Inventory and Transportation Management

Inventory and Transportation Management

More PowerPoint presentations from Diptesh Sarnaik

Inventory & Transportation Management in SCM : 

Inventory & Transportation Management in SCM 1 http://embaitm.blogspot.com

Inventory Management in SCM : 

Inventory Management in SCM 2 http://embaitm.blogspot.com

What is Inventory Management: 

What is Inventory Management It provides information to efficiently manage the flow of materials, effectively utilize people and equipment , coordinate internal activities and communicate with customers. It has to do with keeping accurate records of finished goods that are ready for shipment. Process of efficiently overseeing the constant flow of units into and out of existing inventory. 3 http://embaitm.blogspot.com

Inventory Functions: 

Inventory Functions Inventories are held in following general categories: - Raw materials and components - Work In Progress - Finished Goods - Maintenance repairs & operating supplies - Pipelines or in-transit inventory Raw Materials Works in Process Finished Goods Finished Goods in Field 4 http://embaitm.blogspot.com

Inventory Functions ctd..: 

Inventory Functions ctd .. Irrespective of its location in supply chain, the product inventory essentially serve the following functions: - Balancing supply and demand - Periodic variation - Scale economics 5 http://embaitm.blogspot.com

Reasons for carrying inventories: 

Reasons for carrying inventories Meeting production requirements Supporting operations requirements Customer service consideration Hedging against future expectations 6 http://embaitm.blogspot.com

Inventory related cost: 

Inventory related cost Inventory Cost Carrying cost Ordering cost Warehousing cost Damaged, Pilferage and obsolescence cost Exchange rate differentials 7 http://embaitm.blogspot.com

Inventory Controls: 

Inventory Controls ABC Analysis VED Analysis SAP Analysis 8 http://embaitm.blogspot.com

Transportation Management: 

Transportation Management 9 http://embaitm.blogspot.com

Transportation in SCM: 

Transportation in SCM Plays important role in SC process since products are rarely produced and consumed in same location. Main purpose of transportation is to make right quantity of right quality goods at right time and place in least cost. Logistical costs and customer service capabilities can be reduced by: - reduction in transit time - less damages - curtailment of productive packaging cost Example: Blue Darts 10 http://embaitm.blogspot.com

Importance of Transportation in SCM: 

Importance of Transportation in SCM Ensures speedier and timely physical movement of goods from point of inspection to point of consumption It creates core competencies by preventing stocks – out of customers annoyance It provides protective storage during transit Ensures cost efficient, better customer service Fulfills specific service requirements of the corporate enterprise for improvement of logistical capabilities and harmonious supply chain relationship 11 http://embaitm.blogspot.com

Elements of transportation costs: 

Elements of transportation costs Tariff of transportation mode Transit time cost Obsolescence and detoriation costs Protective packaging costs Transit insurance cost Miscellaneous cost 12 http://embaitm.blogspot.com

Transportation modes: 

Transportation modes Airways Seaways Roadways Railways Pipelines 13 http://embaitm.blogspot.com

Factors affecting Transportation mode: 

Factors affecting Transportation mode Strength and weakness of the company in terms of marketing Financial and production resources Prevailing market characteristics including the competitive scenario Geographical and territorial structure Quantity to be transported each time, distance to be covered Product feature and suitability to various modes of transportation such as weight, size, shape etc 14 http://embaitm.blogspot.com

Transportation Decision (Pricing & Rates): 

Transportation Decision (Pricing & Rates) For a comprehensive discussion on transportation decision following 4 factors needs to be highlighted - Economic factor - Shipper’s factor - Carrier factors - Alternative pricing strategies 15 http://embaitm.blogspot.com

Transportation Summary: 

Transportation Summary Current transport infrastructure of India is major bottleneck in the achievement of logistical objectives, mainly due to following factors- Poor Government policies Networks Road/Rail track conditions Vehicle quality Coordination between various agencies and transport organizations 16 http://embaitm.blogspot.com

References: 

References Logistics Management – Vinod Sople Logistics & SCM – D K Agrawal Materials Management – K. Shridhara Bhat 17 http://embaitm.blogspot.com