Free Essay

What Is Logistic

In: Business and Management

Submitted By nureisyah
Words 385
Pages 2
What is logistic?
The total management of the key operational function in the supply chain which is procurement, production and distribution.
Procurement includes purchasing and product development. The production function includes manufacturing and assembling, while distribution function involves warehousing inventory, transport and delivery.
The range of activities involved are: 1) Freight forwarding 2) Customs brokerage 3) Freight auditing and payment 4) Vehicle control and communication 5) Product identification and tracking 6) Information system (optimization in management) 7) Transportation services / brokerage 8) Transportation equipment / leasing 9) Private fleet assets / management 10) Warehousing 11) Order management and fulfillment 12) Cross docking 13) Value added, assembly and configuration 14) Site location

Transport principles in logistic

The larger the capacity transportation vehicles are less costly per unit of freight than smaller capacity vehicle in economy of scale. In the economy of distance the decrease of transportations coast per unit of weight as distance increase. However, to maximize the size of load and the distance being shipped while still meeting the customer expectation.

Land logistic
Land logistics is a very important link in logistics activities. It extends the delivery services for air and maritime transport from airports and seaports. The most positive characteristic of land logistics is the high accessibility level in land areas. The main transport modes of land logistics are railway transport, road freight transport and pipeline transport.

However there are same advantages and disadvantages of these transports mode. For example: Railway transport has advantages like high carrying capacity, lower influence by weather conditions, and lower energy consumption while disadvantages as high cost of essential facilities, difficult and expensive maintenance, lack of elasticity of urgent demands, and time consumption in organizing railway carriages. Second, Road freight transport has advantages as cheaper investment funds, high accessibility, mobility and availability. Its disadvantages are low capacity, lower safety, and slow speed. Third, is the pipeline, the advantages of pipeline transport are high capacity, less effect by weather conditions, cheaper operation fee, and continuous conveyance, the disadvantages are expensive infrastructures, harder supervision, goods specialization, and regular maintenance needs.

The extreme usage of land transport also brings many problems, such as traffic jams, pollution and traffic crashes. In the future, to improve the land transport in transport efficiency and reliability, a revolution of transport policies and management is required, e.g. pricing.

Similar Documents

Premium Essay

What Is Logistics

...What is Logistics? Overshadowed behind all the excitement given to supply chain management and the technology developed to support it is a lesser known part of the business operations known as logistics. Some might regard logistics as mundane and staid compared to other supply chain initiatives but they don’t get the whole picture. However, logistics professionals and knowledgeable managers know that to fulfill customer orders effectively and efficiently, a business should employ a good logistics system and processes together with the supply chain to build up and sustain competitive advantage and profitability. So what is logistics all about? We can trace logistics’ roots back to the 18th century in Europe when a logistics officer was responsible for encamping and quartering all the troops as well as stocking the supply depots which included food, fuel, spare parts and personnel. Logistics has been reinvented and is being applied to all establishments. Logistics management is the most widely accepted term and encompasses logistics not only in the private business sector but also in the public/government and nonprofit sectors. In the 1960’s, the logistics concept began to appear in the business-related literature under the name of physical distribution, which had a focus on the outbound side of the logistics system and the military began to focus on engineering dimensions of logistic which are reliability, maintainability, configuration management, life cycle management......

Words: 791 - Pages: 4

Premium Essay

Logistics & Supply Chain

...1. What is logistics, and why is it important in private companies and public organizations? logistics is That part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services and related information from the point of order to the point of consumption in order to meet customers’ requirements.It is has become important for growing service organizations both private and public to fulfill customer request and utilizing such network to fulfill the wants/needs of the customer request in a timely manner. 2. Why is logistics important on a macro level, and what contributions does logistics make in the economy? The absolute cost of logistics on Macro basis will increase the growth in the economy. Meaning that the more products/services being produced, the total logistics cost will increase. The reduction in relatively cost allows organizations to be more competitive since it directly impacts the cost of producing goods. The decrease in cost has helped the U.S. Economy regains a competitive position on a global standard. 3. How does logistics add value in the economy? How does logistics add value for firms? Logistics organizations can impact the economic value of a company by increasing net sales and reducing operating costs and assets. it add value to firms by improved customer service, product availability, and order accuracy can be directly linked to the capabilities of a logistics......

