305 OSCM - Logistics Management

Semester III
305 OSCM - Logistics Management
Subject Core (SC) Course
Specialization- Operations & Supply Chain Management
Unit II

Credits FA SA Marks

3 50 50 100

Dr. Vinod N.Sayankar

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305 OSCM - Logistics Management Course Outcome

Zeal Group of Management Institutes

305 OSCM - Logistics Management Unit II - Logistics Systems

Unit II
Logistics Systems
1. Logistical Infrastructure
2. Basic Terminology

3. Types and Functions

4. Transport Infrastructure and Superstructure
5. Transport Routes and Transport Networks
6. Logistics Real Estate
7. Logistics Parks and Freight Villages
8. Information Infrastructure and Communication Infrastructure
Telecommunication Infrastructure
9. Satellite Systems and Satellite Navigation

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305 OSCM - Logistics Management 1. Logistical Infrastructure

1. Logistical Infrastructure
• Logistical infrastructure is the backbone of logistics systems.
• Logistics infrastructure is a network of systems that support the movement of
goods, trade, and commerce.
• Adequate loading and unloading equipment.

Importance of Logistics Infrastructure

• Trade- A well developed logistics infrastructure allows for the efficient

movement of goods and materials.

• Standard of living - Countries with a strong logistics infrastructure tend to have

a higher standard of living.

• Economic development - A functional logistics system is a key factor in a

region's economic openness

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305 OSCM - Logistics Management 1. Logistical Infrastructure

Components of Logistics Infrastructure

A well-developed logistical infrastructure is crucial for enhancing operational

efficiency, reducing costs, and improving customer satisfaction

• Transportation: Includes air, motor/truck, rail, and shipping systems.

• Warehousing: Includes storage facilities at Organizations or at various place as

per Organizations need.

• Terminals: Includes operations at ports and airports.

• Information systems: Includes computerized systems for handling goods and

data.

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305 OSCM - Logistics Management 2. Basic Terminology of Logistics Systems

Basic Terminology of Logistics Systems

Logistics • The management of the flow of resources such as goods, services, and
information.
• Essential for ensuring that products are delivered efficiently and effectively
to meet customer demands.
Supply Chain • A network that encompasses all entities involved in the production and
delivery of a product, from raw materials to final consumers.
• Suppliers, manufacturers, warehouses, distributors, and retailers.
Inventory • A stock of goods and materials held by a business for the purpose of
production or sales.
• Raw materials, work-in-progress (WIP), and finished goods.
Warehousing • The process of storing goods in a facility until they are needed for
distribution.
• Storage, order picking, inventory management, and sometimes packaging.
Transportation • The movement of goods across various modes of transport, including
trucks, trains, ships, and airplanes.
• Each mode has its advantages and disadvantages based on cost, speed, and
capacity.

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305 OSCM - Logistics Management 2. Basic Terminology of Logistics Systems

Basic Terminology of Logistics Systems

Order Fulfilment • The process of receiving, processing, and delivering orders to

customers.
• Order receipt, inventory check, picking, packing, shipping, and
delivery.
Lead Time • The total time taken from the initiation of a process until its completion.
• Shorter lead times can improve customer satisfaction and operational
efficiency.
Freight • Goods transported in bulk, often involving large quantities and
requiring special handling.
• Can include various categories like perishables, hazardous materials,
and general cargo.
3PL (Third-Party • A service provider that manages a company’s logistics operations,
Logistics) including transportation, warehousing, and distribution.
• Cost savings, scalability, and expertise in logistics management.
Cross-Docking • A logistics practice where incoming goods are directly transferred to
outbound shipping with minimal storage time.
• Reduces inventory holding costs and speeds up the delivery process.

