The Past, Present, and Future of Logistics

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The Past, Present, and Future of Logistics

• Te-Cheng Yu
• