Logistics Administration

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Logistics Administration.

Objective: To provide the students with the basic elements of the logistics administration and the physical distribution in order to take the right decisions.


a) Total Distribution Concept and logistics administration

b) Customer service, logistics and customer service and customer service vs. cost

c) Channel of distribution strategy, selection of the channel and distribution

d) Warehousing

Total Distribution Concept and logistics administration

Logistics is a broad, far-reaching function which has a major impact on society’s standard of living. In a modern society, we have come to expect excellent logistics services, and tend to notice logistics only when there is a problem. To understand some of the implications to consumers of logistics activities, consider:

a) The difficulty in shopping for food, clothing and other items if logical systems do not conveniently bring all those items together in one place, such as a single store or a shopping mall. Example:

b) The challenge in processing the proper size or style of an item if logistical systems do not provide for a wide mix of products, colors, sizes and styles through the assortment process.

c) The frustration of going to store to purchase an advertised item, only to find out the store’s shipment is late in arriving. Example:

Definition of Logistics Administration

It is important to establish the meaning of the term. Logistics has been called by many names:

a) Business logistics

b) Channel management

c) Distribution

d) Industrial logistics

e) Logistical management

f) Materials management

g) Physical distribution

h) Quick-response systems

i) Supply chain management

j) Supply management

Definition of Logistics Administration

These terms have in common that they deal with the management of the flow of goods and materials from point of origin to point of consumption and in some cases even to the point of disposal

Definition of Logistics Administration

The Council of Logistics Management (CLM) one of the leading professional organizations for logistics personnel, uses the term logistics administration or management to describe:

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 customers requirements.

Definition of Logistics Administration

This definition includes the flow of materials and services in both the manufacturing and service sectors. The service sector includes entities such as the government, hospitals, banks, retailers and wholesalers. In addition the ultimate disposal, recycling and reuse of the products need to be considered because of logistics is becoming increasingly responsible for issues such as removing packaging materials once a product is delivered and removing old equipment

Role of logistics in the economy

Logistics play a key role in the economy in two significant ways. First, logistics is one of the major expenditures for business, thereby affecting and being affected by other economic activities. In the United States, for example, logistics contributed approximately 10.5 % of the GDP in 1996.

Second, logistics supports the movement and flow of many economies transactions, it is a important activity in facilitating the sale of virtually all goods and services. To understand this role from a systems perspective, consider that if goods do not arrive on time, customers can not buy them. If goods do not arrive in the proper place or in the proper condition, no sale can be made.

Customer Service and Logistics

In times of tough competition when many organizations offer similar products in terms of price, features and quality, customer service differentiation can provide an organization with a...
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