Logistics

Logistics is the art of managing the supply chain and science of managing and controlling the flow of goods, information and other resources like energy and people between the point of origin and the point of consumption in order to meet customer’s requirements. It involves the integration of information, transportation, inventory, warehousing, material handling and packaging. Logistics describes the way that materials move in to an organisation from suppliers, through the operations within an organisation, and then out to customers. As you can see, we take a broad view of logistics, looking at every kind of ‘organisation’, moving every kind of ‘material’. We talk about

manufacturers moving tangible goods and services providers moving materials for their intangible services. Every organisation needs a reliable flow of materials. Logistics is an essential function, and mangers have to make the movement of materials as efficient and effective as possible. This is best done by an integrated function that is responsible for all aspects of material movement. The results are important, as they directly affect customer service, costs – and just about every other measure of performance. Logistics is not contained within an organisation, but has a unique position in linking external suppliers and customers. Organisations increasingly recognise that they do not work in isolation, but form part of a supply chain whose aim is to satisfy customers. To emphasise this broader role, some people prefer to talk about ‘supply chain management’. This is a particularly fast-moving field. Developments in operations – such as Just in Time, Lean Operations, Efficient Customer Response, Enterprise Resource Planning, E-Commerce, Globalisation and increasing Customer Service – are rapidly changing the demands on logistics. This module gives an up-to-date view of logistics, emphasising current trends and developments. It covers important issues, such as: increasing strategic importance of logistics, global operations and increasing international competition, integration of organisations and activities in the supply chain, changing requirements from logistics to deal with new types of operations, better communications allowing closer co-ordination of movements, new requirements from aspects of e-commerce, increasing emphasis on quality and customer-based service, environmental concerns.