Course Code: SCM602

Course Title: LOGISTIC MANAGEMENT

Class Day: Sunday Timing: 3:00 PM to 4: 30 PM

Lecture 01: Integrated logistics and the supply chain

Instructor Name: Dr. Rana Zain ul Abidin

Department : Business Administration

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Contents
S. # Topics Page #
1 Logistics system is a supply chain management 3
4
2 Warehousing
5-9

13
Warehouse Management System 14
Transportation Management System 15
Real-Time Location System 16
3
Inventory Management System 17
Reverse Logistics 18
Conclusion 19

4 References l Sources 20

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Reference No: 1 Logistics system is a supply chain
management

Logistics system is a supply chain management component

that is used to meet customer demands through the planning,
control and implementation of the effective movement and
storage of related information, goods and services from origin
to destination. Logistics management helps companies to
reduce expenses and improve customer service.

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Reference No: 2
Warehousing

• Warehousing is a subset of logistics, warehouse is the safe and

economical storage of goods, inventory, information, etc., within a
specified area or building. Warehouses enable to carry on production
all through the year and sell the products at any time there is
sufficient demand.
• Warehouse keeping operations costs to a minimum is a top priority
for most business owners as strategize to reach maximum profit
margins. However, warehousing remains a critically important part of
the business logistics system.

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Reference No: 3 Warehouse Management System

• Warehouse Management System (WMS) is important parts of

logistics, it helps to control and manage the day-to-day
operations in a warehouse. It also can provide a solid foundation
of industry best practices for receiving, put-away, inventory
management, order processing, replenishment, picking / packing
as well as loading and shipping.
• Warehouse management system can reduce the likelihood of
errors that could occur when a product is shipped and help a
company fulfil orders more rapidly and instantaneously trace
ordered products within the warehouse.
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Reference No: 3 Warehouse Management System

Although a WMS is complex and expensive to implement and run,

organizations succeed benefits that can justify following:
• Improved Access of Information
• Improved Insight
• Improved Agility
• Better Collaborations
• Improved Productivity
• Improved Accuracy
• Reduced Training Time
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Reference No: 3 Transportation
Management System
• Transportation Management System can help companies and supply chain
professionals manage the freight and carriers.
• Transportation Management System also can help user to find the best
mode and rate for any type of shipment to make sure that getting the best
deal possible.
• The main features of a Transportation Management System include
features like rating, booking and tracking.
• Transportation Management System also allowing to automate order
entry, create shipments, optimize shipments and routes, manage carriers,
schedule pickups and deliveries, manage the yard and communicate
effectively with all supply chain stakeholders.
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Reference No: 2
Transportation Management System

A fully deployed transportation management system can benefit organizations the

following ways:
• Carrier contract management
• Risk management
• International logistics functionality
• Item visibility
• Parcel shipping support
• Freight settlement
• Business intelligence
• Benchmark data capability
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Reference No: 1
logistics strategy development and
planning process

• Visioning: this includes the systematic development of an organizational

consensus regarding the key inputs to the logistics planning process as well
as identification of the potential alternative logistics approaches. This is an
important step for the following reasons:
• Helps to define a strategic direction to the company and also to get a clear
understanding the role of logistics in it.
• Get a clear idea of the requirements of the various segments of customers.
• Have a look at the various factors that would affect the strategy of the
company.
• Define alternative strategies and also the scope of the planning effort.

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Reference No: 1
Real-Time Location System

• Real time location systems are technology driven systems that use
tags and readers to identify, find, track, and manage the location of
assets or people in real-time, generally within a confined area.
• Advantages of Real time location systems include accuracy, increased
productivity, and operational excellence to track desired objects.
• Real time location systems also provide some additional benefits,
such as improvement in safety and security of staff, efficient and
effective logistic and supply chain operations, and smooth process
operations.

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Reference No: 1
Real-Time Location System

• The most common example of Real time location systems is GPS,

which can make it easy to find the destination in a foreign country on
a way the road never seen before.
• However, GPS doesn’t work indoors, so all the tracking and location
functionality that GPS provides suddenly disappears when stepping
into a building.
• Communication also part of real time system becoming increasingly
automated, multiple, and rapid. Logistics interfaces with a wide range
of functions and organizations in its communication processes.

