UNIT - 1: LOGISTICS

STRUCTURE

1.1 Learning Objectives

1.2 Introduction

1.3 Evolution

1.3.1 Development

1.3.2 Objectives

1.3.3 Role

1.4 Objectives of Logistics

1.5 The role of Logistics in a Developing Economy

1.6 Logistics Management

1.6.1 Components

1.6.2 Functions

1.7 Logistics And Competitive Performance

1.8 Distribution related Issues and Challenges

1.9 Physical Distribution Management

1.9.1 Components of PDM

1.9.2 Transportation

1.9.3 Functions

1.9.4 Costs

1.9.5 Mode
 1.9.6 Network and Decision

1.9.7 Long term

1.9.8 Lane Operation

1.9.9 Modes of Carrier

1.9.10 Dock Level Operation

1.10 Network and Decision

1.11 Containerisation

1.12 Summary

1.13 Self Assessment Questions

1.14 Suggested Readings

1.1 LEARNING OBJECTIVES

After studying this unit, you will be able to:

Learn SCM (Supply Chain Management).

Comprehend the evolution of logistics and its economic significance.

Identify PDM (Physical Distribution Management) and its elements.

Apply logistics and utilise competitive performance.

Analyse the objectives and role of SCM.

1.2 INTRODUCTION

Logistics is commonly regarded as a differentiator in terms of a traditional "hard and tangible

goods" organisation's final bottom line, allowing for either reduced costs or better prices.
Although reduced cost is mostly a one-time feel-good aspect and has long been the subject of
logistics, high value enters the image far later and maybe real or intangible in the early stages
of a product. So, although a business may tend to be pricey at first sight, the outstanding
customer support offered as a consequence of solid policies is a benefit that more than
compensates for the marginally higher price.

Logistics is associated with both the movement of goods and the flow of knowledge.
Although goods move from producer to customer, knowledge moves in the opposite
direction. Customer reaction is used in the scope of logistics, which includes not just product
and resource management. Logistics can be thought of as a connection between a company's
production and marketing activities. Traditional companies used to think about them
independently, but because of their interdependence and feedback mechanism, combining the
two provides considerable benefit.

When the amount of partners in a supply chain grows, the amount of teamwork needed to
reduce total expense for the end user becomes more difficult to accomplish, as increasingly
efficient distribution of inventory and knowledge is required for optimisation.

The following diverse functional fields are covered by logistics: network architecture,
storage, and inventory control. Manufacturing plants, factories, and malls, for example, are
all facilities that play an important role in network architecture. Transportation: the form and
style of goods movement, as well as inventory, are dictated by the cost and quality
(reliability) expected by the transportation network. To stop "load-outs," buffer (or safety)
stock is a contingency stock kept to protect against scarcity or sudden surges in demand.
Fewer inventories and fewer stock-outs are the hallmarks of a well-functioning logistics
operation.

The amount of materials that are transported in an organisation is considerable. In an

organisation, raw products come from manufacturers and are sent to consumers. Since the
execution of this initiative is done by logistics, it is ensured that it will be implemented
precisely as expected. Logistics refers to the movement of physical goods (e.g., raw
materials) to consumers, but often intangible (e.g., a finished product). Continuing from this
description, we will have an example of a supply chain. A supply chain comprises a number
of interconnected operations that take place from the beginning to end, where goods flow
from vendors to the consumers. Each product has its own supply chain. Different
terminologies are used to describe the chain of operations and organisations: whether the
focus is on activities, it is referred to as processes; if the focus is on adding value, we use the
generic concept value-chain term, i.e., supply chain. This unit will provide you with an
introduction to the concepts of a supply chain.

1.3 EVOLUTION

Now that we know what exactly Business Communication means, the need for business
communication, and how its implementation will benefit the business house can be clearly
understood. Even a few years back, the sources for business communication were scanty. In
recent days, business communication has become essential but there are various ways to
become more manageable, more accessible, and more approachable. Today's world of
business cannot take a step forward without the help of business communication. Effective
communication makes the company efficient.

Source: transportgeography

Figure 1.1: Evolution of SCM

1.3.1 Development
The evolution of logistics in the 1990s may be traced back to the 1970s, where there was
little cooperation between the different roles of an organisation, and each was dedicated to
achieving its own objective. In the 1980s, this myopic method gave way to "integrated
logistic management," which called for the convergence of different roles to accomplish a
system-wide goal. Supply Chain Management (SCM) broadens this reach by integrating
vendors and consumers into the enterprise and managing the transfer of products and
knowledge from raw material procurement to finished product use.

The right thing, in the right quantities and consistency, in the right position at the right
moment, for the right consumer at the right cost is what logistics is all about. Suppliers,
retailers, and end customers make up the logistic network. The aim of an interconnected
logistic network in a supply chain is to meet consumer orders by offering a location where
goods and services can be delivered to end-users. A supply chain's position utility is
accomplished by handling a variety of main roles. Among the tasks are:

Regulation of demand

Inventory monitoring

Transportation

Stockpiling

Processing of orders

Management of Knowledge

Supply chain cooperation depends strongly on logistics. Improving production in this sector
helps supply chains to greatly improve their productivity and contribute to creativity in a
variety of ways. A significant task in this context is to identify processes and techniques that
allow all forms of performance management in logistics and supply chains for better
customer fulfilment.

1.3.2 Objectives
1. Cost-cutting and Profit-Maximising

Logistics administration reduces costs and increases profits, owing to the following factors:

Material management has changed.

Transportation that is secure, fast, and cost-effective.

Warehouses, for example, can have the highest number and be situated in a suitable
location.
2. Manufacturing Processes with a Smooth Flow

Due to on-time distribution of supplies, proper use of materials, and semi-finished items in
the manufacturing phase, among other factors, inbound logistics aids in the efficient running
of manufacturing activities.

3. Strategic edge

By increasing revenue by improved customer experience, logistics include, sustain, and

sharpen an enterprise's competitive advantage.

Organising a timely and dependable distribution

Avoiding order handling failures, and so forth.

4. Communication System That Succeeds

For successful logistics management, an effective information system is needed. As a result,

logistics management aids in the creation of an integrated coordination mechanism that
allows for constant interaction with vendors as well as quick responses to consumer
inquiries.

5. Inventory strategy that operates

Logistics administration creates effective resource management as a side effect. How to

maintain sound resource control is a big headache for supply management, financial
management, and other departments; this headache is alleviated by logistics management.