Words: 804 - Pages: 4

Premium Essay

Iscom 374 Course Success Begins / Tutorialrank.Com

...Assignment Logistics and Supply Chain Article Analysis ISCOM 374 Week 2 Learning Team Assignment Strategic Logistics Report ISCOM 374 Week 2 DQs ISCOM 374 Week 3 Individual Assignment Product versus Service Supply Chain Comparison Paper ISCOM 374 Week 3 Learning Team Assignment Forecasting and Inventory Analysis Paper ISCOM 374 Week 3 DQs ISCOM 374 Week 4 Materials Handling Packaging Field Research Report ISCOM 374 Week 4 Logistics Press Release ISCOM 374 Week 4 DQs ISCOM 374 Week 5 Learning Team Assignment Global Considerations Report ---------------------------------------------------------------- ISCOM 374 Final Exam Test- Use As Study Material For more course tutorials visit www.tutorialrank.com ISCOM 374 Final Exam / Test- Use As Study Material ---------------------------------------------------------------- ISCOM 374 Week 1 DQs For more course tutorials visit www.tutorialrank.com ISCOM 374 Week 1 DQs DQ 1 Pick one article from the course Electronic Reserve Readings (ERR) available in the Course Materials for Week 1. Summarize the main points of either the entire article if it is short or one section of a longer article. Provide your classmates with a concrete discussion of why what you learned is important relative to this week’s learning objectives. Did you learn anything that you could apply some day as you further your career? Be sure to indicate which article you read and properly cite your source. DQ 2 What is the......

Words: 881 - Pages: 4

Premium Essay

Logistics

...Logistics has an important relationship to manufacturing, marketing, finance, and other areas of the organization * Logistics Interfaces with Operations/Manufacturing * Logistics Interfaces with Marketing * Logistics Interfaces with Other Areas Interfaces w/operations/manufacturing -Length of production runs Balance economies of long production runs against increased costs of high inventories. -Seasonal demand Acceptance of seasonal inventory to balance lead production times. -Supply-side interfaces Stocking adequate supplies to ensure uninterrupted production now a logistics function. -Protective packaging Principal purpose is to protect the product from damage. -Foreign & third party alternatives Some logistics functions are being outsourced. Logistics Interfaces with Marketing: The Marketing Mix – Four Ps * Price * Product * Promotion * Place -Manufacturing and marketing are probably the two most important internal, functional interfaces with logistics. -Other important interfaces now include finance and accounting. Logistics can have a major impact on return on assets and return on investment. Logistics costs reported by cost systems measure supply chain trade-offs and performance. Economic utilities and means that add value to a product or service in the SCM * Production * Form Utility (by assembling parts into finished...

Words: 1640 - Pages: 7

Premium Essay

Bsop 434 Week 5 Assignment

...information management systems, and give one logistics application for each one that you’ve named. Chapter 13: Question 2: What is activity-based costing (ABC)? What are the five steps of the ABC process? Question 17: Describe the two issues that managers face with respect to computer and data security. Chapter 14: Question 3: What are the differences between a centralized and a decentralized logistics department? Question 20: Name the seven types of comprehensive logistics systems audits that should be performed. Which do you view as the most important? The least important? Why? Activity mode aims to provide quality study notes and tutorials to the students of BSOP 434 Week 5 Assignment in order to ace their studies. BSOP 434 WEEK 5 ASSIGNMENT To purchase this visit here: http://www.activitymode.com/product/bsop-434-week-5-assignment/ Contact us at: SUPPORT@ACTIVITYMODE.COM BSOP 434 WEEK 5 ASSIGNMENT Chapter 3: Question 3: Name the six general types of information management systems, and give one logistics application for each one that you’ve named. Chapter 13: Question 2: What is activity-based costing (ABC)? What are the five steps of the ABC process? Question 17: Describe the two issues that managers face with respect to computer and data security. Chapter 14: Question 3: What are the differences between a centralized and a decentralized logistics department? Question 20: Name the seven types of comprehensive logistics systems audits that should......

