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Unit 1

The document discusses logistics management and related concepts. It defines logistics and its evolution from physical distribution management to supply chain management. It discusses key concepts like logistics relationships and the importance of controlling inbound and outbound flows. It also highlights the significance of international transportation when goods pass through country borders.

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Harini S
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79 views23 pages

Unit 1

The document discusses logistics management and related concepts. It defines logistics and its evolution from physical distribution management to supply chain management. It discusses key concepts like logistics relationships and the importance of controlling inbound and outbound flows. It also highlights the significance of international transportation when goods pass through country borders.

Uploaded by

Harini S
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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UNIT I

Logistics management
 Definition, Evolution, Importance
 Concepts of logistics relationships
 Functional Applications
 Logistics Organization
 Logistics in different industries
 Significance of International Transportation
Logistics management is part
of the supply chain. It involves
planning, implementing, and
overseeing the effective
storage of goods and their
transportation from the point
of origin until the final
destination (the point of
consumption). 
Logistics: What It Is
• Council of Logistics Management

definition:
“Logistics is that part of the supply chain process

that 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 customers’ requirements.”

Source: www.cscmp.org
Evolution
EVOLUTION OF LOGISTICS
i. Early 1960s: Physical Distribution
Management (PDM)
Efforts were started in the USA to transform
PDM. Separate Distribution unit created to
coordinate the management of transport,
warehousing, inventory management, materials
handling and order processing. Outbound
distribution integration helped firms to develop
explicit customer service strategies and led to
meeting customer needs at minimum cost
www.knust.edu.gh

DBA242-MKOBIO 5
EVOLUTION OF LOGISTICS
ii. Late 1970s: Logistics and “Total
Logistics”
The era handled the overall responsibility
for the movement, storage, and handling
of both inbound & outbound products.
Played a role in product development,
recycling and after sales service.

www.knust.edu.gh

DBA242-MKOBIO 6
EVOLUTION OF LOGISTICS
iii. Early 1990s: Logistics & Business Process
Re-engineering (BPR)
Principles of BPR was adapted to logistics
emphasizing 4 factors common to Logistics
ReEng–Systems Integration, Benchmarking,
Analysis of Logistics activities and Continuous
Improvement
iv. Last 20 Years
Supply Chain Management (SCM) and its
optimization. The main motivation of this SCM
era has been the desire to minimize inventory
www.knust.edu.gh

DBA242-MKOBIO 7
LOGISTICS PROCESS
The Increased Importance of Logistics

A Reduction in Economic Regulation

Changes in Consumer Behavior

Technological Advances

The Growing Power of Retailers

Globalization of Trade
Control Over the Flow of Inbound and Outbound
Movements
Activity 1
• Find out the list of logistics companies
• Find the activities they mostly deal with
• Find out the competitors
• Draw the swot analysis
ACTIVIT
Y • From Manufacturer’s Point of
View
Find out the objectives??? • From Logistician’s Point of View
• From Customer’s Point of View
activity
• Describe the supporting activities and primary activities of logistics

• log qns.pdf
CONCEPT OF LOGISTICS
RELATIONSHIP
CONCEPT OF LOGISTICS
RELATIONSHIP
• Material management involves all the activities related to the
production of parts and finished goods, including their packaging and
eventual recycling or reusing.
• Physical distribution involves all the activities related to making parts
and finished goods available for consumption, particularly
transportation and warehousing.
CONCEPT OF LOGISTICS
RELATIONSHIP
• Logistics also involves a fundamental relationship between the
derived and induced demands of its activities.
• Materials management commonly creates a derived demand for
physical distribution since what is being produced must be
transported, stored, and sold to consumers.
• Physical distribution has an induced demand effect on materials
management as distribution capabilities will shape production in
terms of its organization and location. 
Logistics organisation
 a process of organizing in terms of either the total demand network
and/or enterprise members.
The process of organizing constructs the context in which the
organization operates
activity
• Prepare a organisational chart for logistics company
Logistics In different industry

Warehousing Land transportation


Cold chain logistics Rail road transportation

LOGISTICS
Port terminals
Air cargo
Inland waterways and marine
Liquid logistics services
International Transportation

when goods pass through the


borders of a specific country
into another by air, land or sea,
the method of transportation
SIGNIFICANCE OF INTERNATIONAL
TRANSPORTATION

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