1.3.3 Role
Logistics has a number of roles. Sales logistics, which transports goods from the
manufacturer to the customer, is the most well-known function in logistics. Depending on the
sector, logistics may be divided into four different positions in addition to distribution
logistics. Procurement logistics, development logistics, recovery logistics, and recycling
logistics are the four groups.

Transportation/delivery, shipping, packing, freight handling, distribution management, and

information retrieval are all functions of transportation, and several processes have been
placed in order to bring goods from the manufacturer or manufacturing site to the customer
efficiently and on schedule.
1.4 OBJECTIVES OF LOGISTICS

The main objective of logistics management is to transfer products quickly and reliably
across a supply chain in order to optimal quality customer support at the lowest possible
expense, which is achieved in tandem with waste management.

Source: SCM Wizard

Figure 1.2: Objectives of Logistics

1. Reduction of Inventory

Inventory is the number one factor that has a negative impact on the bottom line of a
company's logistics management goals. Stock is an asset from a financial accounting
perspective because even though stocked in excess quantities, it should not result in any
significant downside.

Traditionally, companies have retained a surplus of inventory in order to offer outstanding

customer support.
Stock, on the other hand, as a commodity, necessitates a financial commitment to obtain. The
assets deposited have been frozen and cannot be used for anything else.

Furthermore, there is a capital expenditure involved. To adhere to the logistics management

goals, the carrying expense would be equal to the interest on the funds at the existing bank
funding rates. The enterprise gains would be depleted by the carrying expense.

As a result, the price target aim can be met by making limited yet regular deliveries.
Transportation costs would be significantly smaller than product carrying costs, resulting in
greater profit margins.

2. Deliveries that are reliable and consistent

For the consumer to retain his development plan, on-time performance is important. The
client is not involved in receiving the material sooner than the manufacturing plan allows.
This is a field where there is a lot of variation.

However, through properly managing transportation types and inventory supply, as well as
providing a variety of components, the volatility may be minimised.

Consistency of delivery results can be another priority of logistics management; this would
help develop consumer trust and contribute to a long-term partnership.

3. Economy of Freight

Freight is a big part of transportation prices. Measures including freight aggregation, mode
collection, path preparation, load unitising, and long-distance shipping may help minimise
this.

4. Material loss is kept to a minimum

The cost of logistics is increased by-product disruption. Improper logistical packing, regular
consignment handling, the absence of load unitising, and other factors contribute to product
loss.

Product loss will be reduced, and logistics control goals will be met by the use of mechanised
material processing equipment, load unitisation, and adequate logistical packing.

5. Timely response
This refers to a company's willingness to provide support to a client in the shortest period
possible. The use of cutting-edge technology in information production and communications
would improve decision-making accuracy and speed, allowing the company to be more agile
in meeting consumer demands in terms of volume and variety in the shortest period possible,
and thereby meet logistics management goals as well.

Smaller orders, for example, may be shipped quickly at the point of consumption. This would
also help you better track your time.

1.5 THE ROLE OF LOGISTICS IN A DEVELOPING ECONOMY

In today's world, logistics is both art and technology. It has the following significance:

1. Support for trade and industry on a basic level

Today, commerce and industry cannot survive without a well-functioning logistics

infrastructure. Without effective logistics, the business community will be paralysed.
Inventory management, stock distribution, warehousing, shipping, packing, and other
logistics roles are critical for any form of trading or industrial operation.

2. Advantage in the industry

In contrast to rivals, comparative advantage applies to gaining advantages as a consequence

of better results. Logistical roles provide businesses with a strategic edge by ensuring timely
service to consumers and thereby increasing market value.

3. Supports Customer Satisfaction

Any consumer has basic demands from vendors, which involve on-time delivery, higher
quality, and a fair price. Both of these consumer needs will be fulfilled with the correct
logistics blend. Consumer loyalty is achieved as customer needs are fulfilled. Customer
loyalty is inversely proportional to customer retention.

4. Increased revenues

Perfectly prepared and conducted logistics operations assist in the prompt supply of products
to consumers. With no delays in order preparation and shipping, no damage in transit, and
reduced prices, manufacturers' corporate reputation improves. All of this leads to a boost in
sales for the business.
 5. Logistical functions are integrated

Unlike the conventional pattern of isolated operations, logistical activities are now carried
out in an interconnected fashion. Integration helps to reduce overarching logistical expenses
while still increasing market productivity.

6. Supports other company roles

Logistical operations serve as a support tool for other important market activities. It
collaborates with other departments such as communications, logistics, and finance. If
marketing generates interest, logistics ensure that demand is met. Manufacturing strategy and
logistics are two operations that go hand in hand.

7. Inventory control that is efficient

Controlling and maintaining inventory is important in order to maintain net expenses under
control. Resource control is associated with holding inventory levels at the correct levels
such that neither understocking nor overstocking exists. To meet the needs of customers, a
sufficient stock amount must be retained.

8. Cost-cutting

Stock carrying costs, shipping costs, warehousing costs, material processing costs, and so on
will all be minimised for an appropriate logistics method. As a consequence, net goods prices
are reduced.

9. During periods of battle

Military organisations are responsible for logistics origin. During a battle, a good logistics
combination is essential, particularly when it comes to moving military forces and other
materials. A lot of ancient battles, such as those between the Peshwas and the Moghuls, have
been fought thanks to successful logistics policy. More cases include the airlift of Indians
during the Iraq and Kuwait war in 1993, the Berlin Airlift of 1945, and the American war of
liberation.

Logistics play an important part in the economy in two respects. First and foremost, logistics
is one of the most significant industry expenses. The logistics budget accounts for around
15% to 20% of GDP. As a result, logistics contribute significantly to the economy as a whole
by can productivity.

Second, logistics allows the transfer and flow of many commercial transactions; it is a vital
operation in the selling of nearly all products and services. View this position from a
machine perspective: if supplies do not deliver on schedule, customers would be unable to
purchase them. There will be no selling if the items do not arrive in the correct location or
condition. As a result, all commercial processes in the supply chain would suffer.

The creation of utility is one of the most fundamental aspects that logistics adds value to. In
terms of economics, utility refers to the importance or usefulness of an object or service in
satisfying a need or necessity. Type, Possession, Time, and Place are the four categories of
utilities. The method of making a product by service or placing it in the right shape for a
consumer to use is known as form usefulness. Possession utility brings value to a good or
service by encouraging the user to take tangible possession of it, such as payment deals and
loans. These two services aren't explicitly linked to logistics, but they can't exist without
delivering the right item for consumption or manufacturing to the right location at the right
moment, in the right condition, and at the right price. Logistics are inextricably linked to the
utility of time and location. The benefit added by getting an object when it is required is
known as time usefulness. The object or service that is accessible where it is required is
known as place utility. The five logistics privileges are the essence of the two logistics
utilities: time and position utility.

