General Content

LOGISTICS

Overall process of managing the acquiring of resources (people, materials, inventory, and
equipment), its storage, and transportation to their destination.

Simple flow: order processing……. inventory management………. freight transportation

History: The term logistics originated in the military, referring to the movement of equipment and
supplies to troops in the field.

COMPONENTS

 Procurement
 Material Handling
 Packaging
 Transportation

Basic difference between Logistics and Supply chain management:

Customer satisfaction Vs Operational excellence/ Competitive advantage

SCM includes activities such as inventory planning, production, labour planning, material
management, delivery of goods and services Whereas logistics management involves order
fulfilment, warehousing, proper packaging, stock control and its management.

Types of Logistics:

 Inbound Logistics
 Outbound Logistics
 Reverse Logistics

Logistics can be split into five types by field: procurement logistics, production logistics, sales
logistics, recovery logistics, and recycling logistics.
Typical logistics in Automotive Industry:
E-logistics – Structure and Operations

1. Order Processing
2. Inventory Management
3. Order Execution
4. Shipping
5. Tracking and Tracing
6. Payments
7. Transaction Security
8. Order Postponement, Cancellation and Substitutions
9. Reverse Material Flow

Key elements of E-logistics

 multi-channel operations,
 cross-border functionality
 warehouse layout and inventory
 last mile and reverse logistics, planning and forecasting
 performance measurement

Figure: A simple e-logistics structure