Contents Preface vii Acknowledgements xi PART 1 INTRODUCTION 1 Overview of Logistics 3 1.1Introduction 5 1.2 Nature and Concepts 6 1.3 Evolution of the Logistics Concept 8 1.4Logistical Mission and Strategic Issues 14 1.5Logistics in India 16 1.6Growing Importance of Logistics Management 18 1.7Logistical Competitive Advantage 21 1.8 Strategic Logistics Planning Process 24 1.9Operational Objectives 27 1.10 Components of Logistics Management 30 1.11 Functions of Logistics Management 33 1.12 Integrated Logistics System 37 1.13 Total Cost Analysis and Trade-off 38 1.14 Summary 41 Questions for Review 42 2 Supply Chain Management 45 2.1Introduction 46 2.2 Nature and Concept 47 2.3 Value Chain 49 2.4 Functions and Contributions 52 2.5Supply Chain Effectiveness and Indian Infrastructure 54 2.6Framework for Supply Chain Solution 57 2.7 Outsourcing and 3PLs 58 2.8Fourth-party Logistics (4PLs) 64 2.9Bullwhip Effect and Supply Chain 66 2.10 Supply Chain Relationships 68 2.11 Conflict Resolution Strategies for Harmonious Relationships 70 2.12 Towards Harmonious Relationships 73 2.13 Summary 77 Questions for Review 78 3Customer Service 80 3.1 Introduction 81 3.2Nature and Concept 82 3.3Changing Environment and the Importance 83 3.4Components 87 3.5Customer Service Costs 91 3.6 Gaps Analysis for Customer Service Measurement 93 3.7Customer Service Strategic Management 96 3.8 Impediments to an Effective Customer Service Strategy 102 3.9 Summary 102 Questions for Review 103 PART 2 ELEMENTS OF L&SCM 4 Information 107 4.1 Introduction 108 4.2 Positioning of Information in Logistics and Supply Chain Management 109 4.3 Logistical Information System (LIS) 114 4.4 Operational Logistical Information System 117 4.5 Integrated Information Technology (IT) Solution for Logistics and Supply Chain Management 119 4.6 Emerging Technologies in Logistics and Supply Chain Management 130 4.7 Summary 132 Questions for Review 132 5Demand Forecasting 134 5.1 Introduction 135 5.2Nature and Components 135 5.3Impact of Forecasts on Logistics and Supply Chain Management 138 5.4 Effective Forecasting Process 139 5.5 Forecasting Techniques 142 5.6 Selecting the Appropriate Forecasting Technique 146 5.7Operating Principles of Demand Forecasting 148 5.8 Summary 150 Questions for Review 151 6 Inventory 152 6.1 Introduction 153 6.2Concept 153 6.3Types 154 6.4 Functions of Inventory in Logistics and Supply Chain Management 155 6.5 Elements of Inventory Costs 158 6.6 Inventory Management 161 6.7ABC Analysis 167 6.8ABC-VED Matrix 169 6.9 Material Requirement Planning (MRP) Equation 170 6.10 Distribution Requirement Planning (DRP) 175 6.11 Just-in-Time System 179 6.12 Prerequisites of JIT System 190 6.13 Summary - 192 Questions for Review 192 7 Warehousing and Distribution Centres 194 7.1Introduction 195 7.2 Concepts of Warehousing 195 7.3 Types of Warehouse 197 7.4Functions of Warehousing 200 7.5 Warehousing Strategy 203 7.6 Warehouse Design 208 7.7 Operational Mechanism of Warehouse 210 7.8Summary 214 Questions for Review 214 8 Transportation 216 8.1Introduction 217 8.2 Position of Transportation in Logistics and Supply Chain Management 218 8.3Elements of Transportation Cost 221 8.4Modes 224 8.5Multi-modal Transport227 8.6Containerization 229 8.7 Selection of Transportation Mode 230 8.8Indian Transport Infrastructure Bottleneck 231 8.9 Transportation Decision (Pricing and Rate) 235 8.10 Transportation Network (Routing and Scheduling) 240 8.11 Summary 244 Questions for Review 244 9 Protective Packaging 246 9.1Introduction 246 9.2Concept 246 9.3Logistical Functions 247 9.4Forms of Protective Packaging 250 9.5Protective Packaging Problems 253 9.6Packaging Policy 254 9.7Summary 256 Questions for Review 257 10 Order Processing 258 10.1 Introduction 259 10.2 Concept 259 10.3 Functions 260 10.4 Elements of Order Processing Cost 263 10.5 Significance 263 10.6 Summary 270 Questions for Review 270 11 Materials Handling 271 11.1 Introduction 271 11.2 Concept and Objective 272 11.3 Principles 273 11.4 Equipments 274 11.5 Basic Materials Handling Considerations 277 11.6 Summary 279 Questions for Review 279 12Purchasing and Sourcing Management 281 12.1 Introduction 282 12.2 Nature and Scope 283 12.3 Importance of Purchasing 284 12.4 Purchasing Process Trends for Improved Productivity 287 12.5 Contemporary Sourcing and Supplier Management 289 12.6 Summary 293 Questions for Review 293 PART 3 LOGISTICS ADMINISTRATION 13 Organization 297 13.1 Introduction 297 13.2 Evolutionary Trends of Logistics and Supply Chain Organization 298 13.3 Basic Organization Principles 302 13.4 Factors Influencing Organizational Structure 303 13.5 Summary 305 Questions for Review 306 14 Performance Measurement 307 14.1 Introduction 308 14.2 Dimensions 308 14.3 Basic Tools 315 14.4 Impediments to Improved Performance 319 14.5 Summary 321 Questions for Review 321 PART 4 CASE STUDIES Case 1: Care and Concern 325 Case 2: Integrated L&SCM 327 Case 3: Reseller Service Standard in the Automobile Industry 329 Case 4: Cutting-Edge Customer Service336 Case 5: Warehouse Efficiency 338 Case 6: Vendors are the King Maker 340 Case 7: Where is My Profit? 343 Bibliography 347 Index 349