1.6 LOGISTICS MANAGEMENT

Logistics management is a supply chain management component that is used to satisfy

consumer demands by effectively moving and storing relevant information, products, and
resources from the point of origin to the point of destination.

Logistics administration assists enterprises in lowering prices and enhancing customer

support. The transportation management process starts with the gathering of raw materials
and concludes with the shipping of goods to their ultimate destination.
Source: Fr8War

Figure 1.

Logistics management makes process strategy, organising, and execution easier when
adhering to consumer demands and market requirements.

Logistics administration entails a number of considerations, including:

Choosing ideal vendors that are willing to offer transportation services

Choosing the most effective transit routes

Identifying the most capable distribution system

Managing similar processes with the aid of software and IT tools

Unwise choices in logistics management cause a slew of problems. Buyer disappointment is

a product of failed or overdue orders, for example. Another possible problem is the product
damage caused by reckless transportation. Poor logistics preparation raises costs over time,
and problems can occur as a result of the use of inadequate logistics tools. The majority of
these issues arise as a result of poor outsourcing choices, such as choosing the incorrect
provider or performing distribution activities with insufficient capital.
Organisations should adopt the best logistic operations methods to address these problems.
Instead of competing, businesses should concentrate on collaborating. Collaboration between
transportation carriers, customers, and vendors will help cut costs. A reliable and secure
mode of transportation is often critical to a company's growth.

1.6.1 Components
Logistics administration entails a large network of persons and pieces being transported by
land, air, train, or sea. Suppliers, freight shipping companies, packages, sellers, and carriers
are only some of the individuals that may come into touch with a single object. Planning,
inventory control, selecting and loading, documents, and transportation are the major
components of logistics management.

1. Planning is important

Planning is an important part of the logistical phase since it ensures that all operations in the
supply chain are organised. It's used to develop and manage logistics networks. To guarantee
that products get to where they need to go accurately and effectively, a thorough schedule is
needed.

2. Inventory

The inventory amount maintained ensures that consumer needs are met. Stock carrying
expenses are often kept to a low by logistics operators in order to prevent inventory prices
from being too large. Margins suffer because a corporation carries so much inventory in a
commodity, and the company losses revenue.

3. Selection and packaging

Keeping track of all products, supplies, and packing facilities guarantee the shipments are
shipped as scheduled. Many of the components used to ship an order should be coordinated
and a mechanism in place to ensure that the operation runs smoothly.

4. Transport

The most difficult and expensive aspect of the operation is transporting items. From start to
finish, the delivery of products necessitates preparation and assistance. The method does not
stop after a buyer completes a purchase; it lasts until the object is shipped to the end-user.
The shipment method gets much more difficult for foreign shipping because tax codes,
customs approval, and payment methods must all be considered before the items are
delivered.

The shipping aspect has become much more complicated as a result of the e-commerce
industry. E-commerce reportedly generates more than $500 billion in revenue in the United
States, and it shows no signs of slowing down. Customers are becoming more demanding
than ever in getting the goods they ordered as the amount of orders grows, putting additional
pressure on the transportation market.

Shipping will account for more than half of logistics spending, but logistics administrators
must find strategies to transport more efficiently whilst saving money without compromising
quality standards.

5. Obtaining information

Knowledge is continuously flowing in the logistics process. The software allows for constant
real-time alerts of where an order is in the method. The utilisation of data helps those in the
supply chain to maintain track of packages to help control production. As the market gets
increasingly complex, data-driven logistics can only expand as more businesses depend on
algorithms and analytics to make smarter choices to deliver faster and better support to their
end-users.

1.6.2 Functions
Logistics is the method of transporting products across a company's supply chain. However,
this method involves a variety of tasks that must be carefully handled in order for the
organisation's supply chain to be reliable and productive. Here, we'll go through the most
important logistics roles.

Processing Orders

It is an essential role in the logistics processes functions. A buyer's buying order to a seller is
a crucial legal instrument in the contract between the two parties. This paper includes the
product's definition or technological requirements, as well as the price, shipping date,
payment conditions, taxes, and other commercial terms that have been decided upon.
The order or the performance cycle period, which specifies the time when the order is issued
and when the goods are received by the client, is directly related to the processing of this
paper.

The following are the stages in order processing:

Testing for any deviations in agreed-upon or signed conditions is an order

requirement.

Prices, payment options, and distribution schedules are all accessible.

Checking to see if there are any materials in stock.

In the case of a shortfall, output and material scheduling should be changed

accordingly.

Recognising the sequence and noting some anomalies.

Inventory Management

Inventory control entails maintaining sufficient inventories to satisfy consumer demands

while keeping the carrying expense to a minimum.

It's effectively a juggling act of delivering outstanding customer support and preventing
sacrificing market share and the expense of doing so.

Inventory is the worst offender in a company's total supply chain because of the high holding
expense, which cuts into earnings indirectly. Which includes costs such as product finance,
protection, transportation, losses, damages, and pilferage. Depending on the items, the
overall expense of holding inventory each year ranges from 10% to 25% of overall inventory.
Source: Asset Infinity

Figure 1.4: Inventory Management

Stockpiling

The storage of finished items before they are sold is known as warehousing. It is critical to a
company's logistics activities. The success of a company's advertisement is determined by
the right warehousing judgment. In today's environment, warehousing is regarded as a
swapping facility rather than an archive for poor warehousing activities. In logistics,
warehousing is a critical decision environment.

The following are the most important warehousing decisions:

The position of warehousing facilities is significant

Quantity of warehouses

Warehouse Dimensions

Layout of the warehouse

The framework's design

The warehouse's ownership

Transportation

Transportation is the most basic and essential part of logistics for transporting products from
the source to the customer.

When a consumer makes an order, the purchase is not complete before the items are
physically shipped to their house. Various forms of transportation are used to transfer items
physically.

In the case of mass-consumed, very low unit-priced goods, the share of logistics costs ranges
from 65 to 70%.

Firms choose modes of transportation dependent on the country's or region's transportation

system. When selecting a mode of transportation, the most critical thing to remember is the
expense.

