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[...]... program we call TheLogisticsofSupplyChainManagementThe story begins here with the definition, evolution, and role oflogistics in business This chapter presents • • • • A formal definition oflogistics and supplychainmanagement (Section 1.1, The Definition ofLogistics ) The evolution oflogistics and supplychainmanagement (Section 1.2, The Evolution ofLogistics and SupplyChainManagement )... Facility LogisticsLogisticsLogistics Workplace Workplace LogisticsLogistics 1950’s 1960’s Supply SupplySupplyChainChainChainLogisticsLogisticsLogistics Global Global Global LogisticsLogisticsLogisticsLogisticsLogisticsLogistics 1970’s 1980’s 1990’s CHAPTER 1 THE DEFINITION, EVOLUTION, AND ROLE OFLOGISTICS IN BUSINESS 7 FIGURE 1-5 Workplace logistics Source: Bertlesmann FIGURE 1-6 Facility logistics. .. stretched full is a line The danger in the choice ofthe term chain is that the term oversimplifies the complexities in logisticsmanagement and leads to inflated expectations for what can be achieved by supplychainmanagement systems Finally, the term management suggests that a single party in thechain can truly manage and dictate the operations ofthesupplychain Instead, the best any party can... suppliers and its customer’s customers Logistics is what happens in thesupplychainLogistics activities (customer response, inventory management, supply, transportation, and warehousing) connect and activate the objects in thesupplychain To borrow a sports analogy, logistics is the game played in thesupplychain arena It is unfortunate that the phrase supplychainmanagement has been so readily and... clear up some ofthe potential confusion, we’re going to now review five different contexts for logistics that also serve as a presentation ofthe evolution oflogistics 1.2 THE EVOLUTION OF LOGISTICS AND SUPPLYCHAINMANAGEMENT Paralleling advances in management theory and information systems, logistics has evolved in scope and influence in the private sector since the mid 6 SUPPLYCHAIN STRATEGY... bad, the warehouse ultimately portrays the efficiency or inefficiency ofthe entire supplychainThe objective of warehousing is to minimize the cost of labor, space, and equipment in the warehouse while meeting the cycle time and shipping accuracy requirements ofthe customer service policy and the storage capacity requirements ofthe inventory play Thelogisticsof warehousing includes • • • • • Receiving... distribution centers and retail stores Corporate logistics is sometimes associated with the phrase physical distribution that was popular in the 1970s In fact, the Council ofLogisticsManagement (CLM) was called the National Council of Physical Distribution Management (NCPDM) until 1982 Supply ChainLogisticsSupplychainlogistics (see Figure 1-8) is the flow of material, information, and money between... Next-Generation Logistics There are many theories as to the next phase oflogistics development Many logisticians believe that collaborative logistics, logistics models built with continuous and real-time optimization and communication between all supplychain partners, will be the next phase of evolution Other camps in thelogistics community believe the next phase of evolution will be virtual logistics. .. person in the room came to logistics without a formal degree in logistics and from a different professional discipline One came from marketing, another from sales, another from material management, another from manufacturing, another from warehousing, another from transportation, and another was the nephew ofthe chairman ofthe board As a result, each had his or her own different definition of logistics. .. misunderstood topics Logistics and supplychainmanagement are new concepts in private industry A minority ofthe professionals who work in logistics have formal training in logistics Logistics and supplychainmanagement cut across and draw from personnel in a multiplicity of disciplines It is no wonder that confusion abounds and that a majority oflogistics projects never reach their intended goals . supply chain management (Section 1.1, The Definition of Logistics ) • The evolution of logistics and supply chain management (Section 1.2, The Evolution of Logistics and Supply Chain Management ) •. Role of Logistics in Business 1 1.1 The Definition of Logistics 5 1.2 The Evolution of Logistics and Supply Chain Management 5 1.3 Logistics Activities 12 1.4 Logistics Optimization 15 1.5 Logistics. 1990’s Workplace Logistics Workplace Logistics Facility Logistics Facility Logistics Corporate Logistics Corporate Logistics Supply Chain Logistics Supply Chain Logistics Global Logistics Global Logistics Scope