition: A request that is made to acquire goods from the warehouse, and if its unavailable, to initiate the purchasing operation.  Materials Management: Management of all materials in a company by including operations such as coding, requirement planning, stock control, supply, warehousing, etc. 25 CU IDOL SELF LEARNING MATERIAL (SLM)

 Payment Under Letter Of Credit – L/C: A conditional undertaking by the bank stipulating that on request of the buyer, it will make payment to the specified seller upon submission of documents regarding a product or service, of which the details are stated by the buyer. 1.10 LEARNING ACTIVITY 1. Create a survey on concept of logistics. ___________________________________________________________________________ ___________________________________________________________________________ 2. Create a session on types of logistics. ___________________________________________________________________________ ___________________________________________________________________________ 1.11 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is logistics? 2. Define logistics management? 3. Write the main objective of logistics? 4. What is inbound logistics? 5. Define reverse logistics? Long Questions 1. Explain the concept of logistics. 2. Illustrate the types of logistics. 3. Examine the evolution of logistics. 4. Illustrate the role of logistics in an economy. 5. Distinguish between logistics and supply chain management. B. Multiple Choice Questions 1. What is the production control and physical distribution are the three major operations of logistics? a. Supply chain management b. Materials management c. Logistics management 26 CU IDOL SELF LEARNING MATERIAL (SLM)

d. Personal management 2. Which among the following is not an area to responsibilities for a logistics manager? a. Inventory b. Warehousing c. Marketing d. Purchasing 3. What does DRP stands for? a. Distribution requirement planning b. Dividend requirement planning c. Distribution resource planning d. Distribution reverse planning 4. Which of the following is not a component of 4 PL? a. Control room b. Resource providers c. Information d. Recycling 5. Which among the following includes design and administration of systems to control the flow of materials, WIP and finished inventory to support business unit strategy? a. Logistics management b. Materials management c. Bill of materials d. Distribution management Answers 1-b, 2-c, 3-a, 4-b, 5-a 1.12 REFERENCES References 27 CU IDOL SELF LEARNING MATERIAL (SLM)

 Burgess, R. (1998). Avoiding supply chain management failure: lessons from business process re-engineering, International Journal of Logistics Management.  Christopher, M. (1998). Logistics and Supply Chain Management, Second edition London, UK, Financial Times, Prentice Hall.  Cooper, M, C. Lambert, D, M. & Pagh, J, D. (1997). Supply chain management: more than a new name for logistics, International Journal of Logistics Management. Textbooks  Ellram, L, M. (1996). The use of case study method in logistics research, Journal of Business Logistics.  Gammelgaard, B. & Larson , P, D. (2001). Logistics skills and competencies for supply chain management, Journal of Business Logistics.  Giunipero, L, C. & Brand, R, R. (1996). Purchasing’s role in supply chain management, International Journal of Logistics Management. Website  https://logisticstitans.com/blog/what-are-the-goals-and-objectives-of-logistics- management/  https://scmwizard.com/objectives-of-logistics-management/  https://commercemates.com/logistics-management/ 28 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 2 - INTEGRATED LOGISTICS STRUCTURE 2.0 Learning Objectives 2.1 Introduction 2.2 Objectives of Integrated Logistics 2.2.1 Cost Reduction 2.2.2 Minimizing Risks 2.2.3 Stakeholder Satisfaction 2.2.4 ORBIT Logistics 2.3 Concept of Integrated Logistics 2.3.1 Variables affecting the Evaluation and Growth of Integrated Logistic 2.3.2 Activities related to integrated logistics 2.3.3 Operations involved in integrated logistics model 2.4 Inventory Flow 2.4.1 Purchase 2.4.2 Store 2.4.3 Use 2.4.4 Track 2.4.5 Reorder 2.4.6 Forecast 2.5 Information Flow 2.6 Barriers to Integration 2.7 Summary 2.8 Keywords 2.9 Learning Activity 2.10 Unit End Questions 2.11 References 29 CU IDOL SELF LEARNING MATERIAL (SLM)

2.0 LEARNING OBJECTIVES After studying this unit, you will be able to  Examine the concept of integrated logistics.  Illustrate the in detail of concept inventory flow.  Explain the barriers to integration. 2.1 INTRODUCTION The meaning of incorporated logistics, in certain regards, appears to be indistinguishable from that of logistics. Nonetheless, it contains a principal distinction: the reconciliation of each progression, both with the arranging stage and with the control stage. At the end of the day, incorporated logistics, as well as managing everything identified with conventional logistics, additionally interfaces with the branches of creation, promoting and any remaining divisions of the organization. Coordinated logistics is along these lines significantly more arranged towards enhancing creation expenses and times, just as working on quality. Until this point, be that as it may, there is no unmistakable meaning of incorporated logistics. The Council of Logistics Management's definition, albeit more extensive than others, is restricted to characterizing. Logistics is the way toward arranging, executing and controlling the proficient and viable stream and capacity of crude materials, semi-completed and completed items and related data from the starting place to the mark of utilization to address the issues of customers. Assuming we need to give a meaning of a coordinated logistics framework, we can say. Integrated logistics is an exceptional business the board interaction that administers the progression of materials, data and products from the starting place to the mark of appearance, in which all administration exercises are interconnected and reliant. The Architecture of Integrated Logistics Along these lines, the incorporated logistics engineering from one viewpoint accommodates the right administration of stockrooms, transport and materials. Then again, it coordinates with various elements of the business cycle. For instance: Production Function  Production planning  Optimisation of material supply flows  Organisation of storage areas  Material handling systems Supply Function 30 CU IDOL SELF LEARNING MATERIAL (SLM)