However, the urgency of the product at the customer's end will also outweigh the cost factor.
Since products are sent through the quickest mode, which is the most costly option.

System for Material Handling and Storage

Material processing techniques affect the pace at which products travel across the supply
chain. Brand disruption, delivery delays, and incidental overheads increase as a result of
sloppy material handling. Stock processing mechanisation and integration increase the
efficiency of the logistics sector. The amounts to be managed, the pace needed for material
transfer, and the quality of service to be provided to customers are all factors to consider
when choosing a material handling device.

i) For optimum room usage (floor and cubic) in a warehouse of a specified scale, the
storage system is critical.

ii) For fast movement (storage and retrieval) of products in and out of the warehouse, the
material handling system can operate in tandem with the storage system.

Packaging and Logistics

In the physical delivery of a commodity, logistical or industrial packaging is a critical

component that affects the performance of the logistical framework. It's not the same as food
packaging, which is focused around marketing targets.
However, logistical packaging is critical for harm prevention, material management, and
storage room efficiency. In terms of packing expense, load usage has a significant impact on
logistical packaging.

Gathering data

Logistics is a data-driven process that involves moving inventory through a supply chain. As
a consequence, an information infrastructure is crucial in offering better support to
consumers.

The use of IT resources for knowledge recognition, entry, storage, study, retrieval, and
decision support, which are all important aspects of logistics, is assisting businesses in
improving their competitiveness.

1.7 LOGISTICS AND COMPETITIVE PERFORMANCE

Today the logistics department is on the company graphs of several major companies.
Linking logistics operations to an organisation's business strategy will help them achieve a
competitive edge.

Porter employs a tool known as the value chain to divide consumers, suppliers, and
businesses into distinct but interconnected operations from which value is derived. The value
chain principle may be used to define and comprehend unique sources of competitive
advantage, as well as their relationship to buyer value. The price a buyer is able to spend for
an organisation's goods or services is referred to as value. The discrepancy between what the
buyer spends and what it costs the company to have the good or service is called value
added.

Porter describes the five main practices that go into participating in every sector:

1. Inbound logistics

Receiving, preserving, and disseminating input to the product are all activities related to
receiving, storing, and disseminating input to the product.

2. Operation

Transforming feedback into the final product shape is an activity.

 3. Outbound logistics

Collecting, transporting, and physically distributing the product to buyers are also activities
related to collecting, storing, and physically distributing the product to buyers.

4. Sales and Marketing

Advertising, marketing, and other activities related to offering a way for shoppers to
consume the commodity and inducing them to do so.

5. Customer service

Installation, maintenance, and other tasks involved with delivering service to improve and
sustain the reliability of the commodity.

Logistics management may be a significant source of strategic advantage. The capacity of a

company to distinguish itself from its rivals in the eyes of the consumer is one source of
competitive advantage, and the ability to work at a reduced expense and, therefore, at a
higher margin is another. In every competitive situation, there are two foundations for
performance. The first is an expense benefit, and the second is a value advantage. Greater
efficiency provides a cost advantage, whereas a separate bonus over competing products
provides a performance advantage.

Source: Egyankosh
Figure 1.5: Competitive Market

Efficient firms would often aim to obtain a role focused on both an efficiency and a value
benefit, as seen in the matrix.

Logistics management may play a key role in achieving these benefits. In certain sectors,
logistics costs account for such a large percentage of overall costs that completely
reengineering the logistics process will result in considerable cost savings. Companies may
achieve a value benefit by differentiating their offerings. Markets have been increasingly
service-oriented in recent years. Customers in all sectors want vendors to be more receptive
and reliable; they want shorter lead times, just-in-time distribution, and value-added services
that can help them serve their customers better.

Many organisations have traditionally regarded themselves as institutions that operate

independently of others and, in fact, must contend with them to thrive. However, such a
theory will backfire if it contributes to a refusal to collaborate in order to compete. The
philosophy of supply chain convergence lies underneath this apparently contradictory
concept. A company's consumers, vendors, and other channel participants are all linked by
supply chain integration. As a result, their interactions, interactions, roles, procedures, and
positions are all integrated. The aim is to improve SC's efficacy and productivity for the gain
of end users.

The figure depicts a paradigm of supply chain evolution. Integration begins with the
Stage 1. In it a somewhat casual approach to departmental
management. This stage of evolution entails the processing of resource needs as well as
short-term planning routines. Material inventories are merely the product of reactive
management techniques. Employees must be able to react to failure and handle it the best
they can.

The typical form of supplier management is represented in the Stage 2 organisation. The
corporate units have a propensity to work separately. The annual expenditure distribution and
departmental expense management are the primary concerns of the Stage 2 organisation. For
the buying function, this entails using a mechanism of tendering to find the lowest price
swapping of
Source: Egyankosh

Figure 1.6: Supply chain integration

The Stage 3 organisation is far more vertically integrated, with a much higher degree of
involvement in content flow processes from manufacturers to consumers, as opposed to the
earlier two types' "grenade over all" strategy. The facets of the internal supply chain that the
company will manipulate and manage have been implemented.

Simultaneously, preparation processes around the enterprise are merged, and teams of people
that were previously subordinates of different divisions synchronise demand statistics,
development plans, and inventory specifications. Production and inventory flow drive the
whole structure in this company's end-to-end supply chain, and the company employs Just-
in-Time materials management strategies.

The advantages of true supply chain management, as well as the opportunity to synchronise
all operations inside the plant and interface the factory with its vendors and consumers, have
started to be realised by the Stage 4 business. The competitive and participatory internal
environment is applied upstream and downstream under these terms, and supply chain
management preparation is officially recognised. The factory is consumer-centric rather than
product-centric, and it aims to collaborate with key consumers and vendors to best recognise
how to deliver value and customer support. This kind of business has internal improvement
procedures that are encapsulated in medium-term strategies for the business and its supply
chain. The company makes extensive use of computer technology to improve the
organisation's and supply chain's responsiveness in delivering goods, and it has also
established a product creation expertise that requires consumer and supplier participation. To
optimise the nature of teamwork, the company rewards supplier relationships with sole
procurement arrangements in exchange for increased business cooperation and a dedication
to continuous material delivery and relationship management development. The model is
valuable for evaluating the existing condition of the enterprise and assessing where
additional measures are necessary to enhance efficiency.

1.8 DISTRIBUTION RELATED ISSUES AND CHALLENGES

Logistics face a lot of distribution-related issues and challenges that include the cost of fuel,

regulations.

