{"id":102857,"date":"2021-01-18T16:04:08","date_gmt":"2021-01-18T10:34:08","guid":{"rendered":"https:\/\/www.vskills.in\/certification\/tutorial\/?page_id=102857"},"modified":"2024-04-12T14:25:13","modified_gmt":"2024-04-12T08:55:13","slug":"elements-of-logistics-3","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/elements-of-logistics-3\/","title":{"rendered":"Elements of Logistics"},"content":{"rendered":"\n<p>Logistics management consists of eight elements called wings of logistics. These are<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Customer Order Processing<\/h3>\n\n\n\n<p>Flow of Actions<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Filling up the order form<\/li><li>Deciding the specifications of the product<\/li><li>Deciding the quality check list of the product<\/li><li>Deciding the delivery schedule<\/li><li>Deciding the location of delivery<\/li><\/ul>\n\n\n\n<p>Important Factors<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Cost of order processing<\/li><li>whether the company is capable of producing a component<\/li><li>Detailed list of specifications<\/li><\/ul>\n\n\n\n<p>Techniques<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Electronic data Interchange (EDI)<\/li><li>E-ERP or CPFR<\/li><li>Web portal<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Location Analysis<\/h3>\n\n\n\n<p>Flow of Actions<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Cost of transportation of raw materials and finished goods<\/li><li>Proximity to suppliers<\/li><li>Proximity to customers<\/li><li>Availability and type of land<\/li><li>Availability of secondary resources<\/li><li>Availability of desired manpower at affordable cost<\/li><li>Communal harmony<\/li><li>Governmental regulation and taxation<\/li><\/ul>\n\n\n\n<p>Important Factors<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Cost of operations as a percentage of sales<\/li><li>Shelf life of product<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Inventory Control<\/h3>\n\n\n\n<p>Flow of Actions<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>On hand inventory analysis<\/li><li>Communicating the quantity, quality and timing of material with the supply points.<\/li><li>Getting the material of right quality, quantity and at right time<\/li><\/ul>\n\n\n\n<p>Important Factors<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Inventory control at planning stage<\/li><li>Lead time<\/li><li>Cost vs. importance of raw material<\/li><\/ul>\n\n\n\n<p>Techniques<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>DRP and replenishment order control<\/li><li>Fixed order interval system<\/li><li>Economic order quantity with ROP system<\/li><li>Selective inventory control (ABC, VED, FSN analysis etc.)<\/li><li>Order forecasting using statistical tools<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Material Handling<\/h3>\n\n\n\n<p>Flow of Actions<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Type of material (Business significance like raw material, finished goods etc.)<\/li><li>Material handling requirements of the material (Fragile, inflammable)<\/li><li>Cost ratio of material handling to material cost.<\/li><li>Material default location, identification and traceability<\/li><\/ul>\n\n\n\n<p>Important Factors<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Material breakage<\/li><li>Pilferage<\/li><li>Cost of material handling<\/li><li>Number of handlings<\/li><\/ul>\n\n\n\n<p>Techniques<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Operational research<\/li><li>Material flow analysis<\/li><li>Computerized material retrieval system<\/li><li>ASRS (Advanced Storage &amp; Retrieval System)<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Packaging<\/h3>\n\n\n\n<p>Flow of Actions<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Packaging requirement for the material (Refrigeration, Fragile etc.)<\/li><li>Primary packaging<\/li><li>Secondary packaging<\/li><li>Cost of packaging<\/li><li>Transportation requirement for packaging (Vibration proof, water or moisture tight)<\/li><\/ul>\n\n\n\n<p>Important Factors<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Protection to product<\/li><li>Holding the product<\/li><li>Communicating the message to customers<\/li><li>Customer requirement for packaging<\/li><li>Reverse logistics for packaging<\/li><li>Recycling of packaging material<\/li><li>Cost of packaging<\/li><\/ul>\n\n\n\n<p>Techniques<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Standardized box packaging<\/li><li>Containerization of packaging<\/li><li>Direct part marking<\/li><li>ISO 14001<\/li><li>Recycling of packaging materials<\/li><li>Reusable packaging materials<\/li><li>Eco-friendly packaging materials<\/li><li>Bar coding<\/li><li>Bumpy bar coding<\/li><li>GPS tracking system<\/li><li>RFID<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Transportation<\/h3>\n\n\n\n<p>Flow of Actions<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Mode of transportation<\/li><li>Cost of product<\/li><li>Speed of transportation<\/li><li>Ambience requirement of material (Refrigeration, Vacuum)<\/li><li>Cost of transportation<\/li><li>Urgency of the product to customers<\/li><\/ul>\n\n\n\n<p>Important Factors<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Urgency of the product<\/li><li>Cost of product<\/li><li>Cost of transportation<\/li><\/ul>\n\n\n\n<p>Techniques<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Containerized transportation<\/li><li>Cool Chain Transport (Refrigerated Vans\/Containers)<\/li><li>Multi-modal Logistics<\/li><li>Milk Run Distribution systems<\/li><li>Cross Docking<\/li><li>Direct Shipment<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Warehousing<\/h3>\n\n\n\n<p>Flow of Actions<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Location of the warehouse<\/li><li>Inventory level at the warehouse<\/li><li>Storage requirement of the product<\/li><li>Packaging and repackaging requirement of the product<\/li><li>Shelf life of the product<\/li><\/ul>\n\n\n\n<p>Important Factors<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Availability of space<\/li><li>Availability of proper material handling systems<\/li><li>Strategic location<\/li><li>Packing and Re-packing facilities<\/li><li>Information and allied services<\/li><\/ul>\n\n\n\n<p>Techniques<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Third Party Logistics<\/li><li>Third party Warehousing<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Customer Service<\/h3>\n\n\n\n<p>Flow of Actions<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Contractual services offered to client<\/li><li>Type of customer service required for the product<\/li><li>Location of the service centre<\/li><li>Service level at the service centre<\/li><li>Cost of service vs. replacement<\/li><\/ul>\n\n\n\n<p>Important Factors<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Contractual requirement of customer service<\/li><li>Service quality<\/li><li>Reverse logistics<\/li><\/ul>\n\n\n\n<p>Techniques<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>AMC (Annual Maintenance Contracts) and free replacements<\/li><li>Limited (free) trial period<\/li><li>Guarantee &amp; warranty<\/li><li>User clubs<\/li><li>Help lines, toll free number, call centers<\/li><li>CRM<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Logistics management consists of eight elements called wings of logistics. These are Customer Order Processing Flow of Actions Filling up the order form Deciding the specifications of the product Deciding the quality check list of the product Deciding the delivery schedule Deciding the location of delivery Important Factors Cost of order processing whether the company&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-102857","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Elements of Logistics - Tutorial<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vskills.in\/certification\/tutorial\/elements-of-logistics-3\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Elements of Logistics - Tutorial\" \/>\n<meta property=\"og:description\" content=\"Logistics management consists of eight elements called wings of logistics. 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