 Selection and control of suppliers  Purchasing planning Marketing Function  Correct definition of services  Packaging design  Marketing campaigns design To these, then, at that point, contingent upon the creation cycle, which is normal for every creation framework, can be added various others. Regardless, the variety of every one of them will unavoidably likewise change the strategic cycles. Incorporated logistics, hence, continues decisively with a view to calculated effectiveness and the decrease of strategic expenses. Management and Measurement in Integrated Logistics In this sense, crafted by logistics experts, especially in an incorporated logistics framework, won't ever stop. Not just as to the appropriate presentation of regular errands. Maybe, it is about the steady observing of the productivity and cost-viability of the whole logistics framework. To this end, a steady estimation of the outcomes acquired is fundamental in the logistics area, especially in an incorporated framework. In this regard, the experts consider various pointers.  Volume: measures workloads (e.g. number of orders handled, managers, etc.).  Effectiveness: indicates the quality of the process (e.g. customer evaluation).  Efficiency: measures the costs and resources of carrying out a given process. For this reason, in the construction of an efficient logistics system, it is necessary to use professionals in the sector, who are able to evaluate these and many other parameters. 2.2 OBJECTIVES OF INTEGRATED LOGISTICS This element comprises in the combination of the relative multitude of tasks and cycles did in the logistics, from the creation of the product to the last conveyance, in the possession of the client. All together for coordinated logistics to be created, a hierarchical framework is expected to guarantee proficient logistics stream the executives, controlling related exercises. To Facilitate this Control, One Can Divide the Integrated Logistics into Three Parts:  Administration of materials (input / output flow).  Movement of materials (transport of inputs / products).  Physical distribution (distribution of products). 31 CU IDOL SELF LEARNING MATERIAL (SLM)

2.2.1 Cost Reduction In the midst of emergency, slicing spending is basic to guaranteeing upper hand, as proceeded and significant expenses will ultimately drive the organization to close or to live dove into monetary difficulty. Along these lines, incorporated administration of material stream and data stream permits a more extensive perspective on the production network. This vision favours, thusly, the coordination of the cycles, adjusting them as indicated by the objectives and targets of the organization. Shrewd, key arranging dependent on a more extensive methodology is basic to advancing time and cost. For this situation, the all-out acquire is envisioned and not just the increase comparative with one stage of the strategic cycle. Assessing just the additions identified with a particular stage winds up creating monetary absence of control, since different strides (with their expenses and benefits) are ignored. 2.2.2 Minimizing Risks Another benefit of coordinated logistics is minimization of normal dangers to the cycles of control, dealing with, capacity and conveyance of items. Since coordinated logistics relates to fundamental arranging – that is, to the arrangement of a control and the board framework – all tasks and data will be appropriately interconnected The incorporation of the cycles permits a more unbiased and secure coordination, to accomplish the reason it proposes. Deficiency following is significantly more exact just as anticipating blunders and dangers – and, as you most likely are aware, the appropriation of preventive practices is substantially more compelling than trusting that mistakes will happen to continue with adjustments. The danger the board given by the use of incorporated logistics is, so  Identification of existing imperfections and use of prompt restorative measures.  Predicting the chance of dangers and receiving preventive procedures (decrease of dangers in that capacity).  Visualization of possibilities and improvement of successful strategies to settle them in the event that they occur. Diminishing danger is a significant upper hand, taking into account that dangers create misfortunes every which way, including: monetary, material, efficiency, client. 2.2.3 Stakeholder Satisfaction Partner is a term that alludes to providers, workers and clients. Taking into account that the logistics design will be better coordinated, the fulfilment of every one of those engaged with such cycles is additionally sure. 32 CU IDOL SELF LEARNING MATERIAL (SLM)