Some of the most significant challenges faced by the logistics management in any
organisation are listed below:

i) Costs of Petrol

concern. Higher gasoline rates are expected to drive up fuel surcharges, will shipping costs
for US shippers this year. Rising diesel fuel prices in India are rising surcharges applied to
freight rates, breaking a two-year pattern that saw truckers' sales and earnings declining as
fuel prices drop.

ii) Weak Company Procedures

Despite the need for modern technologies, keeping up with emerging developments in
business methods has become a rising obstacle for the logistics industry. Although taking
advantage of these new opportunities can sound appealing, integration and onboarding may
be challenging.
iii) Lack of Customer service

Customers demand maximum insight into the state of their distribution at all stages.
Nowadays, a package's position is as intertwined as the social network. In reality, as
customer preferences have risen, so has their willingness to pay for quick delivery, with just
around 64% of customers willing to pay extra for shipping that takes more than two days.

iv) Economy Effects

High fuel prices are accompanied by a worsening financial crunch and increasing inflationary
demands, all of which wreak havoc on the US economy. Increasing enforcement
requirements, weakening demand, and additional capacity with additional rises in key cost
centers put a strain on this sector.

v) Shortage and Retention of Drivers

Despite the lower demand described above, hiring and retention remain a problem.

vi) Government Rules and Regulations

Carriers must comply with a slew of laws levied by federal, state, and local governments.

vii) Concerns about the environment

State and local governments' anti-idling and other pollution control regulations have raised
concerns that the costs of complying could outweigh the benefits.

viii) Technology Implementation & Strategy

Although the market recognises and embraces all of these innovations' advantages, there are
still some concerns over how they can compensate for them and who will help them adopt
them.

1.9 PHYSICAL DISTRIBUTION MANAGEMENT

When an organisation organises a channel or network of intermediaries to assume

responsibility for the management of products as they pass from the manufacturer to the
customer, certain decisions must be made. Each channel participant must be deliberately
chosen, and the organisation must determine the form of partnership it wishes to have with
each of its intermediate partners. Following the establishment of such a network, the
organisation must understand how certain products may be physically transported from the
point of production to the point of use. The aim of physical distribution management
(PDM) is to ensure that the commodity is delivered to the right location at the right time.

PDM is also widely acknowledged as a key component of overall supply chain management.
PDM may benefit from company logistical strategies to minimise expenses and boost
consumer loyalty.

It's futile to save a bunch of money on shipping expenses if profits are missed in the long
term due to consumer frustration. Similarly, providing a quality of service that is not needed
by the consumer but reduces income is not a good business decision. Physical logistics
administrators face a fundamental challenge when it comes to cost/service balancing.

The increasingly competitive existence of the market world is one of the reasons for PDM's
rising significance. It used to be popular for businesses to have vast inventories of raw
materials and parts on hand. While stockholding policies vary widely across industries and
companies, stock levels are now held to a minimum wherever possible. Stock is a waste of
working capital since it does not generate revenue for the firm. To see the logistics method
solely in terms of transportation is a somewhat limited perspective. Physical delivery
management (PDM) deals with the movement of products from the moment an order is
issued before it is shipped to the consumer. PDM entails tight coordination for production
preparation, ordering, order management, inventory control, and warehousing, in addition to
transportation. Both of these areas must be handled in such a way that they work effectively
with one another in order to deliver the quality of support that customers need at a price that
the business can afford.

1.9.1 Components of PDM

Order processing, stock volumes or inventory, warehousing, and transportation are the four
main components of PDM.

1. Processing of Orders

The first of four steps in the logistics phase is order processing. Order delivery reliability has
a strong impact on lead times. Orders are collected by the distribution department from the
sales staff. Many enterprises develop daily supply routes that are reasonably consistent over
time, ensuring that the provider meets their requirements. Contracts are often written up, and
repeat instructions (which are included in the original contract) are placed at various intervals
during the contract duration. And taken to the logical end, this essentially eliminates buying
and results in what is referred to as "partnership procurement."

This is an arrangement between the buyer and vendor to deliver a certain product or service
when and when it is required, rather than having to negotiate a new deal each time an order is
made. Order-processing devices must be able to handle orders efficiently and reliably. Other
divisions in the organisation must be notified as soon as possible that an order has been
made, and the consumer must be notified as soon as possible of the order's receipt and
delivery period. The degree of office productivity is a significant contributor to a company's
reputation even before goods are assembled and marketed. The unrecognised cause of ill will
between buyers and sellers is always incorrect "paperwork" and sluggish responses by the
sales office. When customers evaluate their vendors, order handling reliability is a key
element in their decision. Stock levels and shipping plans should be automatically modified
with a decent computer system for order fulfillment, enabling management to easily get an
accurate image of the sales situation. Order processing processes that are optimised to reduce
the order processing time, as well as precision, are valuable targets.

2. Inventory

Inventory management, also known as stock management, is an important aspect of PDM

since stock levels have a significant impact on service levels and consumer loyalty. The best
stock amount is determined by the sort of industry in which the business exists. Few
businesses will claim to never run out of inventory, but if this happens often, market share
would be lost to more competitive rivals. Identifying the reorder stage is crucial. Carrying
stock below the reorder point can result in a stock-out while retaining unsustainable stock
levels is wasteful and costly. Stocks are opportunity costs that arise as a result of the
company's scarce capital being constantly competed over. If the company's promotion policy
necessitates retaining elevated stock prices, this can be justified by a sales share that
outweighs the increased stock carrying costs.

3. Stockpiling
Many firms have their own on-site stores, from which products can be shipped directly to
consumers. When a company sells products that are purchased on a daily basis but in limited
numbers, strategically placed warehouses around the nation make sense. Transportation in
bulk from the point of production to respective warehouses, where supplies await further
shipment to consumers, is possible. Huge supermarket stores use this method, with the
exception that distribution professionals own and run the warehouses and transportation for
them. Of course, as the amount of warehouse locations grows, so will the level of operation,
but so will the expense. Again, an ideal approach that represents the required quality of
service must be created.

1.9.2 Transportation
The plurality of delivery expenses is typically borne in shipping. Since it may be explicitly
related to weight or the number of units, it is generally quick to measure. Costs must be
closely monitored by the form of transportation chosen from a variety of options, and these
must be checked on a regular basis.

