FINANCIAL AND LOGISTICS MANAGEMENT 2007
THE STRUCTURAL FORMULATION OF LOGISTICS
Józef Okulewicz
Warsaw University of Technology – Faculty of Transport
Malenovice, 7 – 8. 06. 2007
Czech Republic
Council of Logistics Management
LOGISTICS
1984
the process
of
planning, implementing and controlling
1997
is that part
of the supply chain process
that plans, implements, and controls
the efficient, effective *) flow and storage
of goods, services, and related information
from**) the point of origin to the point of consumption
in order to meet customers' requirements
LOGISTICS MANAGEMENT
Council of Supply Chain Management Professionals
*)
forward and reverse
**) between - 2002
2005
Questionnaires according to SCM have been sent to 6422 members of the CLM.
After receiving 744 answers there was prepared two alternative definitions of SCM:
Alternative A
Alternative B
"Supply Chain Management encompasses the
planning and management
of all activities involved in
sourcing and procurement, conversion,
"Supply Chain Management encompasses the
planning and management
of all activities involved in
sourcing and procurement, conversion,
demand creation and fulfillment,
and all Logistics Management activities.
Thus,
it also includes coordination and collaboration
with channel partners, which can be suppliers,
intermediaries, third-party service providers,
and customers.
In essence, Supply Chain Management
integrates supply and demand management
within and across companies."
and all Logistics Management activities.
Importantly,
it also includes coordination and collaboration
with channel partners, which can be suppliers,
intermediaries, third-party service providers,
and customers.
In essence, Supply Chain Management
integrates supply and demand management
within and across companies."
Majority of respondents has chosen the alternative A.
Brian J Gibson, John T.Mentzer, Robert L.Cook:
Supply chain management: the pursuit of a consensus definition,
Journal of Business Logistics; 2005; vol. 26, 2; s. 17
What where hitherto considered
‘mere’ logistics problems
have now emerged as much more significant issues
of strategic management.
Through our study of firms in a variety of industries …
we found that the traditional approach of seeking trade-offs
among the various conflicting objectives of key functions
– purchasing, production, distribution, and sales –
along the supply chain no longer worked very well.
We need a new perspective and, following from it,
a new approach: supply-chain management.
Oliver R.K., Webber M.D.: Supply-chain management: logistics catches up with strategy,
Outlook, Booz Allen & Hamilton Inc., 1982,
in Christopher M. (editor), Logistics. The strategic issues. Chapman & Hall, 1992.
FUNDAMENTALS OF SUPPLY-CHAIN MANAGEMENT
First
it views the supply chain as a single entity rather then
relegating fragmented responsibility for various
segments in the supply chain to functional areas.
Second it calls for – and in the end, depends upon –
strategic decision making.
Third
provides a different perspective on inventories, which are
used as a balancing mechanism of last, not first, resort.
Finally requires a new approach to systems:
Integration not simply interface, is the key.
Oliver R.K., Webber M.D.: Supply-chain management: logistics catches up with strategy,
Outlook, Booz Allen & Hamilton Inc., 1982,
in Christopher M. (editor), Logistics. The strategic issues. Chapman & Hall, 1992.
Logisticians need to become aware
that both traditional and non-traditional approaches
belong to the same paradigm,
and that paradigm, like any other, brings some advantages
and disadvantages for logistics thinking and practice.
Without fully comprehending the assumptions
on which their work is based
they have little hope to being able to clearly evaluate
what they are doing and to improve the chances
of gaining logistics acceptance.
Logistics is in need of its own revolutionaries
who will explore other paradigms to see what these have to offer.
Mears-Young B., Jackson M. C.: „Integrated logistics - Call in the Revolutionaries!”,
Omega Int. Jourmal Management Science, vol. 25, No.6, 1997, pp. 605 – 618
European Supply Chain Excellence Awards
category
Overall Winner
winner
Public Sector & Not for Profit
International Federation
of Red Cross
Service Industries & Utilities
Thales Telecommunications Services
Retail & Distribution
High Tech & Electronics
Fast Moving Consumer Goods / Consumer Packaged Goods
Engineering & General Manufacturing
Project Management
Sourcing & Procurement
Environmental Improvement
Logistics & Fulfilment
Innovation
Team of the Year
Outstanding Contribution
J Sainsbury
Cisco Systems International
British American Tobacco
Borealis
J Sainsbury
Vodafone
Transport for London
Infineon
Deutsche Woolworth
Kimberly Clark
Lawrence Christensen from Sainsbury
Logistics Europe, Nov 2006
INTERNATIONAL FEDERATION OF RED CROSS
In less then two years they have restructured the organization and processes
in order to respond to disasters at half the cost,
have doubled volumes and reduced lead-times by a factor of six
(they can get a global supply chain up and running in three days now)
This is not an organization that can impose
a single global view on its constituent bodies:
what it can do, and clearly is succeeding in doing,
is to bring
to the national societies, the volunteers, and the other assistance donors,
clarity, visibility and structure
– precisely those aspects of life that disappear first when nature strikes.
Logistics Europe, Nov 2006
reality
space
LOGISTI CS
CLM 1997
time
constraints
needs
delivering
goods
JO 2000
origin
consumption
goods
services
supply chain
that
part
conditioning
process
empirical
rational
that
plans
implements
controls
meet customer’s
requirements
in order







criteria
right client
right article
right place
right quantity
right quality
right time
right costs
flow (f. & r.)
effective
storage
efficient
information
EQUIPMENT
assortment
mobility
production
means of
transport
internal
transport
car fleet
storage
SUPPLY
CHAIN
USE
communication
service system
INSTEAD OF CONCLUSION
We need a „careful understanding of the discipline of logistics
in the building of theoretical substance
so that we see relationships and manage on
a more universal, as opposed to
an industry-specific, basis.
As we move to the future,
the judgment is going to become
what do we do to make it a better world
… and we are at that point.”
Kent J.L., Flint D.J.: Perspectives on the evolution of logistics thought.
Journal of Business Logistics, vl.18, iss.2, 1997
(D.J. Bowersox, J.J. Coyle, B.J. La Londe, D.M. Lambert, C.J. Langley, I.T. Mentzer, I.R. Stock)