Words: 791 - Pages: 4

Premium Essay

Assignment 1

...it surprise you that logistics has such an important economic impact? Why or why not? I was actually not surprised at all. I have learned that shipping industry has played a major role in our economy and that foreign trade accounted for about 10% of US GPD. As of today about 90% of America’s overseas foreign trade is moved by ships and according to recent projections the foreign trade will be up to 35% of our GPD by 2020. 1.2 Distinguish between possession, form, time, and place utility. Possession utility refers to the value or usefulness that comes from a customer being able to take possession of a product and can be influenced by the relevant payment terms. Form utility refers to a product’s being in a form that (1) can be used by the customer and (2) is of value to the customer. Time utility refers to having products available when they are needed by customers while place utility refers to having products available where they are needed by customers. 1.3 How does logistics contribute to time and place utility? Logistics contributes to time utility by recognizing that different products have different sensitivities to time. A great scenario would be, a three-day late delivery of cupcakes likely has more serious consequences than a three-day late delivery of a box of notebook paper. For place utility, logistics facilitates products being moved from points of lesser value to points of greater value. 1.4 How can a particular logistics system be......

Words: 1747 - Pages: 7

Premium Essay

Fourth Party Logistics

...Management and Economics Logistics outsourcing 3PL & 4PL – A Survey on Pakistani manufacturing and exporting companies Business Logistics, 15ECTS, FE–5594 Authors Muhammad Usman Tahir - 840523 Hammad Tabassum - 830509 Saeed Ahmad - 820919 Muhammad Arshad - 830804 Examiner: Helena Forslund Tutor: Petra Andresson ABSTRACT Authors: Tutor: Examiner: Title: Background: Muhammad Usman Tahir, Hammad Tabassum Muhammad Arshad, Saeed Ahamad. Petra Andersson Helena Forslund A Survey on Pakistani manufacturing and exporting companies The development of recent means of transportation, information has increased opportunities for global business and it is very common that the companies involved in global business often need to outsource logistic function, as they cannot perform global logistics on their own. The need of service effectiveness for companies and operations efficiency from logistics service providers involves the minimization of the uncertainties associated with logistics outsourcing, therefore risks reduction measures must be implemented using logistics outsourcing. - How do the Pakistani manufacturing and exporting companies currently outsource their logistics function in their downstream supply chain? - What benefits they seek with respect to 3PL and 4PL? - What factors they consider for outsourcing logistics? To investigate the current logistics outsourcing situation of the Pakistani Manufacturing and Exporting Companies. What logistics functions they......

Words: 21259 - Pages: 86

Premium Essay

Iscom 374 Course Success Begins / Tutorialrank.Com

...more course tutorials visit www.tutorialrank.com ISCOM 374 Week 1 DQs ISCOM 374 Week 1 Individual Assignment Logistics and Supply Chain Article Analysis ISCOM 374 Week 2 Learning Team Assignment Strategic Logistics Report ISCOM 374 Week 2 DQs ISCOM 374 Week 3 Individual Assignment Product versus Service Supply Chain Comparison Paper ISCOM 374 Week 3 Learning Team Assignment Forecasting and Inventory Analysis Paper ISCOM 374 Week 3 DQs ISCOM 374 Week 4 Materials Handling Packaging Field Research Report ISCOM 374 Week 4 Logistics Press Release ISCOM 374 Week 4 DQs ISCOM 374 Week 5 Learning Team Assignment Global Considerations Report ------------------------------------------------------------------------------------ ISCOM 374 Final Exam Test- Use As Study Material For more course tutorials visit www.tutorialrank.com ISCOM 374 Final Exam / Test- Use As Study Material ------------------------------------------------------------------------------------ ISCOM 374 Week 1 DQs For more course tutorials visit www.tutorialrank.com ISCOM 374 Week 1 DQs DQ 1 Pick one article from the course Electronic Reserve Readings (ERR) available in the Course Materials for Week 1. Summarize the main points of either the entire article if it is short or one section of a longer article. Provide your classmates with a concrete discussion of why what you learned is important relative to this week’s learning objectives. Did you learn anything that you could......

