TRANSPORT AND

LOGISTICS
INTRODUCTION

2023 GREEN LIVING CILT COURSE

INNOVATIONS INSTITUTE
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Subtitle
 INTRODUCTION
• The management of the flow of things which lie
between producers and the consumers for the purpose
of meeting the requirements of the consumers or
corporations is known as logistics.
• Logistics refer to the overall process of managing how
resources are acquired, stored, and transported to their
final destination.
• Logistics management involves identifying prospective
distributors and suppliers and determining their
effectiveness and accessibility.
• Logistics managers are referred to as logisticians.

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• Logistics” was initially a military-based term used in reference to how military

personnel correct internal or external customer, stored and moved equipment and
supplies.
• The term is now used widely in the business sector, particularly by companies in the
manufacturing sectors, to refer to how resources are handled and moved along the
supply chain.
• For example, in the natural gas industry, logistics involves managing the pipelines,
trucks, storage facilities and distribution centers that handle oil as it is transformed
along the supply chain.
• An efficient supply chain and effective logistical procedures are essential to reduce
costs and to maintain and increase efficiency.
• Poor logistics leads to untimely deliveries, failure to meet the needs of clientele, and
ultimately causes the business to suffer.
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• The concept of business logistics has been transformed since the
1960s.
• The increasing intricacy of supplying companies with the materials and
resources they need and the global expansion of supply chains has led
to a need for specialists known as supply chain logisticians.
• In the modern era, the technology boom and the complexity of logistics
processes have spawned logistics management software and
specialized logistics-focused firms that expedite the movement of
resources along the supply chain.
• Manufacturing companies may choose to outsource the management
of their logistics to specialists or manage logistics internally if it is cost-
effective to do so.
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SOME RESPONSIBILITIES OF A LOGISTICIAN
• The tasks for which a logistician is responsible vary depending on the
business.
• Primary responsibilities include overseeing and managing inventory by
arranging for appropriate transportation and adequate storage for the
inventory.
• A qualified logistician plans out these and other aspects of the logistics
process, coordinating the steps as inventory and resources move along
the supply chain.
• Develop business relationships with suppliers and clients

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SOME RESPONSIBILITIES OF A LOGISTICIAN
• Logisticians oversee activities that include purchasing, transportation,
inventory, and warehousing.
• They may direct the movement of a range of goods, people, or supplies,
from common consumer goods to military supplies and personnel.
• Logisticians use software systems to plan and track the movement of
products.
• They operate software programs designed specifically to manage
logistical functions, such as procurement, inventory management, and
other supply chain planning and management systems.

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LOGISTICS SYSTEM

Logistics Components.
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LOGISTICS SYSTEM
• The logistics system consists of the following components: Customer service,
Inventory management, Transportation, Storage and materials handling,
Packaging, Information processing, Demand forecasting, Production planning,
Purchasing, Facility location and other activities.
• Other activities for a specific organization could include tasks such as after-
sales parts and service support, maintenance functions, return goods
handling and recycling operations.
• Clearly any one organization is unlikely to require all these specific tasks to be
accomplished.
• For example, a service firm such as an airline might combine elements from
the information processing, maintenance, demand forecasting, customer
service, and purchasing functions into a logistics system designed to reach its
customers.
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• On the other hand, a manufacturer of consumer goods may draw from
transportation, inventory management, storage, materials handling and
packaging in addition to customer service, purchasing and demand
forecasting for their logistics support.
• The point is that every organization, be it manufacturer or service
provider, for-profit or non-profit, has customers that it wants to reach.
• By integrating the appropriate functions into a customer-focused
logistics system, the enterprise can develop a sustainable advantage
that is very difficult to be imitated by a competitor.
• Some of these activities have traditionally had a well-defined stand-
alone role within a company (purchasing, production, information
processing), while others have generally been more closely associated
with logistics (transportation, warehousing, packaging).
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• What ties all of these functions together is their ability to improve customer
satisfaction.
• This is not to say that production, for example, should be subordinate to logistics.
• Rather top management should utilize logistics as a way to integrate these
corporate activities and keep them focused on the customer rather than on internal
processes

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 Elements of Logistics and FR
Maintenance Support Planning.
• Interactive planning, organisation and management activities are necessary
to ensure that logistics requirements for any given program are properly
coordinated and implemented.
• Initial planning and analysis lead to the establishment of requirements for
logistics and the overall support of the system throughout its life cycle.
• Maintenance planning for those activities related to the reverse flow
convinces with the definition of maintenance concept and continues through
supportability analysis to the ultimate development of a maintenance plan.
• A comprehensive logistics plan needs to be implemented through the
establishment and control functions to ensure that the plan is properly
carried out.

