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Logistics: Operating Cost and
Revenue presented by
Dr. Darren Prokop,
Professor of Logistics,
University of Alaska, Anchorage.
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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 in
a supply chain in order to
meet some strategic goal.
But it is logistics that will
make or break that strategy.
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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.
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Logistics management
is about flow,
while 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.
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Logistical flows involve
transporting raw materials,
sub-assemblies and final goods.
Even people move
in their role as
operators, passengers,
or travelers.
Transportation of
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.
