Logistics

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For the drum and bass producer, see Logistics (artist).

A logistics provider's warehouse of goods being stacked on pallets with a forklift.

Logistics is the management of the flow of goods and services between the point of
origin and the point of consumption in order to meet the requirements of customers.
Logistics involves the integration of
information, transportation, inventory, warehousing, material handling,
and packaging, and often security. Logistics is a channel of the supply chain which
adds the value of time and place utility. Today the complexity of production logistics
can be modeled, analyzed, visualized and optimized by plant simulation software.

Contents
 [hide]

1 Origins and definition

2 Military logistics
3 Business logistics
o 3.1 Production logistics
o 3.2 Logistics management
o 3.3 Warehouse management systems and warehouse control
systems
4 Logistics outsourcing
o 4.1 Third-party logistics
o 4.2 Fourth-party logistics
 5 Emergency logistics
6 As a profession
7 See also
8 References

[edit]Origins and definition

The term logistics comes from the Greek logos (λόγος), meaning "speech, reason,
ratio, rationality, language, phrase", and more specifically from the Greek
word logistiki (λογιστική), meaning accounting and financial organization [citation needed].
The word logistics has its origin in the French verb loger to lodge or to quarter. Its
original use was to describe the science of movement, supplying & maintenance of
military forces in the field. Later on it was used to describe the management of
materials flow through an organization, from raw materials through to finished
goods[citation needed].

Logistics is considered to have originated in the military's need to supply themselves

with arms, ammunition and rations as they moved from their base to a forward
position. In ancientGreek, Roman and Byzantine empires, military officers with the
title Logistikas were responsible for financial and supply distribution matters [citation
needed]
.

The Oxford English Dictionary defines logistics as "the branch of military

science relating to procuring, maintaining and transporting materiel, personnel and
facilities." Another dictionary definition is "the time-related positioning of resources."
As such, logistics is commonly seen as a branch of engineering that creates "people
systems" rather than "machine systems". When talking in terms of human resources
management, logistics means giving inputs, i.e. "recruiting manpowers", which
ultimately work for the final consumer or to delivery.

[edit]Military logistics
Main article: Military logistics

In military science, maintaining one's supply lines while disrupting those of the
enemy is a crucial—some would say the most crucial—element of military strategy,
since an armed force without resources and transportation is defenseless. The
defeat of the British in the American War of Independence and the defeat of the Axis
in the African theatre of World War II are attributed to logistical failure.[citation needed] The
historical leaders Hannibal Barca, Alexander the Great, and the Duke of
Wellington are considered to have been logistical geniuses.
Militaries have a significant need for logistics solutions, and so have developed
advanced implementations. Integrated Logistics Support (ILS) is a discipline used in
military industries to ensure an easily supportable system with a robust customer
service (logistic) concept at the lowest cost and in line with (often high) reliability,
availability, maintainability and other requirements as defined for the project.

In military logistics, logistics officers manage how and when to move resources to

the places they are needed.

Supply chain management in military logistics often deals with a number of variables
in predicting cost, deterioration, consumption, and future demand. The US Military's
categoricalsupply classification was developed in such a way that categories of
supply with similar consumption variables are grouped together for planning
purposes. For instance, peacetime consumption of ammunition and fuel will be
considerably less than wartime consumption of these items, whereas other classes
of supply such as subsistence and clothing have a relatively consistent consumption
rate regardless of war or peace. Troops will always require uniform and food. More
troops will require equally more uniforms and food.

Some classes of supply have a linear demand relationship—as more troops are
added more supply items are needed—as more equipment is used more fuel and
ammunition is consumed. Other classes of supply must consider a third variable
besides usage and quantity: time. As equipment ages more and more repair
parts are needed over time, even when usage and quantity stays consistent. By
recording and analyzing these trends over time and applying to future scenarios, the
US Military can accurately supply troops with the items necessary at the precise
moment they are needed.[1] History has shown that good logistical planning creates a
lean and efficient fighting force. Lack thereof can lead to a clunky, slow, and ill-
equipped force with too much or too little supply.

