Continuing Education and Extension Division The Fundamentals of Logistics

1. Te-Cheng Yu Dept. of Logistics Management, National Kaohsiung Marine University Continuing Education and Extension DivisionThe Fundamentals of Logistics

2. Contents • Introduction • Logistics Perspectives • Logistics Definitions • A new logistics paradigm • Toward a fully integrated logistics • Thinking framework for Logistics • Summary • Future Study about Strategic Logistics Management • The end • Home work

3. Introduction • Welcome to Logistics • 5S • 7Rs

4. Welcome to Logistics • Wake Up！ • Do Something！ • Do More ！

5. 5S • Seiri, Seiton, Seisou, Seiketsu, and Shitsuke等 5個日語發音符號的縮寫, 成為一種基本的現場管理模式 • Seiri(整理)：區分要用與不要用的物品，不要用的物品清理掉） • Seiton（整頓)：將要用的物品定位、定量放置整齊，並明確標示） • Seisou（清掃)：清理職場內的髒污，並防止污染的發生） • Seiketsu（清潔)：將整理、整頓與清掃的做法予以制度化、規範化，貫徹執行並維持成果） • Shitsuke（身美/教養)：由內心發出的遵守紀律習慣，並以正確方法去執行）

6. 7 Rs of Logistics 七項正確顧客服務要項 • the right product, to the right customer, in the right quantity, in the right condition, at the right place, at the right time, and with the right cost • 正確的產品、顧客、數量、條件、地點、時間與成本

7. 7Rs of Logistics • Right Product(正確的產品) • A result of labor, or of a natural or industrial process • Right Customer (正確的顧客) • A person, department or organization inside or outside the concern to which goods and/or services are supplied • Right Quantity (正確的數量) • a kind of property which exists as magnitude or multitude • Right Condition (正確的條件) • A state of being; a proposition upon which another proposition depends, such as "if-then" statements. • Right Place (正確的地點) • 地點/通路 • Right Time (正確的時間) • part of the fundamental structure of the universe, a dimension in which events occur in sequence • Right Cost (正確的成本) • The value of money that has been used up to produce something, and hence is not available for use anymore

8. Logistics Perspective • Inventory • Customer • Dictionary • Wikipedia • International Society of Logistics • famous nebulous • Biblical • Utility • Council of Logistics Management • Component • Functional • Common culture

9. Inventory • A list of goods and materials, or those goods and materials themselves, held available in stock by a business. Inventory are held in order to manage and hide from the customer the fact that manufacture delay is longer than delivery delay, and also to ease the effect of imperfections in the manufacturing process that lower production efficiencies if production capacity stands idle for lack of materials. （Wikipedia) • 留存作為銷售的商品存貨(會計)。不過在廠商的生產過程中，為了維持製造過程順暢，通常必須根據生產排程儲備一定水準的原物料，這部分是廠商的原料存貨。庫存相當於在一段時期中，廠商所生產出來卻未順利銷售完畢的最終產品。庫存以高於水準的速度堆積，導致存貨周轉率偏低，顯示廠商生產量超出市場胃納，必須有所調整。雖然庫存在帳面上仍算是企業的資產，但通常會隨著時間流逝而減損其價值，最後可能必須賤價出清或全數打消，對企業而言並不是好事。

10. Customer • 顧客/客戶 • A person, department or organization inside or outside the concern to which goods and/or services are supplied. • 商業服務或產品的採購者，他們可能是最終的消費者、代理人或供應鏈內的中間人。 (維基百科)

11. Dictionary • A list of words with their definitions, a list of characters with their glyphs, or a list of words with corresponding words in other languages. In a few languages, words can appear in many different forms, but only the lemma form appears as the main word or headword in most dictionaries. （Wikipedia） • 為字詞提供音韻、意思解釋、例句、用法等等的工具書。 • 為了配合社會發展需求，詞典收詞數量激增並發展出不同對象、不同行業及不同用途的詞典。隨著吸收百科全書的元素，更有百科辭典的出現。