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Reference No: 3
Communication
• The communication must occur between:
1. The organization and its suppliers and customers
2. The major functions within the organization, such as logistics,
procurement, engineering, account marketing and production.
3. The difference logistics activities listed previous and aspects of each
activity such as coordinating warehousing of material, work in process and
finished goods.
4. Various members of the supply chain, such as intermediaries and
secondary customers or suppliers who may not be directly linked to the firm.
• Communication is a key to the efficient functioning to all system, whether it
be the distribution system of an organization or the wider supply chain.
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Reference No: 4
Current Logistics Related Issues

• There are several factors that affect logistics. These issues need to be
anticipated, prepared for and taken advantage of for a company to be
successful in today’s market. They are
• External:
• Globalisation
• Technology
• Workforce 2000
• challenging nature of the work force
• Environmental concerns
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Reference No: 2
Inventory Management System

• Inventory management systems is track goods through the

entire supply chain or the portion of business operation. That
covers everything from production to retail, warehousing to
shipping, and all the movements of stock and parts between.
• Practically, it means a business can see all the small moving
parts of its operations, allowing it to make better decisions and
investments. Different inventory managers focus on different
parts of the supply chain though small businesses are usually
more interested in the ordering and sales end of the chain.

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Reference No: 3
Inbound and outbound of inventory

It is important to control the inbound and outbound of inventory to minimize losses and
maximize profits, regardless of the system following:
• 1. Customer Satisfaction
Good inventory management leads to orders being fulfilled more quickly and shipped out
to customers faster. The enhanced processes can help e-Commerce and online retail
brands build a strong reaction with consumers.
• 2. Better Inventory Planning and Ordering
Detailed inventory management can be mitigating the issue, allowing warehouse to
refresh inventory not only when needed. It is also both space and cost-effective.
• 3. Accurate Order Fulfilment
Inventory control system is important because it help keep an accurate record of stock
levels. The systems will tell exactly how much in stock, which stock no longer have and
which products need to re-order.

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Reference No: 3
Reverse Logistics
• Reverse logistics has become even more important with the arrival of the e-
Commerce. This rapid growth in the volume of returns causes huge uncertainties
around reverse logistics and puts pressure on supply chains to manage and
implement product returns successfully. Reverse logistics in e-Commerce are
reality of online retail.
• As the depth of online product categories became apparent in the last three
years, the importance of setting up a reverse logistics process as part of e-
Commerce logistics strategy increases as well. Provide a bad returns experience
and without a doubt reduce the chance of a customer coming back for a repeat
purchase.

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Reference No: 3
Reverse Logistics
There are many reasons customers return products, including:
• The customer bought the wrong product
• The product was damaged upon arrival
• The product did not match its description
• The customer no longer wants the product
In these cases, organize shipping of the returned product and send it through
various processes such as testing, dismantling, repairing, recycling or disposing of
it. All these processes require the product travel in reverse through supply chain
network.

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Reference No: 3
Conclusion
• Logistics management system continue to improvement in overall efficiency in
integrated logistics.
• Logistics activities will play an ongoing and important role in determining
whether a customer receives the right product, at the right place, in the right
condition, at the right cost, and at the right time.
• Managing the difference activities as an integrated system must lead not only to
the maximise of customer satisfaction, but also to the lowest possible total cost.
• In this way logistics management can contribute importantly to overall company
efficiency, competitive advantage and profitability.

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References:
Dyckhoff, H., Lackes, R., & Reese, J. (Eds.). (2013). Supply chain management and reverse logistics. Springer
Science & Business Media.
Trappey, A. J., Trappey, C. V., & Wu, C. R. (2010). Genetic algorithm dynamic performance evaluation for RFID
reverse logistic management. Expert Systems with Applications, 37(11), 7329-7335.
Branch, A. E. (2008). Global supply chain management and international logistics. Routledge.

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