FUTURE PROSPECTS OF LOGISTICS Facing the worldwide competition, the improvement of logistics system should be advanced by both private companies and government. Weeld and Roszemeijer (Ho, 1997) discerned three revolutions in business that have substantial impacts on the purchasing and supply strategies of the manufacturing sectors. These three revolutions are: (1) the globalisation of trade; (2) the coming of the information era; (3) more demanding consumers and continuously changing consumer preferences. The main characteristics of future logistics development are: • Government role: To keep competitiveness of industries, the government has to lead the way to assist the logistics industries. For instance, the idea of freight village of city logistics provides the environment to promote logistics efficiency and to reduce operation costs. However it involves large of investments and some problems relating laws and national policies. Without the lead and support of government, achieving the plan is difficult. • Growth of international goods transport: The up-growth of international freight transport is contributed by several factors. Firstly, the blossoming of E-commerce pushes ahead the international business activities. Secondly, the change of production strategy needs international cooperation, e.g. importing the semi-finished products from countries with cheaper human resources to those with higher technology to assemble the final goods. Thirdly, the pressure of globalised market, such as World Trade Organization (WTO), pushes local industries to promote themselves to reach an international standard and face the worldwide competition. • Improvement of services: Providing a good customer service becomes a necessary requirement of business operation with the intense competition of global market. The quality of services is the main factor to affect consuming behaviour among the enterprises with high similarity. The service systems involve several developed techniques now, such as Efficient Consumer Response (ECR) and Quick Response (QR). In the near future, more new techniques would be applied in providing better services for customers. • Revolution of logistics operation: IT techniques and its products bring efficiency and fluency to the logistics systems. Radio Frequency ID (RFID) is one of these techniques. The main difference between the bar-code system and RFID is that RFID does not need the action of scanning the barcode on goods. RFID could save manual operation time dramatically. RFID systems could sense the amount of goods input in the tags automatically and immediately when the costumers push their trolley through the exit (Carroll, 2004). • Shorter product life cycle: With the current trend, the merchandise design is changing day by day, and therefore, the product life cycle is shorter and shorter, especially in computer science. To confront the impacts, logistics system must improve its efficiency and reliability of goods delivery. Otherwise an inappropriate logistics system would hinder the competitiveness of new products and the business profits. • Improvement of logistics facilities: The advancement and development of logistics are based on several techniques and complete theories. High-tech facilities and systems, e.g. ITS, could bring more possibilities and advantages to logistics. For example, the

factory automation is the main target for the whole supply-chain procedures. Integrating the logistics demands between numerous departments helps achieve this purpose. information systems and infrastructure/resources are the three components of this system and closely linked. Logistics centres could successfully shorten the distance between production and marketing vertically and also integrate various industries horizontally. gases and petroleum need particular conveyances to carry. • Freight transport: The alliance between middle-small size delivery companies is an important trend in the future. For some medium size companies. storage) as well as non-physical activities (e.g. packaging materials. a conglomerate could develop its own logistics service for the branches. the Internet and the newly door-to-door service to create new business prospects. It provides essential data and consultation in each step of the interaction among logistics services and the target stations. Most activities of logistics services are bi-direction.g. a key concept is to maximize the usage of available transport capacity. The interaction of the three main components in the logistics system is interpreted as follows. In the future.2 Components of Logistics System Figure 1 provides an overview of the logistics system. and thus decrease the costs. Most fixed capital is for building those infrastructures. Infrastructure comprises human resources.  2. • Specialized logistics delivery: One of the notable trends of logistics industries is specialized delivery service. freightage negotiations). supply chain design. selection of contractors. Governments can propose special areas for storehouses and logistics to reduce land acquisition. It could help to improve efficiency and also reduce the operation costs. The future logistics will cooperate e-commerce. e. storage or inventory control at a manufacturer’s plant) and the operations of external service providers. For instance. • Channel cooperation between companies: In order to save the logistics costs. is necessary for transport efficiency. They are concrete foundations and basements within logistics systems. and more important issues are tracking and tracing. In practice. transport. transport and communications. warehouses. as well as associated waste disposal and reverse flows. Forklift Trucks. financial resources. They include activities undertaken in-house by the users of the services (e. . Compute chips.g. and meanwhile raise the loads of single trips to reduce delivery costs. The strategy could help to expand service areas and increase service quality.improvement of related facilities.g. These demands are rising since the products became more and more delicate. Logistics services support the movement of materials and products from inputs through production to consumers. Logistics services comprise physical activities (e. delivering fresh food from the place of origin needs low-temperature containers. they could cooperate transport channels with others. • Logistics centres: The development of logistics centres is good for industry promotion and the development of national economic system. Information systems include modelling and management of decision making. Logistics services.

