Professional Documents
Culture Documents
1.2
1.3
APPROACH .................................................................................................................. 6
2.2
3.1.1
3.1.2
3.2
3.2.1
3.2.2
Context .............................................................................................................. 12
4.1.1
4.1.2
4.2
4.3
4.3.1
4.3.2
4.3.3
4.4
4.4.1
4.4.2
4.5
4.5.1
4.5.2
4.5.3
4.5.4
Disposition/Disposal .......................................................................................... 29
5.2
5.3
Page 2
5.5
5.5.1
5.5.2
5.5.3
Frozen Goods.................................................................................................... 34
5.5.4
5.5.5
5.5.6
5.6
5.7
5.8
5.9
5.10
SUMMARY ..................................................................................................................... 38
REFERENCES ............................................................................................................... 39
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1.3 Approach
As logistics represents a wide and diverse range of activities supporting the availability of
goods, products, and services to the market (See "Logistics: Definition and Context" below),
it is appropriate to discuss the definition of Logistics in this document, partly as background
to the various domains of knowledge, but also in an attempt to provide a complete overview
of the various aspects associated with Logistics.
The approach adopted in this document is therefore to describe the knowledge within the
logistics profession based on a framework for logistics. The framework provides a basic
structure and context for understanding logistics and breaks down logistics into broad
contextual areas and a series of subsets and supporting subsets. This document also
addresses logistics from a systems and industry sectoral context.
The approach adopted in defining the framework and various domains, is one of consultation
with industry; review of logistics theory texts and documents; review of existing attempts
towards defining the Common Body of Logistics Knowledge; and reviewing by a panel of
logistics professionals (Panel listed below).
The logistics context set out in this document is an overview and is in no way a complete
body of knowledge. The authors give recognition to several attempts in this regard and this
submission is a contribution to the debate, rather than a conclusive alternative to existing
efforts toward defining a concept for logistics.
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Logistics Philospohy1
3.2.1
Applying on the principles of systems theory, Logistics can be defined on three levels:
3.2.1.1 Strategic Logistics
Logistics forms a critical component of the overall corporate strategy of any organisation. Its
particular contribution to the overall strategy should result in the Competitive Availability of
the organisations' goods, products, information, and services.
The Logistics strategy typically includes elements such as:
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3.2.2 Context
This systems/organisational view of Logistics are set out in the table below:
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Operational Availability
Operational Availability
Operational Availability
Procurement, Transportation,
Warehousing, Support Operations (i.e.
Customs, Stevedoring, etc.)
Maintenance?
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Engineering
Logistics
Business
Logistics
AVAILABILITY
Operational
availability
Physical
availability
Logistics
Operational
availability
isenabled
through
Physical
availability
isenabled
through
Strategy
FunctionalLevel
Integrated
Logistics
Support
ILSis
executed
through
LogisticsProcesses
SupplyChain
Management
TransactionalLevel
SCMisis
executed
through
LogisticsOperations
Logisticssupport
operations
maintenance
Supplyand
Distribution
ManagementAspects Planning,Performancemanagement,inventory
management,systemsengineering,supplychainnetworkdesign,
informationmanagement
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In essence, Engineering Logistics designs the sustainability and support of a product for its
life span and establishes a number of parameters or substantiates assumptions, whereas
business logistics operates within the system designed or established, and is executed
based on assumptions on the operational availability of a number of elements of the supply
chain. Figure? shows aspects of the life cycle of a car and the relative focus of business and
engineering logistics across the life cycle. Figure 2 does the same for a tub of butter.
