Table of Contents
What is logistics? ........................................................................................................ 2
1. Logistics involves getting … (tip = 5 R’s) ...................................................................... 2
2. ‘Logistics’ is … ................................................................................................................ 2
3. What is Logistics Management ....................................................................................... 2
2) WHAT IS SCM (supply chain management)? ............................................................. 2
1. What is a supply chain? .................................................................................................. 2
2. Supply chain management ............................................................................................. 3
Supply Chain Views .................................................................................................... 4
3 ) Distinguishing Logistics and SCM ........................................................................... 4
The total picture – SCOR model .......................................................................................... 5
Link to other disciplines ..................................................................................................... 5
4 ) The evolution of logistics and supply chain management ........................................ 6
Six key developments triggered the evolution: .................................................................... 6
1. Shift to transporting higher value goods .......................................................................................... 6
2. Falling product/material prices ........................................................................................................ 6
3. Deregulation of transport (Mod5) ..................................................................................................... 7
4. Productivity improvements (Mod4) .................................................................................................. 7
5. Emphasis on inventory reduction (Mod2) ......................................................................................... 7
6. Changes in company structure ........................................................................................................ 8
5) Link to company strategy ......................................................................................... 8
Strategy in the business world ............................................................................................ 8
Product Leadership .............................................................................................................................. 9
Operational Excellence ........................................................................................................................ 9
Customer Intimacy ............................................................................................................................. 10
, What is logistics?
1. Logistics involves getting … (tip = 5 R’s)
- the right product,
- in the right way,
- in the right quantity and right quality,
- in the right place at the right time,
- for the right customer at the right cost
2. ‘Logistics’ is …
… the process of planning, implementing and controlling procedures for the efficient
and effective transportation and storage of goods including services, and related
information from the point of origin to the point of consumption for the purpose of
conforming to customer requirements.
3. What is Logistics Management
• Logistics management is primarly concerned with optimizing flows within the
organization
• The mission of logistics management is to serve the customer in the most cost-
effective way
• More than “trucks and sheds” / “wheels and walls” alone
2) WHAT IS SCM (supply chain management)?
1. What is a supply chain?
A supply chain is a system of organizations, people, activities, information and
resources involved in moving a product or service from supplier to customer. Supply
chain activities transform natural resources, raw materials and components into a
finished product that is delivered to the end customer.
A supply chain is a network of connected and interdependent organizations mutually
and co-operatively working together to control, manage and improve the flow of
materials, resources (money + people + equipment) and information from suppliers
to end users.
What is logistics? ........................................................................................................ 2
1. Logistics involves getting … (tip = 5 R’s) ...................................................................... 2
2. ‘Logistics’ is … ................................................................................................................ 2
3. What is Logistics Management ....................................................................................... 2
2) WHAT IS SCM (supply chain management)? ............................................................. 2
1. What is a supply chain? .................................................................................................. 2
2. Supply chain management ............................................................................................. 3
Supply Chain Views .................................................................................................... 4
3 ) Distinguishing Logistics and SCM ........................................................................... 4
The total picture – SCOR model .......................................................................................... 5
Link to other disciplines ..................................................................................................... 5
4 ) The evolution of logistics and supply chain management ........................................ 6
Six key developments triggered the evolution: .................................................................... 6
1. Shift to transporting higher value goods .......................................................................................... 6
2. Falling product/material prices ........................................................................................................ 6
3. Deregulation of transport (Mod5) ..................................................................................................... 7
4. Productivity improvements (Mod4) .................................................................................................. 7
5. Emphasis on inventory reduction (Mod2) ......................................................................................... 7
6. Changes in company structure ........................................................................................................ 8
5) Link to company strategy ......................................................................................... 8
Strategy in the business world ............................................................................................ 8
Product Leadership .............................................................................................................................. 9
Operational Excellence ........................................................................................................................ 9
Customer Intimacy ............................................................................................................................. 10
, What is logistics?
1. Logistics involves getting … (tip = 5 R’s)
- the right product,
- in the right way,
- in the right quantity and right quality,
- in the right place at the right time,
- for the right customer at the right cost
2. ‘Logistics’ is …
… the process of planning, implementing and controlling procedures for the efficient
and effective transportation and storage of goods including services, and related
information from the point of origin to the point of consumption for the purpose of
conforming to customer requirements.
3. What is Logistics Management
• Logistics management is primarly concerned with optimizing flows within the
organization
• The mission of logistics management is to serve the customer in the most cost-
effective way
• More than “trucks and sheds” / “wheels and walls” alone
2) WHAT IS SCM (supply chain management)?
1. What is a supply chain?
A supply chain is a system of organizations, people, activities, information and
resources involved in moving a product or service from supplier to customer. Supply
chain activities transform natural resources, raw materials and components into a
finished product that is delivered to the end customer.
A supply chain is a network of connected and interdependent organizations mutually
and co-operatively working together to control, manage and improve the flow of
materials, resources (money + people + equipment) and information from suppliers
to end users.
