物流英语chapter 1 words 4

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Chapter 1 Introduction to logistics

Introduction

“logistics” is a term, which originates from both the army and French. According to the French, the Baron of Swiss origin who has served in Napoleon’s army before joining the Russian’s who later founded the Military Academy of St. Petersburg, first used the term in the early 19th century. So in a military sense, the term “logistics” encompasses transport organization, army replenishments and material maintenance.

In the business world, however, the concept of “logistics” was applied solely to “Material Replenishments Programs”(MRP) and was confined to the manufacturing sector at the beginning. Therefore the extension of concept to company operations is a relatively new one and the earliest dates back to the 1950’s in the USA. Logistics starts with the provision of raw materials and semi-finished goods for the manufacturing process, and finishes up with the physical distribution and after sales services of the products.

Economically, this creates a new source of profit characterized by the development of mass distribution and attention to service quality. The two basis objectives in practicing business logistics, cost reduction and time saving, have enabled companies to profit not only in performance and quality but also in customer satisfaction.

Operationally, companies realize that the different aspects of logistics instead of viewing them as separate processes, substantial savings can be made within their business’ outgoing expenditure.

Definitions

There are various definitions of different editions. The term was 1

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defined as follows:

Logistics (business definition): Logistics defined as business-planning framework for the management of material, service, information and capital flows. It includes the increasingly complex information, communication and control systems required in today’s business environment.

Logistics (military definition): The science of planning and carrying out the movement and maintenance of forces…Those aspects of military operations the deal with the design and development, acquisition, storage, movement, distribution, maintenance, evacuation and disposition of material; movement, evacuation, and hospitalization of personnel; acquisition of construction, maintenance, operation and disposition of facilities; and acquisition of furnishing of services.

Logistics: The process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, related information from point of origin to point of consumption for the purpose of conforming to customer requirements. Note that this definition includes inbound, outbound, internal and external movement, and return of materials for environmental purposes.

____Reference: Council of Logistics Management

Logistics: The process of planning, implementing , and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purposed of meeting customer requirement.

____ Reference: Canadian Association Logistics Management It is interesting to detect the different biases --- military, economic, etc. It is not easy to determine which of the many definitions is the most suitable. An appropriate modern definition that applies to the most industry might be that logistics concerns the every transfer of goods from the source of supply through the place of manufacture to the place of consumption in a cost-effectiveness way while providing an 2

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acceptable service to customer. This focuses on cost--effectiveness and customer service is a point of emphasis throughout this book.

Elements of logistics

Logistics refers to the systematic management of the various activities required to move benefits from their points of production to the customer. Often these benefits are in the form of a tangible product that must be manufactured and move to the user; sometimes these benefits are intangible and are known as service. They must be produced and made available to the final consumer. But logistics encompasses much more than just the transport of goods.

Important elements of logistics include the following categories; ? Storage, warehousing and materials handling

? Location of warehouse

? Number and size of distribution depots

? Type of operation

? Etc

Transport

? Mode of transport

? Type of delivery operation

? Load planning

? Route schedule

? Etc

Inventory

? What to stock

? Where to stock

? How much to stock

? Etc

Information and control

? Design of systems

? Control of procedures

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? Forecasting

? Etc

Packaging and unitization

? Unit load

? Protective packaging

? Handling systems

? Etc

In addition, the total system interrelationships need to be considered and planned within the constraints of costs and service levels.

Importance of logistics

It is useful, at this point to consider logistics in the context of business and the economy as a whole. Logistics is an important activity making extensive use of the human and material resources that affects a national economy.

The first evolution has taken place in the form of the global logistics management, which has been applied by Macs. With declining profit margin in the domestic market and in face of need of continued business expansion, these corporations are seeking new worldwide markets on an unprecedented scale. This trend for internationalization, in turn, requires much more sophisticated management techniques over the entire process of the commodity movement from the countries of origins to the countries of destinations. Moving a wide variety of products around the world 24 hours a days, 365days a year require logistics management techniques significantly different from those developed for domestic markets. Closely linkage of all plays in the global supply chains requires the logistics management underpinned by the international EDI system. This globalization of business activities is a major factor reshaping the international trading activities to all countries are required to adjust by adapting their institutional frameworks.

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Summary

In this initial parts a number of subjects have been introduced. These will be expanded in subsequent chapter of the book.

The rather confusing number of associated names and different definitions were indicated and a few of very many definitions were considered. No “true” or definitive definition was offered, because logistics and distribution can and do differ dramatically from on industry, company or product to another.

The important elements of logistics have been described, and the importance of logistics was introduced.

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