This document provides an introduction to logistics management. It discusses the origin and meaning of logistics, defining it as the time-related positioning of resources. Logistics ensures the efficient flow of materials and information from the point of origin to consumption. It aims to have the right resources available at the right place and time to meet customer expectations at the lowest possible cost. The scope of logistics covers managing procurement, manufacturing, and delivery to develop competitiveness.
Logistics Management: Key Concepts for Optimal Resource Flow
1. Logistics Management
(Part of ORL)
BBA (Semester 4)
Faculty : Ravi Kumar Singh, International School of management Patna
2. Lecture-1 : Introduction to logistics
● Topics to be covered :
○ Origin and meaning of Logistics
○ Definition of Logistics management
○ Features of Logistics
○ Scope of Logistics
○ 6R framework
ISM Patna/Logistics_1_Ravi_K_Singh
3. Origin of the word “ Logistics”
● French : “logistique “- Art of quartering troops (1846).
● First appeared in a book titled "The Art of War" by Baron Henri, a
General in French Army
● English Meaning: “art of moving, quartering, and supplying troops.
● Greek & Latin origin: According to some authors,the word logistic has
originated from Greek word ‘logistikos’ and the latin word ‘logisticus’
which means science of computing & calculating.
ISM Patna/Logistics_1_Ravi_K_Singh
4. Meaning of “logistics” today..
Today it has acquired the wider meaning and plays a vital role in
three main contexts:
1. Military context, i.e. supply of troops with food, armaments and
troop transportation;
2. Business organizations, i.e. production and distribution in firms;
3. Public organizations, i.e. service management (e.g. garbage
collection, mail delivery etc)
ISM Patna/Logistics_1_Ravi_K_Singh
5. What is logistics management ?
According to Prof. H. W. Newman,
"Logistics are concerned with having the
right resources available at the right place at
the right time."
From the above, we can say that logistic is
the time-related positioning of resources.
ISM Patna/Logistics_1_Ravi_K_Singh
6. What is Logistics Management? (Cont..)
• According to Council of Logistics Management:
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 purpose of conforming the
customer’s requirement.
7. Features of Logistics:
1. Logistics ensures an uniform and scheduled flow of goods
such as raw materials, work-in-process and finished goods.
2. It possesses the ability of meeting customer’s and other
stake holder’s expectations.
3. It ensures availability of right product at the right time, at
the right place, in the right quantity, at the right price.
ISM Patna/Logistics_1_Ravi_K_Singh
8. Features of Logistics (cont..):
4. It enables the organisations to provide the best
possible customer service at the lowest
possible cost.
5. It is an integration of various managerial functions
for the optimum usage of resources.
6. It enhances productivity and profitability.
ISM Patna/Logistics_1_Ravi_K_Singh
9. 1. The scope of logistics covers everything which
gives superior value to the customers.
2. Its scope is very much visible from the point of
origin to the point of consumption.
SCOPE of LOGISTICS
ISM
10. 3. Logistics is a tool for developing competitiveness.
The scope of logistics covers –
• Management of material procurement
• Manufacturing processes and finally
• Delivery of finished goods.
SCOPE of LOGISTICS
ISM Patna/Logistics_1_Ravi_K_Singh
11. 7- R Framework of Customer Satisfaction
ISM Patna/Logistics_1_Ravi_K_Singh
Customer's
Satisfaction
Right
Cost
Right
Time
Right
Relations
Right
Service
Right
Place
Right
Quantity
Right
Quality