Logistics Concepts and Structure Definitions of Logistics

1
Logistics Concepts and Structure Definitions of
Logistics

• Te-Cheng Yu
• Dept. of Logistics Management,
• National Kaohsiung Marine University

2
Outline

• Introduction
• The viewpoint of inventory
• The viewpoint of customer
• The viewpoint of dictionary
• The viewpoint of International Society of
  Logistics
• The viewpoint of the Famous Nebulous
• The viewpoint of the Biblical
• The viewpoint of utility
• The viewpoint of Council of Logistics Management
• The viewpoint of component
• The viewpoint of functional
• The viewpoint of common culture
• Summary

3
Introduction

• Logistics as a concept and a practice has evolved
  over the years and is a discipline that is now
  practiced in different ways and contexts.
  Logistics means different things to different
  people so far. Even professionals in the field
  differ as to what logistics actually means.
• Part of the definition problem is also traceable
  to the fact that logistics has been described by
  a variety of sources that have somewhat different
  perspectives. Here are a number of these
  definitions along with the perspective or
  connection (Russell, 2000).

4
The viewpoint of inventory

• Logistics is managing the flow and stock of
  materials, or
• Logistics is the management of materials in
  motion and at rest.

5
The viewpoint of customer

• Logistics is a customer support activity, a
  planning and engineering mechanism, or a science
  of calculating requirements and promoting
  operational capabilities.
• Logistics is 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 at the right cost. (Called the Seven Rs
  of Logistics.) (Shapiro and Heskett, 1985)

6
The viewpoint of dictionary

• Logistics is purely a branch of military science
  having to do with procuring, maintaining, and
  transporting material, personnel, and facilities.

7
The viewpoint of International Society of
Logistics

• Logistics is the art and science of management,
  engineering, and technical activities concerned
  with requirements, design, and supplying and
  maintaining resources to support objectives,
  plans, and operations.

8
The viewpoint of the Famous Nebulous

• World War ? Chief of US Naval Operations Admiral
  Ernest H. King "1 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. "

9
The viewpoint of the Biblical

• "1 have heard of you . . . that light and
  under-standing and excellent wisdom are found in
  you ...I have heard that you give interpretations
  and solve problems you shall be clothed with
  purple and have a chain of gold about your neck .
  . .." (Daniel 51416)

10
The viewpoint of utility

• Logistics is providing time and place utility of
  materials and products in support of organization
  objectives.

11
The viewpoint of Council of Logistics Management

• Council of Logistics Management defines logistics
  purely in a product distribution context.
  Therefore, logistics is 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.

12
The viewpoint of component

• Supply management for the plant (inbound
  logistics) and distribution management for the
  firm's customers (outbound logistics) or material
  support of manufacturing and product support of
  marketing operations.

13
The viewpoint of functional

• Logistics is materials requirements
  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 customer (manufacturing) with materials
  and the external customer (retail stores) with
  product.

14
The viewpoint of common culture

• In recent years, the popular press has written of
  the logistics of making something happen
  concerning details. Therefore, logistics is
  handling the details of an activity.

15
Summary

• All these definitions, explicitly or implicitly,
  have in common the concept of integrating many
  activities toward supporting an organizational
  objective.
• Logistics is, expressed or implied, a sense of
  meeting the material, system, or process needs of
  a customer in general contexts.

16
Next.

• A New Logistics Paradigm