[edit]Business logistics
Logistics as a business concept evolved in the 1950s due to the increasing
complexity of supplying businesses with materials and shipping out products in an
increasingly globalized supply chain, leading to a call for experts called supply chain
logisticians. Business logistics can be defined as "having the right item in the right
quantity at the right time at the right place for the right price in the right condition to
the right customer", and is the science of process and incorporates all industry
sectors. The goal of logistics work is to manage the fruition of project life
cycles, supply chains and resultant efficiencies.
In business, logistics may have either internal focus (inbound logistics), or external
focus (outbound logistics) covering the flow and storage of materials from point of
origin to point of consumption (see supply chain management). The main functions
of a qualified logistician include inventory
management, purchasing, transportation, warehousing, consultation and the
organizing and planning of these activities. Logisticians combine a professional
knowledge of each of these functions to coordinate resources in an organization.
There are two fundamentally different forms of logistics: one optimizes a steady flow
of material through a network of transport links and storage nodes; the other
coordinates a sequence of resources to carry out some project.
[edit]Production logistics
The term production logistics is used to describe logistic processes within an
industry. The purpose of production logistics is to ensure that each machine and
workstation is being fed with the right product in the right quantity and quality at the
right time. The concern is not the transportation itself, but to streamline and control
the flow through value-adding processes and eliminate non–value-adding ones.
Production logistics can be applied to existing as well as new plants. Manufacturing
in an existing plant is a constantly changing process. Machines are exchanged and
new ones added, which gives the opportunity to improve the production logistics
system accordingly. Production logistics provides the means to achieve customer
response and capital efficiency.

Production logistics is becoming more important with decreasing batch sizes. In

many industries (e.g. mobile phones), a batch size of one is the short-term aim,
allowing even a single customer's demand to be fulfilled efficiently. Track and
tracing, which is an essential part of production logistics—due to product safety and
product reliability issues—is also gaining importance, especially in the automotive
and medical industries.
[edit]Logistics management
Main article: Logistics Management

Logistics is that part of the supply chain which 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 customer and legal requirements. A professional working in the field of
logistics management is called alogistician.

Logistics management is known by many names, the most common are as follows:
  Materials Management
 Channel Management
 Distribution (or Physical Distribution)
 Business or Logistics Management or
 Supply Chain Management
The Chartered Institute of Logistics & Transport (CILT) was established in the United
Kingdom in 1919 and was granted a Royal Charter in 1926. The Chartered Institute
is one of theprofessional bodies or institutions, for the logistics and transport sectors,
that offers professional qualifications or degrees in logistics management.
[edit]Warehouse
management systems and warehouse
control systems
Main articles: Warehouse management system and Warehouse control system

Although there is some functionality overlap, the differences between warehouse

management systems (WMS) and warehouse control systems (WCS) can be
significant. Simply put, a WMS plans a weekly activity forecast based on such factors
as statistics and trends, whereas a WCS acts like a floor supervisor, working in real
time to get the job done by the most effective means. For instance, a WMS can tell
the system it is going to need five of stock-keeping unit (SKU) A and five of SKU B
hours in advance, but by the time it acts, other considerations may have come into
play or there could be a logjam on a conveyor. A WCS can prevent that problem by
working in real time and adapting to the situation by making a last-minute decision
based on current activity and operational status. Working synergistically, WMS and
WCS can resolve these issues and maximize efficiency for companies that rely on
the effective operation of their warehouse or distribution center. [2]

[edit]Logistics outsourcing
[edit]Third-party logistics
Main article: Third-party logistics

Third-party logistics (3PL) involves using external organizations to execute logistics

activities that have traditionally been performed within an organization itself.
[3]
 According to this definition, third-party logistics includes any form of outsourcing of
logistics activities previously performed in-house. If, for example, a company with its
own warehousing facilities decides to employ external transportation, this would be
an example of third-party logistics. Logistics is an emerging business area in many
countries.
[edit]Fourth-party logistics
Main article: Fourth-party logistics

The concept of Fourth-Party Logistics (4PL) provider was first defined by Andersen
Consulting (Now Accenture) as an integrator that assembles the resources,
capabilities and technology of its own organization and other organizations to design,
build, and run comprehensive supply chain solutions. Whereas a third party logistics
(3PL) service provider targets a function, a 4PL targets management of the entire
process. Some have described a 4PL as a general contractor who manages other
3PLs, truckers, forwarders, custom house agents, and others, essentially taking
responsibility of a complete process for the customer.

[edit]Emergency logistics
Emergency logistics is a term used by the logistics, supply chain and manufacturing
industries to denote specific time critical modes of transport used to move goods or
objects rapidly in the event of an emergency.[citation needed] The reason for enlisting
emergency logistics services could be a production delay or anticipated production
delay, or it could be that specialist equipment is needed urgently to prevent
instances such as aircraft being grounded (also known as "aircraft on ground"--
AOG), ships being delayed, or telecommunications failure. Emergency logistics
services are typically sourced from a specialist provider. [citation needed]

[edit]As a profession
A logistician is a professional logistics practitioner. Professional logisticians are
often certified by professional associations. Some universities and
academic institutions train students as logisticians,
offering undergraduate and postgraduate programs