INTRODUCTION TO LOGISTICS. Chapter 1.
Definition: “Logistics is the applied science of defining supporting systems and of planning and implementing the acquisition and use of resources.”
Categories of Logistics :
1. Subsistence logistics :- basic necessities of life. it is relatively stable and predictable.
2. operations logistics :- relatively constant and predictable. It starts from raw material utilization during production and distribution of finished goods.
3.systems logistics.:- it is all the resources required to keep the system in operation.
Supply chain concept:- It is an value addition concept. (a modern concept) It is managing the entire flow of information,material and services from raw materials suppliers through factories and warehouses to the end consumer.
Logistical Integration:- The application of logistics management principles frequently represents a compromise among conflicting interest within the enterprise. This concept has help develop areas like;
Total cost analysis.:-
Systems approach. It is the view of an enterprise as an integration of functional areas working towards common goal is considering that enterprise as a system.
Strategic concept of logistics: good firms do most things that all other firms do but they do these better than others i.e. competencies.
The three C’s model of competitive advantage : Company, it’s customers and it’s competitors. They add value.
Logistics in the value chain: by Porter (1985). He differentiates between primary activities and