Logistics is the part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the point of consumption according to the needs of customers.[2][3] Logistics management is a component that holds the supply chain together.[3] The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items.
In military logistics, it is concerned with maintaining army supply lines with food, armaments, ammunition, and spare parts apart from the transportation of troops themselves. Meanwhile, civil logistics deals with acquiring, moving, and storing raw materials, semi-finished goods, and finished goods. For organisations that provide garbage collection, mail deliveries, public utilities, and after-sales services, logistical problems must be addressed.[2]
Logistics deals with the movements of materials or products from one facility to another; it does not include material flow within the production or assembly plants, such as production planning or single-machine scheduling.[2] Logistics occupies a significant amount of the operational cost of an organisation or country. Logistical costs of organizations in the United States incurred about 11% of United States national gross domestic product (GDP) as of 1997. In the European Union, logistics costs were 8.8% to 11.5% of GDP as of 1993.[2]
Dedicated simulation software can model, analyze, visualize, and optimize logistics' complexity. Minimizing resource use is a common motivation in all logistics fields. A professional working in logistics management is called a logistician.
The term logistics is attested in English from 1846, and is from French: logistique, where it was either coined or popularized by Swiss military officer and writer Antoine-Henri Jomini, who defined it in his Summary of the Art of War (Précis de l'Art de la Guerre). The term appears in the 1830 edition, then titled Analytic Table (Tableau Analytique),[4] and Jomini explains that it is derived from French: logis, lit.'lodgings' (cognate to English lodge), in the terms French: maréchal des logis, lit.'marshall of lodgings' and French: major-général des logis, lit.'major-general of lodging':
Autrefois les officiers de l’état-major se nommaient: maréchal des logis, major-général des logis; de là est venu le terme de logistique, qu’on emploie pour désigner ce qui se rapporte aux marches d’une armée. Formerly the officers of the general staff were named: marshall of lodgings, major-general of lodgings; from there came the term of logistics [logistique], which we employ to designate those who are in charge of the functioning of an army.
The term is credited to Jomini, and the term and its etymology criticized by Georges de Chambray in 1832, writing:[5]
Logistique: Ce mot me paraît être tout-à-fait nouveau, car je ne l'avais encore vu nulle part dans la littérature militaire. … il paraît le faire dériver du mot logis, étymologie singulière … Logistic: This word appears to me to be completely new, as I have not yet seen it anywhere in military literature. … he appears to derive it from the word lodgings [logis], a peculiar etymology …
The French word: logistique is a homonym of the existing mathematical term, from Ancient Greek: λογῐστῐκός, romanized:logistikós, a traditional division of Greek mathematics; the mathematical term is presumably the origin of the term logistic in logistic growth and related terms. Some sources give this instead as the source of logistics,[6] either ignorant of Jomini's statement that it was derived from logis, or dubious and instead believing it was in fact of Greek origin, or influenced by the existing term of Greek origin.
... l'art de bien ordonner les marches d'une armée, de bien combiner l'ordre des troupes dans les colonnes, les tems [temps] de leur départ, leur itinéraire, les moyens de communications nécessaires pour assurer leur arrivée à point nommé ...
... the art of well-ordering the functionings of an army, of well combining the order of troops in columns, the times of their departure, their itinerary, the means of communication necessary to assure their arrival at a named point ...
The Oxford English Dictionary defines logistics as "the branch of military science relating to procuring, maintaining and transporting material, personnel and facilities". However, the New Oxford American Dictionary defines logistics as "the detailed coordination of a complex operation involving many people, facilities, or supplies", and the Oxford Dictionary on-line defines it as "the detailed organization and implementation of a complex operation".[7] As such, logistics is commonly seen as a branch of engineering that creates "people systems" rather than "machine systems".
