ST.

JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

Week 2
Lesson Title Logistics Management and Organization (Part 1)
Learning Outcome(s) Understand the importance of logistics’ organizational
structures and distribution managers.
Time Frame 3 hours

At SJPIICD, I Matter!
LEARNING INTENT!
Terms to Ponder

Logistics refers to a critical competitive resource, creating value by enabling

businesses to span geographical barriers, delivering product in as quick and
cost effective a manner as possible, and linking channels of trading partners
(Ross, 2015). Logistics is concerned with managing two key flows:

• material flow of the physical goods from suppliers through the distribution
centres to stores and for the online business through to the end-customer;

• information flow of demand data from the end-customer back to purchasing

and to suppliers, and supply data from suppliers to the retailer, so that
material flow can be planned and controlled accurately.

The logistics task of managing or coordinating material flow and information

flow is a key part of the overall task of supply chain management to meet end-
customer needs. (Harrison, A., Hoek, R., and Skipworth,H., 2011).

With this, supply chain management is concerned with managing the entire
chain of processes, including raw material supply, manufacture, packaging
and distribution to the end-customer.

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 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

Essential Contents

 Logistic Organizational Structure

During 1990s, companies began to enhance the logistics concept to tackle the
new realities of the marketplace. The acceleration of globalization, the
explosion in Internet technologies, business process reengineering, increased
outsourcing and the growing power of the customer were forcing companies to
look beyond the boundaries of their own core competencies to the capabilities
and resources of their supply channel partners to remain competitive.

Thus, these new challenges compelled companies to implement what can only
be called a dramatic paradigm shift from logistics to supply chain
management (Rose, D. F., 2015). In place of the informal, short-term, tactical
use of supply chain partners, corporate planners were now advocating
strategies that sought the development of close channel collaborative partner
relationships with the objective of optimizing and synchronizing the productive
competencies of the entire supply chain. The logistics concept was to be
replaced by supply chain management.

The three basic entities of a supply chain as illustrated in Figure 1 are: the
producer with one supplier and one customer. The figure could also refer to
internal entities within an organization: supply chains can be internal to an
enterprise as well as external. The producing entity is responsible for the
production of products (or services). The role of the supplier is to provide
production inventories to the producer who, in turn, produces finished
products that are then sold to the customer. As indicated by the arrows on
Figure 1, channel networks have four basic flows that connect the three
channel entities together. The first flow is concerned with the transfer of
information up and down the channel. The second flow represents the
movement of inventory as it is transformed from materials into finished goods
and final sale to the customer. The third flow tracks financial settlement at
each entity in the channel. The final flow reflects today’s growing concern with
environmental sustainability and is centered on reverse logistics, recycling,
conservation, and waste disposal.

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 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

Figure 1: Basic Logistics Organizational Structure

The Role of Logistic or Distribution Manager

Logistics managers are employees involved in coordinating the movement of

materials along a supply chain. In business, this includes procuring raw
goods, liaising with manufacturers and overseeing shipments of finished
products to retailers and consumers. For other, non-business organizations,
such as the military or an NGO (non-governmental organization), this may
involve handling the movement of people or equipment. The following are the
roles of a logistic or distribution manager as expressed by M. Wolfe (2017).

Inventory
Logistics managers are responsible for keeping track of the current inventory
of an organization, as well as anticipating the organization's future needs.

Allocating Resources
A logistics manager must efficiently allocate and apportion her resources.
Resources should be allocated in a way that maximizes the completion of
both current and future goals.

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 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

Scheduling Deliveries
Logistics managers must make sure that all parties along the supply chain are
prepared to ship and receive their materials at the appointed date and time.
This responsibility includes making sure that all parties are on schedule and, if
not, compensating for the change.

Negotiating With Carriers

The logistics manager is required to coordinate with carriers for the shipping
of people and goods, including understanding the carrier's capabilities and
negotiating the best rate.

Supervision of Staff
Logistics managers usually have a number of administrative staff that they
must supervise. This includes properly training staff, setting clear
objectives, monitoring their performance and making sure they are
complying with all relevant laws and safety procedures.

Maintenance and Repairs

Logistics managers are also responsible for making sure the materials and
goods being moved remain in good condition. This includes making sure
the methods by which the materials are shipped will not damage them and,
if equipment is damaged, repairing it.

Forecasting Obstacles
A good logistics manager will plan according to the best information available to
him, but will always be prepared to adjust if conditions shift. Managers should
therefore develop different contingency plans based on likely changes.

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 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

Cost Cutting and Efficiency

Logistics managers should always be on the lookout for opportunities for the
organization to save money and increase efficiency through the use of different
methods or services, such as cheaper carriers.

SELF-SUPPORT: You can click the URL Search Indicator below to help you further understand the lessons.

Search Indicator

Harrison, A., Hoek, R., and Skipworth,H., (2011). Logistic Management and
th
Strategy: Competing through the supply chain 5 Edition. Pearson
Educational Limmited. Harlow: United Kingdom

Rose, D. F. (2015). Distribution Planning and Control: Managing in the Era of Supply Chain
Management. Chicago, IL: Springer.

Wolfe, M. (2017). The Duties and Responsibilities of a Logistic Manager. Accessed from
https://careertrend.com/what-are-the-duties-and-responsibilities-of-
a-warehouse-manager-13661349.html

LET’S INITIATE!
Activity 1

1. What is the difference between logistics and supply chain management?

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 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

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2. What is the main reason of the change from logistics concept was to be
replaced by supply chain management?
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3. Discuss the basic logistics organizational structure.

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 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

4. Why information flow is needed in the supply chain management?

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5. Why is it necessary for the logistic manager being able to coordinate the
movement of materials along a supply chain?
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 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

LET’S INQUIRE!
Activity 1.

1. What conclusions can you draw on the changing of concept from logistics to supply
chain management?
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2. What would happen if the one of the four basic flows in the logistics structure are
excluded?
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 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

3. Elaborate the reasons why some firms opted to use a logistics manager and others
don’t?
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4. How is logistics related to supply chain?
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5. One of the roles of a good logistics manager is that he “will plan according to the
best information available to him, but will always be prepared to adjust if conditions
shift”. Why?

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 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

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LET’S INFER!
Create a model of a logistic organizational structure of a bakery. Explain each
element of the model.

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