Construction Logistics is known to mankind since ancient times. Some universities and academic institutions train students as logisticians, offering undergraduate and postgraduate programs. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. 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. Academics and practitioners traditionally refer to the terms operations or production management when referring to physical transformations taking place in a single business location factory, restaurant or even bank clerking and reserve the term logistics for activities related to distribution, that is, moving products on the territory.
A distribution channel is the process a product goes through from manufacturer to wholesaler to retailer and finally, to the end consumer. In managing distribution, each company has to contemplate the most affordable ways to move goods to its customers. One way to distinguish distribution is to say that it is the physical execution of transportation logistics. One element of distribution is selecting the best transportation methods. Air, ground and ship methods are all common.
Many wholesalers operate distribution centers where they hold goods acquire from manufacturers prior to resale. Retailers sometimes have distribution centers where they hold extra inventory purchased from wholesalers prior to store distribution.
Neil Kokemuller has been an active business, finance and education writer and content media website developer since He has been a college marketing professor since Kokemuller has additional professional experience in marketing, retail and small business. Skip to main content.
Logistics Basics Logistics involves the planning, design, coordination, management and improvement of the processes of moving goods and resources. Informational Flow Logistics includes a significant flow of information, which contrasts the physical movement of goods pervasive in distribution.
Distribution Basics Distribution is one of the four elements of the marketing mix. Transportation Execution One way to distinguish distribution is to say that it is the physical execution of transportation logistics.
Nashville State Community College: About the Author Neil Kokemuller has been an active business, finance and education writer and content media website developer since In military logistics, logistics officers manage how and when to move resources to the places they are needed. Logistics management is the part of supply chain management 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 customer's requirements.
The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation in all logistics fields. A professional working in the field of logistics management is called a logistician. The prevalent view is that the term logistics comes from the late 19th century: Others attribute a Greek origin to the word: The Oxford English Dictionary defines logistics as "the branch of military science relating to procuring, maintaining and transporting material, personnel and facilities".
However, the New Oxford American Dictionary defines logistics as "the detailed coordination of a complex operation involving many people, facilities, or supplies," and the Oxford Dictionary on-line defines it as "the detailed organization and implementation of a complex operation". According to the Council of Supply Chain Management Professionals previously the Council of Logistics Management  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 and includes inbound, outbound, internal and external movements.
Academics and practitioners traditionally refer to the terms operations or production management when referring to physical transformations taking place in a single business location factory, restaurant or even bank clerking and reserve the term logistics for activities related to distribution, that is, moving products on the territory.
Managing a distribution center is seen, therefore, as pertaining to the realm of logistics since, while in theory the products made by a factory are ready for consumption they still need to be moved along the distribution network according to some logic, and the distribution center aggregates and processes orders coming from different areas of the territory. That being said, from a modeling perspective, there are similarities between operations management and logistics, and companies sometimes use hybrid professionals, with for ex.
Furthermore, the term supply chain management originally refers to, among other issues, having an integrated vision in of both production and logistics from point of origin to point of production. Inbound logistics is one of the primary processes of logistics concentrating on purchasing and arranging the inbound movement of materials, parts, or unfinished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores.
Outbound logistics is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user. Given the services performed by logisticians, the main fields of logistics can be broken down as follows:. Procurement logistics consists of activities such as market research , requirements planning, make-or-buy decisions, supplier management, ordering, and order controlling. The targets in procurement logistics might be contradictory: Advance Logistics consists of the activities required to set up or establish a plan for logistics activities to occur.
Distribution logistics has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differs with the time, place, and quantity of consumption. Disposal logistics has as its main function to reduce logistics cost s and enhance service s related to the disposal of waste produced during the operation of a business.
Reverse logistics denotes all those operations related to the reuse of products and materials. The reverse logistics process includes the management and the sale of surpluses, as well as products being returned to vendors from buyers. Reverse logistics stands for all operations related to the reuse of products and materials. It is "the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.
More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. The opposite of reverse logistics is forward logistics. Green Logistics describes all attempts to measure and minimize the ecological impact of logistics activities. This includes all activities of the forward and reverse flows. This can be achieved through intermodal freight transport , path optimization, vehicle saturation and city logistics.