According to the Council of Supply Chain Management Professionals (previously the Council of Logistics Management),[8] logistics is the process of planning, implementing and controlling procedures for the efficient and effective transportation and storage of goods including services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements and includes inbound, outbound, internal and external movements.[9]
Academics and practitioners traditionally refer to the terms operations or production management when referring to physical transformations taking place in a single business location (factory, restaurant or even bank clerking) and reserve the term logistics for activities related to distribution, that is, moving products on the territory. Managing a distribution center is seen, therefore, as pertaining to the realm of logistics since, while in theory, the products made by a factory are ready for consumption they still need to be moved along the distribution network according to some logic, and the distribution center aggregates and processes orders coming from different areas of the territory. That being said, from a modeling perspective, there are similarities between operations management and logistics, and companies sometimes use hybrid professionals, with for example a "Director of Operations" or a "Logistics Officer" working on similar problems. Furthermore, the term "supply chain management" originally referred to, among other issues, having an integrated vision of both production and logistics from point of origin to point of production.[10] All these terms may suffer from semantic change as a side effect of advertising.
Logistical activities can be divided into three main areas: order processing, inventory management, and freight transportation. Traditionally, order processing was a time-consuming activity that could take up to 70% of the order-cycle time. However, with new technologies such as bar code scanning, computers, and network connection, customer orders can quickly reach the seller in no time, and the availability of stocks can be checked in real time. The purpose of having an inventory is to reduce the overall logistical cost while improving service to customers. Having a stockpile of finished goods beforehand can reduce the frequency of transportation to and from the customers and cope with the randomness of customer demands. However, maintaining an inventory requires capital investment in finished goods and maintaining a warehouse. Storage and order picking occupy most of the warehouse maintenance cost. Freight transportation forms a vital part of logistics and allows access to broad markets as goods can be transported to hundreds or thousands of kilometers away. Freight transportation accounts for two-thirds of logistical costs and significantly impacts customer service. Transportation policies and warehouse management are closely intertwined.[2]
The rise of commercial transactions through the internet gives rise to the need for "e-logistics". Compared to traditional logistics, e-logistics handles parcels valued at less than a hundred US dollars to customers scattered at various destinations worldwide. In e-logistics, customers' demands come in waves when compared to traditional logistics, where the demand is consistent.[2]
Inbound logistics is one of the primary logistics processes concentrating on purchasing and arranging the inbound movement of materials, parts, or unfinished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores.
Outbound logistics is the process related to the storage and movement of the final product. The related information flows from the end of the production line to the end user.
Given the services performed by logisticians, the main fields of logistics can be broken down as follows:
Procurement logistics consists of market research, requirements planning, make-or-buy decisions, supplier management, ordering, and order control. The targets in procurement logistics might be contradictory: maximizing efficiency by concentrating on core competencies, outsourcing while maintaining the company's autonomy, or minimizing procurement costs while maximizing security within the supply process.
Advance logistics consists of the activities required to set up or establish a plan for logistics activities to occur.
Global logistics is technically the process of managing the "flow" of goods through a supply chain from its place of production to other parts of the world. This often requires an intermodal transport system via ocean, air, rail, and truck. The effectiveness of global logistics is measured in the Logistics Performance Index.
Distribution logistics has, as its main task, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because production time, place, and quantity differ with the time, place, and quantity of consumption.[11]
Disposal logistics has the main function of reducing logistics cost(s) and enhancing service(s) related to the disposal of waste produced during a business's operation.
Reverse logistics denotes all those reusing products and materials operations. The reverse logistics process includes the management and the sale of surpluses, as well as products being returned to vendors from buyers. It is "the process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin to recapture value or proper disposal."[12] More precisely, reverse logistics moves goods from their typical final destination to capture value or proper disposal. The opposite of reverse logistics is forward logistics.
'Green logistics describes all attempts to measure and minimize the ecological impact of logistics activities, including all activities of the forward and reverse flows. This can be achieved through intermodal freight transport, path optimization, vehicle saturation, and city logistics.
Asset control logistics: companies in the retail channels, both organized retailers and suppliers, often deploy assets required for the display, preservation, and promotion of their products. Some examples are refrigerators, stands, display monitors, seasonal equipment, poster stands & frames.
