May 2019
PRABUDDH
Faculty Article - Pg 1-4 Book Review Pg 5-6 Elective Description Pg 7 Event of the Month- Pg 8-9
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Faculty Article Logistics and Its Changing Trend
the Logistics Service Providers (LSP). LSP or Logistics Service Providers are the companies that provide logistics solutions to more than one client. These companies provide solutions for the movement of goods and material between point of origin to point of consumption. The common services handled by them include shipping, packaging, warehousing, inventory,& security of shipment.
Logistics management is a part of supply chain management; it plans, implements and controls the flow and storage of goods and services in order to meet customer’s requirements. Logistics involves making the right goods available at the right place, in right condition ant at right cost. It involves activities like procurement, supply chain management, packaging, warehousing, material movement, inventory management, cross docking, freight forward etc. All these activities require specialized skill and knowledge. And to hire the person with the required skill and knowledge or to create the required infrastructure involves huge cost. The companies in order to remain competitive want to focus on their core competencies and are hence looking out for alliances and strategic partnerships. They are also open to outsourcing their non-core activities and focus only on the core activities. Hence they are looking forward to
Logistics services are very critical for any business and ‘own operations’ is a herculean task, especially if the scale of organization is huge and there is huge competition. Changing business environment, emergence of competitor, disruptive innovations in the industry, increased shipper’s demand, fluctuating capacity etc. have made the market more complicated and complex. Logistics operations require specialized functions and majority of the organizations does not have them. The cost of building the 1
above is also huge. Thus there is a need for outsourcing the tasks to someone who is an expert in the field. Those companies which provide logistics solution to other companies are called Logistics Service Providers.
manufacturer, importer/ exporter, distributer or retailer, it can be an institution like a government department moving from one place to another. Anyone having goods moved from one place to another is called first-party logistics provider.
Commonly outsourced services include:
Warehousing
Cross docking
Inventory management
Freight forwarding
Transportation
Logistics Service categorised into categories:
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2PL -Traditional transportation and Warehousing Function. These are individual or service providers who provide their own assets such as trucks or warehouse services. Typical 2PL are truck operators who own or lease their trucks, or airlines which own, lease or charter their planes or shipping lines which own, lease or charter their ships. They take care of transportation and warehousing functions
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3PL - Managing Complex Supply Chain. They provide logistics services on behalf of another company. They provide outsourced services for part or sometime for the whole of their supply chain. These LSP provide labor, physical assets, technology along with management skills and relieve the companies from performing these tasks on their own. The major services provided by 3PL are transportation, warehousing, management consulting, pool distribution, logistics optimization, transportation management, freight forwarding, cost evaluations, rate negotiations, and contract management services.
Providers (LSP) are the following four
1PL - Own Operation of logistics by Producer. These are the companies who manage their logistics operations on their own. These companies have their freight, cargo, goods, merchandise or produce transported from point of origin to point of consumption. This term stands for both cargo receiver and cargo sender.1PL can be a trader,
• 4PL - Managing Entire Supply chain. These are non-asset based integrators who 2
assemble capabilities, resources,technology from other organizations and its own and provide a comprehensive logistics solutions to its clients. They primarily integrate the competencies of the third part logistics (3PL) and provide breakthrough logistics solutions.
customer management system (CRM) are used for providing real time visibility of the customer’s shipment, invoice and other data. TMS or transport management system provides networking and routing solutions to the customer. Information technology based tools are also used for connecting a wide range of applications within the organization and provide cloud based services.
Common 3 PL functions are as follows: Warehouse management: It involves managing the warehouse and performing basic warehousing functions like receiving, storage, pick, pack and ship. It also takes care of safety and security of goods. For this radio frequency scanning and bar code labeling of the product is also taken care of.Real times, periodic information about the movement of goods are also tracked to manage inventory.
Global services: Services like Multi- shipper container consolidation, custom and freight forwarding. Global air freight, export documentation are few of the global services provided by 3PL providers.
Additional services like cross docking, order fulfillment, return processing etc. are also taken care by 3PL provider. Transportation Management: It includes fleet management for optimization of transportation cost and service improvement, network optimization to provide better services. It also takes care of load management, driver management, freight claim, cargo insurance, freight bill payment and auditing.
Fourth Party logistics or 4PL Service
Packaging: It involves final packaging of the product at the warehouse. The customized packaging solutions like label and printing, display shippers, custom pallets, insert and coupons, repackaging or conversions, wrapping and bundling etc. also helps in optimizing the logistics operations.
Fourth Party logistics or 4PL services providers are integrators that accumulate resources, technologies and capabilities to run logistics solutions. This idea of the fourth-party logistics service provider was originated by the consulting company Accenture. It is based on the principle that modern supply chain is complex and the capability to manage it does not lie in any one organization and hence we need
Information Management: 3PL also provides information management solutions for various functions of logistics. Tools like 3
someone/some organization to manage this complex network of supply chain. This organization was called 4PL.
will identify people, process and service providers for its operations and hence arrange all the resources necessary for the same. It is someone who is an agent of change, it believe in innovation and identifying best practices and the same is bought forward in the area of supply chain, customer relationship management, project management, supply chain re-engineering etc. It also focuses on integration of information across various stakeholders.