Figure 1. Overview of Logistics System (source: BTRE. 2001) .

In business. maintenance. Logistics is considered to have originated in the military's need to supply themselves with arms. acquisition. Logisticians combine a professional knowledge of each of these functions so that there is a coordination of resources in an organization. In ancient Greek. logistics is commonly seen as a branch of engineering which creates "people systems" rather than "machine systems. This can be defined as having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer and is the science of process and incorporates all industry sectors. maintenance. Roman and Byzantine empires. In its most comprehensive sense. transportation. distribution. Acquisition or furnishing of services. supply chains and resultant efficiencies. oration"). or external focus (outbound logistics) covering the flow and storage of materials from point of origin to point of consumption (see supply chain management). maintaining and transporting material. personnel and facilities. There are two fundamentally different forms of logistics. calculation. it is those aspects or military operations that deal with:[1] • • • • • Design. reason. operation. This was mainly due to the increasing complexity of supplying one's business with materials and shipping out products in an increasingly globalized supply chain. purchasing. The Oxford English dictionary defines logistics as: “The branch of military science having to do with procuring. Logistics as a business concept The term "logistics" originates from the ancient Greek "λόγος" ("logos"—"ratio. word. Acquisition or construction. warehousing.”Another dictionary definition is: "The time related positioning of resources. logistics may have either internal focus (inbound logistics). speech. . there were military officers with the title ‘Logistikas’ who were responsible for financial and supply distribution matters. and disposition of materiel. Military logistics is the discipline of planning and carrying out the movement and maintenance of military forces. storage. calling for experts in the field who are called Supply Chain Logisticians. development. Medical and health service support." Logistics as a business concept evolved only in the 1950s. The goal of logistics work is to manage the fruition of project life cycles. consultation and the organizing and planning of these activities. and disposition of facilities. The other coordinates a sequence of resources to carry out some project. One optimizes a steady flow of material through a network of transport links and storage nodes. Transport of personnel. evacuation. The main functions of a qualified logistician include inventory management. ammunition and rations as they moved from their base to a forward position." As such.

TYPES OF LOGISTICS Business Logistics. and braced. recycled and disposed. efficiently and effectively without any logistical support.Non availability of goods and services which they need very badly. and efficiency Event Logistics. executing. when they visit retail store they expect goods to be in good condition. Military Logistics. errors etc) Other Functions Breaking Bulks . crated. for ex. sorted. availability. unloaded. shelved. vegetables and the like. imported. railways.The design and integration of all aspects of support for the operational capability of the military forces and their equipments to ensure readiness. Logistics customers service standards are set(time. handled. Logistics Management Logistics management is a process of planning. Scheduling. packaged. Products are traced. meat. bundled. To offer best service to consumers. Service Logistics-The acquisition. Functions of Logistics Products are ordered. To reduce the cost of operations. warehoused. It is difficult to visualize accomplishing any manufacturing and marketing actively. and related information from point of origin to point of consumption for the purpose of conforming to customer requirement. Products are exported. For Example. waterways. Products are shipped by air. wrapped. packed. reliability. In a modern society most if the customers take excellent logistics service from company as granted and tend to notice logistics only when there is a problem.It is the part of the supply chain process that plans. facilities and personnel required to organize.fresh fruits. Objectives of Logistics Management To make available the right quantity of right quality products at the right place and time in right condition. documented marked and consolidated.Logistics is concerned with getting products and services where they are needed and when they are desired. Logistics is a broad far reaching function. effective. and controlling the efficient. and management of the facilities personnel and material to support and sustain a service operation or business. billed/invoiced. pipelines. loaded. tracked. having a great impact on the standard of living of a modern society. implements and controls the efficient flow and storage of goods and services from point of origin to point of use or consumption. To maintain transparency in operations. schedule and deploy the resources for an event to take place.The network of activities. and containers. flow and storage of goods and services. Products are assembled and stored. displayed and crossdocked.

. Packaging 2.Transportation A logistics manager has to take care of all the three categories.Accumulating Bulk Creating Assortments Transaction Efficiency Credit Facilities Risk Taking  Logistics can be broadly classified into three categories 1.Warehousing 3.

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