RAM Logistics see also Logistic engineering combines both business logistics and military logistics since it is concerned with highly complicated technological systems for which Reliability , Availability and Maintainability are essential, ex: Emergency logistics or Humanitarian 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.
Humanitarian logistics involves governments, the military, aid agencies , donors, non-governmental organizations and emergency logistics services are typically sourced from a specialist provider. The term production logistics describes logistic processes within a value adding system ex: Production logistics aims to ensure that each machine and workstation receives the right product in the right quantity and quality at the right time. The concern is with production, testing, transportation, storage and supply.
Production logistics can operate in existing as well as new plants: Production logistics becomes more important with decreasing batch sizes. In many industries e. Track and tracing , which is an essential part of production logistics due to product safety and reliability issues, is also gaining importance, especially in the automotive and medical industries. Construction Logistics is known to mankind since ancient times.
As the various human civilizations tried to build the best possible works of construction for living and protection. Now the construction logistics emerged as vital part of construction. In the past few years construction logistics has emerged as a different field of knowledge and study within the subject of supply chain management and logistics.
Digital logistics is driven by a new generation of web-based, enterprise logistics applications that enable collaboration and optimization, leveraging a central logistics information backbone that provides visibility across the enterprise and extended supply chain.
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 historical leaders Hannibal , Alexander the Great , and the Duke of Wellington are considered to have been logistical geniuses: Alexander's expedition, the longest military campaign ever undertaken, benefited consiberably from his meticulous attention to the provisioning of his army,  Hannibal is credited to have "taught logistics" to the Romans during the Punic Wars  and the success of the Anglo-Portuguese army in the Peninsula War was the due to the effectiveness of Wellington's supply system, despite the numerical disadvantage.
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 United States Armed Forces ' categorical supply 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 lower 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. Some classes of supply have a linear demand relationship: Other classes of supply must consider a third variable besides usage and quantity: 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 them to future scenarios, the US Armed Forces can accurately supply troops with the items necessary at the precise moment they are needed. The lack thereof can lead to a clunky, slow, and ill-equipped force with too much or too little supply. One definition of business logistics speaks of "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".
The term " business logistics" has evolved since the s  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 professionals called "supply chain logisticians". In business, logistics may have either an internal focus inbound logistics or an 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: There may be some intermediaries operating for representative matters between nodes such as sales agents or brokers. A logistic family is a set of products which share a common characteristic: The following metrics may be used by the company to organize its products in different families: Other metrics may present themselves in both physical or monetary form, such as the standard Inventory turnover.
Unit loads are combinations of individual items which are moved by handling systems, usually employing a pallet of normed dimensions. Order processing is a sequential process involving: Picking can be both manual or automated. Manual picking can be both man to goods, i. Automatic picking is done either with dispensers or depalletizing robots.
Sorting can be done manually through carts or conveyor belts, or automatically through sorters. Unit loads are usually assembled into higher standardized units such as: ISO containers , swap bodies or semi-trailers. Especially for very long distances, product transportation will likely benefit from using different transportation means: When moving cargo, typical constraints are maximum weight and volume. Operators involved in transportation include: Merchandise being transported internationally is usually subject to the Incoterms standards issued by the International Chamber of Commerce.
Similarly to production systems, logistic systems need to be properly configured and managed. Actually a number of methodologies have been directly borrowed from operations management such as using Economic Order Quantity models for managing inventory in the nodes of the network. Traditionally in logistics configuration may be at the level of the warehouse node or at level of the distribution system network.
Distribution logistics includes a wide range of activities. These all focus on achieving efficient distribution and movement of finished products. This takes goods from the . Logistics involves the planning, design, coordination, management and improvement of the processes of moving goods and resources. In some cases, logistics involves more internal systems, while in others it involves collaboration with distribution partners. This is a difference, because distribution inherently includes more than one channel partner. The logistic distribution receives its name from its cumulative distribution function (cdf), which is an instance of the family of logistic functions. The cumulative distribution function of the logistic distribution is also a scaled version of the hyperbolic tangent.