LOGISTICS MANAGEMENT theory.docx

8/19/2019 LOGISTICS MANAGEMENT theory.docx

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LOGISTICS MANAGEMENT

Introduction:

The Concepts of Logistics started many years before Chris and

was used by Greek generals.

(Leon the Wise, Aleander the Great! on order to describe all procedures for the

army"s procurement on food, clothing. Ammunition etc. Aleander the Great was a

big fan of the mobility of his troops and he didn"t want his troops to stay in one

place waiting for supplies from #acedonia.

Thus he tried to resol$e the issues of supplies by using supplies from the local

resources of his defeated enemies.

%tarting from the early &'"s many factors, such as deregulation, competiti$e

pressures, information technology, globaliation, profit le$erage, etc. contributed to

the increase of logistics science. )n the form we now it today.

Meaning and Definitions of Logistics

Logistics is the art and science of managing and controlling the flow of goods,

energy, information and other resources, Today logistics has ac*uired a wider

meaning and is used in business for the mo$ement of raw materials. +rom supplies

to the manufactures and finally finished goods to the consumer.

According to Council of Logistics #anagement" (CL#! defines,

-Logistics is the process of planning, implementing and controlling the efficient,

effecti$e flow and storage of goods, ser$ices, and related information for the purpose of conforming to customer re*uirements.

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The Recent Definitions of Logistics are

-The process of anticipating customers needs and works, ac*uiring the capitals,

#aterials, /eople, technologies, and information necessary to meet those needs and

wants optimiing the goods or ser$ices producing network to fulfill customer re*uests and utiliing the network to fulfill customer re*uests in a timely way.

The Scope of Logistics in Business:

Logistics in a business aim to the following contributions0

• Achie$e maimum customer ser$ice le$el

• 1nsure high product (possible! cost.

• 2e fleible in the constant market changes.

Logistics management tries to ha$e the 3ight production" in the 3ight

4uantity" at the 3ight time" with 3ight Cost".

Logistics #anagement must balance 5 basic targets

• 4uality of %er$ice

• Low Cost

Logistics 6 %upply 7 #aterial management 7 8istribution

Supp! " Distri#ution ogistics

/hysical %upply Channel

• /hysical 8istribution Channel

$h!sica Supp! Channe

)t refers to the Time and space gap between firm"s immediate material

sources and its processing points.

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$h!sica Distri#ution channe

)t refers to the space gap between firms processing points and its

customers.

%&four' (e! pa!ers of Logistics

9. %uppliers : ;enders

5. #anufactures

<. Whole sellers (= 3etailers!

>. Customers

(e! Co)ponents of Logistics * +e! acti,ities

Logistics acti$ities can be classified into

a! Core Acti$ities

b! %upporting Acti$ities.

a' Core Acti,ities

9. Customer ser$ice (Typically defined by #arketing!

5. Transportation

<. )n$estor #anagement

>. )nformation flows and order processing.

#' Support Acti,ities

9. Warehousing ( %pace 8etermination, stock Layout, configuration , stock

placement !

5. #aterial handling (1*uipment selection = 3eplacement /olices, order

picking procedures, stock storage = retried!

<. /urchasing (%upply source selection, purchase timing purchase

*uantities!

>. /rotecti$e packaging (designed for handling, storage , protection from

loss? damage!

@. Cooperate with production ?operations

(specify aggregate *uantities, se*uence = time production out put,

schedule supplies!

&. )nformation maintenance (info collection , storage = manipulation , data

analysis, control procedures!

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LOGISTICS MANAGEMENT theory.docx