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305 OSCM - Logistics Management 2. Basic Terminology of Logistics Systems

Basic Terminology of Logistics Systems

BOL (Bill of • A legal document issued by a carrier detailing the type and quantity of
Lading) goods being transported.
• Serves as a receipt for cargo and a document of title.
Demand Planning • The process of forecasting customer demand to align inventory levels
accordingly.
• Statistical analysis, historical data review, and market trends assessment.
Route Optimization • The process of determining the most efficient routes for transportation to
minimize costs and maximize delivery speed.
• Software and algorithms that analyze variables like traffic patterns, delivery
windows, and vehicle capacities.
Tracking • The ability to monitor and trace the status and location of shipments
throughout the supply chain.
• GPS, RFID, and barcode scanning systems.
Return Logistics • The process involved in moving products from their final destination back
to the manufacturer for returns, repairs, or recycling.
• Managing costs, processing returns efficiently, and handling reverse supply
chain issues.

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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems

Types of Logistics Systems

Logistics systems can be categorized in various ways based on its types and functions.

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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems

Types of Logistics Systems

• The primary aim of logistics is to ensure product availability when needed,

• Optimize efficiency, reduce costs, and ultimately enhance customer satisfaction throughout the
supply chain process.
Inbound Logistics • The primary objective of inbound logistics is to ensure on-time and
efficient delivery of raw materials and inputs to support the production
process.
• This involves coordinating with suppliers, optimizing transportation
routes, and managing inventory levels to minimize costs.
• Plays a vital role in maintaining production schedules, reducing
inventory holding costs, and preventing production disruptions.
• Effectively managing inbound logistics streamlines operations and
contributes to cost control and overall supply chain efficiency.
• Example - a manufacturing company like Tesla coordinates the
inbound logistics of raw materials such as lithium for batteries and
aluminium for car frames, ensuring it arrive efficiently to support
production schedules.

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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems

Types of Logistics Systems

Ways to Optimise Inbound Logistics
Supplier • Develop strong supplier relationships to foster open communication and
Collaboration collaboration.

Just-in-Time • Implement a JIT inventory system to reduce carrying costs and minimize
(JIT) Inventory: excess inventory.

Transportation • Optimize transportation routes and methods to reduce costs and enhance
Efficiency delivery reliability.

Centralized • Centralize receiving inbound materials to streamline the process, improve

Receiving inspection efficiency, and minimize the need for multiple receiving
points.

Technology • Utilize technology, such as transportation management systems (TMS)

Integration and tracking software, to gain real-time visibility into inbound shipments.

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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems

Types of Logistics Systems

Outbound • It is primarily concerned with the efficient distribution of finished

Logistics products to end customers.
• Encompasses a range of activities, including order processing,
packaging, transportation, and delivery.
• The primary goal of outbound logistics is to guarantee that products
reach their destinations in a timely, cost-effective, and customer-
friendly manner.
• Efficient outbound logistics is essential for customer satisfaction and
retention and for maintaining a competitive edge in the market.
• Managing outbound logistics is critical for delivering products that
meet or exceed customer expectations and maintaining a strong
market position.
• Example - Amazon's outbound logistics is exemplary, ensuring fast
and accurate delivery of customer orders, utilizing advanced
warehouse management systems and delivery networks to optimize
efficiency.
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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems

Types of Logistics Systems

Ways to Optimise Outbound Logistics
Route • Utilize route optimization software to plan the most efficient delivery
Optimization routes.
• This minimizes transportation costs and reduces delivery times.

Inventory • Implement inventory strategies to ensure that products are readily

Management available for order fulfilment.

Packaging • Optimize packaging materials and methods to reduce waste, lower

Efficiency shipping costs, and protect products during transit.

Last-Mile • Leverage third-party last-mile delivery providers or explore

Delivery innovative delivery options to improve the final leg of delivery.
Solutions
Customer • Keep customers informed with real-time tracking and delivery
Communication updates.

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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems

Types of Logistics Systems

Third-Party • These third-party logistics partners offer a range of services, including

Logistics transportation, warehousing, order fulfilment, inventory management, and
(3PL) supply chain optimization.
• It is a type of logistics which aims to enhance supply chain efficiency and
reduce operational costs.

• By partnering with 3PL providers, businesses benefit from their expertise,

technology, and resources and focus on their core competencies.
• Effective 3PL partnerships result in streamlined operations and reduced
overheads, contributing to a competitive advantage in the modern business
landscape.
• Example - Companies like FedEx provide 3PL services, managing logistics
operations on behalf of other businesses. FedEx offers warehousing,
transportation, and distribution services, enabling businesses to outsource
these functions and focus on core operations.

