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1.3 LOGISTICS: PRINCIPLES, ACTIVITIES AND
CLASSIFICATION

Principles of Logistics

1) The Right Materials/Products so that always the product/service required
at the time must be made available.
2) In Right Quantity so that the correct amount is available, as smaller amounts
result in the halting of production, while larger amounts result in building
up stocks.
3) In Right Condition so that the right quality of the product/service be made
available that the client requires.
4) At the Right Time ensuring the product/service be made available at the
time required by the client.
5) To the Right Place so that the product/service be made available at the
place where the client needs it.
6) At the Right Cost ensuring the product/service be made available at the
cost accepted by the client.
7) To the Right Customers, Associates, Suppliers and Stockholders.

Key Logistics Activities

Order processing
Procurement
Material handling
Warehousing
Inventory Control:
Transportation:
Packaging
Information

Classification of Logistics
Inbound or upstream logistics
Outbound or downstream logistics

OPERATING OBJECTIVES OF LOGISTICS
Rapid Response
Minimum Variance:
Minimum Inventory
Movement Consolidation
Quality Improvement
Life-Cycle support

LOGISTICS FORMS
Procurement logistics:
Production logistics
Sales logistics:
Recovery/reverse logistics
Recycling logistics

Explain the meaning of logistics management.
Logistics management basically is concerned with movement, supply
and maintenance of supplies or materialss in an organisation.

It deals with flow of material across the supply chain of an enterprise to
cost effectively make available the right product at the right place and
right time.

List the key logistics activities.
Order Processing
Procurement
Material handling
Warehousing
Inventory Control
Transportation

What are the types of logistics?
Inbound logistics consists of those activities that are concerned with
sourcing, acquring, receiving, storing and delivering the raw materals
and parts to the product or service department.
Outbound logistics is concerned with collection, storage and distrbution
from the unit to the end user or buyer.

List the operating objectives of logistics.
Rapid response
Minimum variance
Minimum inventory
Movement consolidation
Quality improvement
Life-cycle support

Explain the forms of logistics

Principles of Logistics

1) The Right Materials/
2) In Right Quantity
3) In Right Condition
4) At the Right Time
5) To the Right Place
6) At the Right Cost
7) To the Right Customers

LOGISTICS MANAGEMENT: SPECIFIC
CONCEPTS
Lean Logistics Management
Agile Logistics Management
Resilient Logistics Management
Green Logistics Management

Green Logistics Management characteristics
Reduce
Re-use
Rework
Refurbish
Reclaim
Recycle
Remanufacture.

Total Logistics Management
a) Logistic quality guarantees customer satisfaction and continuous logistic
quality improvement.
b) The pursuit of logistic partnership is based on professionalism and trust.
c) The safety and security assurance for people and goods and information
flows.
d) The pursuit of ‘one click’ activities implementation based on flow processes,
automation and computerisation.
e) Sustainable logistics development ensures an organisation’s impact on its
environment, in an appropriate and effective manner.
f) Logistics management based on product logistic efficiency is the foundation
to secure effective and efficient goods and information flow.