BusinessLogisticsSupplyChain—AVitalSubject.ppt

What is Logistics? Popular logistics terms: Logistics Management Business Logistics Management Integrated Logistics Management Materials Management Physical Distribution Management Marketing Logistics Industrial Logistics Distribution What is Logistics?: Business Logistics – supply chain process that plans, implements, and controls the efficient, effective flow of goods, services, and related information from the point of origin to the point of use or consumption in order to meet customer requirements. Military Logistics – design and integration of all aspects of support for the operational capacity of the military forces, and their equipment to ensure readiness, reliability, and efficiency. What is Logistics?: Event Logistics – network of activities, facilities, and personnel required to organize, schedule, and deploy the resources for an event to take place and to efficiently withdraw after the event. Service Logistics – acquisition, scheduling, and management of the facilities/assets, personnel, and materials to support and sustain a service operation or business. History of Logistics and SCM Physical Distribution Era (1960s – 1970s) Integrated Logistics Management Era (1970s – 1980s) Supply Chain Management Concept (1990s – present) Supply Chain Characteristics Visibility Inventory Landed cost Sharing risk Alliances Supply Chain Objectives Recognizing final customers’ requirements Developing appropriate policies and procedures for managing the supply chain as a single entity Supply Chain Characteristics Visibility Inventory Landed cost Sharing risk Alliances Figure 2-2: Logistics Costs as a Percentage of GDP Figure 2-4: Inventory Sales Ratio Value-Added Role of Logistics Most commonly referred to in terms of economic utilities: Form utility (what) Place utility (where) Time utility (when) Possession utility (why) Figure 2-5 Fundamental Utility Creation in the Economy * * Business Logistics/Supply Chain—A Vital Subject The supply chain is simply another way of