Essay on Logistics and supply Chain Management

Submitted By Michael7x77
Words: 5247
Pages: 21
Open Document
Role of Logistics in Supply Chains
Instructor’s Manual
Chapter 2
CHAPTER 2 ROLE OF LOGISTICS IN SUPPLY CHAINS
LEARNING OBJECTIVES
After reading this chapter, you should be able to do the following:
• Understand the role and importance of logistics in private and public organizations.
• Discuss the impact of logistics on the economy and how effective logistics management contributes to the vitality of the economy.
• Understand the value-added roles of logistics on both a macro and micro level.
• Explain logistics systems from several perspectives.
• Understand the relationship between logistics and other important functional areas in an organization, including manufacturing, marketing, and finance.
• Discuss the importance of management activities in the logistics function.
• Analyze logistics systems from several different perspectives to meet different objectives. • Determine the total costs and understand the cost tradeoffs in a logistics system.
CHAPTER OVERVIEW
Introduction
Logistics is misunderstood and often overlooked with the excitement surrounding supply chain management and all of the related technology that has been developed to support the supply chain. The glamour associated with the e-supply chain, e-tailing, e-business, and so on, seems to overshadow the importance of logistics in an organization and the need for efficient and effective logistics support in a supply chain.
The concepts of supply chain management and logistics must be compared or, more appropriately, related to each other. Supply chain management has been defined using a pipeline analogy with the start of the pipeline representing the initial supplier and the end of the pipeline representing the ultimate customer.
What is Logistics?
The term logistics has become much more widely recognized by the general public in the last 20 years. Television, radio, and print advertising have lauded the importance of
2-1
IM Supply Chain Management: A Logistics Perspective

Role of Logistics in Supply Chains
Instructor’s Manual
Chapter 2 logistics. Another factor contributing to the recognition of logistics has been increased customer sensitivity to not only product quality but also to the associated service quality.
Even with increased recognition of the term logistics, however, there is still confusion about its definition. Some of the confusion can be traced to the fact that a number of terms are used by individuals when they refer to what has been described as logistics.
For example, consider the following list of terms:
• Logistics management
• Business logistics management
• Integrated logistics management
• Materials management
• Physical distribution management
• Marketing logistics
• Industrial logistics
• Distribution
Logistics management is the most widely accepted term and encompasses logistics not only in the private business sector but also in the public/government and nonprofit sectors. For the purposes of this text, the definition offered by the Council of Supply Chain
Management Professionals (formerly the Council of Logistics Management) is utilized:
“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.”
The logistics concept began to appear in the business-related literature in the 1960s under the label of physical distribution, which had a focus on the outbound side of the logistics system. During the 1960s, military logistics began to focus on engineering dimensions of logistics—reliability, maintainability, configuration management, life cycle management, and so on—with increased emphasis on modeling and quantitative analysis.
In the twenty-first century, logistics should be viewed as a part of management and has four subdivisions:
• Business logistics: That part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, service, and related
Show More

Related Documents: Essay on Logistics and supply Chain Management

Essay about Logistics: Supply Chain Management

within the Supply Chain La’Trice L. Watson American Military University Abstract Logisticians continually make strategic level decisions in order to manage uncertainty, customer service and cost. Clients such as manufacturers, raw materials suppliers, distributors, retailers and shippers are provided a service by logistic service providers within the supply chain which makes it necessary to formulate strategies (Davenport, Jarvenpa, & Beers, 1996). Logistics is a part…

Words 1623 - Pages 7

BUSS 5325 Assessment 1 Xiao Liang 110025771 Essay

Nowadays, logistics and supply chain management plays an increasingly important role in current business. According to Halldorsson & Larson (2004), there are four perspectives on logistics versus supply chain management. This essay will analyze four conceptual perspectives on logistics versus supply chain management that invoiced traditionalist, relabeling, unionist and inter-sectionist, and then find out the most compelling argument from these four perspectives. Supply chain management is a kind…

Words 2110 - Pages 9

Essay about Jerry: Logistics and E-logistics Zhang Weixi 1

New trend of E-logistics ZHANG Weixi1, WANG Jian-jun2, (1 academe of Economy and society at Nankai University, Tianjin, China 300071 2 School of Management, Dalian University of Technology, Dalian, 116024) Abstract: With the development of e-business and supply chain management, more and more logistic facilitators become the coordinators in the integrated supply chain. For overcoming the disconnection of information in the supply chain, the e-logistics based on information platform has appeared…

Words 1643 - Pages 7

The Concept Of The Military Supply Chain

military, have supply chains of varying degrees. A supply chain is defined as “The stream of processes of moving goods from the customer order through the raw materials stage, supply, production, and distribution of products to the customer.” (Group, 1999). Managing the chain of events in this process is what is known as supply chain management (Group, 1999). The Army is taking supply chain management one step further with the concept of anticipatory logistics. Anticipatory logistics uses technologies…

Words 1107 - Pages 5

Difference Between Logistics And Logistics

has reduced and we expect instant product availability and gratification. It should be obvious from this that the supply or logistics system that gets products from production through retailing to consumption has also needed to be transformed. Physical distribution and materials management have been replaced by logistics management and a subsequent concern for the whole supply chain. In recent years this sector has spent considerable amounts of time and money trying to improve their operations in…

Words 2334 - Pages 10

Essay on Mr Will Michaels

is supply chain, supply chain management and will be showing the supply chain for two organisations: BMW and Apple. The products that I will be specifying are the BMW 3 Series and the Apple Iphone. What is Supply Chain? Supply chain involves the movement of materials as they move from the supplier to the end of the customer. Supply Chain includes purchasing, manufacturing, warehousing, transportation, customer service; demand planning, supply planning…

Words 1302 - Pages 6

Essay about Benchmarkingbullwhip Effectsupply Chain Forecasting And Safety

Benchmarking ... bullwhip effect -supply chain forecasting, and safety stock and production problem. - results in excess cost on the order of 12-25% at each firm in the supply chain, which can be a tremendous competitive disadvantage - business process reengineering (BPR) the radical rethinking and redesigning of business processes to reduce waste and increase performance (introduced in the early 1990's, result of growing interest in customer relationship management strategies regarding how to meet…

Words 892 - Pages 4

Essay about KIT710 elogistics L 1 2

Role of Logistics in Organisations & Economies KIT710 eLogistics Lecture 1.2 Dr Luke Mirowski Computing & Information Systems University of Tasmania Overview Manufacturing Value of Logistics Customer Service Forecasting & Inventory Materials & Transportation Logistics Role in Economy & SCM Enterprise Logistics Quality/Standards Channels Warehousing Global Logistics Procurement [ALC Logistics Video] www.alc.com.au Logistics ‘Logistics [management] is that part of supply chain management…

Words 2067 - Pages 9

Ideal Positions Essay

The Ideal Position in the field of Logistics Founded in 1963, the Council of Supply Chain Management Professionals (CSCMP), a worldwide professional association of supply chain management professionals, defines logistics as the “part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements”…

Words 314 - Pages 2

WEEK 2 ISCOM 383 TEAM Value Chain Model Essay

Value Chain Model Toyota is the leading car manufacturer in the world. The company prides itself in making reliable cars that are sustainable. Toyota believes in making a high quality product good for customers and the environment. The global supply chain model focuses on being efficient and following the standards the company has on ensuring the process produces the best product for consumers. Focusing on global and local productions, the company wants to ensure “made by Toyota” gains the trust…

Words 1670 - Pages 7