Why Reverse Logistics?

Traditionally, in the supply chain of an organization there is a unidirectional flow of goods, that is, from the manufacturer to the end-user. Almost the entire attention of a logistician has been focused on the “forward” logistics activities. Once the product is sold and delivered to the user, the manufacturer feels that there is

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Scope of Reverse Logistics

Reverse logistics, though considered a drain on the company’s profits, can be leveraged as a tool for customer satisfaction in today’s competitive markets. More and more manufacturing firms are thinking of incorporating the revere logistics system in their supply chain process. The reasons for this are: Growing public concern about environment pollution Government regulations

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System Design Considerations

In 1996, the auto giant General Motors had a problem handling 30,000 defective parts per month for replacement within the warranty period, which were returned by customers from various places to their plants at different locations. To overcome this problem they, along with UPS Worldwide Logistics, jointly developed a reverse logistics system using their

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Reverse Logistics – A Competitive Tool

In today’s fiercely competitive market environment, customer retention strategies play an impor­tant role. To retain the existing customers, manufacturers are creating switching barriers by extend­ing value-added service to the customers. Procedural efficiency in the logistics operations is enhancing the service capability of the firm to satisfy the customer. To remain competitive and differentiated, more

Why Global Logistics?

The globalization of the economies world over has created opportunities for doing business beyond the national boundaries of a country. Due to the rapid advancement in information and com­munication technologies during the last decade, the world has become a global village in the real sense. Today, Internet has made it easier to do business

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Operational Factors of Global Logistics

The major areas of logistical expertise required in cross-border cargo movement are: mode of transportation, cargo insurance, packaging and shipping documentation for customs clearance. 1. Transportation Transportation mode plays a vital role in the movement of cargo within or between countries. Normally, cargo is moved using three modes of transportation, e.g. road, sea and

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Strategic Issues in Global Logistics

The process of managing the flow of inventory and information across the global supply chain is more complex than managing logistics operations within the country. This is because of the diver­sity in markets in terms of the following: Customer needs Economic and regulatory environment Logistical infrastructure The dominant factors need to be identified during

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Logistics Competitive Framework

In today’s dynamic business environment, competitive pressures and the customer’s demands are forcing the majority of firms to shift their priorities to understand the logistics supply chain process in order to deliver superior value to the customer. To fulfil this objective, logistics has left behind the old role of warehousing, transportation and material storage

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Logistics Strategies Across PLC Product life cycle

Traditionally, logistics is conceived as a functional support system and used as one of the tools for extending differentiated customer service to gain the competitive edge. Logistics strategy is for­mulated in line with the overall business strategy of the firm to achieve the desired business objec­tives. Firms try to optimize the various elements of

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Strategic Logistics Planning

The importance of logistics and the supply chain was realized by firms in the last decade because of the globalization of business activities, increasing competitive pressure and uncertainties in dynamic markets. This forced business firms to re-engineer or redefine their business process so as to bring efficiency and effectiveness into the operations. Hence, there

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Logistics Strategies

The process of logistics strategies formulation can be viewed through the following three angles: Customer needs met through the implementation of strategies Target customers Resources required for implementation of strategies Logistics strategy formulation is not a process that can be initiated in isolation. In fact, logistics strategies should have a goal congruent with the

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Logistics Strategy Implementation

Besides the formulation of strategy, its implementation is equally important. The firm should prop­erly evolve the framework for successful implementation of the logistics strategy. The elements of strategy implementation framework are controls, organization structure, organization culture and the human resource skills (see Figure 17.3). The financial dimensions of the controls focus on the monetary

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L’Oreal – Improvising Supply Chain Performance

L’Oreal is the world’s leading cosmetics company, with consolidated sales of Rs. 14 billion euros, with 300 subsidiaries across the globe and having presence in over 150 countries. They develop more than 3000 formulas each year, and have a worldwide team of 50,500 employees, includ­ing 3000 employees in research spread over 42 factories across

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Camy Pharmaceutical Co. – Seeking Solutions to Logistics Issues

India’s pharmaceutical industry is one of the fastest growing sectors in the Indian economy, with an average annual growth rate of 11 per cent in this decade. The growth of the industry is mostly driven by the surge in production, legislative reforms, the growth in contract manufacturing and outsourcing of clinical trials, R&D, foreign

Hindustan Motors – Shaving-off Procurement Cost Through Reverse Auction

Hindustan Motors is one of the leading manufacturers of automobiles (both passenger and com­mercial vehicles) in India. HM started its manufacturing activities way back in 1945 with one model in the passenger car segment, that is Ambassador. In the 1980s it introduced Contessa in the luxury car segment. However, the model got phased out

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Why Logistics Performance Measurement?

When describing the performance measurement system, it can best be compared with the control panel on a machine or the dashboard of a vehicle. These examples provide the insights into the designs of control measures, which are required in logical performance measurement system. Con­trol of the logistical system is not possible through a single

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Logistics Performance Measurement System Objectives

Any performance measurement system shall have the following objectives: Monitoring. Monitoring focuses on reporting on the current status of the operations. For exam­ple, a financial monitoring system will report to the management the total funds outgo and inflow on a particular day. Similarly, the monitoring system for marketing will report on the total orders

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Logistics Performance Levels

Broadly there are two levels of performance measures—the internal and external measures. According to Vijay Govindarajan and Robert Anthony,1 the firm must strike the balance between the external measures, such as customer satisfaction, and the internal measure, such as productivity, cost, quality, and asset management, because the companies normally ignore the external results in

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Logistics Audits

For enhancing the performance of the logistics system, it is necessary to take stock of the efficiency and effectiveness status of the various subsystems of the logistical chain. This process is known as logistics audit. The shortfalls, bottlenecks and gaps in the logistical supply chain can be identified with logistical auditing so as to

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Logistics Performance Control

To align the objectives of logistics with those of the organization, or to direct the logistical activities for competitiveness, a powerful control mechanism needs to be evolved and implemented. Invari­ably, organizations are going in for the following control systems: Budgetary Control. Irrespective of the organizational reporting structure, the firm fixes up the budget for

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