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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems

Types of Logistics Systems

Ways to Optimise Third-Party Logistics

Alignment of • Ensure that the 3PL provider's goals align with business objectives,
Goals emphasizing cost reduction, service quality, and flexibility.

Performance • Establish key performance indicators (KPIs) to measure the 3PL

Metrics provider's performance.

Clear • Maintain transparent and open communication with the 3PL provider
Communication to address issues promptly and collaboratively find solutions.

Risk Mitigation • Develop risk management strategies to address potential disruptions

Flexibility • Ensure the 3PL provider can adapt to changes in your business,
customer demands, and market conditions.

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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems
Types of Logistics Systems
Fourth-Party Logistics • Manages the logistics function of a company by integrating multiple
(4PL) services and technologies.
• Acts as a single point of contact for managing all logistics activities,
including strategy and planning.
• 4PL providers relying heavily on technological innovations to
enhance their offerings.
• The rise of digital platforms and integrative tools has facilitated 4PL
providers’ seamless collaboration with a company’s in-house team,
streamlining communications and operations.
• Examples
1. DHL Supply Chain: As a subsidiary of the global shipping and
logistics leader DHL, their 4PL division stands out. DHL offers end-
to-end supply chain solutions and has successfully managed complex
logistics operations for clients worldwide, ranging from automotive
to consumer sectors.
2. HP (Hewlett-Packard): HP’s consumer electronics supply chain
was renowned for its complexity. Adopting a 4PL model gave them a
centralized view of their supply chain. This centralization
helped HP reduce shipping times, minimize holding costs, and adapt
quickly to market changes, becoming a paragon of 4PL’s practical
applications.
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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems

Types of Logistics Systems - Comparing 3PL and 4PL Services

3PL Services 4PL Services

Scope and • Typically caters to small businesses • Primarily targetst medium to large
Scale of and startups, providing specific businesses, offering comprehensive
Operations logistics services such as end-to-end supply chain management
transportation or warehousing. solutions.
Focus and • Concentrate on day-to-day logistics • Operate at a strategic level, focusing on
Functionality operations, ensuring the smooth optimizing the entire supply chain,
execution of tasks like shipping, integrating various logistics functions,
storage, and distribution. and driving continuous improvement.
Coordination • Work independently to deliver • Act as orchestrators, effectively
of Service specific logistics services, with coordinating the activities of multiple
Providers limited coordination among different third-party logistics providers to
service providers. streamline operations and achieve
synergies.
Organizationa • Often standalone entities or • May function as separate entities,
l Structure subsidiaries of larger logistics established through joint ventures or
companies, offering individualized long-term contracts between the
services on a transactional basis. primary client and multiple partners.

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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems
Types of Logistics Systems - Comparing 3PL and 4PL Services

3PL Services 4PL Services

Level of Provide fragmented services, focusing Offer seamless integration of logistics
Integration on specific aspects of the supply chain functions, optimizing processes and
without comprehensive integration. workflows across the entire supply chain
network.
Client Typically maintains direct Serve as a single point of contact for
Interaction and communication with clients, clients, overseeing all supply chain
Communication addressing immediate logistics needs activities and facilitating strategic
and concerns. decision-making.
Customization Offer standardized logistics solutions, Provide customized logistics solutions,
and Flexibility with limited flexibility to tailor adapting strategies and processes to meet
services according to individual client the unique needs and objectives of each
requirements. client.
Technology and Utilize technology primarily for Embrace advanced technologies like
Innovation operational efficiency, with a limited artificial intelligence and data analytics to
focus on innovation and strategic drive innovation, optimize supply chain
planning. performance, and deliver value-added
services.