The evolution of retailing trends, as well as the pressures imposed by low stock keeping and
short lead times, have rendered road transport essential. If the number of the merchandise
being shipped exceeds a certain point, certain firms choose to acquire their own trucks rather
than employ haulage companies. Some major supermarket stores, on the other hand, have
outsourced much of their warehousing and transportation to specialised logistics firms.

Train transport also has benefits for some kinds of goods. This form of transportation
becomes feasible when lead-time is less essential in marketing activities or when reducing
transportation costs is the main target. Train transport is often helpful where products are
dangerous or cumbersome in comparison to their value and are manufactured in vast
amounts. Rail transport is also appropriate for light items that must be delivered quickly
(e.g., letter and parcel post). Air freight is normally not a desirable transport option unless the
commodities are extremely perishable or expensive in comparison to their weight. Air travel
is common for long-distance international routes. In this case, it has the benefit of faster
shipping relative to sea transport, as well as avoiding the expense of heavy and costly
packaging used by sea transport, as well as higher insurance prices.
The selected mode of transport must properly shield products from loss when in transit (a
factor just mentioned makes air freight popular over longer routes as less packaging is
needed than for long sea voyages). Damaged products not only eat into sales, but they also
raise insurance rates and cause annoyance to consumers, jeopardising potential companies.

1.9.3 Functions
Below are the primary functions of the physical delivery system:

The customer service feature is a strategically built standard for customer loyalty that the
organisation plans to deliver. For e.g., in the handbag company described above, a consumer
loyalty strategy may be that 75 percent of all personalised handbags are shipped to the
customer within 72 hours of purchasing. Another strategy may be to get 95 percent of
personalised handbags shipped to customers within 96 hours of order. Following the
establishment of these consumer care requirements, the physical delivery infrastructure is
built to achieve these objectives.

Order management is liable for accepting consumer orders and carrying out the details that
the customer has ordered. This work is important to the company since it directly affects how
customers are treated and how well they are served. If the order processing system is
successful, the organisation may save money on other functions, including transportation and
inventory management. For example, if a handbag manufacturer has a mistake while
handling a consumer request, the company would have to use luxury transportation forms,
such as next-day air or overnight, to reach the customer care requirement, which would
escalate transportation costs.

Inventory management is a critical component of a company's logistics chain. Investment

of new inventory, lack in client demand, and depletion are both costs. Different forms of
inventory management schemes, such as first-in-first-out (or FIFO) and flow-thru, may be
applied.

1.9.4 Costs
The diagram below shows how the various delivery and logistics cost components will add
up to the overall logistics cost.

Price of Storage
If the number of depots grows, storage costs will rise due to the need for more stock
coverage, storage capacity, and management, among other things.

Price of delivery

This is the expense of secondary shipping, i.e., the cost of distribution from the depot to the
customer. The lower the secondary mileage and shipping rate, the larger the number of
depots.

Cost of Trucking

This is the main expense of transporting merchandise in bulk from central finished goods
stores or processing points to depots. The expense would rise in tandem with the number of
depots.

Cost of Inventory

The below are the key components of inventory keeping costs:

i) Capital Expense: The price in actual inventory. This is the funding fee or a company's
actual cost of capital.

ii) Operation Costs: That is the expense of stock management and protection.

iii) Cost of Risk: This occurs as a result of pilferage, stock depreciation, injury, and stock
obsolescence.

iv) Cost of the System: These expenditures include a broad spectrum of knowledge and
coordination needs, from order management to load assembly lists.

1.9.5 Mode
The set of operations dealing with the effective movement of finished products from the end
of the manufacturing chain to the customer is known as physical distribution. Customer care,
quality management, materials storage, protective packing, order sorting, shipping,
warehouse location collection, and warehousing are all critical decision areas of physical
delivery, which take place through a range of wholesaling and retailing distribution
networks. Physical delivery is a part of the broader "distribution" phase, which involves
wholesale and retail marketing as well as commodity flow.
Physical distribution has lately seen a lot of recognition from industry leaders, particularly
small business owners. This is attributed in significant part to the reality that these tasks often
account for almost half of a product's overall advertisement costs. Physical distribution
expenses are estimated to account for about 20% of the country's overall gross national
product, according to reports (GNP). Many small companies have extended their cost-cutting
measures beyond their conventional emphasis on manufacturing to incorporate physical
delivery operations as a consequence of these results. Physical delivery is often essential
since it has a direct impact on consumer loyalty. Small business owners will help ensure
continued competitiveness in a quickly evolving, dynamic global market by holding products
in suitable locations for distribution to wholesalers and retailers and by providing quick,
efficient means of shipping the goods.

1.9.6 Network and Decision

PDM has historically been underestimated, and this role has been reluctant to implement an
integrated approach to its operations. Managers are also more mindful of PDM's ability and
realise that logistical structures can be built with the end consumer in mind. A broken or
disjointed approach to PDM is a leading cause of service loss and high costs.

PDM is concerned with making sure that the specific actions that make up the distributive
mechanism are optimised in order to accomplish a shared purpose.

This is regarded as the "systems method" to delivery management, and one of the main
aspects of PDM is the convergence of these roles.

To design an effective logistics structure, it's important to understand how various shipping
costs intersect and how they change depending on the different depot options (number, size,
type, and location).

1.9.7 Long term

Transportation administrators must provide a complete understanding of overall supply chain
freight movements and have insight into network planning at the maximum strategic decision
stage. Long-term assessments on the suitability and availability of transportation types for
freight movement are taken at this stage. Managers must determine, for example, which
primary mode of transportation is best for each general flow (i.e., inbound, interfacility, and
outbound) by commodity and/or position, taking into account consolidation opportunities
where possible.

The basic form of commodity flows should be indicated in the plans, including length,
frequency, seasonality, physical characteristics, and special handling specifications. To
improve service quality commitments and maximise negotiating leverage, strategic mode and
carrier-sourcing decisions should be seen as part of a long-term network design, selecting
key carriers in each relevant mode. Managers may also decide about the amount of
outsourcing required for large product movement, which may range from delivering
transportation with the company's own properties (e.g., private fleets) to handing over control
of transportation activities to third-party suppliers.

At the structural stage, network and lane configuration considerations should recognise
tradeoffs with other operating expense fields, including inventory and fulfillment center
costs. Companies should bear in mind that networks do not have to be set or continuous
while doing this research. Rather, when objectively analysing emerging networks and
associated flows, significant service upgrades and cost savings can be accomplished.

For example, utilising contract transportation services to transfer bulk freight to regional
cross-dock facilities for packing, processing, and brokering small loads to specific
consumers, it can become obvious that stock positions can be localised.

