In this subject, students delving further into the procedures and activities that take place inside companies in the areas of manufacturing, logistics, distribution and marketing. Providing students with a complete and comprehensive picture of these procedures and activities as interconnected elements in the operations chain of services and supplying products to customers. Students focus on the basic elements of operations management, and the principal aspects of logistics, commercial and marketing management that affect the supply chain.
Business Logistics Supply Chain Management Ronald H Ballou
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The purpose of this article is to examine the evolution of the study of business logistics and supply chain management from the perspective of one who has participated firsthand in the discipline in industry and academic positions over the past six decades. The subject matter is organized in chronological order by decade. The 1950s were primarily a decade of transportation. During the 1960s the study of transportation evolved into the study of physical distribution. During the early 1970s more attention was given to physical supply, the inbound side of logistics systems. Later in the 1970s, universities began to offer more courses in transportation, physical distribution, and logistics. The term physical distribution was phased out in the 1980s, and the term business logistics emphasized. During the 1990s, business logistics again was the emphasis, as many cost-oriented businesses became aware of the opportunities for cost savings through negotiations with carriers and implementation of the systems approach and the total cost concept. The first decade of the 21st century has been characterized by a slow evolution from logistics to supply chain management.
This article examines the changes over the last six decades in the study of business logistics and supply chain management. My participation in the discipline as an industry professional and an academic during those times gives me a clear vantage point from which to summarize the evolution of the field. First of all, we should define the term logistics. A Google search of logistics will yield approximately 53 million results. A more precise definition is found in the dictionary, which states that logistics derives from the Greek word logistike, "the art of calculating," and from logos, meaning "reason" (Merriam-Webster Online Dictionary 2010).
Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flows and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements. Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/demand planning, and management of third-party logistics services providers. To varying degrees, the logistics function also includes sourcing and procurement, production planning and scheduling, packaging and assembly, and customer service. It is involved in all levels of planning and execution--strategic, operational and tactical. Logistics management is an integrating function, which coordinates and optimizes all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance, and information technology. (CSCMP 2010)
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