LOGISTICS MANAGEMENT: CURRENT TRENDS

1. LOGISTICS MANAGEMENT: CURRENT TRENDS D. N. CHAKRABORTY B.E.(MECH), F.I.E., G.D.M.M., Fw.M.M. RETD. H.O.D. (M.M.), KOL. PORT TRUST

2. LOGISTICS ACTIVITY AND ITS MANAGEMENT IS AN INTEGRATED PART IN THE TOTAL SUPPLY CHAIN MANAGEMENT . IT WORKS IN TWO DIRECTIONS AS 1) FORWARD LOGISTICS 2)REVERSE LOGISTICS IF THE SUPPLY CHAIN MANAGEMENT IS THE CONNECTIVITY BETWEEN THE SUPPLIER’S SUPPLIER AT ONE EXTREME END AND LAST MILE CUSTOMER AT THE OTHER EXTREME END THEN FORWARD LOGISTICS MAINTAINS THE FLOW FROM THE END SUPPLIER TO THE END CUSTOMER. THIS WORKS IN THE FORMS OF BOTH : * REAL LIFE SCENARIO: PHYSICAL SUPPLY & PHYSICAL DISTRIBUTION. * VIRTUAL SCENARIO: MONEY TRANSFER / INFORMATION FLOW / INFORMATION SHARING.

3. BASIC KEYPLAYER IN SCM NETWORK IS SUPPLIER & CUSTOMER SUPPLIER IS THE MAIN COMMITAL PERSON FOR ASSURED SUPPLY OF MATERIALS / ITEMS. CUSTOMER RESPONDS BY TIMELY PAYMENT AFTER DUE SATISFACTION EITHER BY TRADITIONAL OR CURRENT EFT / ECS SOLUTION. SUPPLIER CUSTOMER (CHAIN)

4. MAIN COMMITAL SUPPLIER HAS TO DEPEND ON HIS BATTERY OF SUPPLIERS AT PHYSICAL SUPPLY SIDE S1 IF S1 SUPPLIER BRINGS THE RAW MATERIAL THEN Sn TH SUPPLIER BRINGS THE PACKAGING MATERIAL FOR SUPPLY OF FINISHED GOODS. SUPPLIER S2 ……… S3 Sn

5. ON THE OTHER SIDE IN THE PHYSICAL DISTRIBUTION C11 C111 C1 C222 C2 C22 THE PHYSICAL DISTRIBUTION EXISTS FROM MANUFACTURER / AUTHORISED DEALER / WHOLESALER/ RETAILER / COSUMER OR END USER. BUT BOTH FOR PHYSICAL & VIRTUAL SUPPLY, FLOW OF MATERIALS, INFORMATION, CASH FLOW….,COST/TIME EFFECTIVE LOGISTICS MANAGEMENT BECOMES THE RIGHT SOLUTION…. MANDATORY AND INEVITABLE… BOTH FOR GLOBAL AND INDIGENIOUS MARKET. MFG CUSTOMER Cn Cnnn Cnn

6. IN TOTALITY OF THE SUPPLY CHAIN OTHER KEY-PLAYERS ARE1)TRANSPORTER 2) BANK. BANK C1 S1 CUSTOMER C2 S2 SUPPLIER C3 S3 TRANSPORTER

7. IN TRANSPORTATION i.e. PHYSICAL SUPPLY / PHYSICAL DISTRIBUTION OF MATERIALS i.e. LOAD FLOW MODE ROUTE L F M R MATRIX IS OF IMMENSE IMPORTANCE IN THE CONTEXT OF UNIT LOAD/ MULTI MODE / HUB-SPOKE FLOW. WHILE CONSIDERING THE LOAD IN THE FORWARD DIRECTION RETURN LOAD FROM THE DEPORTING STATION TO BE STRATEGICALLY FRAMED. OUT OF VARIOUS MODES OF TRANSPORTATION A MULTIMODAL TRANSPORTATION INVOLVING MORE THAN ONE MODE OF TRANSPORT INCLUDING THE I.W.T. TO BE CHOSEN.

8. IN THE PRESENT LOGISTICS SCENARIO THE REVERSE LOGISTICS HAS TAKEN A GREAT ROLE FOR REJECTION/ REUSE / RETURN OF EXCESS/ RECYCLE/ REFURBISHING. BENEFITS OBTAINED THROUGH REVERSE LOGISTICS: • REDUCED CYCLE TIME • IMPROVED CUSTOMER SERVICE • REDUCTION OF IN-HOUSE CONGESTION • GROWTH OF GOODWILL BY SUCCESSFUL RETURN MANAGEMENT • VIRTUAL GROWTH OF DIRECT MATERIAL

9. QUESTIONIARE IN REVERSE LOGISTICS: • WHAT IS BEING RETURNED MEDICINE • WHO IS RETURNING IT MEDICAL SHOP • WHY ARE THEY RETURNING LIFE EXPIRY • HOW MUCH DID THEY PAY 90% • WHAT CONDITION IS FOUND DISCOLOURED

10. OTHER TRENDS IN LOGISTICS SOLUTIONS ARE:-THIRD PARTY LOGISTICS SOLUTION: BY ENGAGEMENT OF 3 PL PROVIDERS MOST OF THE TRANSPORT ACTIVITIES HAVE BEEN OUTSOURCED. VALUE ADDITION IN PHYSICAL SUPPLY OR PHYSICAL DISTRIBUTION ENHANCES WITH COST EFFECTIVE TIME EFFECTIVE SOLUTION. F.F.S. PROVIDERS HAS TAKEN UP THIS TASK AS 3PL ORGANISATION .

