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Logistics Management
Presented By:
Abdelrahman H. Ahmed, PhD Student
Instructor:
Prof. Dr. Serdar saydam
Origin of Logistics
Used by Greek
generals (Leon the
Wise, Alexander the
Great) in order to
describe all the
procedures for the
army’s procurement
on food, clothing,
ammunition, etc.
World War II was the
major motivation of
logistics to increase
recognition and
emphasis, following
the clear importance
of their contribution
toward the Allied
victory.
Army Logistics Branch
is responsible for:
* Army Transportation
* Supply of food,
cloths & fuel
*Supply of
ammunitions
What is Business
Logistics?
The movement of
materials, services,
cash, and
information in a
supply chain.
Movement within Facility
Raw
Material
Temporary
Storage
Work-Centers
Temporary
Storage
Final
Storage
Distributions
What is Logistics Management ?
“Effective & Efficient management of the flow of goods, information
and other resources, including energy and people, between the point
of origin and the point of consumption in order to meet the
requirements of consumers at the lowest cost possible”
{Council of Logistics Management}
Logistics Mission
Right
Quantity
Right
Customer
Right
Product
Right
Condition
Right
Place
Right
Time
Right
Cost.
Logistics Management
vs.
Supply Chain Management
Logistics Management
vs.
Supply Chain Management
Logistics
Management:
an essential
part of Supply
chain
management.
In North
America:
Logistics is
often
associated with
transportation
or distribution
only.
In Europe:
Logistics
involves the
entire supply
chain
Logistics Functions
Logistics
Functions
Transportatio
n
Warehousing
Order
Processin
g
Container
s
Management
Inventory
Management
Types of Logistics Services
Reverse
Logistics
3-PL
Logistics
In-house
Logistics
Logistics Objectives
Logistics
Objectives
Services
Improvement
Capital
Reduction
Cost
Reduction
Transportation
Transportation provides the flow of materials, products and persons
between production facilities, warehouses, distribution centers,
terminals and customer locations
Transportation Modes
Air Sea Rail Road Pipelin
e
Evaluating Shipping Alternatives
Limited
options due
to the nature
of product
Limited
options due
the company
business
strategy
Evaluation is
needed when
urgency is
not a factor
Tracking Goods
{RFID}
“Radio Frequency Identification”
A technology that uses waves to identify
objects, such as goods in supply chain.
Questions ?
Managing Returnable Containers
Logistics
Physical and Information Flow Analysis
A Case Study
International Journal of Engineering Business Management,
Vol. 3, No. 2 (2011)
Reza A. Maleki & Jonathan Reimche
{Midwest Assembly and Manufacturing}
{MAAN}
Returnable Containers ?
Containers owned by a company to
transport purchased items and
materials from suppliers, and deliver
sold items and materials to consumers.
This Article is a result of a project conducted on behalf of:
Midwest Assembly and Manufacturing
MAAN
Company Overview
MAAN is a
component
manufacturer. Its
operations include
Component
manufacturing,
Painting &
Assembling
products.
MAAN operates on
make – to – order
basis and offers a
wide range of
options for its
products.
MAAN relies on a
number of suppliers
for components that
are needed for the
final assembly
operations.
Problem Statement
All containers are owned by MAAN and were
designed by its engineered to hold particular parts
and prevent damages.
The containers are not used directly in the
production process, but their absence due to delays
of return or misdirection could slow or even halt the
production process at MAAN.
When a shortage of containers is noticed, new
containers are manufactured to replace the ones
that are lost or damaged
Problem Statement
• Container Misdirection
• Losing containers
• Difficulty locating containers
• Difficulty identifying containers
• Poor communication
• Poor tracking system
• Production Disruption &
• LOOSING CUSTOMERS
Lack of proper logistic management at MAAN
resulted in:
Methodology
The authors used the case study approach
of research
Case study (or case report) is a
descriptive, exploratory or explanatory
analysis of a person, group or event.
Case Study Methodology clarifies the
differences between practice-oriented and
theory-oriented research
Research Objectives
Diagnose problems, weaknesses
& loopholes of MAAN current
logistics system.
Develop a proposal to enable
MAAN track and manage its
returnable containers
effectively and efficiently.
Research Tools
Communication
Feedback from
Suppliers
Survey
Exploration of
potential liability
contracts
Interviews
Identification of
tracking
technologies.
Experiment
Recommendations
Improve the
current
communication
and information
flow
Ensure
suppliers
liability
Implement a
tracking
technology
(RFID)
The End

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Logistics Management