Periods of logistics development

2. The Alternative Logistic [le’dzistik] Definitions

To start Logistical systems are concerned with the effective management of the total flow of goods from the acquisition of raw materials to the delivery of final products to the customers.

Logistical system is composed of a large number of elements which have to be managed properly in order to deliver final products in the right quantities at the desired time and quality, and at a reasonable cost. Process design – in a way that environmental aspects are dealt adequately.

The most important elements:

Plants, distribution centers, products (incl. Raw materials, supplies, semifinished and final products), transportation infrastructure, information and communication systems, people.

Variety of constraints here: technological options, productivity limits, labor availability, demand uncertainties, service requirements.

To determine ways to acquire and use logistic elements which are subject to constrains, cost components are taken into account.

These are: purchasing costs, production costs, setup/changeover costs, inventory costs, investment costs, hiring and firing costs, transaction costs. Therefore, processes related to design and control of logistical systems can be extremely complex. (not difficult)

Thus, logistics sphere encompasses purchasing and supplier management, materials management and manufacturing, inventory management and warehousing, distribution and transport, and customer service, also waste technologies and green management.

Has the Military Origin – therefore the challenge in logistics is:

Getting the right product to the right place in the right quantity at the right time, to the right customer, in the best condition and at an acceptable cost, by The Chartered Institute of Logistics and Transport (UK) – CILT.

Also known as a definition of “7R” (the most simple one). Also could be “5R”, “6R”, “8R”. Always present – key points product, place, time, costs. (4 P marketing – product, place, price and promotion)

Therefore, logistics can be treated as a mechanism of compromise development – by producing necessary goods with reasonable costs which would be acceptable by the customer, taking into account quality and delivery times.

Logistics is becoming a key consideration in new product development with logistics professionals playing their part in multi-disciplinary teams to ensure products are designed with efficient supply-chain management in mind.

While logistics covers a range of functions, each with its own challenges and skills, they are all interdependent and practitioners must work together and understand the impact on the whole supply-chain to deliver results.

American Council of Logistics Management, Logistics: The process of planning, controlling and storage of materials flow with the optimal costs, creating ready products inventory along with relevant information, with the overall aim of satisfying customer needs from the point of origin till the point of consumption.

The variety of definitions originates by the differences of languages, or by form, while the content (core) remains similar. However, the definition becomes more and more complex, as the theory develops. It includes more and more sciences – eg. technology of production, waste management, research and engineering, develops in space (macro-meta-levels) and in time horizons.

Three major approaches to define the concept:

1^st. Oriented to movement – action when we engage in planning, realization and control related with transformation of goods in time and place, supported by the relevant information, along with changes in quality, quantity, and logistical services (close to “7R” approach.)

2^nd.Orientation - Consumption cycle of the product. International logistical society “Society of Logistics Engineers” (SOLE): logistics – administrative support for planning, controlling and regulation, which during the product consumption would guarantee effective use of resources and to be optimal for the effectiveness of the logistic elements during the consumption phases (initiating, planning, realization, usage and liquidation).

3^rd. Oriented to services. Logistics – the coordination process of non-material actions for effective services provided in the optimal cost frame and in accordance with customer requirements.

Date: 2014-12-22; view: 871