LIFECYCLEOFACAR
Design
Designcar
Designsupport:
Spareparts
Fuel
Techmanuals
Maintenance
Distribution
Packaging
manufacture
Manufacturecar
Manufacture
spareparts
SCdeliversparts,
componentsetc
Preparetech
manuals
Useofcar
SCdeliverscarto
dealers
SCdeliversfuelto
petrolstation
SCdeliverspartsto
repairers/maintainers
Maintenance
conducted
Technicalinformation
updated
Cartransported
between
retailers/users
Disposal
Cartransported
todisposal
agency
Cardisposed
SomeParts
distributed on
sold,scrapetc
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LIFECYCLEOFATUBOFBUTTER
Design
Manufacture
Designbutter
types
Designsupport:
Distribution
Packaging
Storage
mediums(e.g
fridges)
Design
Designbutter
types
Designsupport:
Distribution
Packaging
Storage
mediums(e.g
fridges)
Manufacture
butter
Packagebutter
Inputsdelivered
tomanufacturer
Manufacture
Manufacture
butter
Packagebutter
Inputsdelivered
tomanufacturer
Business
Logistics
Distribute
Butterdeliveredfrom
manufacturertoDCsand
retailers
Fridgesandtransport
maintained
Distribute
Butterdeliveredfrom
manufacturertoDCsand
retailers
Fridgesandtransport
maintained
Consume
Reverselogistics
ofcontainers
Consume
Reverselogistics
ofcontainers
Engineering
Logistics
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Supply/procurement strategy
Inventory strategy suppliers, storage
Location strategy
Transport strategy
Customer relationships and service level strategy
Maintenance strategy
If physical availability is the predominant focus, there will be more emphasis on business
logistics aspects such as distribution strategies i.e. inventory, transport and location of
product in relation to the customer ; whereas a high operational availability outcome will
require a focus on the engineering logistics such as the maintenance strategy and the
reliability of the products/equipment and components. Where physical and operational
availability are equally important, the strategy will need to ensure an effective balance.
The logistics effort will therefore be focussed according to the logistics strategy. As systems,
complexity of the particular product increases, the focus, and effort is more likely to be on
operational availability and thus engineering logistics activities. However, business logistics
aspects and management of the supply chain will still be important in particular for the
physical availability of repair parts etc. Figure x provides a graphic representation of this
concept.
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Competitive
Availability
Resource availability of
people, transport capacity,
infrastructure, and
information
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SupplyChain Butter
Assumesavailabilityoffridge/refrigeratedtrucks/packaging
manufacture
transport
transport
retailer
DC
MainILSelements:
Packaging
Coldstorage e.g
fridgeavailabilityat
physicalnodes
Refrigerated
transport
Fridges
FridgeSC
Fridge
manufacture
Transport/
customer
pickup
Customer
Refrigerated
trucks
PartsSC
PartsSC
FridgeParts
Rawmaterials/
componentSC
Rawmaterials/
componentSC
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leather
springs
material
seats
Designed
formarket
Manufacture
ValueAdd
Seatbelts
ValueAdd
ValueAdd
rubber
CAR
console
alloy
lights
tyres
Operate
ValueAdd
Instrument
panel
wheels
Designed
forsupport
Metalclips
ValueAdd
parts
ValueAdd
fuel
ValueAdd
PhaseOut
/Disposal
Servicing/
repair
refinery
Tech
manuals
training
DynamicValueChain:
Networked
Nonstatic
Eachnodeisdesignedto
addvalue(form,place,
functionortime)
Technology and information integration are critical to achieving an optimised dynamic value
network and there needs to be a focus on culture, leadership, and infrastructure. The
networks will be vulnerable and be impacted on by external and internal factors as shown in
Figure ?
External
Environmental
Supply
Internal
Vulnerability
Control
Process
Contingency
/ Mitigation
Capability
KNOWHOWTOMAKETHINGSHAPPEN!
www.vu.edu.au/ilscm
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A physical network which includes all the logistics nodes (warehouses, terminals,
maintenance or service centres), the physical links (transport infrastructure and
assets), procedures and the physical resources (people, equipment, assets) that
operate the system.
An information or virtual network The information network includes the passage of
information via communications links to the various people/organisations within the
network.
A control network, which includes all the planning, decision-making, and
management arrangements (including contracts, supplier customer agreements etc)
to achieve the outputs and outcomes.
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The logistics operations that occur at the functional level are subsets of these processes and
are described below within the context of the functional processes.
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Mode selection - selecting the method of shipment (air, rail, road, pipeline) and the
specific means (e.g. internal, contract, courier etc).
Routing - Choosing the specific path.
Transport Operations operating rail, trucks, busses, ships, pipelines etc
Transhipment transferring goods from one mode of transport to another.
Port and terminal operations Loading and off-loading transport assets, stevedoring,
and customs clearance.
