Logistics: Difference between revisions
m Reverted edits by 180.148.60.114 (talk) to last version by 65.202.26.176 |
group 3PL and 4PL under a common thread |
||
Line 77: | Line 77: | ||
</ref> |
</ref> |
||
==Logistics outsourcing== |
|||
==Third-party logistics== |
===Third-party logistics=== |
||
{{Main|Third-party logistics}} |
{{Main|Third-party logistics}} |
||
Third-party logistics involves using external organizations to execute logistics activities that have traditionally been performed within an organization itself.<ref name="Bazio.">{{cite paper |
Third-party logistics (3PL) involves using external organizations to execute logistics activities that have traditionally been performed within an organization itself.<ref name="Bazio.">{{cite paper |
||
|author=Baziotopoulos |
|author=Baziotopoulos |
||
|date=2008 |
|date=2008 |
||
Line 86: | Line 87: | ||
|publisher=PhD thesis- ""}}</ref> According to this definition, third-party logistics includes any form of outsourcing of logistics activities previously performed in-house. If, for example, a company with its own warehousing facilities decides to employ external transportation, this would be an example of third-party logistics. Logistics is an emerging business area in many countries. |
|publisher=PhD thesis- ""}}</ref> According to this definition, third-party logistics includes any form of outsourcing of logistics activities previously performed in-house. If, for example, a company with its own warehousing facilities decides to employ external transportation, this would be an example of third-party logistics. Logistics is an emerging business area in many countries. |
||
==Fourth-party logistics== |
===Fourth-party logistics=== |
||
{{Main|Fourth-party logistics}} |
{{Main|Fourth-party logistics}} |
||
The concept of Fourth-Party Logistics (4PL) provider was first defined by Andersen Consulting (Now Accenture) as an integrator that assembles the resources, capabilities and technology of its own organization and other organizations to design, build, and run comprehensive supply chain solutions. Whereas a third party logistics (3PL) service provider targets a function, a 4PL targets management of the entire process. Some have described a 4PL as a general contractor who manages other 3PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility of a complete process for the customer. |
The concept of Fourth-Party Logistics (4PL) provider was first defined by Andersen Consulting (Now Accenture) as an integrator that assembles the resources, capabilities and technology of its own organization and other organizations to design, build, and run comprehensive supply chain solutions. Whereas a third party logistics (3PL) service provider targets a function, a 4PL targets management of the entire process. Some have described a 4PL as a general contractor who manages other 3PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility of a complete process for the customer. |
||
==Business logistics== |
==Business logistics== |
Revision as of 21:08, 10 October 2010
![](http://upload.wikimedia.org/wikipedia/commons/thumb/9/99/Wiktionary-logo-en-v2.svg/40px-Wiktionary-logo-en-v2.svg.png)
![](http://upload.wikimedia.org/wikipedia/commons/thumb/6/61/Allentown_Project_042.jpg/227px-Allentown_Project_042.jpg)
Logistics is the management of the flow of goods, information and other resources in a repair cycle between the point of origin and the point of consumption in order to meet the requirements of customers. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and occasionally security. Logistics is a channel of the supply chain which adds the value of time and place utility. Today the complexity of production logistics can be modeled, analyzed, visualized and optimized by plant simulation software.
Origins and definition
The term logistics comes from the Greek logos (λόγος), meaning "speech, reason, ratio, rationality, language, phrase", and more specifically from the Greek word logistiki (λογιστική), meaning accounting and financial organization.
Logistics is considered to have originated in the military's need to supply themselves with arms, ammunition and rations as they moved from their base to a forward position. In ancient Greek, Roman and Byzantine empires, military officers with the title Logistikas were responsible for financial and supply distribution matters.
The Oxford English Dictionary defines logistics as "the branch of military science having to do with procuring, maintaining and transporting materiel, personnel and facilities." Another dictionary definition is "the time-related positioning of resources." As such, logistics is commonly seen as a branch of engineering that creates "people systems" rather than "machine systems". When we talk in terms of HRM logistics means giving inputs i,e recruiting manpowers which ultimately works for the final consumer or to deliver services.
Military logistics
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. 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 United States Military logistics support is grouped into 10 classes of supply:
U.S. Armed Forces Classes of Supply
Class | Description | Consumer Class |
---|---|---|
Class I | Subsistence (food), gratuitous (free) health and comfort items. | Troops |
Class II | Clothing, individual equipment, tent-age, organizational tool sets and kits, hand tools, unclassified maps, administrative and housekeeping supplies and equipment. | Troops |
Class III | Petroleum, Oil and Lubricants (POL) (package and bulk): Petroleum, fuels, lubricants, hydraulic and insulating oils, preservatives, liquids and gases, bulk chemical products, coolants, deicer and antifreeze compounds, components, and additives of petroleum and chemical products, and coal. | Equipment |
Class IV | Construction materials, including installed equipment and all fortification and barrier materials. | Troops |
Class V | Ammunition of all types, bombs, explosives, mines, fuzzes, detonators, pyrotechnics, missiles, rockets, propellants, and associated items. | Equipment |
Class VI | Personal demand items (such as health and hygiene products, soaps and toothpaste, writing material, snack food, beverages, cigarettes, batteries, alcohol, and cameras—nonmilitary sales items). | Troops |
Class VII | Major end items such as launchers, tanks, mobile machine shops, and vehicles. | Equipment |
Class VIII | Medical material (equipment and consumables) including repair parts peculiar to medical equipment. (Class VIIIa – Medical consumable supplies not including blood & blood products; Class VIIIb – Blood & blood components (whole blood, platelets, plasma, packed red cells, etc). | Troops |
Class IX | Repair parts and components to include kits, assemblies, and sub-assemblies (repairable or non-repairable) required for maintenance support of all equipment. | Equipment |
Class X | Material to support nonmilitary programs such as agriculture and economic development (not included in Classes I through IX). | Civilians |
Miscellaneous | Water, salvage, and captured material. | Troops |
(Source - U.S. Army Field Manual 4-0 Combat Service Support)
Supply chain management in military logistics often deals with a number of variables in predicting cost, deterioration, consumption, and future demand. The US Military's 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 less 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. Troops will always require uniform and food. More troops will require equally more uniforms and food.