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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems

• 7 C's of logistics

1. Customer Service: Meeting customer expectations and providing satisfaction.

2. Cost: Managing expenses related to transportation, storage, and handling.
3. Capital: Efficiently utilizing financial resources in logistics operations.
4. Communication: Effective exchange of information within the supply chain.
5. Consistency: Maintaining reliable and predictable logistics operations.
6. Convenience: Making logistics processes convenient for customers and stakeholders.
7. Compliance: Adhering to legal and regulatory requirements throughout the supply

• 4 R's of logistics

1. Right Product: Ensuring the correct product is available to meet customer demand.
2. Right Quantity: Having the appropriate amount of products in stock to fulfill orders
without excess or shortage.
3. Right Condition: Ensuring products are stored and transported under conditions that
maintain their quality and integrity.
4. Right Time: Delivering products to customers or distribution centres exactly when
needed, minimizing delays and optimizing efficiency.

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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems

Functions of Logistics Systems

All logistics operations, regardless of the size of the organization they serve, fulfil certain roles
that support the movement of goods or services.

• Any delivery process can only function if there is an order

processing system in place.
• Order processing systems vary from business to business -
from a Shopify store to an ERP.

• Whatever the setup, the processing of orders sets the tone for
the whole of transportation management: warehousing,
distribution, customer service, shipment analytics, and the
movement itself.

• Single-click integration for ecommerce

• CRM and delivery management system
• ERP

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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems

Functions of Logistics Systems

• Inventory refers to stocking finished goods in a storage facility. In

order to support the transportation and delivery processes, inventory
control requires information for maintaining inventory records,
ensuring safety, predicting demand for goods, and, of course,
reordering stock.

• Inventory logistics remains on the borderline between inbound and

outbound logistics, as it involves both supplier relationship
management (inbound logistics) and order fulfilment (outbound
logistics).

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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems

Functions of Logistics Systems

• Warehouse management is a natural extension of inventory

activities.
• At the warehouse level, handling, packing, and shipping
workflows are established.
• Both inventory and warehousing require sophisticated tools
that support the main functions and help reduce costs via
automation.
• Especially if company delivers from multiple warehouses and
needs complex logistical solutions.
• By strategically placing inventory in small warehouses located
in densely populated areas, retailers are planning to cut
transportation costs and encourage more pickups.

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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems

Functions of Logistics Systems

• Packaging includes all the activities and operations implemented

to prepare goods for handling and transportation to and from
customers - in case of reverse logistics and returns specifically.
Packaging is one major logistic function as it determines delivery
success.
• First and foremost, packaging needs to be compliant with safety
and any customs regulations that may halt delivery service.
• Moreover, it's important that packaging matches storage and
vehicle needs, as company meets the demand for sustainable
materials and other green logistics aspects.

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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems

Functions of Logistics Systems

• Cargo handling is one of the major logistics management activities

that can't be overlooked when discussing supply chain functions.
• It's closely related to packaging and determines logistics costs in a
very real way.
• Getting the package and handling procedures right is the foundation
of physical distribution.
• It's equally important for safe storage and transportation.
• No consumer enjoys damaged products or the wrong product
delivered to their door.
• No company wants ever-rising shipping costs because couriers have
to make many trips to one customer to get the order right.

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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems

Functions of Logistics Systems

• Transportation is among the main logistics functions.

• It's required at every step of every supply chain, and the way
companies build its transportation management system and
functions determines the success of supply chain
management.
• From storage and warehouse to material handling and fleet
optimization.
• Route optimization
• Customer notifications and live tracking
• Proof of Delivery

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305 OSCM - Logistics Management 3. Types and Functions of Logistics Systems

Functions of Logistics Systems

• Monitoring of logistics performance is a critical function that

empowers businesses to track and manage its operations with
precision and efficiency.
• By putting in place strong tracking systems and technologies,
companies can gain real-time visibility its supply chain.
• It enables businesses to make data-driven decisions and address
potential bottlenecks before they escalate.
• Businesses can monitor the movement of goods, check inventory
levels, analyze delivery performance, and get important insights into
their logistics processes by using sophisticated monitoring tools.
• IoT devices in logistics
• Analytics tools

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305 OSCM - Logistics Management 4. Transport Infrastructure and Superstructure