12. Wikipedia • 一個基於wiki技術的多語言的百科全書協作計劃，也是一部用不同語言寫成的百科全書，其目標及宗旨是為地球上的每一個人提供自由的百科全書——用他們選擇的語言所書寫的，全世界知識的總和。維基百科全書，自2001年1月15日正式成立，由維基媒體基金會負責維持，截至2007年7月，維基百科條目數第一的英文維基百科已有185萬個條目，而所有253種語言的版本共突破770萬個條目，其中條目數前15名的維基百科共佔總條目數的75%，大部分頁面都可以由任何人使用瀏覽器進行閱覽及修改，英語維基百科的普及也促成了其它計畫，例如維基新聞、維基教科書等計畫的產生，雖然也造成對這些所有人都可以編輯的內容準確性的爭議，但如果所列出的來源是受到肯定的，則其內容也會具有一定的水平。中文維基百科於2002年10月24日正式成立，截至2007年7月11日01:43UTC，中文維基百科已擁有135,176個條目，此外還設有其他獨立運作的中國地方語言或漢語版本，包括閩南語維基百科、粵語維基百科、文言文維基百科、吳語維基百科及閩東語維基百科等。

13. International Society of Logistics • 國際運籌協會 • A non-profit international professional society composed of individuals organized to enhance the art and science of logistics technology, education and management. It was founded in 1966 as the Society of Logistics Engineers "to engage in educational, scientific, and literary endeavors to advance the art of logistics technology and management."

14. Bible • The canonical collections of sacred writings or books of Judaism and Christianity.[1]Books included as canon in the Bible vary according to different traditions. • Bible可以追溯到拉丁語的”Biblia”及希臘語的”Βίβλος”，本意為莎草紙，可以指猶太教和基督教（包括天主教、東正教和基督新教）的宗教經典。猶太教的宗教經典是指《塔納赫》（或稱《希伯來聖經》），而基督宗教的則指《舊約聖經》和《新約聖經》兩部分。

15. Utility • A measure of the relative happiness or satisfaction (gratification) gained. • 效用是經濟學中最常用的概念之一。一般而言，效用是指對於消費者通過消費或者享受閒暇等使自己的需求、慾望等得到的滿足的一個度量。經濟學家對於效用的理解是有一個過程的。19世紀的傑文斯、瓦爾拉斯和馬歇爾等早期經濟學家認為效用如同人們的身高和體重一樣是可以測量的，而希克斯(John Hicks，1946)則嘗試了只在序數性效用的假定下，也取得了很多的研究成果。希克斯認為，效用的數值表現只是為了表達偏好的順序，並非效用的絕對數值。從教科書等內容判斷，現在比較通用的應該是後者的序數性效用。

16. Council of Logistics Management • 運籌管理協會 • Founded in 1963, the National Council of Physical Distribution Management (NCPDM); In 1985, recognizing the growing field of logistics, the association's focus broadened as it changed its name to the Council of Logistics Management (CLM). It stayed that way until 2004 when CLM's Executive Committee voted to become CSCMP, effective in 2005.

17. Council of Supply Chain Management Professionals • 供應鏈管理協會(CSCMP) • The preeminent association for individuals involved in supply chain management, provides educational, career development, and networking opportunities to its over 9,000 members and to the entire profession. • CSCMP was originally founded as the National Council of Physical Distribution Management (NCPDM) in January 1963. NCPDM was formed by a visionary group of educators, consultants, and managers who envisioned the integration of transportation, warehousing, and inventory as the future of the discipline. At that time, physical distribution was just beginning to edge its way into the corporate lexicon and make its considerable presence felt in the business community. • In 1985, recognizing the growing field of logistics, the association's focus broadened as it changed its name to the Council of Logistics Management (CLM). • It stayed that way until 2004 when CLM's Executive Committee voted to become CSCMP, effective in 2005.

18. Component • 零件/組成份 • A single or assembled product which is used in a higher level assembled product.

19. Common culture • Culture from the Latincultura stemming from colere, meaning “to cultivate,” • Generally refers to patterns of human activity and the symbolic structures that give such activity significance.（Wikipedia） • 文化是指人類所創造的精神財富，如文學、藝術、教育、科學等。在考古學上則指同一歷史時期的遺跡、遺物的綜合體。同樣的工具、用具、製造技術等是同一種文化的特徵。 • 生活方式或行為習慣。

20. Logistics Definitions(1) • Inventory • Management of materials in motion and at rest. • Customer • Getting the right product, to the right customer, in the right quantity, in the right condition, at the right place, at the right time, and with the right cost. (called the Seven Rs of Logistics.)

