Literature Survey Third Party Logisitcs Logistics ,though looks simple at first look, is a complex operation and requires detailed planning, it has many facets which during cursory look get ignored. Logistics for an organization consists of inbound logistics and outbound logistics which then gets bifurcated as following: • Procurement Logistics • Distribution Logistics • After Sales Logistics • Disposal Logistics • Production Logistics Diving further into the facets of logistics, following figure shows how logistics is seen by various stakeholders of the process: Figure 1 Faces of Logistics This facets of logistics help to understand how different stakeholders view Logistics in terms of their operations or working. Based on their views on
The modern word logistics has two meanings, one being the original "to reason mathematically"; the second is the military term (now used in civilian practice as well). The term "logistics" is used to mean different things in different contexts. It has been given many definitions, all of which include the same basic concern. It can be defined as the acquisition of, or construction, maintenance, operation and disposition of facilities . According to the Canadian Association of Logistics Management, it is the process of planning, implementing, and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of meeting customer requirements.
Supply chain Management Professionals stated that logistics management is supply chain management program to achieve part and controls to meet the efficiently and effectively to bring forward and converse flow of goods, services and storage needs of customers between the point of basis and the point of consumption and related material. In order to create plans for executing logistics activities which mainly at operational level, quantitative logistics management consist of activities such as inventory management, routing, and production planning necessary. The value of these plans will represent, because they improve logistics activities, they often result in cost savings or other positive effects of the implementation. Logistic planning which is a core activity in most quantitative logistics management activities. With this, logistics of the logistics planning is necessary to obtain the relevant information and the ability to convert this information into a smart plan.
Rodrigues et al. (2005) stated that logistics is one of the largest costs involved in international trade. Logistics costs incurred in supporting global operations and penetrating global markets can be significant and can offset the benefits of global economies of scale (Fawcett &Clinton 1997). Proper logistics management will eventually help reducing and eliminating unnecessary cost within the supply chain. Another essential factor of logistics management is the seamless performance of multinationals worldwide.
It is physical movement of goods. Transportation has an important role in the supply chain and it can amount to high costs. The logistic managers need to choose the most effective combination of transport to improve value to the company and customers. The forms of transportation are: Pipeline, sea, railway, air, etc. 2-Warehousing and storage: Warehousing are the activities of storing, receiving shipping materials for production and distribution centers.
In this fast moving world, logistics is a also key element of competitiveness in different industries. Logistics is a process to deliver product from one place to other place. It covers all the main factor of an industry included raw material delivery to final product delivery, supplier to production house, production house to warehouse, and warehouse to distribution center to customer. It also involves time frame period, deliver the product at right place at right time also important in logistics. Using of different strategies in logistics also becomes beneficent for
The importance of inventory savings depends on the magnitude of both the quantity reduction and the cost reduction. At what level of detail is the particular system used? Is the logistics budget a separate component within the overall organisation budget? At what level of detail is the logistics budget? Figure 3.1: Various type of costs in the logistics departments Source: Compiled by research Logistics department have its own separate and distinct budget or is the budget included as part of the budget of another discipline (e.g.
It is important to note that information plays a very crucial role in an effective supply chain integration process. The nature of supply chain integration The nature of supply chain integration is disseminated into four primary models namely: The cross-functional process integration, backward integration with valued first-tier suppliers, forward integration with valued first-tier customers and the complete forward and backward integration. Internal, cross-functional integration process Internal, cross-functional process integration identified as the most important of supply chain integration according to Fawcett & Mangan (2002). This integration process covers the activities within the organization that ends with the provision of goods to the customer. It also involves multiple functional areas in the company such as marketing and sales, production and manufacturing, and logistics unit to fulfill its
When all is said in done, this writing can be for the most part arranged as per distinctive center region. Some of these center zones incorporate logistics hones, use of 3pl & 4pl logistics administrations, current state and future patterns, systems and execution estimations. Windle et al., (2008) advances see about logistics outsourcing profits and issues as, "to completely tap these the profits of outsourced logistics, firms must deal with the negative results of long supply chains; strikingly, the expanded danger of interruptions from work strikes, accomplice disappointments, common catastrophes, wars, and terrorist assaults, in addition to different occasions". Pakistan is a creating nation and such circumstances can be seen in news, where a future measurement for logistics outsourcing can be completed in such circumstances. Gourdin, (2006) portrayed "Operational outsourcing" is the ticket of making logistics transactions without having any long haul contracts furthermore with no bouncing with Logistics administration suppliers (LSP).