Accenture defined 4PL as “An integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design, build, and run comprehensive supply chain solutions�. 4PL is a kind of joint venture formed between two parties, primary client and partner. The clients are the businesses looking for 4PL service providers. These clients may put equity and transfer their existing logistics staff (As they will not be required any more once the outsourcing happens) to this new entity. Client may also provide working capital to the entity. The partner’s contribution includes putting startup equity, planning logistics strategy, identifying best practices and benchmark for the company, development of the information system capability, process reengineering skill etc.
A supply chain control room:. It acts as a control room for the supply chain servicers. They hire experienced professional in the logistics field to provide optimum solution to their logistics problem and take care of their decision support system. They manage multiple 3PL partners simultaneously and are always open to the identification and adoption of new solutions. Resource Provider: They are the ones who provide resources to the clients. Facilities like warehousing, transportation, documentation, cross docking, procurement, co-packaging
Once the joint venture is materialized, the 4Pl unit is created. This unit then identifies those service providers who are specialist in their job; for example they will look out for 3PL who are good in supply chain management, they may also look out for the service providers who are good in warehousing and so on. These specialists are responsible for the execution of the different activities. 4PL provider then integrates the entire logistics management using its information system and delivers the services to its client as per the terms and conditions agreed upon.
The negotiations with 3PL: These are also called services common between 3PL/4PL. Services like invoice management, call centers, warehouse/distribution facilities, etc. are part of these kinds of services In the era of information technology, these 3 PL and 4PL have started the use of AI, data analytics, industrial internet of things (IIoT), satellites, and blockchain technology.
Dr Sandhya Rai
Common functions of 4PL include: Assembly of resources/ Integrator: A 4PL 4
Book Review
Marketing 4.0 Authors: Philip Kotler, Hermawan Kartajaya, Iwan Setiawan Since Marketing 3.0 inspired the world to embrace and explore human-centric marketing, pioneers in the field in the field have applied advanced technologies to open new insights into who customers are and how they make decisions. The author keeps forward the valuable paradox that big data analytics can create more personalized products and personal services. He also emphasises an authoritative approach to taking customers from awareness to advocacy.
followers. Hence, the customers are paying more attention to their social circle in making decisions. They seek advice and reviews both online and offline. Breaking the Myths of Connectivity The second part of the book deals with the myth that connectivity is mere application of technology that marketers need to deal with. While the mature markets are dealing with an aging population, the emerging market is enjoying the demographic dividend of a younger, more productive population. Despite their internet savvy, they love to experience things physically. They value high-touch engagement when interacting with brands. They trust their network of friends and family more than they trust corporations and brands. Customers are no longer the passive receivers of a company’s segmentation, targeting and positioning. A company must
This book beautifully describes advocacy with the expansion of traditional path to purchase from aware, appeal, ask and act to advocate. As the author observes the shift of Customers to a more horizontal, inclusive and social business landscape, they are becoming increasingly wary of marketing communications from brand are relying instead on friends, families, fans and 5
face the reality that to win it must collaborate with external parties and leverage customer participation. The next level of connectivity is experiential connectivity in which the internet is used to deliver a superior customer experience in touch points between customers and brands. Now the ultimate level is social connectivity, which is about the strength of connection in communities of customers.
Optimizing Omnichannel experience with Big-Data Analytics Mobile devices serve as the bridge that connects the digital world with the offline world. The Author suggests that capturing the data like customer demographics, customer’s offline channel journey pattern, browsing pattern, social media activities, product and promotion preferences is extremely useful for marketers to optimize channel operation. These trends involving mobile commerce ,” webrooming”, “showrooming” and channel analytics are important to integrate brand’s sales and communication channels to deliver omnichannel experience.
The Influential Digital Subcultures There is a common thread that connects the three major segments of Market (YWN) which is youth, women and netizens. Netizens or citizens of the internet are also highly influential. They feel free to express their opinions about brands. They not only create ratings, post comments and even create content that other citizens pay attention to. Although, YWN are not easy to impress but once impressed they become the most loyal advocates of Brand.
Solutions with Social CRM A Brand that intends to develop a social CRM platform must develop social CRM agents who are trained to converse with the customers on behalf of the Brand. The book gave an insight on the concept that brands can drive behaviour with Gamification. Where the earlier form of communication was seen in airline industry frequency flyer program, it is now also a technique used in online customer communities. Trip Advisor use gamification to increase engagement. While in loyalty programs customers are incentivized with reward redeemable points which in customer communities they are motivated with reputation points.
Creating Conversation with content The Author believes that instead of delivering value-proposition messages, marketers aim at distributing content that is useful and valuable for the customers. In developing content marketing marketer’s focus on Content creation and distribution. If the objective are more focused on brand metrics, marketers need to make sure that the content is always consistent with the brand’s character. In India, Colgate’s Oral Care center app helps connect dentists to prospective patients, which help to build strong brand image in both audience group.
