By
Kritika – 47
Madhujith T.H - 49

Logistics is that part of the supply
chain process that plans, implements
and controls the effective forward and
reverse flow and storage of goods,
services and related information
between the point of origin and the point
of consumption in order to meet the
customer’s requirements.
Elements
Transportation – air, water, land
 Warehousing
 Inventory Management
 Packing and Utilization
 Information and communication

Importance of Logistics
Management
Transportation costs
 Large retailers, low distribution costs –
eg. Metro Cash and Carry
 Deregulation – e.g. Fiat – Tata
 Changing strategies – eg Toyota Way
 Technology – eg. Wal-Mart, DELL
 Globalization

0% fuel
 0% technology
 0% investment
 0% dispute
 99.9999 % performance
 100% customer satisfaction

‘The Show must go on’
What is NMTBSA??
Nutan Mumbai tiffin box supply
Association.
 It started in 1880 – british raj
 Total area coverage is 60 kms.
 5000 employees
 Each person working is a share holder
 4,00,000 transactions per day
 Time taken – 3hrs.

Six sigma performance
 ISO 2000 certified
 Error rate 1 in 16 million transactions.
 Technological backup: Nil
 Cost of service: Rs. 200/month

How do they do it??

Organisational structure

Logistic management
Executive committee
(5 members)
Team of 20 to 25
people headed by a
group leader
Individual
dabawalas=30
tiffins/day
Logistic Management

9.30 am
The “pick up” people pick up the tiffin
boxes from house wives

10.34 – 11.20 am
This period is actually the journey time.
Dabbawalas load the wooden crates filled
with tiffin box in the luggage and goods
compartment.
11.20 to 12.30 pm
The unloading takes place at the
destination station.
The “delivery” people unload the boxes
from the train
And re-arrangement of tiffin boxes are
done as per the coding.
12.30 to 1.00 – lunch time
Coding
The coding indicates
the originating rail station
the destination station
the building name
the floor number of delivery
 POKA-YOKE techbique- color indicates
the group responsible for collecting
dabba at particular point.


1.15 to 2.00 pm
Here begins the collection process.
The dabawalas collect the tiffin from the
offices where they have delivered
almost an hour back.

2.00 to 2.30 pm
the return journey
The group members meet at the
segregation as per the destination.

2.48 to 3.30 pm
The return journey by train
Group finally meets up after the day’s
routine of dispatching and collecting
from various destination offices.
3.30 to 4.20pm
Here the final sorting and dispatching
takes place.
The group finally meets up at the origin
station
The tiffins are finally sorted out as per their
original areas. This is again done
through the coding process.

Latest Trend

The Web site (www.mydabbawala.com)
– online booking
on line poll

Booking through SMS
The royal visit

Prince of Wales

Sir Richard Branson, chairman of Virgin
Atlantic Airlines.
Every day Amul collects 447,000 litres of milk from
2.12 million farmers, converts the milk into branded,
packaged products, and delivers goods worth Rs 6
crore (Rs 60 million) to over 500,000 retail outlets
across the country
GCMMF
Gujarat Cooperative Milk Marketing
Federation (GCMMF) is the largest food
product marketing organization of India.
 aims to provide good returns to the
farmers and also to fulfil the
requirements of consumers by giving
them quality products
 has 42 regional distribution centers in
India, serves over 500,000 retail outlets
and exports to more than 15 countries

Problems to be addressed:

Logistics in collection of:
6 lts of milk everyday
from 10600 separate villages

Logistics in co ordination of :
storing ,processing and delivering the
milk.

Suppliers Logistics:
Weighing the milk
Determining the fat content
Calculation of purchase price
The Need

formulate an IT plan

Integrate its existing applications with
ICT tools

Connect its regional and field offices
through e-media
Implementation

Amul started implementing ERP in
phases.

Automatic milk collection system units
(AMCSU) at village societies were
installed to automate milk producers
logistics.