21. Logistics Definitions(2) • Dictionary • The branch of military science having to do with procuring, maintaining, and transporting material, personnel, and facilities. • Wikipedia • the art and science of managing and controlling the flow of goods, energy, information and other resources like products, services, and people, from the source of production to the marketplace.

22. Logistics Definitions(3) • International Society of Logistics • The art and science of management, engineering, and technical activities concerned with requirement, design, and supplying and maintaining resources to support objectives, plans, and operations.

23. Logistics Definitions(4) • Famous Nebulous • World War Ⅱ Chief of US Naval Operations Admiral Ernest H. King: “I don’t know what the hell this logistics is that (Army Chief of Staff General George C.) Marshall is always taking about, but I want some of it.” • Biblical • “I have heard of you…that light and under-standing and excellent wisdom are found in you…I have heard that you giveinterpretations and solveproblems…you shall be clothed with purple and have a chain of gold about your neck.

24. Logistics Definitions(5) • Utility • Providing time and place utility/value of materials and products in support of organization objectives. • Council of Logistics Management • That part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption in order to meet customers’ requirements.

25. Logistics Definitions(6) • Component • Supply management for the plant (inbound logistics) and distribution management for the firm’s customers (outbound logistics) • Material support of manufacturing and product support of marketing operations.

26. Logistics Definitions(7) • Functional • Materials requirement determination, purchasing, transportation, inventory management, warehousing, materials handling, industrial packaging, facility location analysis, distribution, return goods handling, information management, customer service, and all other activities concerned with supporting the internal stores) with product customer (manufacturing) with materials and the external customer (retail stores) with product. • Common culture • Handling the details of an activity.

27. Toward a fully integrated logistics • “X-engineering the Corporations” on supply chain • Supply Chain Management (SCM) • Value chain • Channel management • Channel

28. Supply Chain Management • SCM is the collaborative integration of all logistics processes by all players in the chain, from original suppliers through end users. • Customer-driven system involving the sharing of information, risks, and assets among partners to achieve an integrated, seamless, responsive distribution system • Pull system (cf. Push system) • Strategic alliance • Shared data • System optimization • Fully integrated logistics system • Business logistics as a component of SCM • SCM is differentiated from logistics in that it involves all partners up and down the supply chain.

29. What is logistics? • Logistics is customer service, relates to developing capabilities and managing activities that focus on meeting support needs, and involves logic and calculations. • Logistics is the science of developing and managing the capabilities and protocols that are responsive to customer-driven service requirements Steven Hays Russell , 2000

30. What is logistics? (狹義的) • Management of materials in motion and at rest. • Getting the right product, to the right customer, in the right quantity, in the right condition, at the right place, at the right time, and with the right cost. (called the Seven Rs of Logistics.) • Strategic resources planning ……

31. What is logistics? (廣義的) • 在營帳中謀畫戰略 • 事先謀劃計策 • 事前規劃與營運控制

32. What is logistics? (簡單的) • 策略平衡 • 整合性物流系統 • 供應鏈規劃與控制

33. 何謂運籌?根據運籌實務歸納… • 運籌是一門科學 • 運籌是一門發展能耐與管理經營模式的科學 • 後勤競爭能耐(capabilities): 有形資產與無形資產的整合;機器設備/材料/現金與人力資本/智慧財產/行動方案的搭配與平衡(取捨), 以建立競爭優勢… • 有效經營模式(protocols ):提出妥善的營運計畫、方法、邏輯網絡、外包、應變計畫….活用資源), 以建立競爭優勢… • 運籌是一門發展後勤競爭能耐與提供有效經營模式, 提供產品或服務以回應顧客導向的服務需求的科學

34. What is logistics? (完整的) • An effective vertical integration system which demands fully support to provide all of the usable resources, frames the best strategy and tactics for aiding the front-line team to achieve target, and wins every encountered battle with limited resources. • 「一套新古典經營模式，基於活用資源的哲學，精打細算，有效的垂直整合，從原物料供應、產品分配到最終顧客服務之間的跨流程，包括商流、物流、資訊流與金流整合，發展成為一個跨組織合作的供應鏈管理體系」。

35. Supply Chain Logistics • The science of collaborative integration of all logistics processes by all players in the supply chain, from original suppliers through end users, relates to developing the capabilities and managing protocols to be responsive to customer-driven service requirements. • SCL includes • Distribution Logistics • Production Logistics • Supply Logistics

36. Distribution Logistics • The science of developing the integrated support capabilities that are responsive to customer-driven service requirements and managing protocols that help interpret marketing place and solve problems in the supply chain context.

