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Introduzione alla logistica
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Definition of Logistics
European Logistics Association (ELA): “The planning, execution and control of the movements and placement of people and/or goods, and the supporting activities related to such movement and placement within a system organized to achieve specific objectives.” Logistics is difficult to define because it is ubiquitous and evolving. Logistics no longer concerns only the handling of materials and information; it now has a more expansive concept—a collection of services that facilitate the economic transactions associated with production and trade. It encompasses not only the physical movement of goods (e.g., procurement, transport, consolidation, transshipment, storage, and packaging) but also the facilitation of this movement through the processing of documents, coordination among participants, monitoring of activities, and financing of transactions. Closely linked to this concept of logistics is the concept of a supply chain, a combination of services that deliver inputs from suppliers to the point of production (inbound) or products from point of production to the marketplace and final consumer (outbound).
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Popular logistics terms
Logistics Management Business Logistics Management Integrated Logistics Management Materials Management Physical Distribution Management Marketing Logistics Industrial Logistics
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Civil logistics fields
Logistica industriale (business logistics) Logistica delle rinfuse (bulk logistics) Logistica del progetto (project logistics) Logistica dei Sistemi Riparabili (RAM logistics) Logistica degli eventi (Event logistics) Logistica dei servizi (Service Logistics) Business Logistics Logistica Industriale “Council of Logistics Management (USA)”: “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 point of origin to point of consumption in order to meet customers' requirements." Bulk Logistics (Logistica delle rinfuse). La gestione e la movimentazione di materiali alla rinfusa, generalmente materie prime quali petroli, carbone, cereali, ecc., in grossi quantitativi. Project Logistics Logistica dei progetti La gestione ed il coordinamento delle operazioni di progettazione e di realizzazione di sistemi complessi (centrali elettriche, impianti chimici, ecc.). RAM Logistics RAM dall’inglese Reliability, Availability, Maintainability. La gestione dei prodotti ad alta tecnologia (telecomunicazioni, velivoli, megacomputer, ecc.) per i quali sono essenziali caratteristiche quali l’affidabilità, la disponibilità e la manutenibilità. Event Logistics Logistica dei grandi eventi. Network of activities, facilities, and personnel required to organize, schedule, and deploy the resources for an event to take place and to efficiently withdraw after the event. Service Logistics Logistica dei servizi Acquisition, scheduling, and management of the facilities/assets, personnel, and materials to support and sustain a service operation or business.
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Business Logistics Logistica Industriale
“Council of Logistics Management (USA)” 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 point of origin to point of consumption in order to meet customers' requirements."
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Logistics systems A logistics system is made up of a set of facilities (nodes) linked by transport services (links) and information systems. Facilities are sites where materials are processed, e.g. manufactured, stored, sorted, sold or consumed.
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Nodes and links in a logistics system
Freight flow Information flow
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Global flows, nodes and networks
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A logistics system Retail outlets Manufacturing RDC plant Supplier CDC
Assembly CDC RDC Retail outlets Port
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A global logistics system
Consolidator/freight forwarder, 3PL Manufacturer Port trucking Home Small parcel delivery Warehouse: 3PL, deconsolidator, wholesaler, DC Retailer
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Facilities and transport
They include manufacturing and assembly centers, warehouses, distribution centers (DCs), transshipment points, transport terminals, retail outlets, mail sorting centers, garbage incinerators, dump sites, etc. Transport services move materials between facilities using vehicles and equipment such as trucks, tractors, trailers, crews, pallets, containers, cars and trains.
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Supply Chain Management SCM
Logistics focuses attention on coordinating the product, the information movement and the flow activities of an individual firms Supply chain management is an expanded version of the logistics process that integrates product, information and cash flows among organization
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Significance of logistics
Logistics is one of the most important activities in modern societies. It has been estimated that the total logistics cost incurred by USA organizations in 2006 was 1,305 $ billion, corresponding to approximately 9,9 % of the USA Gross Domestic Product (GDP).
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The U.S. Business Logistics System Cost $ Billions
Inventory Carrying Costs 446 Transport Costs 801 Shipper Related Costs 8 Logistics Administration 50 Total Logistics Costs 1,305
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Inventory Carrying Costs $ B
Interest 93 Taxes, Obsolescence, Depreciation, Insurance 252 Warehousing 101 Subtotal 446
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Transport Costs $ Billions
Motor Carriers Truck – Intercity Truck – Local 452 203 Subtotal 635 Other Carriers Railroads Water Oil Pipelines Air Forwarders 54 37 10 38 27 166 Total 801
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Logistics Cost as a % of GDP
Source: 18th Annual State of Logistics Report, 2007
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Trend of logistics costs (US GDP%)
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Logistics and Economy Logistics is an important component of Gross Domestic product GDP. The range is from 10 – 20% of GDP. Logistics adds value by creating utility. Utility is the value that an item or service has in fulfilling a want or need.