Incorporated logistics empowers better costs and client care to be given, as organization costs will be decreased – as efficiency increments and cycle dexterity (and more prominent deftness infers cut off times conveyed scratch). Do you as of now utilize coordinated logistics as an upper hand? Mention to us your opinion about it and offer this post on your interpersonal organizations, assisting with getting more individuals admittance to the data and get your inquiries replied. 2.2.4 ORBIT Logistics Orbit Logistics - is one of the world's driving providers of stock administration arrangements (VMI – Vendor Managed Inventory and SCM) and ongoing information obtaining. Our organization, established in 2003, gives a secluded framework to production network the board and computerization, serving worldwide clients from workplaces in Leverkusen (Germany), Atlanta (USA), Sao Paulo (Brazil) and Shanghai (China). A profoundly qualified group of in excess of 40 architects and specialists offers modified turnkey answers for measure the board and observing. 2.3 CONCEPT OF INTEGRATED LOGISTICS The development of crude materials and segments to an assembling organization should be overseen. So should the development of completed products from the assembling plant to additional handling, to the retail, or to the last shopper. The administration of this development is called coordinated logistics the board. Incorporated Logistics is characterized as \"the way toward expecting client needs and needs; securing the capital, materials, individuals, advancements and data important to address those issues and needs; improving the products or-administration creating an organization to satisfy client demands; and using the organization to satisfy client demand in a convenient manner.\" The development of crude materials and segments to an assembling organization should be overseen. So should the development of completed merchandise from the assembling plant to additional preparing, to the retail, or to the last customer. The administration of this development is called coordinated logistics the board. It is a strategy which uses different sources and channels to satisfy the client need on schedule. Initial step is to expect and hinder the interest the client. After that the necessary asset that will be used for satisfying the need are gained. These assets range from human asset to innovation, material, IT assets and so on. After that all work are made to satisfy the client need ideal by the dynamic investment of the multitude of assets. It uses the different activities like vehicle, logistics, actual dissemination, stock administration and so forth. 33 CU IDOL SELF LEARNING MATERIAL (SLM)

2.3.1 Variables affecting the Evaluation and Growth of Integrated Logistic Numerous factors influenced the assessment and development of incorporated strategic. The originally was the development of the customer mindfulness and the showcasing idea. Product offering extended to fulfil the rising need for additional choices. This product offering development put incredible presser on conveyance channels to move more items and hold cost down, particularly in transportation and stock. A subsequent factor was the presentation of the PC. PC specialists and coordinated calculated director immediately discovered a large number of PC application for strategic. This application offered still more prominent effectiveness in transportation steering and booking, stock control, distribution centre format and plan, and each part of incorporated calculated. Indeed PCs permitted coordinated strategic figured out how to modular incorporated calculated framework and afterward break down the impact of proposed change. This application enormously advance the framework's methodology. The third factor prompting the development of incorporated logistics was the overall economy during the 1970s and 1980s. Worldwide downturn and increasing loan fees made numerous organizations pull together consideration on diminishing expense advantage; numerous organizations had to revaluate in general transportation needs. Additionally, increasing loan fees directed concentration toward keeping up with least stock levels due to the expense of capital. Globalization of business and the advancement of world exchange blocks are a fourth factor affecting the development of coordinated logistics. Incorporated strategic can furnish firms with an expense advantage. Moreover, exchanging blocks Europe. Southeast Asia, Asia, Africa and the Americans (European Union, relationship of Southeast Asian countries and the Asian-pacific financial collaboration, southern African improvement local area, North American international alliance and presently the international alliance of the Americas) require incorporated logistics to integrate the partaking nations with single commercial centres. The last factor influencing coordinated logistics is the development of without a moment to spare assembling (JIT), supply the executives, transportation, and electronic information trade (EDI) during the 1980s and 1990s. As makers received all out quality administration (TQM), JIT, and EDI, incorporated logistics the board has gone to the front line. Compelling TQM and JIT require upgrading the inbound and outbound transportation and more proficient stock administration. 2.3.2 Activities related to integrated logistics The idea of incorporated logistics came to fruition in light of the advancement of the market. Changes popular and the presence of contenders have constrained organizations to search for recipes that improve their activities, accelerate cycles and limit costs. Coordination between 34 CU IDOL SELF LEARNING MATERIAL (SLM)

the different divisions that make up an association makes it conceivable to have adaptable, spry tasks that assist it with reacting rapidly and precisely to recent fads.  Physical distribution  Materials management  Logistics engineering  Business logistics  Logistics management  Integrated logistics management  Distribution management  Supply chain management Albeit the exercises incorporate under each term shift, they share one key fixing: \"The idea of a ceaseless continuous progression of the item.” 2.3.3 Operations involved in integrated logistics model Integrated logistics is particularly valuable for defeating the challenges presented by omnichannel retail: huge quantities of orders of different sizes, comprised of not many things and requiring conveyance inside 24 hours. Knowing ahead of time the seasons when more deals will happen makes it simpler to coordinate work moves and have just the fundamental stock close by.  Inbound logistics: It is alluded to as acquisition or actual stock. It manages the connection between the firm and its providers. It tends to the progression of materials from the providers to the plant or into administration activities.  Conversion/tasks: It manages the strategic connection between and among the offices of the firm. It tends to how products and materials move among workstations inside tasks.  Outbound logistics: It is alluded to as actual circulation. It is the calculated connection between the firm and its clients. It is the development of completed item out of the plant to the last client.  Each of these connections is supported by the execution of 5 essential logistics exercises like transportation, office structure, stock administration, material dealing with and correspondence/data. These exercises are interlaced all through the coordinated logistics framework. Each is imperative and is found at each stage.  Transportation: it is vital in outbound, inbound just as transformation measures. It manages the development of an item into, though, and out of the plant/distribution 35 CU IDOL SELF LEARNING MATERIAL (SLM)

