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, andpackaging, and occasionally 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 Logistics Education

• 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. 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.

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.
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 management 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 a logistician.

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]Logistics Education
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.

[edit]See also

Look
up logistics in Wiktionary,
the free dictionary.

 Cargo
 Document automation in supply chain management & logistics
 Inventory
 Inventory management software
 Performance-based logistics
 Returns management system
 Reverse logistics
 Sales territory
 Supply chain managemen