1.9.8 Lane Operation

Decisions on lane operation are taken at the second stage of decision-making. When it comes
to long-term preparation, network architecture decisions are based on everyday operating
freight transactions. At this stage, transportation administrators must organise commodity
flows along inbound, interfacility, and outbound shipping lanes to fuflfill service
specifications at the lowest overall costs, equipped with real-time details on product demands
at different device nodes. Decision-makers who are experienced at handling knowledge will
take advantage of consolidation opportunities while still ensuring the goods reach when they
are required in the amounts needed just in time to support other value-added operations.
Around the same moment, they are spending money on transportation.
Inbound/outbound consolidation, temporal consolidation, truck consolidation, and carrier
consolidation are the most common opportunities correlated with lane service decisions.
Managers may find ways to merge freight to create volume shipments if they have links to
inbound and outbound freight transport plans. For e.g., an inbound shipment from a supplier
in Philadelphia can arrive on the same day as a production order intended for a consumer in
Wilmington, Del., becomes available for movement. If transportation planners are aware of
this knowledge ahead of time, plans may be made for the inbound carrier to carry the
outbound load back to Wilmington.

Many times, the inbound carrier would consent to reduce roundtrip fares in order to prevent
deadhead miles on the backhaul. This is especially valid if the carrier and/or driver are
located in the Philadelphia metropolitan area. If this is a high-traffic area, the company will
suggest strategically sourcing a key carrier in this region to take advantage of the
opportunity.

Similarly, LVL shipments to the same geographic area on successive days can be held until
adequate volumes occur to warrant a complete load on a single carrier with several stops
(temporal consolidation). Since the detained freight escapes the LVL terminal scheme, it
often arrives at the same time or sooner than the initial LVL shipment and at a lower rate.
Multiple, limited shipments inbound from manufacturers or outbound to consumers in the
same regional area planned for distribution on the same day may be bundled on one truck at
full-volume prices, saving money on multiple LVL rates when paying stop-off costs (vehicle
consolidation).

The core carrier idea gives rise to yet another restructuring potential. Assigning larger
loading volumes to fewer carriers could reduce per-unit transportation costs and give the
shipper's additional freight a higher priority. The shipper will classify stable carriers in need
of backhaul miles in addition to consolidating the carrier base.

1.9.9 Modes of Carrier

Train transport also has benefits for some kinds of goods. This form of transportation
becomes feasible when lead-time is less essential in marketing efforts or when reducing
transportation costs is the main goal. Train transport is often advantageous where products
are dangerous or cumbersome in comparison to their value and are made in vast quantities.
Rail transport is also sufficient for light items that must be transported rapidly (e.g., letter and
parcel post). Air freight is normally not a desirable transport option unless the commodities
are extremely perishable or expensive in comparison to their weight. Air travel is common
for long-distance international routes. In this situation, it has the benefit of quicker shipping
relative to sea transport, as well as avoiding the expense of heavy and costly packaging used
by sea transport, as well as higher insurance prices.

The selected mode of transport must properly shield products from loss when in transit (a
factor just mentioned makes air freight popular over longer routes as less packaging is
needed than for long sea voyages). Damaged products not only cut into earnings, but they
also lift insurance rates and trigger annoyance to consumers, jeopardising potential company.

Containerisation

Containerisation is an intermodal freight transport scheme that employs intermodal

containers (also called shipping containers and ISO containers). The measurements of the
containers are uniform. They can be filled and removed, stacked, shipped easily over long
distances, and moved without being opened from one means of transportation to another
container ships, rail transport flatcars, and semi-trailer vehicles. The handling mechanism is
fully automated, with cranes and unique forklift vehicles handling everything. Computerised
programs are used to number and register all containers.

Containerisation began many centuries earlier, but it was not well understood or commonly
used until after World War II, when it significantly lowered transportation prices, aided the
postwar rise in foreign trade, and became a key component of globalisation. Containerisation
eliminated the need for warehousing and the manual handling of most shipments. Thousands
of dock employees who used to treat break bulk freight were displaced. Containerisation has
decreased port pollution, reduced delivery time, and reduced damages due to vandalism and
robbery.

Glass, fiber-reinforced polymer, aluminum, or a mixture of these products may be used to

make containers.
1.9.10 Dock Level Operation
Dock level operations, such as load preparation, routing, and timing, are the final collection
of transportation decisions. These tasks include carrying out the higher-level preparation
decisions on the land. While the basic function of shipping docks hasn't changed much over
the years, the way in which work is performed has. The widespread use of sophisticated IT
and decision support systems is one apparent development. These resources assist dock
workers in making greater use of transportation vehicle space, determining the most optimal
paths, and scheduling vehicles, services, and drivers for a given day.

More reliable and reliable load forecasting, distribution, and scheduling may be reaped by
transportation departments that have access to better and more timely details.

When a truck is filled with several consumer orders, for example, dock-level administrators
must guarantee that the driver is provided the most effective path and that the loads are put in
the order of the scheduled exits. Even at the dock stage, transportation administrators must
build experience in utilising the knowledge resources available to assist in these decisions.

Cross-docking

Cross-docking is a logistical technique in which a carrier unloads freight from an arriving

shipment and loads it into an outbound carrier straight away. It's a method of keeping
production chains going in a positive and efficient way.

Cross-docking centers are more like a "sorting area" than a traditional distribution center
(DC); they are a location where products flow around easily. In comparison to a DC, these
facilities need much less physical space. Inbound and outbound lanes make up the docking
port. Inbound containers are sent to a receiving dock, where the goods are forklifted or
conveyor belted to their final destinations or sorted and assembled before being shipped
back. In most cases, the products are only in a docking port for fewer than 24 hours.

1.10 NETWORK AND DECISION

For companies, network design is a strategic subject. It necessitates in-depth research in

order to make critical decisions such as:

determining the optimum number of plants, platforms, and warehouses to construct

 defining the physical flows between the supply chain's different connections, as well
as delivery flows

factory assembly lines that specialise (or don't)

storing products in the right position with the most desirable consumer shipping terms

Certain operations, such as distribution, are outsourced.

In the current economic environment, where rivalry is fierce, economies are unpredictable
and globalised, and raw material prices are increasing, having a solid logistics network is a
strategic advantage. Lower prices, greater management of logistics movements, and superior
customer support are all advantages of an integrated logistics network.

