1. Introduction to LOGISTICS & Supply Chain Management
Qafqaz University
Center for Entrepreneurship
Development and Research
Ahmad Badalov
Research Assistant, Member of CEDR

2. Ahmad Badalov Experience Education
Bachelor Degree from Baku State University,
MBA Management from Qafqaz University,
Experience
Logistics Specialist at Aztexnika LTD,May, 2012–August, 2014
Course Coordinator at Galaxy Education Center,

3. Course Outline Introduction Planning of Logistics
Description of Terms,
Logistics
Supply Chain
Supply Chain Entegration
Planning of Logistics
Resource Planning
Logistics Network Design
Activities in Logistics
Procurement
Inventory Management
Warehousing & Material Handling
Transportation

4. Introduction
The aim of all organizations is to supply some products to their customers
These products may be goods or service
Mainly goods
Goods and Service
Mainly service
Car producers
Construction
Tailor
Restaurants
Healty sector
Education

5. Introduction
The hearth of all organizations are operations that create and deliver the products. These operations (process) converts inputs into outputs.
PROCESS
INPUT
OUTPUT
People
Buildings
Raw materials
Equipment
Information
Investment
Etc..
Manufacture
Serve
Supply
Transport
Sell
Train
Etc.
Goods
Service
Profit
Waste
Wages
Etc.
İşlemler değişik girdileri alarak, onları istenen bir çıktıya/ürüne dönüştürürler.. Organizasyonun ürettiği ürünlerde müşterilere aktarılır.

6. Introduction
The products created by an organization is like demand-supply cycle
Customer
Demad for product
Supply of product
Operations
Other outputs
Other inputs
Logistics is the function responsible for the flow of material around this cycle

7. Operations within organizations
The Role of Logistics
Logistics is responsible for the flow of material :
from suppliers into organizations,
through operations within organizations,
and to customers
Operations within organizations
External supplier
External customers
Internal supplier
Internal customer
Inbound logistics
Outbound logistics
Materials management
Logistics

8. Downstream activities
Supply Chain
is a series of activities which provide the flow of goods and services from initial suppliers to manufacturer and final customers.
More complex logistics system in which raw materials are converted into finished products and then distributed to the final users
Initial supplier
Upstream activities
Downstream activities
final customer
3. tier supplier
2. tier supplier
1. tier supplier
1. tier customer
2. tier customer
3. tier customer
ORGANISATION

10. Supply Chain Information Flow Semi-finished goods Storage goods
Suppliers
Producer
Deliver
(3PL)
Customer

12. AIMS of LOGISTICS
Logistics is responsible for the flow of materials through a supply chain.
This function is also called supply chain management.
Logistics: time-related positioning of resources, or the strategic management of the total supply chain
Supply Chain: sequence of events intended to satisfy a customer
The terms: logistics management, business logistics, distribution management, materials management, etc.

13. AIMS of LOGISTICS
There are 2 main aims:
To move materials into, through, and out of their own organizations as efficiently as possible,
To contribute to an efficient flow through the whole supply chain
The overall aim is to achieve higher customer satisfaction
It must provide a high quality service with low or acceptable costs.

14. Simple Description of Logistics
The easiest understanable definition is below and known as 7R
Collection of activities to deliver
the Right amount of Right material
to the Right consumer
at the Right conditions
at the Right place
at the Right time
at the Right cost
Logistic is responsible for flow of materials along the supply chain,

15. DEVELOPMENT of LOGISTICS

16. Development of Logistics
Logistics exist with military forces…
After the II.WW, companies in USA recognized the importance of logistics, and used it after 1960s.
Early studies related to problem of distribution of agricultural products in USA,
in 1954’de Paul Converse suggested that physical distribution part of marketing should be investigated by academicians and practitioners,
in 1962’de Peter Drucker wrote an article about the importance of distribution

17. Development of Logistics (2)
National Council of Physical Distribution Management, established in 1963
Council of Logistics Management in 1985
Council of Supply Chain Management in 2004
International Society of Logistics in 1966

18. Development of Logistics (3)
Before 1960’s and 1970’s
traffic management and Distribution managers,
have been responsible for delivering companies products to wholesaler and/or customers.
During 1970 and 1980 deregulations in transportation sectors have offered companies various transportation modes

19. Development of Logistics (4)
High interest rates, increases in energy costs and economical globalization in 1970, uncovered the importance of logistics cost
As a result of economical globalization;
Local firms have been forced to cut down cost due to international firms,
Logistics costs became important

20. Development of Logistics (5)
During 1980’s;
It is recognized that transportation and distribution of goods is also part of marketing,
In order to cut down costs
Distribution and transportation,
Buying,
Production planning,
Material management and customer relations
needs to be integrated with information techologies and logistics engineering

21. Development of Logistics (6)
Development in information technologies enable firms to easily manage activities such as;
demand,
movement,
Warehousing of products and materials
MRP, MRP II, DRP, DRP II, ERP systems enable interconnection of material management activities