Business Logistic

Logistic : - Flow of material, information, and money between consumers and suppliers. (Frazelle, 2002).

               - The process of strategically managing the movement and storage of materials, part and finished inventory from supplier, between enterprise facilities, and to customers.

The council of Logistics Management-CLM (1998):

“Logistics  Management is that part of the supply chain process that plants, implements, and controls the efficient, effective flow and storage of goods, service and related information from the point of origin to the point of consumption in order to meet customer requirement ”.

The changing logistics paradigm since world war II

World War II : After World War II, logistics knowledge from military enters private business sector, orientation towards customer (USA).

1970s : 1970s logistics as a function in business to secure availability of materials and goods.

1980s : 1980s functional logistics changes to a flow oriented discipline.

1990s : 1990s first cross business logistics concepts (eg. JIT) and SCM supported by IT

21 century : Business cooperation is a key success factor in global competition. Strategic supply chain management emerges.

Logistics Flow

Supplier          Manufacture         Distributor          Customer

Logistic Mission : Five Rights

© Right product

© Right Place

 © Right Time

© Right condition

© Right cost

Performance Indicator

Customer : Services

Provider : Cost

Owner : Return

                   

Competitiveness

Role of Logistics

Increase

Efficiency and Productivity

Reduced Unit Cost Better Services

Competitive Advantage

Framework of Logistics Activities

© Customer Response

© Inventory Planning And Management

© Transportation

©Supply

© Warehousing

Logistics Scope of Services

Inbound Logistics : Procurement, Warehousing, Transportation, Quality Ctrl, J.I. time Delivery, Inventory Plan, Cross Docking

Manufacturing Support : Inv. Plan & Ctrl, Line Replenishmt, Subassembly, Packing, repair                                                    

Outbond Logistics : Warehousing, distribution, call center, line haul, installation, home delivery, order pick/packing                                                                                                                      

Aftermarket Services : Spareparts Logistics, Handling Return, Repair Activities, Reverse Logistics, call center