In the table above, each class of supply has a consumer. Some classes of supply have a linear demand relationship -- as more troops are added more supply items are needed -- as more equipment is used more fuel and ammo is consumed. Other classes of supply must consider a third variable besides usage and quantity: time. 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 to future scenarios, the US Military can accurately supply troops with the items necessary at the precise moment they are needed (Source - Joint Logistics Analysis Tool). History has shown that good logistical planning creates a lean and efficient fighting force. Lack thereof can lead to a clunky, slow, and ill-equipped force with too much or too little supply.
In history, some have attributed the defeat of the British in the American War of Independence and the defeat of the Axis in the African theatre of World War II to logistical failure.[citation needed] The historical leaders Hannibal Barca, Alexander the Great, and the Duke of Wellington are considered to have been logistical geniuses.
Logistics management
Logistics management is that part of the supply chain which 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 and legal requirements. A professional working in the field of logistics management is called a logistician.
The Chartered Institute of Logistics & Transport (CILT) was established in the United Kingdom in 1919 and was granted a Royal Charter in 1926. The Chartered Institute is one of the professional bodies or institutions, for the logistics and transport sectors, that offers professional qualifications or degrees in logistics management.
Warehouse management systems and warehouse control systems
Although there is some functionality overlap, the differences between warehouse management systems (WMS) and warehouse control systems (WCS) can be significant. Simply put, a WMS plans a weekly activity forecast based on such factors as statistics and trends, whereas a WCS acts like a floor supervisor, working in real time to get the job done by the most effective means. For instance, a WMS can tell the system it is going to need five of stock-keeping unit (SKU) A and five of SKU B hours in advance, but by the time it acts, other considerations may have come into play or there could be a logjam on a conveyor. A WCS can prevent that problem by working in real time and adapting to the situation by making a last-minute decision based on current activity and operational status. Working synergistically, WMS and WCS can resolve these issues and maximize efficiency for companies that rely on the effective operation of their warehouse or distribution center.[1]
Logistics outsourcing
Third-party logistics
Third-party logistics (3PL) involves using external organizations to execute logistics activities that have traditionally been performed within an organization itself.[2] According to this definition, third-party logistics includes any form of outsourcing of logistics activities previously performed in-house. If, for example, a company with its own warehousing facilities decides to employ external transportation, this would be an example of third-party logistics. Logistics is an emerging business area in many countries.
Fourth-party logistics
The concept of Fourth-Party Logistics (4PL) provider was first defined by Andersen Consulting (Now Accenture) as an integrator that assembles the resources, capabilities and technology of its own organization and other organizations to design, build, and run comprehensive supply chain solutions. Whereas a third party logistics (3PL) service provider targets a function, a 4PL targets management of the entire process. Some have described a 4PL as a general contractor who manages other 3PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility of a complete process for the customer.
Business logistics
Logistics as a business concept evolved in the 1950s 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 experts called supply chain logisticians. Business logistics can be defined as "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", and is the science of process and incorporates all industry sectors. The goal of logistics work is to manage the fruition of project life cycles, supply chains and resultant efficiencies.
In business, logistics may have either internal focus (inbound logistics), or 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: one optimizes a steady flow of material through a network of transport links and storage nodes; the other coordinates a sequence of resources to carry out some project.
Production logistics
The term production logistics is used to describe logistic processes within an industry. The purpose of production logistics is to ensure that each machine and workstation is being fed with the right product in the right quantity and quality at the right time. The concern is not the transportation itself, but to streamline and control the flow through value-adding processes and eliminate non–value-adding ones. Production logistics can be applied to existing as well as new plants. Manufacturing in an existing plant is a constantly changing process. Machines are exchanged and new ones added, which gives the opportunity to improve the production logistics system accordingly. Production logistics provides the means to achieve customer response and capital efficiency.
Production logistics is becoming more important with decreasing batch sizes. In many industries (e.g. mobile phones), a batch size of one is the short-term aim, allowing even a single customer's demand to be fulfilled efficiently. Track and tracing, which is an essential part of production logistics—due to product safety and product reliability issues—is also gaining importance, especially in the automotive and medical industries.
Logistics Education
A logistician is a professional logistics practitioner. Professional logisticians are often certified by professional associations. Some universities and academic institutions train students as logisticians, offering undergraduate and postgraduate programs.
See also
- Cargo
- Inventory
- Inventory management software
- Performance-based logistics
- Returns management system
- Sales territory
- Supply chain management
References
- ^ John T. Phelan, Jr. P.E. "Guest Column: Knowing When a WMS or WCS Is Right for Your Company". Supply & Demand Chain Executive. Enom, Inc. Retrieved 15 September 2009.
- ^ Baziotopoulos (2008). "An Investigation of Logistics Outsourcing Practices In the Greek Manufacturing Sector". PhD thesis- "".
{{cite journal}}
: Cite journal requires|journal=
(help)