Monitoring and controlling the movement of goods, equipment and people scheduling,
manifesting, dispatch, track and trace, GPS etc.
4.5.2.2 Warehousing/Storage
In contrast to transport, storage and handling takes place at nodal points in the supply chain/
network. In an ideal system, if demand was known for sure and products could be supplied
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Packaging
Information maintenance
Customer service
Order processing
Demand forecasting
Plant and warehouse site selection
Salvage and scrap disposal
Return goods handling
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Maintenance management is the collective term for describing the management process of
leadership and organization, planning and scheduling, preventive maintenance, condition
monitoring, execution of maintenance repairs, recording, root cause failure analysis, spare
parts management, and management of technical data supporting the processes above. 44
4.5.3.3 Production Support
Production support is the process of operating and maintaining a system (computer
application, piece of equipment, machinery or vehicle system, weapon system etc) over
time. It consists of cyclic and non-cyclic activities that allow a system to be maintained.
These activities and procedures are required to ensure the successful operation of the
system. 45 Production Support was created to bridge the process and procedural
gaps between applications development, technical support, and operational
areas for application implementation control and support services.
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Requirements Analysis
Support Contracts
Field Engineering and Data
4.5.4 Disposition/Disposal
When items or services are consumed, the supply chain or integrated logistics support
processes are complete however, many items cannot be fully consumed, and logistics must
incorporate all activities associated with return of items for re-distribution or repair, salvage
or disposal. As environmental impacts become increasingly important, supply chain
management and integrated logistics support arrangements must have a greater focus on
the reverse flow and disposal of goods. These aspects will also impact on and be impacted
by design and life of type decisions.
Medical waste, bodies, computers, records disposal, hazardous waste,
The disposal functional process addresses the aspects involved in equipment phase-out and
disposition. The more complex a system or equipment is, the more involved are the support
systems. On phase out of these types of equipment, the associated support systems need to
be phased out as well.
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Greater
Customisation
Greater
Standardisation
Greater vertical
integration
Greater
horizontal
integration
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Highvalueof
products/services
Lowproduct
complexity
Highvalueof
products/services
Highproduct
complexity
Chemical
ServicesLogistics
Retail
FMCG
Defence
Manufacturing
Humanitarian
Computersand
mobilephones
Medical
Eventlogistics
Lowvalueof
products/services
Lowproduct
complexity
Lowvalueof
products/services
Highproduct
complexity
Capability support This is the support needed to acquire, generate and maintain
capabilities (e.g. weapons systems, military organisations including all their
equipment, platforms) through life and to ensure capabilities are prepared for
deployment on operations.
Operations Support This is the support needed to deploy and redeploy a tailored
force, and sustain it for the duration of an operation.
These two dimensions are similar to the domains - business and engineering logistics as
described in this document. Defence logistics must therefore focus on operational availability
of its equipment and weapon systems whilst also ensuring goods and services are physically
available to support training and operations.
Defence therefore has a significant focus on integrated logistics support whilst also having to
focus on supply chain management across an extremely broad range of supply items. In
order to manage these items, they are grouped into classes of supply based on specific
characteristics. Thus there are numerous procurement, supply chain and distribution
arrangements within the Defence Organisation and a complex network of external suppliers
supporting the Defence organisation for the provision of goods, products and services.
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Within the facility logistics. This involves the design and operation of the physical
plant with respect to logistical goals and objectives i.e. how the flow of food,
medicine, and inventory effects the delivery of the service, or how the maintenance
and servicing of equipment effects the delivery. The focus is also on the design and
layout of guest/client handling systems (e.g. elevators, shuttle buses etc).
Between the facility logistics. This involves the structure and processes to move
people and material between facilities in order to met customer requirements, and
are focussed very much on location design, sourcing, and inventory decisions in a
similar manner to other sectors.
