Business Logistics
Teacher:
Ing. Eva Šlaichová, Ph.D.
E-mail: eva.slaichova@tul.cz
Sylabus of the Subject I.
1. The Way to World Class Logistics
2. Client Service
3. The Process of Creating a Logistics System
4. The Strategy of the Corporate Logistics System
5. The Relation of Methods to the Steps of the
Process
6. Logistics Controlling
7. Logistics Reengineering
Sylabus of the Subject II.
8. The Total Supply Chain Concept
9. Customer Order Decoupling Point
10. Logistical Technologies I. - The
Establishment of Handling Groups, KANBAN
11. Logistical Technologies II. - JIT , Quick
Response, ECR, Hub and Spoke
12. Organization of the Logistics Function
13. Logistics and Transport Policy
14. Outsourcing in Logistics
Literature
PERNICA, P., MOSOLF, J. H.: Partnership in
Logistics. 1st ed. Prague: RADIX, 2000
Seminar Term-Work
 choose any theme related to the matter of
logistics, e.g.:
 packaging, container system, handling
equipment, storage facilities, transportation
services etc.
 write ca. 5 pages text + figures and pictures
 presentation: 12th - 14th week of semester
Sources: books, magazines, internet
(http://www.manufacturing.net/lm)
History of Logistics I.
 Logistics were employed by one of the authors of
military theory, baron Antoine Henri Jomini
(1779-1869), a French general with Swiss
ancestor.
 Logistics = a theory of movement, provisioning
and accommodation of armies  military
logistics.
History of Logistics II.
 World War II.: Logistics were successfully employed.
By means of mathematical methods, a number of
problems were solved on the western front in Europe,
such as provisioning, transport, deployment.
 After the War: Logistic activities were extended for
the solution of analogical problems in civilian use 
beginning of Business Logistics.
Definition of Logistics I.
Logistics is the process of planning, implementing and
controlling the efficient, effective flow and storage of raw
materials, in-process inventory, finished goods, services,
and related information from point of origin to point of
consumption for the purpose of conforming to customer
requirements.
(Council of Logistics Management)
Definition of Logistics II.
Organizing, planning, managing and materializing the goods
flow, starting with development and purchases and ending with
production and distribution according to the final customer´s
order, so that all the requirements are met at the lowest possible
cost and minimum capital expenditure.
(European Logistics Association)
Definition of Logistics III.
Logistics is a tremendous tool to approach systematically a
private or public company in order to improve the quality
according to the wishes of the clients, to improve the flexibility
of the production, to integrate the total organization of partners,
service suppliers, collaborators, distributors and clients.
(Institute of Logistics)
Definition of Logistics IV.
Seven “Rs”
ensuring the availability of
 the RIGHT product,
 in the RIGHT quantity and
 RIGHT condition,
 at the RIGHT place,
 at the RIGHT time,
 for the RIGHT customer,
 at the RIGHT costs.
(Institute of Logistics)
A View of Business Logistics
In a Company
Logistical Activities I.
Logistics manager may be responsible for:
 Traffic and transportation,
 Warehousing and storage,
 Industrial packaging,
 Materials handling,
 Inventory control,
 Order processing,
 Customer service levels,
 Demand forecasting,
Logistical Activities II.
 Procurement,
 Distribution communications,
 Plant and warehouse site location,
 Return goods handling,
 Parts and service support,
 Salvage and scrap disposal.
Development of Logistics I.
Stage 1:
Logistics were limited to distribution. Problems relating to
transaction with finished products and related physical
distribution were dominant. The problem of inventories was not
important.
This pioneering period culminated in the sixties - this approach is
not used any more.
Development of Logistics II.
Stage 2:
Corporate logistics were gradually extended to supplying (purchases,
procurement) and to production management.
The method of the employment of logistics in the distribution, production
and supplying departments was insular, and the effects were only partial.
Time period: 1970 - 1980.
Development of Logistics III.
Stage 3:
Companies create complete logistical chains and systems connected with
customer and supplier. The integration of corporate activities and the
development of supplying, production and distribution systems is actually
being materialized.
It is an integrated logistics.
Time period: 1980 - 2000
Development of Logistics IV.
Stage 4:
Integrated logistical systems will be optimized as a whole in the
foreseeable future.
It is a very complex, system-related problem. One of the
requirements is the establishment of strategic alliances between
companies, their customers, product suppliers and logistics
providers.
The Strategic Factor of a Company´s
Competitiveness
The competition in terms of time takes place in a
number of permanent fights:
 for a shorter delivery time,
 for better quality,
 better product variability,
 product complexity,
 shorter life cycle of products.
Product Delivery Times
The tendency for product delivery times to
get shorter:
Product Quality
The tendency for product quality to improve:
Product Variability
The tendency for product variability to
increase:
Product Sophistication
The tendency for product sophistication to
grow:
Product Life Cycle
The tendency for the product life cycle to get
shorter:
Logistics Channel (Chain)
The network of intermediaries engaged in transfer,
storage, handling, communication, and other function
that contribute to the efficient flow of goods.
The logistics channel can be simple or complex.
Simple Logistics Channel
Multiechelon Logistics Channel
Complex Logistics Channel