centre. It is the costliest logistics movement, representing 50 % or a greater amount of absolute logistics costs.  Facility structure alludes to the essential arrangement of stockrooms, administration focus, and plants all through the store network. It incorporates the numbers and kinds of plants, their areas and their tasks.  Inventory the executives alludes to item supports of crude materials, work in progress, and completed merchandise in logistics pipelines. On the off chance that each movement worked consummately, in case there were no variety on the way time, no variety in handling time, no misfortune or harm, no volume limits for transportation, no volume markdown for items, and if firms could figure request precisely there would be no compelling reason to store item. 2.4 INVENTORY FLOW Organizations that handle huge volumes of actual stock ought to build up an administration framework to screen and direct stock stream all through the inventory network. Stock stream is the arrangement of remarkable control strategies that organizations use to direct item action inside their tasks. This interaction ranges from producers sourcing crude materials to retailers loading completed products. A smooth progression of stock guarantees that all cycles taking care of stock, like creation, transportation, and capacity, are working effectively. With a reasonable comprehension of the stock stream stages and best practices, organizations can advance their stock administration. Organizations should deal with their stock stream to keep procedure on time and stay away from disturbances, regardless of whether they are taking care of crude material parts or completed product. There are a few stages inside this stock stream that administration should screen, including. 2.4.1 Purchase The underlying acquisition of products starts the progression of stock and sets a priority of how the consecutive cycles will perform. Subsequently, organizations should explore various merchants to track down the best value, items, and quality. The board can investigate provider accounts from contenders for merchants and ideal request sizes. Customarily, it is smarter to arrange a lot than excessively little, as stockouts can affect organization proficiency and income. 2.4.2 Store When the request is set and items have shown up, the time has come to track down the appropriate extra room. Whether or not the stock is put away in a stockroom or supplies room, there ought to be sufficient room for a hierarchical framework. Coordinated stock 36 CU IDOL SELF LEARNING MATERIAL (SLM)

diminishes the time expected to discover and recover items, smoothing out creation and request satisfaction. 2.4.3 Use During the utilization stage, crude materials and items are taken from capacity for creation or last conveyance. The effectiveness of this stage relies vigorously upon how well the stock was put away. 2.4.4 Track Associations ought to build up a global positioning framework to follow stock development when things are created or transported to purchasers. This permits the executives to screen stock levels and guarantees convenient conveyances. 2.4.5 Reorder With information on ongoing stock amounts, organizations can put reorders when materials have exhausted past their base levels. This forestalls stockouts, which can bring about disturbed activities and lost deals. 2.4.6 Forecast Going through the past stages produces measurements that give significant experiences on arising patterns. In contrast to the past advances, which are responsive, gauging is a proactive practice that utilizes chronicled information to assess future vacillations of interest and use. This permits the board to arrange stock early to stay away from the dangers related with sudden occasions. 2.5 INFORMATION FLOW Data, materials and cash move from providers to clients and the other way around. Inventory network can be extremely long, if providers request items or crude materials from own providers and clients convey items further to end-clients. In logistics material stream goes at first from providers to clients (from upstream to downstream) and data and cash stream from clients to providers (from downstream to upstream). At the point when it is an opposite stream (reuse stream) items be that as it may, get back to providers. To empower proficient logistics, data ought to go normally from providers to clients. Consequently, material, data and cash streams move confuse. It ought to be underlined that opposite stream can be associated with another stream or cash stream. For this situation, cash stream alludes to cash, beneficiary of reuse material pays for recyclable material. For instance, one gets remuneration for reusing jugs and salvaged material. The accompanying chart delineates logistics data, cash and material association with one another. 37 CU IDOL SELF LEARNING MATERIAL (SLM)

Information Flow In logistics is an enormous number of data trade on deals and stock sums and conjectures, requesting transport, affirmation and invoicing just as different sorts of agreements and terms of conveyance. Logistics can be seen as data stream that beginnings with client request gauge or its acknowledgment, which moves along the chain to industrial facility, crude material providers, stockroom, drivers and to other specialist organizations and subcontractors. What's more, specialists, for example, customs and duty specialists need their own data. All production network gatherings ought to get satisfactory data to have the option to do their part in client needs fulfilment in an ideal way. Also, chain incorporates countless various agreements and prescience and affirmations and change notices, so the items are in required request and at the ideal opportunity in the following period of production network. Material Flow Material stream incorporates moving and capacity of materials or items. On the off chance that material stream works out positively, it shows, practically speaking for example as short conveyance season of an item and eventually as consumer loyalty. Material stream requires data stream, against great logistics standards is that in case material is conveyed albeit nobody has data about it. Data must, be that as it may, be appended to material and to item. For instance, bundling should remember data for the substance, sender and objective. Capital or Money Flow Capital for example cash stream is a pay to be paid for crude materials and items and in this manner it is in opposition to material stream. Generally cash stream is behind material stream. Moreover, significant capital is associated with logistics chain. Capital is restricted in the products kept up with in stockrooms and transitional terminals. Likewise, significant capital is restricted in the products being moved. Transport and capacity costs themselves are a significant expense factor. Moreover, pressing merchandise and arranging logistics chain, execution and the executives cause costs. In this context, logistical costs can be divided into  Transport costs  Storage costs  Administration costs 38 CU IDOL SELF LEARNING MATERIAL (SLM)

