This presentation is about the evolution of logistics, concept and significance

1. MEANING, NATURE, EVOLUTION,FUNCTIONS

2.  The term “Logistics” is derived from the Greek work “Logisticos” – The Science of
computing and calculating.
 It was first used in military science. “The Pocurement, maintenance and transportation of
military materials, facilities and personnel”.(Webster’s Dictionary, 1963”)
 A US Ait force Technical Report 1981 defines the term as “ The science of planning and
carrying out the movement and maintenance of forces”
 In 1905, “That branch of the Art of war pertaining to the movement and supply of armies
is called Logistics”.

3.  In 1991, the council of Logistics Management(CLM) defines “ Logistics is
the process of planning, implementing and controlling of efficient,
effective flow and storage of goods, services and related information from
the point of origin to the point of consumption for the purpose of
conforming to customer expectations.”
 In 1996, Bowersox and Closs defines as “Logistical Management includes
the design and administration of system to control the flow of materials,
work-in-progress, and finished inventory to support business unit
strategy.”
 More Comprehensive definition is “ Logistics management refers to
designing, developing, producing and operating an integrated system
which responds to customer expectations by making available the
rewuired quantity of required quality products as and when required to
offer best customer service at the least possible costs.”

4.  Ensures smooth flow of all types of goods such as
raw materials, work-in-progress and finished
goods
 Ability to meet customer expectation and
requirements of goods.
 Ensures the delivery of quality products.
 Offers the best possible customer service at the
least possible costs.
 Integrating various management functions for
optimization of resources.
 Deals with the movement and storage of goods in
appropriate quantity.
 Enhances productivity and profitability.

5. INDEPENDENT BUSINESS
FUNCTION
(TILL 1950’S)
 OBJECTIVE : Maximization of profit
by Sales Volume
 OUTCOME : Aggressive Preaching
Skills
INDEPENDENT
MANUFACTURING
SALES
DISTRIBUTION
PROCUREMENT
INVENTORY
CONTROL

6. MANUFACTURING
MANAGEMENT
PHYSICAL
DISTRIBUTION
MATERIAL
MANAGEMENT
• OBJECTIVE : Cost Control
• OUTPUT : Price – based
Competition

7.  OBJECTIVE : Maximization of profitable
sales volume and cost reduction.
 OUTPUT : Increased Productivity, profitability
and Market share
MANUFACTURING
MANAGEMENT
MARKETING
MANAGEMENT
MATERIAL
MANAGEMENT

8. EXTERNALLY INTEGRATED
BUSINESS FUNCTION (1990
ONWARDS)
 OBJECTIVE : Core Competency
 OUTPUT : Customer Value and
Harmonious Relationships
CUSTOMERS
VENDORS
LOGISTICS

9.  PROCUREMENT FUNCTION
 PRODUCTION FUNCTION
 PHYSICAL DISTRIBUTION FUNCTION

10.  INPUT NEEDS
 SOURCES STUDY
 QUALITY
 NEGOTIATION AND SUPPLY CONTRACTS
 ORDER PLACEMENT
 SHIPMENT

11.  PRODUCTION SCHEDULE
 INPUTS
 INVENTORY MANAGEMENT
 STORAGE
 PACKAGING
 MATERIAL HANDLING

12.  OUTPUT INVENTORY
 TRANSPORT
 PROTECTIVE PACKAGING
 DISTRIBUTION WAREHOUSING
 ORDER PROCESSING
 CUSTOMER