11. REASONS FOR THIS TREND: • GLOBALISATION OF SOURCING, MANUFACTURING AND DISTRIBUTION. • GLOBAL COMPETITION FOR MORE RESPONSIVENESS, QUICKER RESPONSE TIME, FREQUENT SHIPMENTS. • CORE COMPETANCE AND 100 % RELIABILITY. • RESOURCE CONSTRAINTS

12. FACTORS RELATED TO FREIGHT FORWARDING: • SPEED • DISTANCE • RISK/LIABILITY • FREQUENCY OF SERVICE • LIABILITY TO DAMAGE • NATURE OF COMMODITY • WEIGHT/SIZE OF THE COMMODITY • PACKAGING OF THE COMMODITY • RETURN FREIGHT

13. MODERN CONCEPT AND APPROACH BY F.F.S. PROVIDERS: • WEB BASED TRACKING SYSTEM. • COMPREHENSIVE GLOBAL TRANSPORTATION AND LOGISTICS SOLUTION. • OCEAN FREIGHT FORWARDING AND GROUND TRANSPOT LOGISTICS. • AIR FREIGHT SOLUTION. • C.H.A.’S JOB. • INTERNATIONAL TRADE DOCUMENTATION AND LICENCING. • OPENING L/C. • VISIBILITY SOLUTION. • ON LINE TRACKING / RFID. • LIASON WITH BANK. • ASSISTANCE IN CLAIM REFUND FOR EXCESS DUTY PAID. • FORMALITIES FOR BONDED WARE HOUSE AND THEIR W.I.S. SOLUTIONS.

14. 4 P.L. PROVIDERS THEY CAN BE DESCRIBED AS COMPLETE OUT-SOURCING OF LOGISTICS FUNCTION HAVING EXPERTISE TO RESOURCE MANAGEMENT AND VALUE DELIVERY PROCESS AND TECHNOLOGY. THEY DO NOT COMPETE WITH 3 P.L. ORGANISATIONS. THEY DO NOT OWN ASSETS FOR TRANSPORTATION AND WARE-HOUSING BUT LEVERAGE THE SOLUTION CREATED BY 3P.L. PROVIDERS AS TO MAKE BEST IN CLASS IN GLOBAL MARKETING.

15. SOME OF THE SERVICE PROVIDED BY 4 P.L. ORGANISATION AS LEAD LOGISTICS PROVIDER/ SOLUTION INTEGRATOR/ INDUSTRY INNOVATOR ARE: • FREIGHT NEGOTIATION WITH 3 P.L.S • FREIGHT CONTRACT MANAGEMENT • TRANSPORT BILLING • CONTINUOUS IMPROVEMENT PROGRAMMES • MANAGEMENT OF A.S.P. • IT SOLUTIONS • RISK MANAGEMENT AND INSURANCE • CASH FLOW MANAGEMENT

16. SUMMARY OF CURRENT LOGISTICS TREND: FUNCTION LOGISTICS IMPLIMENTATION ALL THE KEY PLAYERS IN SCM VIRTUALLY INTERACTS IN A COMMON PROTOCOL. • E D I • REVERSE LOGISTICS REDUCTION IN COSTS ON LOGISTICS AND REDUCTION IN OCCURANCE OF ERRORS, REDUCTION IN TIME WASTE AND INFORMATION SHARING SYSTEM. REVERSE FLOW OF REJECTED/ RECYCLED/ EXCESS STOCK. WARRANTY / REUSE / RECYCLE MANAGEMENT.

17. ON LINE TRACKING SYSTEM. FUNCTION LOGISTICS IMPLIMENTATION W.I.S , i.e. WARE-HOUSE INFORMATION SYSTEM , TRACKING, WARE-HOUSING INTEGRETATION. REDUCTION OF COST BY “PAY AS YOU USE” CONCEPT. CONNECTIVITY FROM SUPPLIERS SUPPLIER TO CUSTOMER BY MAKING P.S./P.D. • I.T. SOLUTIONS • SHARED FACILITIES • 3 P.L. VALUE ADDED SERVICE UNDER ONE ROOF. INTEGRATED GLOBAL POINT TO POINT TRANSFER OF CONSIGNMENT.

18. ORGANISATIONS FOR COMPLETE LOGISTICS OUTSOURCING. FUNCTION LOGISTICS IMPLIMENTATION • 4 P.L. • V.M.I. SOLUTIONS • MERGE-IN-TRANSIT IMPROVEMENT IN THE TOTAL SCM SOLUTION. SHARING OF RESPONSIBILITY FOR STOCK POSITION AT LOGISTICS HUB. VALUE ADDED SERVICE POSSIBLE. ELIMINATION OF MULTIPLE DELIVERIES. REDUCTION IN STOCKING POINTS. OUTSOURCED INVENTORY MANAGEMENT. CUSTOMISED SOLUTION.

19. SOME INTERNATIONAL ISSUES: • UNSTABLE OIL PRICE. • WTO RELATED ISSUES BETWEEN MOST POWERFUL, POWERFUL AND DEVELOPING COUNTRIES. • INCREASING SEA PIRACY IN AFRICA AND SOUTH AMERICAN REGIONS. • GAS SUPPLIES TO EUROPE FROM UKRAINE. • IRAN – PAKISTAN – INDIA 7600 KM PIPE-LINE. • COMMERCIAL RUN OF TRANSASIAN RAILWAYS OF 80000 KM CONNECTING MAJOR PORTS.

20. THANK YOU.