 Packing costs and  Capital costs. Reverse Flow Turn around stream is a waste or side-effect stream eliminated from various phases of material stream just as overseeing disposed of items back for reusing or last removal. This likewise incorporates invert logistics. 2.6 BARRIERS TO INTEGRATION The Transport and Logistics Industry is the foundation of any economy, and the main impetus behind all areas, be it horticulture, assembling or administrations. Notwithstanding, similar to all enterprises, it is going up against gigantic change in present occasions – driven by tech advancements, changing buyer assumptions and severe guidelines. Albeit the worldwide standpoint for the business is idealistic (assessed at about US$ 4 trillion of every 2018, It is scheduled to develop to US$ 6.3 trillion, at a CAGR of 4.9%), the street ahead is testing, particularly for little and medium undertakings. Reducing Transportation Costs This is the single greatest test for the business, since transportation comprises a significant lump, about 30% of all out costs. Be that as it may, with rising fuel costs, this can go up to half. Decreasing carriers: Companies can rearrange their business among less transporters and haggle for lower rates. Nonetheless, this builds the danger of over reliance on couple of transporters. Solidifying shipments: They could unite shipments and get mass rates; however this could be at the danger of postponed conveyances which would affect customer fulfilment. Decreasing fuel expenses: Logistics organizations will be unable to control the fuel costs, however controlling fuel costs are certainly inside their scope. Armada the board steering programming can assist with guaranteeing that cargo transporters utilize on the briefest, most effective courses – keeping away from gridlocks, considering street limitations by vehicle type and season of day. This not just lessens the absolute miles driven, mileage and upkeep costs, yet in addition brings down infringement and dangers, which can bring about diminished protection charges. Improving Business Processes An examination by Inboundlogistics.com referred to that 36% of the endeavours surveyed emphatically concurred that they depended on their 3PL accomplices to drive cost decreases and business measure upgrades. 39 CU IDOL SELF LEARNING MATERIAL (SLM)

This implies logistics accomplices are required to have the information and experience to look past store network and logistics activities to drive changes inside the general tasks system. They likewise should be monetarily steady, adaptable and open to facing sensible challenges for long haul gains. By the day's end, the logistics business is profoundly cutthroat; henceforth industry benchmarking assumes a critical part in business measure upgrades. It resembles the notorious futile way of life – to be the awesome the quickest. Enhancing Customer Service These days, the business sectors are dynamic, supply chains have gotten longer and more unpredictable, and client assumptions have changed, both as far as conveyance times and administration quality. Presently clients likewise expect their logistics accomplices to take care of issues and assist them with growing a cutthroat climate. This implies logistics accomplices should enrol the ideal individuals with the right abilities and mentality. They should likewise zero in on improving and normalizing the client experience across all topographies, channels and contact focuses, be it in-person logistics, telephones, online talks, messages or web-based media. Improving Supply Chain Visibility To have exact, on time conveyances without fail, strategic organizations need to have full perceivability on all parts of the inventory network. Shipments should be followed, to guarantee they are following the endorsed course and plan, and in the event of interruptions, notices and cautions be enacted so that brief move can be made. Clients need to get refreshes, viz., dispatching warnings, ETAs, just as have the option to follow shipments on an online interface. logistics organizations need to have perceivability on the whole work stream in a distribution centre – receipt of stock, stockpiling, request the executives and finishing, and shipment. Furthermore – perceivability on what is going towards them, with the goal that they can design their labour force appropriately. Supply Chain Finance Admittance to inventory network finance is basic for transporters/strategic organizations to guarantee smooth business tasks and improvement of income, particularly in the present questionable occasions of international strains, unforeseen custom obligations, swapping scale changes, cataclysmic events and so on Commonly, finance is needed for letters of credit, open records, cargo review instalments and so forth While there are a lot a greater number of choices for finance now than previously, 40 CU IDOL SELF LEARNING MATERIAL (SLM)

