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"Logistics: Incoterms"
presented by Dr. Darren Prokop,
Professor Emeritus 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.
The word Incoterms is
a portmanteau derived
