Logistics Basics

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Chapter 1 Logistics Management - Vinod V. Sople

• Introduction • Military origin of Logistics • Definitions – Logistics – Logistics Management • The Broad Scope of Logistics (Only for your understanding. Not required for exam) • Logistics – A System Concept – Logistics Mix • Logistics Functions • * Scope / Activities of Logistics * Refer Vipul's BMS Series Elements of Logistics & Supply Chain Management by Vijay Kumar Bhatia


... Contents
• Inbound Logistics [Upstream Logistics] • Outbound Logistics [Downstream Logistics] • Manufacturing Logistics [Process / Operations / Production Logistics] • Distribution of Logistics Costs • Logistics in the value chain / Customer Value Chain • ** Value - Added Role of Logistics • ** Logistics for Competitive Advantage – The 3C's Concept • Four Sub-divisions of Logistics – Business Logistics – Event Logistics – Service Logistics – Military Logistics ** To be done from slides only 3

... Contents
• Logistics Interfaces – Logistics Interface with Operations / Manufacturing – Logistics Interface with Marketing – Logistics Interface with Other Areas • Evolution of Logistics Functions • Integrated Logistics / Integrative Role of Logistics • Barriers to Integration • Operational Objectives of Logistics Management • What Causes Bad Logistics? • Customer Order Cycle • Lead-Time 4

... Contents
• Logistical Performance Cycle • Logistics Planning & Strategy • Logistical Competency • Mission of Logistics Management • Reverse Logistics • Logistics for Business Excellence • Importance of Logistics • Logistics Future • References


• Logistics – Originated from the Greek work logistikos & the Latin word logisticus – Means the science of computing or calculating – Usage can be traced back to the 17th century when it was probably used for the first time by the French army – Is considered to have originated in the militarys' need to supply themselves with arms, ammunition and rations as they moved from their base to a forward position 6

... Introduction
– Gained importance during World War II in army operations, covering movement of supplies, troops and equipment • In recent times Logistics has acquired wider meaning & is used in business for the movement of raw material from suppliers to the manufacturers and finally the finished goods to consumers • Also referred to as physical distribution 7

Military Origin of Logistics
• The word "logistics" is derived from the Greek adjective logistikos meaning "skilled in calculating" • The first administrative use of the word was in Roman and Greek times when there was a military administrative official with the title “Logista” • Usage can be traced back to the 17th century when it was probably used for the first time by the French army in relation to an organized military administrative science • The French still use the words logistique and loger • Logistics is the lifeblood of any army 8

... Military Origin of Logistics
• The manner in which any army is supported with food & ammunition decides how efficiently an army fights • The military activity known as logistics probably is as old as war itself • In the early history of man when the first wars were fought, each man had to find his own food, stones, and knotted clubs • Each warrior was responsible for foraging for his own food and firewood 9

... Military Origin of Logistics
• Later, when fighters joined as groups and fighting groups became larger, certain men specialized in supporting fighters by providing them food and weapons • The men who provided support to the fighters constituted the first logistics organization • There have been several wars that are believed to have been won or lost purely on the basis of good or bad logistics management, including the American War of Independence 10

... Military Origin of Logistics
• Many famous military leaders such as Alexander & Duke of Wellington are thought to have been...
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