Transport Infrastructure

The transport infrastructure of logistics systems is made up of facilities and systems that
enable the movement of goods :
• Transportation modes: Air, sea, rail, and road are the main ways to move goods,
and ensure access to remote areas
• Warehouses and distribution centers: Store goods and distribute them to different
sectors
• Ports and terminals: Connect different modes of transport and speed up the
movement of goods
• Information systems: Ensure precision and coherence in operations, and increase
efficiency

• Roads, highways, bridges, railways, waterways, canals: Facilities that place

heavy demands on material resources

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 4. Transport Infrastructure and Superstructure
305 OSCM - Logistics Management

Transport Infrastructure

A well-developed logistical infrastructure is crucial for enhancing operational

efficiency, reducing costs, and improving customer satisfaction

Transportation: Includes air, motor/truck, rail, and shipping systems.

1. Road Networks: Highways, local roads, and expressways for trucking operations,
enabling the movement of goods from manufacturers to retailers and consumers.

2. Rail Systems: Effective for bulk goods and long-distance shipments, offering cost
benefits and lower environmental impact compared to road transport.

3. Airports: Airports facilitate air freight for time-sensitive and high-value goods,
providing quick delivery options for international and domestic shipments.

4. Seaports: Essential for maritime transport, serving as entry and exit points for goods in
global trade. Efficient port operations reduce delays and improve supply chain flow.

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 4. Transport Infrastructure and Superstructure
305 OSCM - Logistics Management

Transport Infrastructure

Warehousing: Includes storage facilities at Organizations or at various place as per

Organizations need.

1. Distribution Centers: Centralized facilities that store goods and manage inventory before
distribution to retailers or end customers, optimizing order fulfillment.

2. Cold Storage Facilities: Specialized warehouses designed to store perishable goods at

controlled temperatures, essential for food and pharmaceutical products.

3. Fulfillment Centers: Facilities focused on processing and shipping customer orders

quickly, often used in e-commerce to meet consumer demand for fast delivery.

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305 OSCM - Logistics Management 4. Transport Infrastructure and Superstructure

Transport Infrastructure
Ports and terminals
• Includes roads, railways, bridges, airports, waterways, and canals.
• Ports are geographical locations that can be divided into terminals, which are sets of docks
with specific purposes.
Types of ports
• Ports can be monofunctional, which means it handle a limited range of commodities, or
polyfunctional, which means theye a variety of piers for general and specialized cargo.
Port infrastructure
• Port infrastructure includes docks, piers, and channel harbors. Ports must maintain their
infrastructure in harsh marine environments.
Port terminals
• Port terminals can be intermediate hubs, which are used for ship-to-ship
operations. Intermediate hubs can improve the frequency and timeliness of services.
Port ownership
• Privatization has led to a global trend of awarding port operational concessions, especially
for container terminals.

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305 OSCM - Logistics Management 4. Transport Infrastructure and Superstructure

Transport Infrastructure

Information Systems(IS)
• Systems that use technology to manage and analyze transportation data to
improve the transportation system.
Reduce Congestion
• IS can help to reduce congestion by managing traffic flow and predicting traffic
conditions in real time.
Improve Mobility
• IS can help to improve mobility by making transportation more accessible and
affordable.

Increase Traveller Satisfaction

• IS can help to increase traveller satisfaction by improving the transportation
system.
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305 OSCM - Logistics Management 4. Transport Infrastructure and Superstructure

Transport Infrastructure

Roads, Highways, Bridges, Railways, Waterways, Canals

• Road Infrastructure
• Highways and Roads: Major highways facilitate long-distance freight transport, while
local roads support last-mile delivery. The quality and capacity of these roads significantly
influence transit times and operational costs.
• Bridges and Tunnels: These structures enable the crossing of natural barriers (rivers,
mountains) and enhance connectivity between regions, ensuring smooth transport routes.

• Rail Infrastructure
• Rail Networks: A well-developed rail network connects key industrial regions and ports,
making it efficient for bulk goods and intermodal transport. Railways can carry large
volumes over long distances with lower emissions than road transport.
• Freight Terminals: These facilities facilitate the transfer of goods between rail and other
modes of transport, such as trucks, enhancing the efficiency of multimodal logistics.