Words: 1633 - Pages: 7

Premium Essay

Logistic Features and Challenges

...Supply Chain Management (Logistic features and challenges) Outlines: * History of logistics * Introduction to Logistics and SCM * Business Logistics * DISTINGUISHED PROBLEMS OF LOGISTICS * 3 Logistical Challenges Every Growing Business Must Overcome * WalMart * Conclusion History of logistics:- Logistics has been playing a fundamental role in global development for almost 5,000 years now. Since the construction of the pyramids in ancient Egypt, logistics has made remarkable strides. Time and again, brilliant logistics solutions have formed the basis for the transition to a new historical and economic era. Examples of this fundamental progress include the invention of the sea-cargo container and the creation of novel service systems during the 20th century. Both are integral parts of globalization today. Around 2700 B.C.: Material handling technology in pyramid construction. Blocks of stone weighing several tons were transported and assembled at the construction site. To build the Great Pyramid of Giza, which is 146 meters high and weighs 6 million tons, the Egyptians needed sophisticated material transport equipment capable of moving the massive building blocks and putting them into place. Even today, we still cannot fully explain how this level of precision was achieved using the hoisting equipment and means of transport available around 2700 B.C. Around 300 B.C.: Revolutionary Greek rowing vessels – the new......

Words: 4994 - Pages: 20

Premium Essay

Logistics or Not

...Logistics or Academic Essay Logistics or Not 05/27/2015 Arue Johnson ENG/220 Nora Barber For logistics or not for logistics I should stay in the logistic career field instead of venturing on new career paths. I will review in comparison and contrast the reasons for staying in the logistical field opposed to leaving this career. I like working in the logistical field because the economy needs logistics. The employment opportunities in the logistic field are widespread throughout the country and world. I have eleven years of experience in logistics; so I have knowledge advantage. When I earn my Bachelors degree, it will support and strengthen my logistical experience. For logistics I should continue to pursue a logistic career because the economy relies on logistics. The economy functions on supply and demand. Companies distribute and receive supplies to supply the economy of what it demands. It does not matter what type of business it is: military, agriculture, industrial, manufacturing, human resources, or financial. The logistical behavior never changes. Every supply and demand business model is requisite of logistics. Logistics is the reason for economic growth and technological advances. If it weren’t for the increasing demand for logistics to supply the economy quickly, then it wouldn’t have stimulated the advancement of technology to do so. Michael Porter, a business strategist,......

Words: 1119 - Pages: 5

Premium Essay

Logistics as It Relates to Marketing and Production

...Marketing Logistics Production Marketing Logistics Production Marketing Logistics Production Marketing Logistics Production Marketing Logistics Production Marketing Logistics as it relates to Production Logistics Production and Marketing Marketing Logistics Production Term Paper for Physical Distribution Class Marketing Logistics12/25/2012 Production Marketing Logistics Nahom GetachewProduction - UU47997E Samuel Fikre - UU48012E Marketing Logistics Production Marketing Logistics Production Marketing Logistics Production Marketing Logistics Production Marketing Logistics Production Marketing Logistics Production Marketing Logistics Production Marketing Logistics Production Marketing Logistics Production Marketing Logistics Production Marketing Logistics Production Marketing Logistics Production Marketing Logistics Production Marketing Logistics Production Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Table of Contents Preface: Johnson and Johnson’s Tylenol....................................................................................................... 2 Introduction .................................................................................................................................................. 3 Objectives achieved through Logistics ....................................

Words: 5334 - Pages: 22

Premium Essay

Logistics

...WHY LOGISTICS IS THE MOST POWERFUL FO R C E I N B U S I N E S S T O D A Y. (AND WHY YOU SHOULD UNDERSTAND IT.) In a global economy, logistics is the secret to opening markets, satisfying customers, creating sustainable supply chains and avoiding volcanic eruptions. (Story below.) It wasn’t long ago that the most important rule of business was “location is everything.” If you had location in your favor, you were more or less protected against competitors of every shape and size. Things are different now. Business is global in a way we could only imagine ten years ago. Markets are everywhere and new ones open constantly. Suppliers shift, supply chains adapt. And location has been supplanted by a new force in business: logistics. WHAT IS LOGISTICS? resources and getting things where they need to go on an ever more unforgiving schedule. And in this world, where logistics can make the daily difference between success and failure, between happy customers and angry customers, between a competitive advantage and a competitive threat, there is no more powerful resource to have in your corner than the people and systems of UPS. LOGISTICS, A COMPETITIVE ADVANTAGE more control and more options that work for you and your business. How logistics can work for you depends on what kind of business, and what kind of industry, you happen to be in. The logistics of temperature-sensitive pharmaceuticals works differently than the logistics of getting fresh lobster to seafood restaurants. UPS......