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Figure ? below demonstrates the sorts of differences that may occur across a few
sectors:
Retail
Shelf
Availability
Fastresponsive
supplychain
management
Distributionfocus
Defence
Equipment
availability
and
Manydiffering
availability
supplychains
ofsupplies
andILS
managementof
complex
equipments
Maintenance,repairpart,
pipeline,combatsupply
distribution
Transport
Bdoubles
Allmodes,
Warehousing
Highrise,
Largestaticwarehosues throughto
shorttermstoragehubs
maintenance
limited
Militray equipment
Chemical
Resources
Physical
availability
of
Focusonsafe
chemicals
androbust
supplychains
Physical
availability
Stablebut
international
supplychains
andILSof
supportequip
Bulkstorageand
transport
Bulkstorageand
transport
Bulk carriers
Transport
Miningequipment
Subject
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7 SUMMARY
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8 REFERENCES
BusinessDictionary.com
2
According to the Oxford English Dictionary, professions involve the application of specialised
knowledge of a subject, field, or science to fee-paying clientele. (Oxford English Dictionary, Second
Edition, Oxford University Press, 1989). The implication of being a profession is based on the fact that
Professional activity involves systematic knowledge and proficiency." (http://www.ethicalperspectives.be/page.php?LAN=E&FILE=ep_detail&ID=100&TID=909 Asa Kasher, Professional
Ethics and Collective Professional Autonomy: A Conceptual Analysis, Ethical Perspectives, 12/1
(March - 2005), pp. 67-97).
3
Russell, Stephen Hays; Winter 2000, Growing World of Logistics, Air Force Journal of Logistics.
The American Heritage, Dictionary of the English Language: Fourth Edition, 2000,
http://www.bartleby.com/61/14/L0231400.html
Lambert, D. M. and Stock, J. R., 1993, Strategic Logistics Management 3rd ed, Irwin, p 19
10
Coyle, Bardi and Langley, 1988: The Management of Business Logistics 4th Ed, West Publishing,
pp 7-8.
11
http://en.wikipedia.org/wiki/Logistics
12
13
http://cscmp.org/aboutcscmp/definitions.asp
14
15
16
US Society of Logisticians, quoted in The Air Force Journal of Logistics, Summer 1988.
17
18
www.barloworld-logistics.com/cws/mvc
19
http://en.wikipedia.org/wiki/Logistic_engineering .
21
http://www.scribd.com/doc/6915301/Supply-Chain-Management
22
www14.informatik.tu-muenchen.de/konferenzen/Jass08/courses/2/berseneva/slides_berseneva.ppt
23
http://ilscm.vu.edu.au/wiki/The_Functional_Level
24
http://ilscm.vu.edu.au/wiki/Integration
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25
http://en.wikipedia.org/wiki/Supply_chain_management
26
http://whitepapers.securityfocus.com/option,com_categoryreport/task,viewlist/sort,/id,22/cat,215/limit,2
5/limitstart,25/ , http://whitepapers.pcmag.com/enterprise-applications/supply-chain-management/
27
http://cscmp.org/aboutcscmp/definitions/asp
28
http://wapedia.mobi/en/Supply_chain_management, http://www.categoric.com/solutions/foroperations/supply-chain-event-management-scem.html
29
Jones, J.V., 2006, Integrated logistics Support Handbook, 3rd Ed, McGraw Hill
30
31
32
http://en.wikipedia.org/wiki/Integrated_Logistics_Support
33
ADDP 4 p 2-18
34
http://en.wikipedia.org/wiki/Procurement
35
36
37
ADDP 4, p 2-17.
38
Procurement
39
40
41
42
43
44
http://www.idcon.com/maintenance-definition-M.htm
45
46
http://en.wikipedia.org/wiki/Technical_support
47
http://ilscm.vu.edu.au/wiki/Logistics
48
49
Derived from Global logistics framework for supply chain structures Dornier, P.P., et al., Global
Operations and Logistics text and Cases, New York, john Wiley and Sons, 1998.
50
Derived from Global logistics framework for supply chain structures Dornier, P.P., et al., Global
Operations and Logistics text and Cases, New York, john Wiley and Sons, 1998.
51
http://ilscm.vu.edu.au/wiki/Military_Logistics
52
53
http://www.arup.com/logistics/skill.cfm?pageid=4099
54
http://www.emeraldinsight.com/Insight/ViewContentServlet?Filename=Published/EmeraldFullTextArtic
le/Articles/0050370201.html 55
56
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57
http://www.transport.sa.gov.au/pdfs/freight/lamp_docs/coldchaininformation6mar03.pdf
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