Emergency logistics (or humanitarian logistics) is a term used by the logistics, supply chain, and manufacturing industries to denote specific time-critical modes of transport used to move goods rapidly in the event of an emergency.[13] The reason for enlisting emergency logistics services could be a production delay or anticipated production delay, or an urgent need for specialized equipment to prevent events such as aircraft being grounded (also known as "aircraft on ground"—AOG), ships being delayed, or telecommunications failure. Humanitarian logistics involves governments, the military, aid agencies, donors, non-governmental organizations, and emergency logistics services are typically sourced from a specialist provider.[13][14]
The term production logistics describes logistic processes within a value-adding system (ex, a factory or a mine). Production logistics aims to ensure that each machine and workstation receives the right product in the correct quantity and quality at the right time. The concern is with production, testing, transportation, storage, and supply. Production logistics can operate in existing as well as new plants. Since manufacturing in an existing plant is a constantly changing process, machines are exchanged and new ones added, which allows for improving the production logistics system accordingly.[15] Production logistics provides the means to achieve customer response and capital efficiency. Production logistics becomes more important with decreasing batch sizes. In many industries (e.g. mobile phones), the short-term goal is a batch size of one, allowing even a single customer's demand to be fulfilled efficiently. Track and tracing, which is an essential part of production logistics due to product safety and reliability issues, is also gaining importance, especially in the automotive and medical industries.
Construction logistics has been employed by civilizations for thousands of years as the various human civilizations tried to build the best possible works of construction for living and protection. Now, construction logistics has emerged as a vital part of construction. In the past few years, construction logistics has emerged as a different field of knowledge and study within supply chain management and logistics.
Seven R's
The Seven R's is a popular concept used to enforce best practices in logistics management which consists of the following:[16]
Right product (including the right information about it)
(At) right quantity
Right time
Right condition
Right place
(to) the right customer
(with the) right (financial) resources
This section needs expansionwith: Graphical representation of Seven R's. You can help by adding to it. (November 2022)
The Punjab Regiment using mules for transporting cargo in Burma during World War II. Animals have been used for logistical transport throughout history; the Roman army preferred mules over donkeys for cargo transport.
In military science, maintaining one's supply lines while disrupting those of the enemy is a crucial—some would say the most crucial—element of military strategy, since an armed force without resources and transportation is defenseless. The historical leaders Hannibal, Alexander the Great, and the Duke of Wellington are considered to have been logistical geniuses: Alexander's expedition benefited considerably from his meticulous attention to the provisioning of his army,[18] Hannibal is credited to have "taught logistics" to the Romans during the Punic Wars[19] and the success of the Anglo-Portuguese army in the Peninsula War was due to the effectiveness of Wellington's supply system, despite the numerical disadvantage.[20] The defeat of the British in the American War of Independence and the defeat of the Axis in the African theater of World War II are attributed by some scholars to logistical failures.[21]
Militaries have a significant need for logistics solutions and so have developed advanced implementations. Integrated logistics support (ILS) is a discipline used in military industries to ensure an easily supportable system with a robust customer service (logistic) concept at the lowest cost and in line with (often high) reliability, availability, maintainability, and other requirements, as defined for the project.
Supply chain management in military logistics often deals with a number of variables in predicting cost, deterioration, consumption, and future demand. The United States Armed Forces' categorical supply classification was developed in such a way that categories of supply with similar consumption variables are grouped together for planning purposes. For instance, peacetime consumption of ammunition and fuel will be considerably lower than wartime consumption of these items, whereas other classes of supply such as subsistence and clothing have a relatively consistent consumption rate regardless of war or peace.
Some classes of supply have a linear demand relationship: as more troops are added, more supply items are needed; or as more equipment is used, more fuel and ammunition are consumed. Other classes of supply must consider a third variable besides usage and quantity: time. As equipment ages, more and more repair parts are needed over time, even when usage and quantity stay consistent. By recording and analyzing these trends over time and applying them to future scenarios, the US Armed Forces can accurately supply troops with the items necessary at the precise moment they are needed.[22] History has shown that good logistical planning creates a lean and efficient fighting force. The lack thereof can lead to a clunky, slow, and ill-equipped force with too much or too little supply.
One definition of business logistics speaks of "having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer".[23] Business logistics incorporates all industry sectors and aims to manage the fruition of project life cycles, supply chains, and resultant efficiencies.
The term business logistics has evolved since the 1960s[24] due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for professionals called supply chain logisticians.
In business, logistics may have either an internal focus (inbound logistics) or an external focus (outbound logistics), covering the flow and storage of materials from point of origin to point of consumption, a key factor in supply-chain management. The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation, and the organizing and planning of these activities. Logisticians combine professional knowledge of each of these functions to coordinate resources in an organization.
