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Logistics: An Introduction

Logistics: An Introduction

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Logistics: An Introduction

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  1. Logistics: An Introduction

  2. Logistics • Logistics is defined as a business planning framework for the management of material, service, information and capital flows. It includes the increasingly complex information, communication and control systems required in today's business environment. -- (Logistix Partners Oy, Helsinki, FI, 1996) – Business Definition --

  3. Logistics • The science of planning and carrying out the movement and maintenance of forces.... those aspects of military operations that deal with the design and development, acquisition, storage, movement, distribution, maintenance, evacuation and disposition of material; movement, evacuation, and hospitalization of personnel; acquisition of construction, maintenance, operation and disposition of facilities; and acquisition of furnishing of services. -- (JCS Pub 1-02 excerpt) – Military Definition--

  4. Logistics • ...the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements." Note that this definition includes inbound, outbound, internal, and external movements, and return of materials for environmental purposes. -- (Reference: Council of Logistics Management,, 12 Feb 98)

  5. Logistics • It generally involves all activities involved in securing: • The right types of materials • In the right quantity • To / from the right location • At the right time • For the right cost • Delivered with the right tailored services

  6. Logistics Management • The management of business operations, such as the acquisition, storage, transportation and delivery of goods along the supply chain.

  7. Logistics Management • Coordination of projected requirement, procurement, physical movement, and storage of components, parts, raw materials, and semi-finished and finished goods, to achieve optimum demand-service level at minimal cost. It includes both inbound and outbound movements, and is a larger concept than distribution management which does not include activities such as forecasting and procurement.

  8. Logistics Management • 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.