checking cargo solicitations has never been simple – rates are different and confounded, and transporter references may not generally be right. In addition, transportation is a money escalated business. Postponements in instalment could unfavourably influence the transporters. Impact of the Economy Political precariousness, decrease in assembling area execution, expansion in shopper value file, swelling and so forth unfavourably impacts requests for items and administrations, which likewise impacts cargo interest. Alternately, government interests in foundation projects expands wages and interest for items. Driver Shortage Anyplace on the planet, transporters have troublesome and requesting occupations. With expanded unofficial laws, organizations will in general be more particular in enlistment. Applicant's driving records are examined for petty criminal offenses or investigation errors, in case it contrarily affects the organization's Compliance Safety and Accountability (CSA) score. In the US, the normal time of drivers is really high – 49, which implies following 10-20 years the work crunch will be more serious. Additionally, there is an oblivious inclination against ladies and minorities. Government Regulations Governments employ a gigantic control over worldwide shipments. As indicated by Wall Street Journal, in the US, in excess of 40 offices are engaged with exchange shipments, and in excess of twelve have delivery and hold authority. Even get-togethers shipments clear the ports, the US Consumer Product and Safety Commission, FDA, EPA and Dept of Agriculture need to give their endorsement. Furthermore, drafting license laws and tax assessment on worldwide and homegrown transportation likewise sway logistics. Sustainability There is an extensive spotlight on lessening outflows, essentially because of hostile to standing by and emanation decrease guidelines by governments, yet in addition by virtue of public insights and cost investment funds. Organizations can consent by receiving course and burden streamlining, following and revealing outflows, updating motors and picking elective fills. The most recent truck models accompany the best motor exhibition, outflow consistence and much better mileage. These offer extraordinary investment funds over the long haul, yet require steep forthright expenses. Technology Advancements 41 CU IDOL SELF LEARNING MATERIAL (SLM)

Embracing new and imaginative innovation arrangements has gotten basic for logistics organizations. Given that work is scant, rivalry is extreme and clients have gotten really difficult, innovation progressions can build usefulness by limiting time, cost and blunders. Mechanization frameworks/information driven programming arrangements, for example, advance bundling marking, distribution centre arranging and so on have become the need of great importance. Shipment global positioning frameworks empower organizations to screen their shipments nonstop, get alarms and warnings, and set up redid detailing. Information Analytics can assist with Improving client experience, functional effectiveness and wellbeing. Mechanical technology and self-sufficient hardware have been received by many central participants in the logistics business. These assistance in definitely chopping down time taken for request fulfilment and conveyance. IOT can assume a critical part in diminishing dangers and guaranteeing safe conveyance of merchandise. The best armada the executive’s framework interfaces with specific sensors incorporated into new age trucks. This product gives constant on the way perceivability of trucks, shipments ready, and key vehicle boundaries. 2.7 SUMMARY  Given the above challenges, can logistics organizations meet rising client assumptions, and still create benefits and development? The appropriate response is indeed, if they stay adaptable, and focused on overhauling innovation, individuals and cycles. Consistent development is the situation.  Reverse logistics is as yet viewed as an arising field, notwithstanding the way that it has drawn expanding consideration since the start of the 1990s. Plan and the board papers concerning reverse logistics depend on the ideas, techniques, and instruments, which have been proposed with regards to the forward store network. They regularly expect that opposite logistics exercises are a copy of those of the store network, however in turn around.  As has been found in this book, the fact of the matter is very unique. The uprightness, quality, and amount of the elaborate materials are not really consistent. Materials come considerably more from the organization specialty units, identified with the production network or opposite logistics, than from end clients. The second and the spot of beginning of these materials are not generally known from the get go. Data concerning these materials is very hard to follow, for instance, while concerning materials that are at this point not utilized by purchasers or by the business providing the items.  The delay between the exit of the items from the industrial facility and their return can be important to such an extent that the materials become unusable. Creation 42 CU IDOL SELF LEARNING MATERIAL (SLM)

advancements have developed and more prohibitive laws have showed up. This load of subtleties make decision making more troublesome. Adjusted ideas, strategies, instruments actually must be proposed to further develop conceivable outcomes of significant worth creation and recuperation for organizations. A few organizations are as of now deliberately incorporating reverse logistics in their present tasks.  Others are presenting it in the structure of a program zeroed in on practical turn of events. The quantity of instances of progress is expanding. This underlines the way that the smart administration of assets lessens the natural effects encompassing exercises, items, and administrations, meanwhile adding to the financial presentation of the organizations. Yet, the social angle is as yet very little considered.  Planning, foundation, observing and control measure, which targets augmenting the worth and the spotless removal of converse item streams, by productively overseeing crude materials, in-measure stock, completed merchandise and the pertinent data from the utilization highlight the starting place; and by this considering the natural, social and financial parts of the improvement exercises.  It has gotten basic for organizations to rethink their worth framework, to make it predictable with the worth of the social orders they serve. Organizations can scarcely work in disengagement and they should recruit specialists from different fields. The target of such a methodology comprises of making ideas reliable, when confronting the different partner interests in a feasible improvement setting. 2.8 KEYWORDS  Product Picking - Collecting the products from their address at the warehouse according to customer request.  Production: Producing beneficial products and/or services for users by using production resources such as materials, labour energy, machinery, and so on.  Promotion: Innovations introduced to increase sales or benefits offered.  Put Away: Operations that involve receiving goods at the warehouse, physically moving them to their stock locations in the warehouse, and then matching identifications of the shipping case and address in the system.  Yard Management: Facilitating and monitoring compliance with defined processes and rules (traffic flow, use of parking areas, preserving the security chain, etc.) by all vehicles and persons entering the boundaries of the logistics facility. 2.9 LEARNING ACTIVITY 1. Create a survey on barriers to integration. 43 CU IDOL SELF LEARNING MATERIAL (SLM)

