Business Logistics

Teacher: Ing. Eva laichov, Ph.D.

E-mail: eva.slaichova@tul.cz

Sylabus of the Subject I.

1. The Way to World Class Logistics
2. Client Service
3. The Process of Creating a Logistics
System
4. The Strategy of the Corporate Logistics
System
5. The Relation of Methods to the Steps of
the Process
6. Logistics Controlling
7. Logistics Reengineering

Sylabus of the Subject II.

8. The Total Supply Chain Concept
9. Customer Order Decoupling Point
10. Logistical Technologies I. - The
Establishment of Handling Groups,
KANBAN
11. Logistical Technologies II. - JIT , Quick
Response, ECR, Hub and Spoke
12. Organization of the Logistics Function
13. Logistics and Transport Policy
14. Outsourcing in Logistics

Literature

PERNICA, P., MOSOLF, J. H.: Partnership in

Logistics. 1st ed. Prague: RADIX, 2000

Seminar Term-Work
choose any theme related to the matter

of logistics, e.g.:
packaging, container system, handling
equipment, storage facilities,
transportation services etc.
write ca. 5 pages text + figures and
pictures
presentation: 12th - 14th week of
semester
Sources: books, magazines, internet
(http://www.manufacturing.net/lm)

History of Logistics I.
Logistics were employed by one of the

authors of military theory, baron Antoine

Henri Jomini (1779-1869), a French general
with Swiss ancestor.
Logistics = a theory of movement,

provisioning and accommodation of armies

military logistics.

History of Logistics II.

World War II.: Logistics were successfully

employed. By means of mathematical

methods, a number of problems were solved on
the western front in Europe, such as
provisioning, transport, deployment.
After the War: Logistic activities were extended

for the solution of analogical problems in

civilian use beginning of Business Logistics.

Definition of Logistics I.
Logistics is the process of planning, implementing
and controlling the efficient, effective flow and
storage of raw materials,
materials in-process inventory,
finished goods, services, and related information
from point of origin to point of consumption for the
purpose of conforming to customer requirements.
requirements
(Council of Logistics Management)

Definition of Logistics II.

Organizing, planning, managing and materializing the
goods flow, starting with development and purchases
and ending with production and distribution according to
the final customers order, so that all the requirements
are met at the lowest possible cost and minimum capital
expenditure.
expenditure
(European Logistics Association)

Definition of Logistics III.

Logistics is a tremendous tool to approach systematically
a private or public company in order to improve the
quality according to the wishes of the clients, to improve
the flexibility of the production, to integrate the total
organization of partners, service suppliers, collaborators,
distributors and clients.
(Institute of Logistics)

Definition of Logistics IV.

Seven Rs
ensuring the availability of
the RIGHT product,
product
in the RIGHT quantity and
RIGHT condition,
condition
at the RIGHT place,
place
at the RIGHT time,
time
for the RIGHT customer,
customer
at the RIGHT costs.
costs

(Institute of Logistics)

A View of Business Logistics

In a Company

Logistical Activities I.
Logistics manager may be responsible for:
Traffic and transportation,
Warehousing and storage,
Industrial packaging,
Materials handling,
Inventory control,
Order processing,
Customer service levels,
Demand forecasting,

Logistical Activities II.

Procurement,
Distribution communications,
Plant and warehouse site location,
Return goods handling,
Parts and service support,
Salvage and scrap disposal.

Development of Logistics I.
Stage 1:
Logistics were limited to distribution.
distribution Problems relating
to transaction with finished products and related
physical distribution were dominant. The problem of
inventories was not important.
This pioneering period culminated in the sixties - this
approach is not used any more.

Development of Logistics II.

Stage 2:
Corporate logistics were gradually extended to supplying
(purchases, procurement) and to production management.
management
The method of the employment of logistics in the distribution,
production and supplying departments was insular, and the
effects were only partial.
Time period: 1970 - 1980.

Development of Logistics III.

Stage 3:
Companies create complete logistical chains and systems
connected with customer and supplier. The integration of
corporate activities and the development of supplying,
production and distribution systems is actually being
materialized.
It is an integrated logistics.
logistics
Time period: 1980 - 2000

Development of Logistics IV.

Stage 4:
Integrated logistical systems will be optimized as a
whole in the foreseeable future.
It is a very complex, system-related problem. One of the
requirements is the establishment of strategic alliances
between companies, their customers, product suppliers
and logistics providers.

The Strategic Factor of a

Companys Competitiveness
The competition in terms of time takes place in a
number of permanent fights:
for a shorter delivery time,
for better quality,
better product variability,
product complexity,
shorter life cycle of products.

Product Delivery Times

The tendency for product delivery times
to get shorter:

Product Quality
The tendency for product quality to
improve:

Product Variability
The tendency for product variability to
increase:

Product Sophistication
The tendency for product
sophistication to grow:

Product Life Cycle

The tendency for the product life cycle
to get shorter:

Logistics Channel (Chain)

The network of intermediaries engaged in
transfer, storage, handling, communication, and
other function that contribute to the efficient
flow of goods.
The logistics channel can be simple or complex.

Simple Logistics Channel

Multiechelon Logistics
Channel

Complex Logistics Channel