There are two fundamentally different forms of logistics: one optimizes a steady flow of material through a network of transport links and storage nodes, while the other coordinates a sequence of resources to carry out some project, such as restructuring a warehouse.
Nodes of a distribution network
A distribution network would require several intermediaries to bring consumer or industrial goods from manufacturers to a user. Intermediaries would markup the costs of the products during distribution, but benefit users by providing lower transportation costs than the manufacturers. The number of intermediaries required for the distribution network depends upon the types of goods being distributed. For example, consumer goods such as cosmetics and handicrafts may not require any intermediaries as they can be sold door-to-door or can be obtained from local flea markets. For industrial goods such as raw materials and equipment, intermediaries are not needed because manufacturers can sell a large number of goods to a user. Generally, there are three types of intermediaries, namely: agent/broker, wholesaler, and retailer.[2]
The nodes of a distribution network include:
Factories where products are manufactured or assembled
A depot or deposit, a standard type of warehouse for storing merchandise (high level of inventory)
Distribution centers for order processing and order fulfillment (lower level of inventory) and also for receiving returning items from clients. Typically, distribution centers are way stations for products to be disbursed further down the supply chain. They usually do not ship inventory directly to customers, whereas fulfillment centers do.[citation needed]
Transit points for cross-docking activities, which consist of reassembling cargo units based on deliveries scheduled (only moving merchandise)
A logistic family is a set of products that share a common characteristic: weight and volumetric characteristics, physical storing needs (temperature, radiation, etc.), handling needs, order frequency, package size, etc. The following metrics may be used by the company to organize its products in different families:[25]
Physical metrics used to evaluate inventory systems include stocking capacity, selectivity, superficial use, volumetric use, transport capacity, transport capacity use.
Monetary metrics used include space holding costs, such as building, shelving, and services, and handling costs, such as people, handling machinery, energy, and maintenance.
Other metrics may present themselves in both physical or monetary form, such as the standard inventory turnover.
Handling and order processing
Unit loads, which serve a protective function, for transportation of luggage at the airport
Unit loads are combinations of individual items which are moved by handling systems, usually employing a pallet of normed dimensions.[26]
Handling systems include: trans-pallet handlers, counterweight handler, retractable mast handler, bilateral handlers, trilateral handlers, AGV and other handlers.
Storage systems include: pile stocking, cell racks (either static or movable), cantilever racks and gravity racks.[27]
Order processing is a sequential process involving: processing withdrawal list, picking (selective removal of items from loading units), sorting (assembling items based on the destination), package formation (weighting, labeling, and packing), order consolidation (gathering packages into loading units for transportation, control and bill of lading).[28]
Picking can be both manual or automated. Manual picking can be both man-to-goods, i.e. operator using a cart or conveyor belt, or goods-to-man, i.e. the operator benefiting from the presence of a mini-load ASRS, vertical or horizontal carousel or from an Automatic Vertical Storage System (AVSS). Automatic picking is done either with dispensers or depalletizing robots.
Sorting can be done manually through carts or conveyor belts, or automatically through sorters.
Consolidating small shipments into large shipments can help to save transportation costs. There are three methods to do this: facility consolidation, multi-stop consolidation, and temporal consolidation. Facility consolidation uses the economics of scale by transporting small shipments over short distances and large shipments over long distances. Multi-stop consolidation makes multiple stops to consolidate small shipments in the case of less-than-truckload shipping. Temporal consolidation adjusts the shipping schedules forwards or backward so as to make a single large shipment rather than several small shipments over time.[2]
Cargo can be consolidated into pallets or containers. There are five basic modes of transport, namely, ship, rail, truck, air, and pipeline operated by different carrier. These shipping methods can be combined in various ways such as intermodal transport (no handling), multimodal transport, and combined transport (minimal road transport). A shipper chooses a carrier by taking into account the total cost of shipment and transit time. Air is the most expensive type of transport, followed by truck, rail, pipeline, and ship.[2]
Cargo can be organized in different shipment categories. Unit loads are usually assembled into higher standardized units such as: ISO containers, swap bodies or semi-trailers. Especially for very long distances, product transportation will likely benefit from using different transportation means: When moving cargo, typical constraints are maximum weight and volume.
A LIFO rack system for storage of motorcyclesIn this particular airline logistic network, Denver serves as a network hub for the Midwestern U.S.