___________________________________________________________________________ ___________________________________________________________________________ 2. Create a session on concept of integrated logistics. ___________________________________________________________________________ ___________________________________________________________________________ 2.10 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is integrated logistics? 2. Define purchase? 3. Define forecast? 4. What is the main barriers to integration? 5. What is the main objective of integrated logistics? Long Questions 1. Explain the concept of integrated logistics. 2. Illustrate the inventory flow. 3. Discuss the activities related to integrated logistics. 4. Examine the barriers to integration. 5. Explain the variables affecting the evaluation and growth of integrated logistic. B. Multiple Choice Questions 1. What is the time that elapses between issuing replenishment order and receiving the material in stores? a. Replenishment time b. Lead time c. Idle time d. Replacement time 2. Which concept is similar to the concept of unitization and has the similar objective of space reduction? a. Logistical packaging b. Building block 44 CU IDOL SELF LEARNING MATERIAL (SLM)

c. Cube minimization d. Palletizing 3. Which involves streamlining the distribution process in terms of physical and information efficiency? a. Technical integration b. Channel integration c. Channel hierarchy d. Vertical marketing system 4. Which among the is the task of buying goods of right quality, in the right quantities, at the right time and at the right price? a. Supplying b. Scrutinizing c. Selling d. Purchasing 5. Which of the following is a break-bulk warehouse performs function? a. Warehousing b. Collecting c. Sorting d. Supply Answers 1-b, 2-b, 3-b, 4-d, 5-c 2.11 REFERENCES References  Lalonde, B, J. (1997) Supply chain management: Myth or reality?, Supply Chain Management Review.  Lambert, D, M. Stock, J, R. & Ellram, L, M. (1998). Fundamentals of Logistics Management (Boston, Irwin=McGraw-Hill).  Lenders, M, R. & Fearon, H, E. (1997) Purchasing and Supply Management, 11th Edition Chicago, Irwin. 45 CU IDOL SELF LEARNING MATERIAL (SLM)

Textbooks  Mentzer, J, T. Dewitt, W. Keebler, J, S. Min, S. Nix, N, W. Smith, C, D. & Zacharia, Z, G. (2001). What is supply chain management?, in: Mentzer, J.T. (Ed.) Supply Chain Management Thousand Oaks, CA, Sage Publications.  Mentzer, J, T. & Kahn, K, B. (1995). A framework of logistics research, Journal of Business Logistics.  New, S, J. (1997). The scope of supply chain management research, Supply Chain Management.. Website  https://www.interlakemecalux.com/blog/integrated-logistics  https://onlinelibrary.wiley.com/doi/pdf/10.1002/9781118387177.oth1  https://www.smet.it/en/blog-en/integrated-logistics-definition-implementation-and- integration. 46 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 3 - SUPPLY CHAIN MANAGEMENT 47 STRUCTURE 3.0 Learning Objectives 3.1 Introduction 3.2 Objectives 3.3 Value Chain-Definition 3.4 Organisation Level 3.5 Activities 3.6 Industry Level 3.7 Value Reference Model 3.8 Concept of Supply Chain Management (SCM) 3.9 Functions of Supply Chain Management 3.9.1 Purchasing 3.9.2 Operations 3.9.3 Logistics 3.9.4 Resource Management 3.9.5 Information Workflow 3.10 Contribution of Supply Chain Management 3.11 Summary 3.12 Keywords 3.13 Learning Activity 3.14 Unit End Questions 3.15 References 3.0 LEARNING OBJECTIVES After studying this unit, you will be able to  Examine the concept of supply chain management.  Illustrate the functions of supply chain management.  Explain the contribution of supply chain management. CU IDOL SELF LEARNING MATERIAL (SLM)