37. Production Logistics • The science of managing, engineering, and technical activities concerned with production capacity, schedule, and delivery to support manufacturing objectives, plans, and operations in the supply chain context.

38. Supply Logistics • The managing of supply sources, inventories, transportation, distribution networks, and related activities, and supporting of information to meet the requirements of internal stores or end users in the supply chain context.

39. A new logistics paradigm • Military logistics (軍事運籌) • Engineering logistics (工程運籌) • Business logistics (商業運籌) • Events logistics (活動運籌) • Process logistics (行程運籌)

40. Military logistics • The design of supportability into weapon systems and other capital assets, assessment of technical requirements for training and maintenance, computation of post-war support requirements, and integration of all aspects of support for operational capability of military forces and their equipments.

41. Engineering logistics • The design of supportability into engineering systems and other capital assets, assessment of technical requirements for training and maintenance, computation of post-sale support requirements, and integration of all aspects of support for operational capability of engineering projects and related equipments.

42. Business logistics • The managing of supply sources, inventories, transportation, distribution networks, and related activities and supporting information to meet customer requirements. • Types and Examples • Inbound logistics • Wal-Mart: A firm like Proctor and Gamble will specify logistics standards for efficient and responsive support of its production operations…….a network of world-class suppliers, transportation partners and continuous flow capability. • Outbound logistics • Wal-Mart: Proctor and Gamble’s customer is in the driver’s seat, imposing service standards on Proctor and Gamble’s logistics system as 95% order fill rate, 5-day order cycle and damage-free delivery……

43. Events logistics • The network of activities that brings together the resources required for an event to take place. • Types • Forward logistics: Deployment of resources • Reverse logistics: Withdrawal of resources • Examples • The Olympic Games • A presidential trip

44. Process logistics • The acquisition, scheduling, and management of human and material resources to support a service. • Involve the coordinated employment of facilities, capital assets, and service personnel to create the framework for a process to occur. • Examples • Bus transportation of school children • Mail delivery • Drug smuggling

45. Thinking framework for Logistics • Logistics is the science of developing and managing the capabilities and protocols that are responsive to customer-driven service requirements • Science: Logic, math, statistics, models, computers, IT….. • Developing: Formulating objectives, designing, team effort, partnering • Managing: Planning, organizing, negotiating, programming, controlling • Capabilities: Physical assets, programs, human capital, competence… • Protocols: Operational plans, methods, logic network, outsourcing, contingency plans…. • Responsive: Anticipate needs, meet needs… • Customer-driven: Pinnacle of direction and control.. • Service requirements: Meeting objectives, quality, excellence.

46. Summary • The new paradigm, a science, as a system • Logistics is logic, wisdom, calculations, models, networks, inventories, transportation, distribution, customer service, time-and-place utility, storage, flow, details, optimization, and collaborating. • A set of support activities, being responsive to customer requirements for materials, goods, and services • A science of developingcapabilities and managing the protocols that are responsive to customer-driven service requirements.

47. Future Study about Strategic Logistics Management • Supply Chain Management • Channels of Distribution • Customer Service • Transportation • Warehousing • Inventory Management • Material Management • Procurement • Order Processing and Information Systems • Financial Control of Logistics Performance • E-business Fulfillment • Logistics Organizations • Global and International Logistics • Strategic Planning.

48. The End 運籌帷幄 決勝全球 Dept. of Logistics Management

49. Home work • The logistics terms 300 • 個案研究 • 專業精神 • 服務哲學 • 作業 • 校園英文 • 運籌專業術語 • 全球海運物流圖 • 全球空運物流圖 • 向動物學運籌