1.11 CONTAINERISATION

Containerisation is the process of transporting products in uniformly shaped and sized

containers for shipment. Containers may hold almost anything, but they are especially useful
for transporting finished products. It is a container-based way of distributing commodities.
The usage of containers has helped in the shipping of commodities. Exporters do not need to
travel to the seaport to transport their products. Instead, the items will be transported to an
Inland Container Depot/Container Freight Station, where they will be transferred to their
ultimate destination.

The MultiModal Shipment of Goods Act of 1993 rendered it necessary to ship goods using
containers for freight export. The products are loaded into containers at the exporter's
position and transported by rail or road to the Inland Containers Depot (ICD). Alternatively,
during customs approval, products are placed into containers at the Inland Containers Depot.
The cargo can be packaged at the exporter's site or at ICD. Exporters are given a Multi
Modal Transportation Document, which is similar to a conventional Bill of Lading in that it
performs all of the same functions. ICD has customs approval, which saves a lot of time and
money.

Containers have revolutionised water-borne commerce since the 1950s, transporting almost
90% of all finished products transported by sea. Containerisation has been used by
transporters in developing countries since the early 1990s. Developing countries are also
gaining a competitive edge in the use of containers for cargo transportation. Different
countries are providing logistic support and boosting the necessary infrastructure for
containerisation in order to encourage the export industry.

Intermodal shipping, or the transfer of products from one mode to another without the need
for unloading and reloading, is enabled by containers. Cargoes that were formerly delivered
in break-bulk began to be gradually containerised over time, and containerisation quickly
became a global movement.

Source: Geography of transport systems

Figure 1.7: Advantages and Drawbacks of Containerization

Containerisation As a Process

Containerisation requires the following steps:

Containers are packed at the factory rather than at the quayside;

Transporting containers to the port by lorry or train, as well as

Containers are lifted onto and off the ship using quayside cranes.

Traditional stevedores and porters are no longer required, and vast numbers of merchandise
can now be transported even more easily than ever. Containerisation saves freight companies
a lot of money when there are fewer employees to pay and less time spending in ports. New
ships are being built to allow containerisation to be profitable. They are designed to transport
the greatest amount of containers possible. Containers can be easily removed by cranes
because of their internal structure.

1.12 SUMMARY

The supply chain is a network of entities that are engaged in the numerous processes and
activities that generate value in the form of goods and services in the hands of the ultimate
customer through upstream and downstream linkages. The logistics budget accounts for
around 15% to 20% of GDP. As a result, by increasing the productivity of logistics activities,
logistics will contribute significantly to the economy as a whole. Advances in information
system technologies, a stronger focus on customer support, and an increasing reorganisation
of the system strategy and overall cost definition are all adding to the growing interest in
logistics. Rather than relying on a particular business or method, supply chain management
tends to incorporate success metrics through several firms or processes. A company's
consumers, vendors, and other channel participants are all linked by supply chain integration.
As a consequence, their interactions, interactions, roles, procedures, and positions are all
combined. Physical distribution management (PDM) is concerned with delivering the correct
commodity to the right location at the right time and in the right condition at the right
expense for use or output.

1.13 SELF-ASSESSMENT QUESTIONS

A. Descriptive Type Questions

1. What is Physical Distribution Management? Describe its components? Also,

2. What are the objectives of logistics?

3. Explain the process of containerisation?

4. What is meant by lane operation in PDM?

5. What is the process of containerisation?

B. Practical/Scenario Based Questions

1. Logistics is the function that is responsible for the flow of materials into, through, and
out of an organisation. Do you agree if you owned an e-commerce business?

2.
converging on an organising through tiers of suppliers and products diverging

3. It is said that the overall aim for logistics is to achieve high customer satisfaction or
perceived product value. This must be achieved with acceptable costs. How would
you find the best balance?

4. Describe the Supply Chain for a paper manufacturing organisation.

5. Talk about the evolution of the Supply Chain concept as per your understanding.
What, in your opinion, is the most crucial stage?

C. Multiple Choice Questions

1. The aim of supply chain management is to____________.

A. ensure client loyalty

B. boost a product's consistency

C. integrate supply and demand control

D. maximise production

2. The logistics component of the supply chain is responsible for the forward and reverse
movement of

A. goods

B. cash

C. services

D. all of the above

3. The word VMI stands for

A. vendor material inventory

B. variable material inventory

C. vendor managed inventory

D. valuable material inventory

4. The following are the main judgment fields of supply chain management:

A. Planning, production, distribution, inventory

B. Location, production, scheduling, inventory

C. Location, production, inventory

D. Location, production, distribution, marketing

5. A system for determining distribution specifications is known as distribution requirements

preparation; its purpose is

A. inventory management

B. distribution planning

C.

D. none of the above

6. What components make up a logistics system?

A. transportation

B. inventory management

C. warehousing

D. all of the above

7. The logistics framework is made up of three major elements.

A. Order processing

B. inventory management

C. Both a and b

D. none of these

8. Which of the below does not belong in the supply chain management system?

A. supplier

B. information flow

C. manufacturer

D. competitor

9. The term DRP stands for

A. distribution requirement planning

B. distribution resource planning

C. dividend requirement planning

D. distribution reverse planning

10. The two main logistics activities are ________ and physical distribution.

A. supply chain management

B. logistics management

C. material management

D. all of the above

Answers:

1-A, 2-D, 3-C,4-A, 5-C, 6-D, 7-C, 8-D, 9-A, 10-C

1.14 SUGGESTED READINGS

Reference Books

Simchi Levi, 2000. Designing and Managing the Supply Chain, Irwin/McGraw-Hill,
IL.

Christopher, M., 1992. Logistics and Supply Chain Management: Strategies for
Reducing Costs and Improving Services. Pitman, London.

Croucher Phil, Rushton Alan and Oxley John, 2014. The handbook of Logistics and
Distribution Management. Kogan Page.

Textbook References

Douglas M. Lambert, 1998. Fundamentals of logistics management, McGraw Hill.

Sahay B.S, 1998. Supply Chain Management for Global competitiveness. Macmillan.

Chopra Sunil and Meindl P, 2001. SupplyChain Management: Strategy, Planning,

and Operation. Prentice-Hall.

Forrester J W, 1961. Industrial Dynamics, Cambridge, Massachusetts, The MIT.

Waters Donald, 2003. Logistics: An Introduction to SCM, Palgrave McMillan (Indian

Edition), NY.

Websites

www.egyankosh.ac.in

www.wikipedia.org

www.supplychainopz.com