In the logistics business, a logistical system is designed at a minimum cost based on the expected customer service level. As the service improves, the number of sales also increased. As service is further improved, more sales are captured from competing providers. Further increase in customer service levels after these only increases sales marginally.[2]
Similarly to production systems, logistic systems need to be properly configured and managed. Actually a number of methodologies have been directly borrowed from operations management such as using Economic Order Quantity models for managing inventory in the nodes of the network.[29]Distribution resource planning (DRP) is similar to MRP, except that it does not concern activities inside the nodes of the network but planning distribution when moving goods through the links of the network.
Traditionally in logistics, configuration may be at the level of the warehouse (node) or at level of the distribution system (network).
Regarding a single warehouse, besides the issue of designing and building the warehouse, configuration means solving a number of interrelated technical-economic problems: dimensioning rack cells, choosing a palletizing method (manual or through robots), rack dimensioning and design, number of racks, number and typology of retrieval systems (e.g. stacker cranes). Some important constraints have to be satisfied: fork and load beams resistance to bending and proper placement of sprinklers. Although picking is more of a tactical planning decision than a configuration problem, it is important to take it into account when deciding the layout of the racks inside the warehouse and buying tools such as handlers and motorized carts since once those decisions are taken they will work as constraints when managing the warehouse, the same reasoning for sorting when designing the conveyor system or installing automatic dispensers.
Configuration at the level of the distribution system concerns primarily the problem of location of the nodes in geographic space and distribution of capacity among the nodes. The first may be referred to as facility location (with the special case of site selection) while the latter to as capacity allocation. The problem of outsourcing typically arises at this level: the nodes of a supply chain are very rarely owned by a single enterprise. Distribution networks can be characterized by numbers of levels, namely the number of intermediary nodes between supplier and consumer:
Two level network: central and peripheral warehouses
This distinction is more useful for modeling purposes, but it relates also to a tactical decision regarding safety stocks: considering a two-level network, if safety inventory is kept only in peripheral warehouses then it is called a dependent system (from suppliers), if safety inventory is distributed among central and peripheral warehouses it is called an independent system (from suppliers).[25] Transportation from producer to the second level is called primary transportation, from the second level to a consumer is called secondary transportation.
Although configuring a distribution network from zero is possible, logisticians usually have to deal with restructuring existing networks due to presence of an array of factors: changing demand, product or process innovation, opportunities for outsourcing, change of government policy toward trade barriers, innovation in transportation means (both vehicles or thoroughfares), the introduction of regulations (notably those regarding pollution) and availability of ICT supporting systems, such as ERP or e-commerce.
Once a logistic system is configured, management, meaning tactical decisions, takes place, once again, at the level of the warehouse and of the distribution network. Decisions have to be made under a set of constraints: internal, such as using the available infrastructure, or external, such as complying with the given product shelf lifes and expiration dates.
At the warehouse level, the logistician must decide how to distribute merchandise over the racks. Three basic situations are traditionally considered: shared storage, dedicated storage (rack space reserved for specific merchandise) and class-based storage (class meaning merchandise organized in different areas according to their access index).
Picking efficiency varies greatly depending on the situation.[28] For a man to goods situation, a distinction is carried out between high-level picking (vertical component significant) and low-level picking (vertical component insignificant). A number of tactical decisions regarding picking must be made:
Routing path: standard alternatives include transversal routing, return routing, midpoint routing, and largest gap return routing
Replenishment method: standard alternatives include equal space supply for each product class and equal time supply for each product class.
Picking logic: order picking vs batch picking
At the level of the distribution network, tactical decisions involve mainly inventory control and delivery path optimization. Note that the logistician may be required to manage the reverse flow along with the forward flow.