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305 OSCM - Logistics Management 5. Transport Routes and Transport Networks

Transport Infrastructure

Transport Routes
• Determines how goods move from suppliers to consumers.
• These routes can vary based on factors like geography, mode of transport, and the nature
of the goods being shipped.
Types of Transport Routes
1. Road Routes
2. Rail Routes
3. Maritime Routes
4. Air Routes
5. Regional and Global Supply Routes

• Transport routes are foundational to the efficiency and effectiveness of logistics systems.
• By optimizing these routes—considering factors such as cost, speed, and sustainability—
businesses can enhance their supply chain operations, improve customer satisfaction, and
respond agilely to market demands.

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305 OSCM - Logistics Management 6. Logistics Real Estate

Logistics Real Estate

• Logistics real estate is a real estate sector that includes the rental and sale of properties
designed to meet the logistics needs of companies.
• These properties are used to store, handle, and distribute goods, and are a key part of supply
chains.
• Factors, such as the availability of land, the cost of labor, and levels of government support
and incentives, can influence the development of logistics real estate clusters.

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305 OSCM - Logistics Management 6. Logistics Real Estate

Logistics Real Estate

Types of Logistics Real Estate

• Warehouses: Large facilities for storing goods, typically designed for easy access and
efficient inventory management. It can be traditional warehouses, automated facilities, or
specialized storage for temperature-sensitive products.

• Distribution Centres: Facilities that serve as hubs for receiving, storing, and distributing
goods. Which are designed to facilitate quick turnaround times for orders and often include
advanced technology for inventory management.

• Fulfilment Centres: Primarily used by e-commerce businesses, these centers focus on

processing customer orders, picking, packing, and shipping products directly to consumers.
Which are designed for speed and efficiency.

• Cross-Docking Facilities: These warehouses minimize storage time by directly

transferring incoming shipments to outgoing transport, thus speeding up the distribution
process.

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305 OSCM - Logistics Management 7. Logistics Parks and Freight Villages
Logistics Parks

• A logistics park, also called a multi-modal logistics hub, is a physical destination where
multiple logistics companies can execute logistics operations, transport and distribute
goods.
• These parks are designed to be well connected to major roads and railway stations to
reduce the cost of goods transport.
• India’s average logistics cost is almost double than that of advanced economies including
the US, Japan, and Singapore.
• The National Logistics Policy is one such initiative that will help reduce logistics costs for
businesses by developing of Multimodal Logistics Parks or MMLPs and improve
India’s logistics services and infrastructure.

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305 OSCM - Logistics Management 7. Logistics Parks and Freight Villages

Logistics Parks
Major Activities in Logistics Parks
• Warehousing (conventional/ cold storage/product specific)
• Distribution logistics
• Consolidation/de-consolidation
• Transhipment
• Inter-modal transportation
• Related activities like assembly,industrial and commercial activities including hotels,food parks etc.
• Value added services like custom clearance
Essential Components of a Logistics Park
• Large area of land at a suitable location
• Warehousing including temperature-controlled storage facilities
• Facilities like storage, re-processing, packaging, unitisation, labeling, etc., for enabling value added
services
• Open stock yards
• Rail terminal
• Air cargo complex
• Intermodal container terminal
• Food processing zones
• Ancillary facilities like IT parks, health/recreation, hotels, business centres, etc.

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305 OSCM - Logistics Management 7. Logistics Parks and Freight Villages

Logistics Parks
Benefits of logistics parks
Logistics parks are dedicated logistics spaces designed to reduce the distance travelled for
delivering goods across the country and overseas.
Reduced • According to Ministry of Road and Transport Highways (MoRTH),
transportation logistics parks will drive a 10% reduction in transportation costs by
costs enabling freight movement on bigger sized trucks and rail.
• Larger-sized trucks have 60% lower freight cost on a per ton per km basis
compared to smaller sized trucks.
• Freight cost by rail is 45% lower on a per ton per km basis compared to
average road freight cost.
Customised • Logistics parks will have a warehousing and distribution solution according
solutions for to the specific need of the business.
warehousing • For example, if a pharmaceutical company wants cold storage at a specific
and temperature for its medicines, the park will have a dedicated storage
distribution facility that provides cold storage solutions. The park will also have a
needs facility that enables to transport the drugs at the specified temperature to
the end point.