3.1 INTRODUCTION Supply Chain Management can be characterized as the administration of stream of items and administrations, which starts from the beginning of items and closures at the item's utilization. It additionally contains development and capacity of crude materials that are associated with work in progress, stock and completely outfitted products. The primary goal of store Supply Chain Management is to screen and relate creation, circulation, and shipment of items and administrations. This should be possible by organizations with an excellent and tight hold over interior inventories, creation, dispersion, inner creations and deals. We can see the progression of merchandise, administrations and data from the maker to the buyer. The image portrays the development of an item from the maker to the producer, who advances it to the merchant for shipment. The merchant thus dispatches it to the distributer or retailer, who further disseminates the items to different shops from where the clients can undoubtedly get the item. Inventory network the executives essentially consolidates the organic market the board. It utilizes various techniques and ways to deal with see the whole chain and work productively at every single step engaged with the chain. Each unit that takes an interest in the process should mean to limit the expenses and assist the organizations with working on their drawn out presentation, while likewise making an incentive for its partners and clients. This interaction can likewise limit the rates by killing the pointless costs, developments and taking care of. Here we need to take note of that inventory network the executives and production network occasion the board are two distinct points to consider. The supply chain event management considers the variables that might interfere with the progression of a powerful production network; potential situations are thought of and as needs bearrangements are formulated for them. In trade, production network the board (SCM), the administration of the progression of merchandise and servicesamong organizations and areas, and incorporates the development and capacity of crude materials, of work-in-measure stock, and of completed merchandise just as start to finish request satisfaction from starting place to point of utilization. Interconnected, interrelated or interlinked organizations, channels and hub organizations consolidate in the arrangement of items and administrations needed by end clients in an inventory network. Production network the executives has been characterized as the \"plan, arranging, execution, control, and checking of production network exercises with the goal of making net worth, constructing a cutthroat foundation, utilizing overall logistics, synchronizing supply with request and estimating execution worldwide\". SCM practice draws intensely on modern 48 CU IDOL SELF LEARNING MATERIAL (SLM)

designing, frameworks designing, activities the executives, logistics, acquirement, data innovation and showcasing, and makes progress toward an incorporated approach. Marketing channels assume a significant part in production network management. Current research in production network the board is worried about points identified with maintainability and hazard the board, among others. A significant idea examined in SCM is production network flexibility. Some propose that \"individuals’ measurement\" of SCM, moral issues, interior combination, straightforwardness/perceivabilityand human resources/ability the executives are themes that have, up until this point, been underrepresented on the examination plan. Inventory network the executives (SCM) is the expansive scope of exercises needed to plan, control and execute an item's stream from materials to creation to conveyance in the most affordable manner conceivable. SCM incorporates the coordinated arranging and execution of cycles needed to enhance the progression of materials, data and capital in capacities that extensively incorporate interest arranging, sourcing, creation, stock administration and logistics - or capacity and transportation. In spite of the fact that it has similar objectives as inventory network designing, production network the board is centred around a more conventional administration and business based methodology, though production network designing is centred around a numerical model based one. Supply Chain Management - Advantages In this period of globalization where organizations contend to give the best quality items to the clients and fulfil every one of their requests, inventory network the executives assumes a vital part. Every one of the organizations are exceptionally reliant upon compelling production network measure. Let’s take a look at the major advantages of supply chain. The key benefits of supply chain management are as follows.  Develops better client relationship and administration.  Creates better conveyance systems for items and administrations sought after with least deferral.  Improvises usefulness and business capacities.  Minimizes distribution centre and transportation costs.  Minimizes immediate and backhanded expenses.  Assists in accomplishing transportation of right items to the perfect spot at the perfect time.  Enhances stock administration, supporting the effective execution of in the nick of time stock models. 49 CU IDOL SELF LEARNING MATERIAL (SLM)

 Assists organizations in adjusting to the difficulties of globalization, monetary commotion, growing buyer assumptions, and related contrasts.  Assists organizations in limiting waste, driving out costs, and accomplishing efficiencies all through the production network measure. These were a portion of the significant benefits of store network the executives. Subsequent to taking a fast look at the idea and benefits on inventory network the board, let us investigate the principle objectives of this administration. Supply Chain Management - Goals Each firm endeavours to coordinate with supply with request in a convenient design with the most proficient utilization of assets. Here are a portion of the significant objectives of inventory network the board.  Supply chain accomplices work cooperatively at various levels to augment asset efficiency, develop normalized measures, eliminate copy endeavours and limit stock levels.  Minimization of store network costs is exceptionally fundamental, particularly when there are monetary vulnerabilities in organizations in regards to their desire to preserve capital.  Cost proficient and modest items are essential, however production network administrators need to focus on esteem creation for their clients.  Exceeding the clients' assumptions consistently is the most ideal approach to fulfil them.  Increased assumptions for customers for higher item assortment, redone merchandise, slow time of year accessibility of stock and fast satisfaction at an expense practically identical to in-store contributions ought to be coordinated.  To meet shopper assumptions, shippers need to use stock as a common asset and use the disseminated request the executive’s innovation to finish orders from the ideal hub in the inventory network. Finallyproductionnetwork the executives’ targets adding to the monetary accomplishment of a venture. Notwithstanding every one of the focuses featured above, it targets driving undertakings utilizing the production network to further develop separation, increment deals, and enter new business sectors. The goal is to drive serious advantage and investor esteem. 50 CU IDOL SELF LEARNING MATERIAL (SLM)