Warehouse management system and control
Although there is some overlap in functionality, warehouse management systems (WMS) can differ significantly from warehouse control systems (WCS). Simply put, a WMS plans a weekly activity forecast based on such factors as statistics and trends, whereas a WCS acts like a floor supervisor, working in real-time to get the job done by the most effective means. For instance, a WMS can tell the system that it is going to need five of stock-keeping unit (SKU) A and five of SKU B hours in advance, but by the time it acts, other considerations may have come into play or there could be a logjam on a conveyor. A WCS can prevent that problem by working in real-time and adapting to the situation by making a last-minute decision based on current activity and operational status. Working synergistically, WMS and WCS can resolve these issues and maximize efficiency for companies that rely on the effective operation of their warehouse or distribution center.[30]
Logistics outsourcing
Logistics outsourcing involves a relationship between a company and an LSP (logistic service provider), which, compared with basic logistics services, has more customized offerings, encompasses a broad number of service activities, is characterized by a long-term orientation, and thus has a strategic nature.[31]
Outsourcing does not have to be complete externalization to an LSP, but can also be partial:
A single contract for supplying a specific service on occasion
Third-party logistics (3PL) involves using external organizations to execute logistics activities that have traditionally been performed within an organization itself.[32] According to this definition, third-party logistics includes any form of outsourcing of logistics activities previously performed in house. For example, if a company with its own warehousing facilities decides to employ external transportation, this would be an example of third-party logistics. Logistics is an emerging business area in many countries. External 3PL providers have evolved from merely providing logistics capabilities to becoming real orchestrators of supply chains that create and sustain a competitive advantage, thus bringing about new levels of logistics outsourcing.[33]
The concept of a fourth-party logistics (4PL) provider was first defined by Andersen Consulting (now Accenture) as an integrator that assembles the resources, planning capabilities, and technology of its own organization and other organizations to design, build, and run comprehensive supply chain solutions. Whereas a third-party logistics (3PL) service provider targets a single function, a 4PL targets management of the entire process. Some have described a 4PL as a general contractor that manages other 3PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility of a complete process for the customer.
Horizontal alliances between logistics service providers
Horizontal business alliances often occur between logistics service providers, i.e., the cooperation between two or more logistics companies that are potentially competing.[34] In a horizontal alliance, these partners can benefit twofold. On one hand, they can "access tangible resources which are directly exploitable". In this example extending common transportation networks, their warehouse infrastructure and the ability to provide more complex service packages can be achieved by combining resources. On the other hand, partners can "access intangible resources, which are not directly exploitable". This typically includes know-how and information and, in turn, innovation.[34]
Industrial machinery can typically identify products through either barcode or RFID technologies. Information in traditional bar codes is stored as a sequence of black and white bars varying in width, which when read by laser is translated into a digital sequence, which according to fixed rules can be converted into a decimal number or other data. Sometimes information in a bar code can be transmitted through radio frequency, more typically radio transmission is used in RFID tags. An RFID tag is a card containing a memory chip and an antenna that transmits signals to a reader. RFID may be found on merchandise, animals, vehicles, and people as well.
Logistics: profession and organizations
A logistician is a professional logistics practitioner. Professional logisticians are often certified by professional associations. One can either work in a pure logistics company, such as a shipping line, airport, or freight forwarder, or within the logistics department of a company. However, as mentioned above, logistics is a broad field, encompassing procurement, production, distribution, and disposal activities. Hence, career perspectives are broad as well. A new trend[as of?] in the industry is the 4PL, or fourth-party logistics, firms, consulting companies offering logistics services.
Some universities and academic institutions train students as logisticians, offering undergraduate and postgraduate programs. A university with a primary focus on logistics is Kühne Logistics University in Hamburg, Germany. It is non-profit and supported by Kühne-Foundation of the logistics entrepreneur Klaus Michael Kühne.
The Chartered Institute of Logistics and Transport (CILT), established in the United Kingdom in 1919, received a Royal Charter in 1926. The Chartered Institute is one of the professional bodies or institutions for the logistics and transport sectors that offer professional qualifications or degrees in logistics management. CILT programs can be studied at centers around the UK, some of which also offer distance learning options.[35] The institute also have overseas branches namely The Chartered Institute of Logistics & Transport Australia (CILTA)[36] in Australia and Chartered Institute of Logistics and Transport in Hong Kong (CILTHK)[37] in Hong Kong. In the UK, Logistics Management[38] programs are conducted by many universities and professional bodies such as CILT. These programs are generally offered at the postgraduate level.
The Global Institute of Logistics[39] established in New York in 2003 is a think tank for the profession and is primarily concerned with intercontinental maritime logistics. It is particularly concerned with container logistics and the role of the seaport authority in the maritime logistics chain.