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305 OSCM - Logistics Management 7. Logistics Parks and Freight Villages

Freight Villages
• Freight villages are defined as logistics centres, where the cargoes from different transport
modes can be reloaded, compiled and prepared for transportation.
• That place links and brings together different transport modes (road, rail), transport
companies (forwarders, warehousing), supplementary transport service (vehicle services,
consultancy services) as well as industrial and trading companies.

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305 OSCM - Logistics Management 7. Logistics Parks and Freight Villages

Freight Villages

• The main function of the freight villages is the management of politically promoted
combined transport and the shifting of cargo traffic from road to rail.

• The freight village should be located near urban agglomerations and have a quick access to
regional and long-distance traffic.

Features of Freight Villages

• Location of transport economical companies, logistic operators and industrial and trading
companies on the same industrial estate.

• Access to at least two transport modes, in particular to road and rail (intermodal terminal).

• Management of the local freight village companies, which also initiate and facilitate
cooperative activities.

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 8. Information Infrastructure and Communication
305 OSCM - Logistics Management Infrastructure ,Telecommunication Infrastructure

Information Infrastructure

• "Technological and non-technological elements that are linked“

• Critical for ensuring efficient and effective logistics operations.
• It encompasses the technologies, processes, and data management practices that facilitate the
flow of information throughout the logistics network.

Key Components Information Infrastructure

Technology Components Transportation Management Systems (TMS)
Warehouse Management Systems (WMS)
Enterprise Resource Planning (ERP) Systems
Data Management Data Warehousing
Real-time Data Analytics
Big Data
AI
Network Infrastructure Cloud Computing
Cyber security Measures
Decision Support Systems Predictive Analytics
Simulation Models
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 8. Information Infrastructure and Communication
305 OSCM - Logistics Management Infrastructure ,Telecommunication Infrastructure

Telecommunication Infrastructure
• Telecommunication infrastructure in logistics systems is essential for efficient operations,
real-time tracking, and communication.

Key Components and Aspects

Communication Networks Mobile Networks
Communication
Internet Connectivity
Data Transmission Technologies RFID (Radio-Frequency Identification
GPS (Global Positioning System
IoT (Internet of Things)

Benefits of Robust Telecommunication Infrastructure

• Efficiency
• Visibility
• Cost Reduction
• Flexibility

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305 OSCM - Logistics Management 9. Satellite Systems and Satellite Navigation

Satellite Systems
Satellite systems can be used in logistics in a variety of ways –
Navigation

• Satellite navigation systems, such as the Global Positioning System (GPS), Galileo, BeiDou,
and GNSS, can provide location, velocity, and synchronization data.
• GPS software can be integrated into fleets to improve delivery efficiency.

Imaging
• Satellite imagery can be used in agricultural supply chain management. For example, Unilever
uses satellite imagery to establish a sustainable palm oil supply chain.

Internet coverage
• Satellite constellation systems, such as Starlink, can provide internet coverage in areas with
unreliable or nonexistent internet connectivity.

Space logistics
• The space logistics market is driven by the demand for space exploration, satellite launches,
and other space-based activities. Government agencies, such as NASA, and private companies,
such as SpaceX, Blue Origin, and Boeing, dominate the space logistics market.

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305 OSCM - Logistics Management 9. Satellite Systems and Satellite Navigation

Satellite Navigation
Tracking
• Satellite navigation systems can track the location of vehicles in real time, which can help
fleet managers respond to emergencies and avoid accidents.
Route optimization
• Satellite navigation systems can help fleet managers optimize routes and reduce travel time.
Safety
• Satellite navigation systems can help identify and correct risky driving habits.
Maintenance
• Satellite navigation systems can help monitor the performance of vehicles and identify
maintenance issues.

Satellite Navigation Systems

• GPS: The United States' fully operational global system
• GLONASS: The Russian Federation's fully operational global system
• GALILEO: Europe's developing global system
• COMPASS/Bei-Dou: China's developing global system
• IRNSS: India's regional system
• QZSS: Japan's regional system

Zeal Group of Management Institutes