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Global Logistics
Management
Copyright 2004. Juta and Company [Pty] Ltd.

AMG Schreuder

Dr. Craig Voortman

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 Global Logistics
Management

DR CRAIG VOORTMAN

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 Global Logistics Management
First edition 2014
Print fourth edition 2004

© Juta and Company Ltd, 2014

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South Africa

ISBN: 978 0 7021 6641 9 (Parent)

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 Preface

Logistics is a confusing term for some people, but the focus of Global Logistics
Management is to make the term simple and easier to understand. The text
explains that logistics is about a process – a process of moving a commodity or
service from an initial customer order to final consumption. It expands on the
various links in the logistics chain – from order processing, to purchasing and
procurement, to production scheduling, to packaging and warehousing and
transportation all the way through to the consumer.
Some special features of Global Logistics Management include a section on
the history of logistics - where the term originated and how it is used today.
There is an explanation of the KISS principle, and a section on the importance
of Total Quality Management. A chapter has been devoted to customer ser-
vice – it is no coincidence that companies with sound logistics often have
excellent customer service. The focus of the text, however, is on the practical
application and explanation of logistics strategies and theories used in the
working environment. Case studies of companies who have achieved success
further explain how the theory is put into practice.

The benefits for the reader

Because logistics impacts on all spheres of a modern operation, no business
person or potential manager can afford to be without a solid foundation in
this critical field. For learners taking a course in Logistics Management at uni-
versity or technikon, this book should become the text of choice.

Craig Voortman
January, 2004

About the author

Dr Craig Voortman is a consultant and trainer in the field of Logistics
Management. He is currently Head of the Department of Logistics
(Purchasing) and Transportation Management at the Technikon Witwaters-
rand (which is soon to become the University of Johannesburg), South Africa.
His passion for training and developing people to operate effectively in the
modern business environment is evident on every page.

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 Contents

Chapter 1 The concept of logistics 1 A brief history of logistics and the integrated
logistics concept
What is logistics? Key points
All businesses have logistical processes Assessment tasks
Exploring some definitions
The six ‘rights’ of logistics
Logistics is about adding value Chapter 3 Customer service 20
Typical logistics activities
Key points and assessment tasks The logistics of sound customer service
Case studies: An introduction to the field of Exploring some definitions of customer service
logistics The characteristics of customer service
The origin of the term “logistics” The three elements of customer service
War and businesses both need supplies Methods of improving customer service
Logistic incoherence: The 1994 South African How do we improve customer service?
election Key points
The study of logistics as a business discipline Assessment tasks
Sasol’s success story: A logistics case study
Audi’s success story: Lean warehousing through
Just-in-Time principles Chapter 4 Channels of distribution and
Plascon’s success story: A fully automated supply-chain strategies 31
warehouse
Pick ’n Pay’s success story: Warehouse Introduction
categorisation strategies What is a channel of distribution?
Entering global markets: Global sourcing and Why do channels of distribution develop?
global distribution The cost benefits of intermediaries
Conclusion The realities of channel management
Future trends in channels of distribution
Supply chain management
Chapter 2 Integrated logistics 12 Key points
Assessment tasks
Introduction
Every activity is affected by logistics
A working definition of logistics Chapter 5 Transportation 39
The role of logistics in the economy
The role of logistics in a company Introduction
Key activities requiring integration in logistics The logistics of transportation
management Modes of transport and intermodal options

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