The International Association of Public Health Logisticians (IAPHL)[40] is a professional network that promotes the professional development of supply chain managers and others working in the field of public health logistics and commodity security, with particular focus on developing countries. The association supports logisticians worldwide by providing a community of practice, where members can network, exchange ideas, and improve their professional skills.
Logistics museums
There are many museums in the world which cover various aspects of practical logistics. These include museums of transportation, customs, packing, and industry-based logistics. However, only the following museums are fully dedicated to logistics:
In commerce, supply chain management (SCM) deals with a system of procurement, operations management, logistics and marketing channels, through which raw materials can be developed into finished products and delivered to their end customers. A more narrow definition of supply chain management is the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronising supply with demand and measuring performance globally". This can include the movement and storage of raw materials, work-in-process inventory, finished goods, and end to end order fulfilment from the point of origin to the point of consumption. Interconnected, interrelated or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain.
Inventory or stock refers to the goods and materials that a business holds for the ultimate goal of resale, production or utilisation.
Logistics engineering is a field of engineering dedicated to the scientific organization of the purchase, transport, storage, distribution, and warehousing of materials and finished goods. Logistics engineering is a complex science that considers trade-offs in component/system design, repair capability, training, spares inventory, demand history, storage and distribution points, transportation methods, etc., to ensure the "thing" is where it's needed, when it's needed, and operating the way it's needed all at an acceptable cost.
A supply chain, sometimes expressed as a "supply-chain", is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers. Meanwhile, supply chain management deals with the flow of goods within the supply chain in the most efficient manner.
Logistics automation is the application of computer software or automated machinery to improve the efficiency of logistics operations. Typically this refers to operations within a warehouse or distribution center, with broader tasks undertaken by supply chain engineering systems and enterprise resource planning systems.
A warehouse is a building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parks on the outskirts of cities, towns, or villages.
Vendor-managed inventory (VMI) is an inventory management practice in which a supplier of goods, usually the manufacturer, is responsible for optimizing the inventory held by a distributor.
Cross-docking is a logistical practice of Just-In-Time Scheduling where materials are delivered directly from a manufacturer or a mode of transportation to a customer or another mode of transportation. Cross-docking often aims to minimize overheads related to storing goods between shipments or while awaiting a customer's order. This may be done to change the type of conveyance, to sort material intended for different destinations, or to combine material from different origins into transport vehicles with the same or similar destinations.
A distribution center for a set of products is a warehouse or other specialized building, often with refrigeration or air conditioning, which is stocked with products (goods) to be redistributed to retailers, to wholesalers, or directly to consumers. A distribution center is a principal part, the order processing element, of the entire order fulfillment process. Distribution centers are usually thought of as being demand driven. A distribution center can also be called a warehouse, a DC, a fulfillment center, a cross-dock facility, a bulk break center, and a package handling center. The name by which the distribution center is known is commonly based on the purpose of the operation. For example, a "retail distribution center" normally distributes goods to retail stores, an "order fulfillment center" commonly distributes goods directly to consumers, and a cross-dock facility stores little or no product but distributes goods to other destinations.
Information Logistics (IL) deals with the flow of information between human and / or machine actors within or between any number of organizations that in turn form a value creating network. IL is closely related to information management, information operations and information technology.
Supply-chain optimization (SCO) aims to ensure the optimal operation of a manufacturing and distribution supply chain. This includes the optimal placement of inventory within the supply chain, minimizing operating costs including manufacturing costs, transportation costs, and distribution costs. Optimization often involves the application of mathematical modelling techniques using computer software. It is often considered to be part of supply chain engineering, although the latter is mainly focused on mathematical modelling approaches, whereas supply chain optimization can also be undertaken using qualitative, management based approaches.
Order fulfillment is in the most general sense the complete process from point of sales inquiry to delivery of a product to the customer. Sometimes, it describes the more narrow act of distribution or the logistics function. In the broader sense, it refers to the way firms respond to customer orders.
A supply-chain network (SCN) is an evolution of the basic supply chain. Due to rapid technological advancement, organizations with a basic supply chain can develop this chain into a more complex structure involving a higher level of interdependence and connectivity between more organizations, this constitutes a supply-chain network.
