Logistics: Designing Layouts.
Presented by Dr. Darren Prokop, Professor of
Logistics, University of Alaska Anchorage.
What is logistics?
It is the art and the science of managing three
constraints; time, physical space and location.
Every organization relies on logistics to
some degree in order to conduct business.
Organizations across the world may link up any
supply chain in order to meet some strategic goal.
But it is logistics that will
make or break that strategy.
Logistics is about getting
seven things right.
Get the right item in the right quantity and in the right
condition, delivered to the right customer at the right time,
in the right location and do
all of this at the right price.
Logistics management is about flow, whilst
supply chain management is about structure.
For supply chain linkages to be viable,
logistical flows are necessary.
Think of it like a skeleton
with a circulatory system.
One without the other
is not life-sustaining.
The skeleton gives the body strength and
the circulatory system gives it vitality.
In this way, logistics and supply chain
management have a symbiotic relationship.
You simply cannot have
one without the other.
It is akin to tactical
support for strategic goals.
Logistical flows involve transporting raw
materials, sub-assemblies and final goods,
even people move in their role as
operators, passengers or travelers.
intangible items include:
data and information, financial capital
such as money, credit, stocks and bonds,
and property rights such as transfers of land titles and intellectual
property rights like patents, copyrights and trademarks.