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Trend of Logistics Costs
Logistics costs as a percentage of GDP have declined in US from 16 percent in 1980, to under 10 percent in 1999. Early to mid-1970s saw the figure closer to 20 percent. This reflects a serious improvement in the efficiency of logistics systems.
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Total Business Inventories
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Inventory Sales Ratio Months of supply
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Inventories are back down
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% Inventory as % of GDP Year
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Utility Creation in the Economy
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Types of Utility Form utility is the process of creating the good or service, or putting it in the proper form for the customer to use. Possession utility is the value added to a item or service because the customer is able to take actual possession made possible by credit arrangements, loans and so on.
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Type of Utility related to logistics
A product desired by consumers is in transit, in a warehouse or in another store, it does not create any utility for them, it needs two more utilities provided by logistics: time utility is the value added by having a product or service when it is needed in the marketplace or within the organization; place utility, which means having the item or service available where it is needed.
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The Seven Rights of Logistics
The right product, publicized with the proper promotion and needed for consumption or production in the right quantity, must be to the right place at the right time in the right condition at the right cost for the right customer.
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Key logistics activities
Customer service Demand forecasting/planning Inventory management Logistics ICT Material handling Order processing Packaging Parts and service support Plant and warehouse site selection Procurement Return goods handling Reverse logistics Traffic and transport Warehousing and storage
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Place/customer service level
Marketing Place/customer service level Logistica Il marketing massimizza i profitti aziendali La logistica minimizza i costi totali dati gli obiettivi di servizio al cliente
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Place/customer service level
Costi del Marketing Product/Service Price Promotion Place/customer service level
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Logistics Costs Luogo/livello di servizio cliente
Place/customer service level Materiale inventariato Inventory carrying costs Trasporto Transport Acquisto/produzione lotti Procurement/Lot prod. Magazzino Wharehouse esecuzione ordine e informazione Order processing and information
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Luogo/livello di servizio cliente Place/customer service level
Servizio al cliente Customer service Assistenza ricambi e servizi Parts and service support Sostituzione prodotti in garanzia Return goods handling
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Costi del materiale inventariato Inventory carrying costs
Gestione delle scorte Inventory management Imballaggi Packaging Smaltimento rifiuti o riciclaggio di materiale di scarto Reverse logistics
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Costi di acquisto/produzione lotti Procurement/lot production costs
Movimentazione materiali Material Handling Approvvigionamenti Procurement
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The setup cost of lot quantity
Time required to set up a line or locate a supplier and place an order Scrap due to setting up the production line operating inefficiency as the line begins to run, or as a new suppliers is brought on board
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Other components of lot quantity costs
Capacity lost due to downtime during changeover of line or changeover to a new supplier material handling, scheduling and expediting price differentials due to buying in different quantities order costs associated with order placement and handling
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Costi di trasporto Transport costs
Trasporto dal punto di origine al punto di consumo Trasporto rifiuti al punto di smaltimento Trasporto del materiale di scarto al punto di riciclaggio
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Costi di immagazzinamento Warehousing costs
Immagazinamento e deposito dei prodotti Warehousing and storage Localizzazione del deposito e della azienda Plant and Warehouse site selection
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The relevant inventory costs are those that vary with the amount
Capital cost, or opportunity cost, the return that the company could make on the money that it has tied up in inventory Inventory service cost, insurance and taxes warehousing space related costs inventory risk cost, obsolescence, pilferage, relocation within the inventory system, and damage
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Costi di esecuzione ordine e informazione Order processing and information costs
Gestione ordini Order processing Comunicazioni nella rete logistica Logistics communicatios Pianificazione e previsione della domanda Demand forecasting/planning
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Questions (1) What is the role and importance of logistics in private and public organizations? Discuss the impact of logistics on the economy and how effective logistics management contributes to the vitality of the economy. What is the value-added roles of logistics on both a macro and micro level? Explain logistics systems from several perspectives. What is the relationship between logistics and other important functional areas in an organization, including manufacturing, marketing, and finance?
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Questions (2) Discuss the importance of management activities in the logistics function. Analyze logistics systems from several different perspectives to meet different objectives. Determine the total costs and understand the cost tradeoffs in a logistics system. Why does a push-based supply chain react more slowly to changing demand than a pull-based system? What is the impact of product diversification (the increase in the number of product variants) on logistics systems planning and control.
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