| Logistics | | | | which plans, implements and controls the efficient, |
| Logistics is the art and science of managing and | | | | effective forward and reverse flow and storage of |
| controlling the flow of goods, energy, information and | | | | goods, services and related information between the |
| other resources like products, services, and people, | | | | point of origin and the point of consumption in order |
| from the source of production to the marketplace. It | | | | to meet customers' requirements. A professional |
| is difficult to accomplish any marketing or | | | | working in the field of logistics management is often |
| manufacturing without logistical support. It involves | | | | called a 'logistician |
| the integration of information, transportation, | | | | [edit] Business logistics |
| inventory, warehousing, material handling, and | | | | Logistics as a business concept evolved only in the |
| packaging. The operating responsibility of logistics is | | | | 1950s. This was mainly due to the increasing |
| the geographical repositioning of raw materials, work | | | | complexity of supplying one's business with materials |
| in process, and finished inventories where required at | | | | and shipping out products in an increasingly globalized |
| the lowest cost possible. | | | | supply chain, calling for experts in the field who are |
| Logistics and Supply Chain services are provided by a | | | | called Supply Chain Logisticians. This can be defined as |
| wide range of 3rd party suppliers. | | | | having the right item in the right quantity at the right |
| • | | | | time at the right place for the right price and is the |
| [edit] Origins and definition | | | | science of process and incorporates all industry |
| The word of logistics originates from the ancient | | | | sectors. The goal of logistic work is to manage the |
| Greek logos (λόγος), which means “ratio, | | | | fruition of project life cycles, supply chains and |
| word, calculation, reason, speech, oration”. | | | | resultant efficiencies. |
| Logistics is a concept considered to have evolved | | | | In business, logistics may have either internal |
| from the military's need to supply themselves as | | | | focus(inbound logistics), or external focus (outbound |
| they moved from their base to a forward position. In | | | | logistics) covering the flow and storage of materials |
| ancient Greek, Roman and Byzantine empires, there | | | | from point of origin to point of consumption (see |
| were military officers with the title | | | | supply chain management). The main functions of a |
| ‘Logistikas’ who were responsible for | | | | logistics manager include Inventory Management, |
| financial and supply distribution matters. | | | | purchasing, transport, warehousing, and the organizing |
| The Oxford English dictionary defines logistics as: | | | | and planning of these activities. Logistics managers |
| “The branch of military science having to do with | | | | combine a general knowledge of each of these |
| procuring, maintaining and transporting material, | | | | functions so that there is a coordination of resources |
| personnel and facilities.”Another dictionary | | | | in an organization. There are two fundamentally |
| definition is: "The time related positioning of | | | | different forms of logistics. One optimizes a steady |
| resources." As such, logistics is commonly seen as a | | | | flow of material through a network of transport links |
| branch of engineering which creates "people | | | | and storage nodes. The other coordinates a |
| systems" rather than "machine systems". | | | | sequence of resources to carry out some project. |
| [edit] Military logistics | | | | [edit] Production logistics |
| In military logistics, experts manage how and when | | | | The term is used for describing logistic processes |
| to move resources to the places they are needed. In | | | | within an industry. The purpose of production logistics |
| military science, maintaining one's supply lines while | | | | is to ensure that each machine and workstation is |
| disrupting those of the enemy is a crucial—some | | | | being fed with the right product in the right quantity |
| would say the most crucial—element of military | | | | and quality at the right point in time. |
| strategy, since an armed force without food, fuel | | | | The issue is not the transportation itself, but to |
| and ammunition is defenseless. | | | | streamline and control the flow through the value |
| The defeat of the British in the American War of | | | | adding processes and eliminate non-value adding ones. |
| Independence, and the defeat of Rommel in World | | | | Production logistics can be applied in existing as well |
| War II, have been largely attributed to logistical | | | | as new plants. Manufacturing in an existing plant is a |
| failure. The historical leaders Hannibal Barca, Alexander | | | | constantly changing process. Machines are exchanged |
| the Great and the Duke of Wellington are considered | | | | and new ones added, which gives the opportunity to |
| to have been logistical geniuses. | | | | improve the production logistics system accordingly. |
| [edit] Logistics Management | | | | Production logistics provides the means to achieve |
| Logistics Management is that part of the supply chain | | | | customer response and capital efficiency. |