Dr.Shweta Nanda 6
Elective Description Consumer Behaviour Consumers can be seen as actors on the marketplace stage. The roles that consumers perform are among the most important elements to be studied in consumer behavior. Consumer behavior is also an economic process where exchanges take place. Market segmentation is an important aspect of consumer behavior.
concepts and theories about people that have been developed by scientists in such diverse disciplines as psychology, sociology, social psychology, cultural anthropology, and economics. Consumer behavior has become an integral part of strategic market planning. Over & above class lectures, the course will be taught extensively through case based discussions and through this key concepts will be highlighted. Detailed understanding will be created among students especially of different consumer segments in Indian market and consumer trends over time in India including based on writings of eminent market visionary and researchers like late C.K. Prahalad and Rama Bijapurkar.
Consumers can be segmented along many dimensions. One such dimension is demographics (the statistics that measure the observable aspects of a population, such as age or birth rate). One of the important reasons for segmenting markets is to be able to build lasting relationships (relationship marketing) with the customers. Marketers are currently implementing many practices that seek to aid in forming a lasting bond with the often fickle consumer. The study of consumer behavior enables marketers to understand and predict consumer behavior in the marketplace; it is concerned not only with what consumers buy but also with why, when, where, and how they buy it. Consumer research is the methodology used to study consumer behavior; it takes place at every phase of the consumption process: before the purchase, during the purchase, and after the purchase. Consumer behavior is interdisciplinary; that is, it is based on
The subject is useful for all the students as it would yield them jobs in the longrun and would not be useful in the direct placement. Companies like Marico, Godrej, Saint Gobain, Cadburys, HDFC Bank offer profiles like Customer Development Officer, Management Trainee, Sales Officers which require an in depth knowledge of the customer and their buying behavior. Prof. Sanchita Ghosh
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Event of the Month Convocation 2019 IILM Graduate School of Management conducted its annual convocation ceremony for PGDM batch of 2017-19 on 8th May 2019 (Wednesday) at its Lodhi Road campus in New Delhi. Students turned professional managers and entrepreneurs received their PGDM degree after having completed over 2 years of rigorous training where students were trained to be industry ready using learning mechanisms such as seminars, classroom discussions, career vision schooling, research, summer internship program, student forum, workshops and many more.
A scintillating medals and awards ceremony was also part of the Convocation where students has been adjudged for the award of Dr. Kulwant Rai Gold, Silver and Bronze medals in two categories : First for overall excellence in academics and co-curricular activities, second for outstanding achievement in academics. Ms. Priyakhi Bhuyan being awarded with Gold medal, Mr. Gandham Tarun Kumar, being awarded with Silver Medal and Ms. Shubhi Agrawal, being awarded with Bronze Medal for overall excellence in academics and cocurricular activities. Mr. Shikhar Nandy being awarded with Gold medal, Ms. Shruti Dalmia being awarded with silver medal and Mr. Irukulla Kamal being awarded with Bronze medal for outstanding achievement in academics.
The Chief Guest for the Convocation was Prof. Dinesh Singh, Former Vice Chancellor, University of Delhi. Also in attendance were other dignitaries from the academic world, industries and the government, proud Parents apart from Chairman, Board of Governors. This year a total of 184 students and scholars graduated, 119 IGSM and 65 CMS degrees were awarded.
The graduates were also awarded Certificate of Merit for securing first position in the area of specialization and Best Summer Internship Programme. The following were awarded with the Certificate of Merit : In the area of Finance & Accounting, Mr. Mudit Agarwal In the area of Marketing and Sales, Mr. Nandyala Ram Durga Rao In the area of Technology and Operations, Mr. Kamal Irukulla In the area of OB & HR, Ms. Deepshikha Kaushal The award for Best Summer Internship programme was presented to Ms. Shruti Dalmia. Apart from students, awards were also presented to the Best Faculty for Core & Elective Modules. The Best Teacher’s Award for Core Module was presented to Prof. Rajkishan Nair and The Best Teacher’s Award for Elective Module was presented to Prof. Sunil Singh.
The Convocation began with a majestic and grand academic procession followed by the lamp lightening ceremony as a tribute to Mother Saraswati, the Goddess of Knowledge. The Director in her report touched upon the major developments of the institute and achievements made by the graduating students. The Director mentioned that the Institute has made considerable progress in Research and Development front in the last one year. She also touched upon all the other salient developments including publications, collaborations & collaborative research, awards, distinguished visitors, student activities, placement etc. 1
The Convocation ended with a Vote of Thanks followed by the National Anthem.
The students and the audience were then enthralled by the rousing speech of the Chief Guest, Prof. Dinesh Singh. He congratulated all the graduating students for their proud moment. He emphasized contributing back to the community being essential. In his brief and captivating address he inspired the graduates, students and faculty of the Institute.
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