Introduction to Logistics

1. Logistics and Transportation
Management
LOG141
Chapter one
Introduction to the study of
Management of Logistics and
Transportation
Dr Eman Mostafa
lecture(1)

2. Introduction
The subject of logistics is one of the most important and modern
topics, whether at the applied or academic level, Where interest in it
did not begin until during the Second World War, as, it was applied in
the military field to fulfill the requirements of the war by increasing
the speed of transportation and distributing foodstuffs in an appropriate
manner and time.
On the economic level, interest in it has begun as a result of the
urgent necessity imposed by competition in the field of reducing costs
and improving services to customers .
Logistics and transportation management

3. Introduction
logistics has become an important function of industrial and
commercial organizations with regard to physical needs such
as production, distribution and information flow.
Among the main logistic activities, transportation, which is the
main driver of supply costs, as it links production areas with
distribution areas, and it occupies the first place in costs.
As a result of the effects of transportation on the environment,
many organizations have implemented green supply, and made
all their operations environmentally friendly, which helped in
improving the organization's efficiency and economy.
Logistics and transportation management

4. This chapter will address the following points :
1- the relationship between Logistics and transportation
2- The concept of Logistics
3-Logistics and supply chain
4- Reasons for the emergence of Logistics
5- The importance of logistics.
6- Logistics goals.
7- stages of Logistics development
Logistics and transportation management

5. First- the difference between Logistics and transportation
Many industries are related to or influenced by the movement of
goods from point A to point B. many of them use the terms of
transportation and logistics management interchangeably, without
understanding the difference between them.
Although, both logistics and transportation are crucial in distributing
materials and products, and share a common objective, As The
primary goal is to transport inventory throughout a company’s
supply chain efficiently and effectively, they tackle different
things.
Logistics and transportation management

6. Frist- the difference between Logistics and transportation
Logistics
refers to the receipt, production, and distribution of goods and
materials to its final destination. It is also the strategy that
determines how your company stores products in its
warehouse, tracks orders, and delivers products to its
customers.
Logistics is the overarching business unit that oversees the
entire process of order fulfilment and matching customers
expectations. It’s both an art and a science.
,
Logistics and transportation management

7. Frist- the difference between Logistics and transportation
Transportation
Is the movement of goods from one location to another. It’s
considered to be a sub-unit of logistics. Companies deliver products
by land, air, or sea. Sometimes referred to as transport logistics,
Logistics and transportation management

8. Second- The concept of Logistics
The concept of Logistics and its application in economic fields has
evolved, and its content has changed with the change in the business
environment and industrial development:
1- Definition of the American Marketing Association :
Movement and handling of goods from the point of production to
the point of consumption.
This definition focused on physical distribution activities only .
Logistics and transportation management

9. Second- The concept of Logistics
2-Definition of the National Council of Physical Distribution
Management:
It is the term that describes the integration of two or more activities with the aim
of planning, organizing, and controlling the efficient flow of materials (raw,
semi-finished and finished) From the point of origin to the point of consumption.
These activities include the type of service provided to customers, demand
forecasting, communications related to distribution and inventory control,
material handling , order preparation, after-sales service and spare parts
identification , Factory and warehouse locations, procurement, packaging,
handling of returned goods, and transportation.
This definition looks at logistics as management (planning and control),and added
other logistical tasks such as forecasting the market, serving customers
and locating factories and warehouses.
Logistics and transportation management

10. Second- The concept of Logistics
3-Definition of Council of Logistics Management:
Logistics is part of the supply chain activities, and it covers
planning, Execution, control over logistics activities, efficient
flow of materials, storage of materials and related information
and data from the point of origin to the point of consumption for
the purposes of generating customer satisfaction.
this definition, we find that logistics includes planning, execution, control
and raising the efficiency of the flow of materials, with a focus on
information and data.
Logistics and transportation management

11. Second- The concept of Logistics
4- Definition of Logistics Institute:
Logistics t is a set of functions associated with the flow of goods,
information and money between suppliers and customers.
this definition is considered one of the most comprehensive definition for logistics
Logistics and transportation management
Logistics and transportation management

12. Third- Logistics and supply chain
Despite the widespread acceptance of the concept of supply
and distribution by organizations to improve the efficiency of
the flow of the organization’s goods and services from the
stage of obtaining raw materials to the stage of their
consumption by the organization’s customers, on the other
hand, a general framework has not been provided that
organizations can use to coordinate between their various
functions Or between the rest of the organizations that
cooperate with them in the flow of their goods and services to
the market.
Logistics and transportation management

13. Third- Logistics and supply chain
Therefore, organizations have begun to use the systems
approach to manage their operations responsible for the flow of
their products to the markets, which is based on the
consideration that the organization and the rest of the
organizations that deal with it represent an integrated system
consisting of a group of sub-systems, all of which participate in
the flow of goods and services of the organization and works to
maximize the value of those goods and services from clients
point of view..
Logistics and transportation management

14. Third- Logistics and supply chain
supply chain
The framework used by the organization to achieve integration
between its various functions, which starts from suppliers and ends at
the final consumer, for the flow of the organization's goods and
services and related information in order to raise the efficiency of the
organization's management of its internal operations and to maximize
the value of its products and services from the point of view of its
customers and owners.
Logistics and transportation management