Unit 1:Lecture 1:Introduction to
Logistics Management (Meaning
,Concept)
Logistics :Meaning &Concept(History )
This topic will help the students to understand the Meaning of Logistics &Its concept(History)
Logistics :Meaning &Concept
INTRODUCTION ON LOGISTICS
Logistics deals with reaching products or services where they are wanted and when they are
wanted. Any Manufacturing or marketing activity will be difficult to achieve without any
logistical planning. logistical planning. So, Logistics involves Logistics involves coordinated
efforts coordinated efforts of transportation, of transportation, warehousing, warehousing,
packaging and inventory management.
Logistics – Definition
Logistics management includes the design and administration of systems to control the flow
of materials, work in process, and finished inventory to support business unit strategy.
American Council of Logistics Management defines logistics as “the process of planning,
implementing and controlling the efficient, cost effective flow and storage of raw materials, in
process process inventory, inventory, finished finished goods and related related information
information from point of origin to point of consumption for the purpose of conforming
customer’s requirements”.
Philip Kotler defines logistics as “planning, implementing, and controlling the physical flows
of materials and finished goods from point of origin to point of use to meet the customer’s
need at the profit”
Logistics History
Logistics is the management of the flow of goods from Transportation origin to destination to
meet customer requirements.
Logistics is the management of the flow of goods, information and other resources, including
energy and people. It involves the integration of information, transportation, inventory,
warehousing, material-handling, and packaging, and occasionally security.
, Right Time, Right Place@ Minimum Cost Logistics Packaging Warehousing Started as a
business concept in 1 business concept in 1950’s.
The concept of logistics management was evolved during the Second World War (1939-1945).
• The American military forces during the World War II ensured that all the food and supplies
reach at different places in a definite amount of time to the troops and cantonment to the
troops and cantonment using different cantonment using different logistics concepts and
principles still used but in advanced version. •
British fishermen used natural ice to preserve their fish stock piles Late 1820’s Movement of
food from rural areas to urban consumption markets. 1857
The first shipment of refrigerated beef was made from the Chicago stockyards to the East in
an ordinary box car packed with ice. Safe express Pvt Ltd first company in the Indian logistics
industry to use the GPS Maersk India, had taken steps to facilitate research in the production,
harvesting, warehousing, and packaging of bananas.
The company provided end-to-end cold chain logistics support, besides undertaking training
of local banana exporters in cold chain management.
The concept of 3PL (third party logistics) was developed and proposed in 1985, by Ken
Ackerman and Dean Wise.
Unit 1:Lecture 2: Objective & Types of Logistics
Objectives &Types of Logistics
This Topic will help students in understanding the Objectives and Types of Logistics
Objectives &Types of Logistics
Objectives of Logistics
1. Reduction of Inventory: Inventory is one of the key factors, which can affect the profit of
an enterprise to a great extent. In the traditional system, firms had to carry lot of inventory
for satisfying the customer and to ensure excellent customer service. But, when funds are
blocked in inventory, they cannot be used for other requirements. These costs will drain the
enterprise’s profit. Logistics help profit. Logistics helps in maintaining inventory at ng
inventory at the lowest level, and the lowest level, and thus achieving customer g customer
goal. This can be done through small frequent supplies.
2. Economy of freight: Freight is a major source of cost in logistics. This can be reduced by
following measures like selecting the proper mode of transport, consolidation of freight,
route planning, long distan planning, long distance shipments etc.
3. Reliability and consistency in delivery performance: Material required by the customer
must be delivered on time not ahead of the schedule or behind the schedule. Proper planning
Logistics Management (Meaning
,Concept)
Logistics :Meaning &Concept(History )
This topic will help the students to understand the Meaning of Logistics &Its concept(History)
Logistics :Meaning &Concept
INTRODUCTION ON LOGISTICS
Logistics deals with reaching products or services where they are wanted and when they are
wanted. Any Manufacturing or marketing activity will be difficult to achieve without any
logistical planning. logistical planning. So, Logistics involves Logistics involves coordinated
efforts coordinated efforts of transportation, of transportation, warehousing, warehousing,
packaging and inventory management.
Logistics – Definition
Logistics management includes the design and administration of systems to control the flow
of materials, work in process, and finished inventory to support business unit strategy.
American Council of Logistics Management defines logistics as “the process of planning,
implementing and controlling the efficient, cost effective flow and storage of raw materials, in
process process inventory, inventory, finished finished goods and related related information
information from point of origin to point of consumption for the purpose of conforming
customer’s requirements”.
Philip Kotler defines logistics as “planning, implementing, and controlling the physical flows
of materials and finished goods from point of origin to point of use to meet the customer’s
need at the profit”
Logistics History
Logistics is the management of the flow of goods from Transportation origin to destination to
meet customer requirements.
Logistics is the management of the flow of goods, information and other resources, including
energy and people. It involves the integration of information, transportation, inventory,
warehousing, material-handling, and packaging, and occasionally security.
, Right Time, Right Place@ Minimum Cost Logistics Packaging Warehousing Started as a
business concept in 1 business concept in 1950’s.
The concept of logistics management was evolved during the Second World War (1939-1945).
• The American military forces during the World War II ensured that all the food and supplies
reach at different places in a definite amount of time to the troops and cantonment to the
troops and cantonment using different cantonment using different logistics concepts and
principles still used but in advanced version. •
British fishermen used natural ice to preserve their fish stock piles Late 1820’s Movement of
food from rural areas to urban consumption markets. 1857
The first shipment of refrigerated beef was made from the Chicago stockyards to the East in
an ordinary box car packed with ice. Safe express Pvt Ltd first company in the Indian logistics
industry to use the GPS Maersk India, had taken steps to facilitate research in the production,
harvesting, warehousing, and packaging of bananas.
The company provided end-to-end cold chain logistics support, besides undertaking training
of local banana exporters in cold chain management.
The concept of 3PL (third party logistics) was developed and proposed in 1985, by Ken
Ackerman and Dean Wise.
Unit 1:Lecture 2: Objective & Types of Logistics
Objectives &Types of Logistics
This Topic will help students in understanding the Objectives and Types of Logistics
Objectives &Types of Logistics
Objectives of Logistics
1. Reduction of Inventory: Inventory is one of the key factors, which can affect the profit of
an enterprise to a great extent. In the traditional system, firms had to carry lot of inventory
for satisfying the customer and to ensure excellent customer service. But, when funds are
blocked in inventory, they cannot be used for other requirements. These costs will drain the
enterprise’s profit. Logistics help profit. Logistics helps in maintaining inventory at ng
inventory at the lowest level, and the lowest level, and thus achieving customer g customer
goal. This can be done through small frequent supplies.
2. Economy of freight: Freight is a major source of cost in logistics. This can be reduced by
following measures like selecting the proper mode of transport, consolidation of freight,
route planning, long distan planning, long distance shipments etc.
3. Reliability and consistency in delivery performance: Material required by the customer
must be delivered on time not ahead of the schedule or behind the schedule. Proper planning