Words: 847 - Pages: 4

Premium Essay

Logistics

...LEAN SIX SIGMA LOGISTICS Strategic Development to Operational Success by Dr. Thomas Goldsby • Robert Martichenko Copyright ©2005 by J. Ross Publishing, Inc. ISBN 1-932159-36-3 Printed and bound in the U.S.A. Printed on acid-free paper 10 9 8 7 6 5 4 3 2 1 Library of Congress Cataloging-in-Publication Data Goldsby, Thomas J. Lean Six Sigma logistics / by: Thomas Goldsby & Robert Martichenko. p. cm. Includes index. ISBN 1-932159-36-3 (hardback : alk. paper) 1. Business logistics—Management. 2. Six sigma (Quality control standard). 3. Process control. 4. Inventory control. 5. Waste minimization. 6. Industrial efficiency. I. Martichenko, Robert, 1965–. II. Title. HD38.5.G63 2005 658.4′013—dc22 2005011208 This publication contains information obtained from authentic and highly regarded sources. Reprinted material is used with permission, and sources are indicated. Reasonable effort has been made to publish reliable data and information, but the author and the publisher cannot assume responsibility for the validity of all materials or for the consequences of their use. All rights reserved. Neither this publication nor any part thereof may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The copyright owner’s consent does not extend to copying for general distribution for promotion, for creating new works, or for......

Words: 93598 - Pages: 375

Premium Essay

The Marketing and Logistics

...The Marketing and Logistics Supply Chain Management Erasmus students: Ciuciuianu Valentin Covalenco Alina Erhan Olesea Contents 1. Introduction 2. The Marketing Concept 3. The concept of Logistics 4. Demand for the enterprise's goods are direct results of its competitive edge 5. The Critical Logistics/Marketing Interfaces 6. The integration of Marketing/Logistics 7. Logistics/Marketing Strategy 8. Logistics - a key success factor for a company 9.Summary and Conclusions Introduction The purpose of this assignment is to provide a framework of how to compete in the unknown future by developing a strategy based on the integration of marketing and logistics. This strategy is particularly relevant for competitive industries where differentiation from competitors is gained only by providing superior service. The ways to achieve this superior service are incorporated in the logistics and marketing function. This includes issues like pricing, product selection, inventory level setting, transport, and many others. The Marketing Concept Marketing is defined as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Kotler and Armstrong also defined marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. In......

Words: 2559 - Pages: 11

Premium Essay

Revers Logistics

...THE CONCEPT OF REVERSE LOGISTICS. A REVIEW OF LITERATURE1 Isabel Fernández Quesada2 ABSTRACT This paper aims at providing a review of Reverse Logistics concept from a broad set of articles, published mainly in the last decade. From their reading, the author has detected the lack of a desirable largely accepted consensus on what constitutes Reverse Logistics, either on what the range of activities should be included within its scope or how to denominate each of its options in a not fuzzy way. The clarification of the concept matters for several reasons. On the one hand, most of the so called, environmental regulations -which have been passed in a growing manner, in recent years and in many parts of the world- usually mention some objectives to be reached in certain periods of time, in relation to some of the Reverse Logistics activities (being perhaps the most common one, recycling targets). Given that not only consumers, but also both companies and municipalities are committed with these goals, it would be handy and desirable to have a clear idea of what is meant by each denomination and the implications that each one may have. On the other hand, having a definite guideline of this conceptual framework would allow for some comparative studies about the different levels of implementation within the members of the chain or between different channels, being more accurate and reliable. On the previous literature review basis, the paper concludes by providing a reasoned......

Words: 6644 - Pages: 27