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 Logistics Maintenance and Support FR
Personnel
• The personal required to perform unique logistics and system maintenance
activities are covered in this category.
• Such activities include the initial provision and procurement of items of
support, production related logistics functions, the installation and checkout of
the system and its elements at the user’s operational sites customer service
functions,
• The sustaining support of the system throughout its planned period of use, and
those functions required for the retirement and recycling or disposal of material.
• Personnel at all levels of maintenance mobile teams, and operation or
maintenance at special test facilities and calibration laboratories are included.
• It is important to include only those who can be directly attributed to the
support of that system in evaluation of a particular system.
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Logistic Information
• This refers to the resources necessary to ensure that an effective and
efficient logistics information flow is provided throughout and to the
organizations responsible for all the activities that come within its focus.
• This flow includes the necessary, communication links among the
customer, producer or prime contractor, sub-contractors, sup- priors
and supporting maintenance organisations.
• It is but essential that the proper type and amount of information be
provided to the appropriate organisational elements, in proper formats
and in a reliable and timely manner with the necessary security
provisions included.

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Logistics Goals and Strategies
• At the highest level, logistics management shares the goal of supply
chain: “to meet customer requirements.” There are a number of
logistics goals that most experts agree upon:
• Respond rapidly to changes-in the market or customer orders.
• Minimize variances in logistics service.
• Minimize inventory to reduce costs.
• Consolidate product movement by grouping shipments.
• Maintain high quality and engage in continuous improvement.
• Support the entire product life cycle and the reverse logistics supply
chain.
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• An effective logistics management strategy depends upon the following
tactics:
1. Coordinating functions (transportation management, warehousing,
packaging, etc.) to create maximum value for the customer.
2. Integrating the supply chain.
3. Substituting information for inventory.
4. Reducing supply chain partners to an effective minimum number.
5. Pooling risks.
Let’s explores these in details.

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1. Coordinating Functions
• Logistics can be viewed as a system made up of interlocking,
interdependent parts.
• From this perspective, improving any part of the system must be done
with full awareness of the, effects on other parts of the system.
• Before the advent of modern logistics management, however, the
various operations contributing to the movement of goods were usually
assigned to separate departments or divisions, such as the traffic
department.
• Each area had its own separate management and pursued its own
strategies and tactics.

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• Decisions made in any one functional area, however, are very likely to affect
performance in other areas, and an improvement in one area may very well have
negative consequences in another unless decisions are coordinated among all
logistics areas.
• Adopting more efficient movement of goods, for example, may require rethinking
the number and placement of warehouses.
• Different packaging will almost certainly affect shipping and storage.
• You may improve customer service to a level near perfection but incur so many
additional expenses in the process that the company as a whole goes broke.

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• You need a cross-functional approach in logistics, just as you do in

supply chain management as a whole.
• Teams that cross functions are also very likely to cross company
boundaries in a world of international supply chains with different firms
focused on different functions.
• The overall goal of logistics management is not better shipping or more
efficient location of warehouses but more value in the supply network
as measured by customer satisfaction, return to shareholders, etc.
• There is no point, for instance, in raising the cost of shipping—thus, the
price to the customer—to make deliveries faster than the customer
demands.

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2. Integrating the Supply Chain
• Integrating the supply chain requires taking a series of steps when
constructing the logistics network.
• In a dynamic system, steps may be taken out of order and retaken
continuously in pursuit of quality improvements. The following list puts
the steps in logical order.
1. Locate in the Right Countries:
• Identify all geographic locations in the forward and reverse supply
chains.
• Analyze the forward and reverse chains to see if selecting different
geographic locations could make the logistics function more efficient
and effective.
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• 2. Develop an Effective Import-Export Strategy.
• Determine the volume of freight and number of SKUs (stock keeping
units) that are imports and exports.
• Decide where to place inventory for strategic advantage.
• This may involve deciding which borders to cross and which to avoid
when importing and exporting as well as determining where goods
should be stored in relation to customers.
• (Some shipping companies now add a “war risk surcharge” if they’re
required to pass through or near a nation with civil unrest or at war.)
• Both geographic location and distance from the customer can affect
delivery lead times.

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END

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