At milk collection counter
- farmer drops the card
- milk is weighed
- calculates amount due to farmer
- value of milk is printed

Amul connected its zonal and regional
offices through VSATs.
Amul is also using GIS (geographic
information system) for business planning
and collection process.
 IIM-A provided Amul with a software-Dairy
information system kiosk(DISK) to facilitate
data analysis and decision support in
improving milk collection.

Indian Railways





Largest network under management
Revenues: 12 billion $
Passengers: 14 million/day (approx)
Freight: 2 million tons/day (approx)
Manpower: 1.4 million
Indian Railways Contd….

Track – 63000 km

Around 7000 – 8000 stations
 Freight:
2 million tons/day (approx)
Long Range Decision Support
Systems
Used to manage and plan strategies for
IR
 Implemented in 1998
 Public – private partnership

 World bank + IR personnel + overseas
consultants

Powerful tool for pre-feasibility
investment analysis for networks
Long Range Decision Support
Systems Contd….
Based on traffic projections over the
next two decades
 Uses Simulation Models
 Optimization tools
 GIS based interface
 Develop ‘what if scenarios’
 Demand and supply side

LRDSS MODEL
PROJECT
IDENTIFICATION
SUPPLY
TRAFFIC
FORECASTING
ANALYSIS
FACILITY
PERFORMANCE
MARKET
ANALYSIS
DEMAND ANALYSIS
TRAFFIC
ASSIGNMENT
COST BENEFIT
ANALYSIS
FINANCIAL
FORECASTING
Solutions Providers
New Needs, New Players

Solutions Providers – with the
increased importance of logistics
management, a new market opened and
there are companies that solve the
logistics management problems.
 Oracle
 Infosys
 FedEx – case study
 DHL etc
Solutions Providers
Oracle – Transportation Management
Systems
 It integrates and streamlines  transportation planning, execution,
freight payment, and business process
automation
 Single application

Oracle – Transportation
Management Systems
Oracle Transportation Management  Lowers transportation costs
 Improves customer service and asset
utilization

Solutions Providers

Infosys – Master Data Management
 Enables Logistics Service Providers (LSPs)
to efficiently manage revenues, expenditure,
shipment, and large ERP implementations.
 IBM – RFID later case study
Emerging Trends
1.Case Study:
 FedEX started Virtual Order – Online B2B site.
Shippers can setup an online catalog of goods
that consumers can order from.
 FedEx setup Express Distribution Centres like Dubai,
Philipines.
FedEX systems are fully integrated with that of the
shippers
Case Study:

Customer places the order.

Shippers notified

Order Enters into FedEx network.

Order collected from a variety of shippers.

Within 48 hours delivery to customer

Mainly for High Value, low weight goods like
electronic and medical goods
Emerging Trends
2. Two Dimensional Bar Codes
1D BarCode
2D BarCode
2. Two Dimensional Bar Codes
1D barcode contains only vertical lines
 2d barcodes contain both horizontal and
vertical lines
 Can store information of an entire
freight
 Uses laser scanners to read. Currently
not available.

3. Going Green

Use software that minimizes carbon
emissions and cost savings

Eg – by incorporating algorithms that
include data about location and date to
consolidate shipments by size, product
compatibility and trailer types
3. Going Green

Case Study:
DHL’s green initiative by implementing multi
site ISO 14001
 Bought 1.3 billion Euros worth of new fleet
― Planes quieter, more fuel efficient
 Reduced carbon dioxide emissions by 6.864
tons
 Improved waste management
Over 53% general solid waste recycled

4. RFID
Two types:
 Active – contains battery and transmits
signals
 Passive – no battery, requires external
source
 Famous example :Wal – Mart
RFID Services
Integrate real-time data capture with
business processes to reduce time to
market
 Track mobile assets to reduce loss and
theft
 Optimally manage work in process and
logistics networks
 Build a secure, responsive and
flexible supply chain—to ultimately
deliver value to your end customers
