Presentation on theme: "THE STRUCTURAL FORMULATION OF LOGISTICS Józef Okulewicz Warsaw University of Technology – Faculty of Transport Malenovice, 7 – 8. 06. 2007 Czech Republic."— Presentation transcript:
THE STRUCTURAL FORMULATION OF LOGISTICS Józef Okulewicz Warsaw University of Technology – Faculty of Transport Malenovice, 7 – Czech Republic FINANCIAL AND LOGISTICS MANAGEMENT 2007
Council of Logistics Management LOGISTICS the process of planning, implementing and controlling 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
Alternative AAlternative B "Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, 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." "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." 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: 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 consideredmere 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. Secondit 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. Finallyrequires 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 categorywinner Overall Winner Public Sector & Not for Profit Service Industries & UtilitiesThales Telecommunications Services Retail & DistributionJ Sainsbury High Tech & ElectronicsCisco Systems International Fast Moving Consumer Goods / Consumer Packaged Goods British American Tobacco Engineering & General ManufacturingBorealis Project ManagementJ Sainsbury Sourcing & ProcurementVodafone Environmental ImprovementTransport for London Logistics & FulfilmentInfineon InnovationDeutsche Woolworth Team of the YearKimberly Clark Outstanding ContributionLawrence Christensen from Sainsbury Logistics Europe, Nov 2006 International Federation of Red Cross
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 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) INTERNATIONAL FEDERATION OF RED CROSS
L O G I S T I C S originconsumption needs constraints rational process in order flow (f. & r.) storage effective efficient plansimplementscontrols goods informationservices supply chain conditioning CLM 1997 empirical that part that delivering JO 2000 criteria right client right article right place right quantity right quality right time right costs reality space time meet customers requirements
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 INSTEAD OF CONCLUSION (D.J. Bowersox, J.J. Coyle, B.J. La Londe, D.M. Lambert, C.J. Langley, I.T. Mentzer, I.R. Stock)