Although logistics has been mostly utilized in commercial supply chains, it is also an important tool in disaster relief operations. Humanitarian logistics is a branch of logistics which specializes in organizing the delivery and warehousing of supplies during natural disasters or complex emergencies to the affected area and people. However, this definition focuses only on the physical flow of goods to final destinations, and in reality, humanitarian logistics is far more complicated and includes forecasting and optimizing resources, managing inventory, and exchanging information. Thus, a good broader definition of humanitarian logistics is the process of planning, implementing and controlling the efficient, cost-effective flow and storage of goods and materials, as well as related information, from the point of origin to the point of consumption for the purpose of alleviating the suffering of vulnerable people.
Order processing is the process or work-flow associated with the picking, packing, and delivery of the packed items to a shipping carrier and is a key element of order fulfillment. Order processing operations or facilities are commonly called “distribution centers” or “DC 's”. There are wide variances in the level of automation associating to the “pick-pack-and-ship” process, ranging from completely manual and paper-driven to highly automated and completely mechanized; computer systems overseeing this process are generally referred to as Warehouse Management Systems or “WMS”.
Merge-in-transit (MIT) is a distribution method in which several shipments from suppliers originating at different locations are consolidated into one final customer delivery. This removes the need for distribution warehouses in the supply chain, allowing customers to receive complete deliveries for their orders. Under a merge-in-transit system, merge points replace distribution warehouse. In today's global market, merge-in-transit is progressively being used in telecommunications and electronic industries. These industries are usually dynamic and flexible, in which products have been developed and changed rapidly.
Sustainable distribution refers to any means of transportation / hauling of goods between vendor and purchaser with lowest possible impact on the ecological and social environment, and includes the whole distribution process from storage, order processing and picking, packaging, improved vehicle loadings, delivery to the customer or purchaser and taking back packaging.
Third-party logistics is an organization's long term commitment of outsourcing its distribution services to third-party logistics businesses.
SAP EWM is part of SAP AG's Supply Chain Management Suite of solutions. The Extended Warehouse Management product is an integrated software platform for inflexible, automated support for processing goods movements and for managing inventory in the warehouse.
A transportation and warehouse management system (TWMS) is a software application that supports eCommerce, distribution, and third-party logistics (3PL) companies within supply chain management.
References
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1 2 Kozlenkova, Irina V.; Hult, G. Tomas M.; Lund, Donald J.; Mena, Jeannette A.; Kekec, Pinar (December 2015). "The Role of Marketing Channels in Supply Chain Management". Journal of Retailing. 91 (4): 586–609. doi:10.1016/j.jretai.2015.03.003. Logistics refers to "that part of supply chain management that plans, implements, and controls the efficient, 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 customers' requirements"
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↑ CSCMP glossary "Archived copy"(PDF). Archived from the original(PDF) on 22 May 2016. Retrieved 10 September 2013.{{cite web}}: CS1 maint: archived copy as title (link)
1 2 Cozzolino Alessandra, Humanitarian Logistics and Supply Chain Management, In Humanitarian Logistics, Springer Berlin Heidelberg 2012
↑ L. Torre, I.S. Dolinskaya, K.R. Smilowitz, Disaster relief routing: Integrating research and practice Socio-Economic Planning Sciences vol46, March 2012
↑ Nyhuis P., Wiendahi Hans-Peter, Fundamentals of Production Logistics, Springer Berlin Heidelberg 2009
↑ Donald W. Engels, Alexander the Great and the Logistics of the Macedonian Army, University of California 1980
↑ Ayrault Dodge Theodore, Hannibal: A History of the Art of War Among the Carthaginians and Romans Down to the Battle of Pydna, 168 BC. Da Capo Press. 1995
↑ Troy T. Kirby, The Duke of Wellington and the Supply System During the Peninsula War, CreateSpace Independent Publishing Platform 2014
↑ Roger Morriss, "Colonization, Conquest, and the Supply of Food and Transport: The Reorganization of Logistics Management, 1780–1795," War in History, (July 2007), 14#3 pp310–324,
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↑ McGinnis M. A., Military Logistics: Insights for Business Logistics, International Journal of Physical Distribution & Logistics Management Vol 22, 1992
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Preclík Vratislav: Průmyslová logistika (Industrial logistics), 359 p., ISBN80-01-03449-6, First issue Nakladatelství ČVUT v Praze, 2006, pp.7–50, 63–73, 75–85, 123–347, Prague 2006.
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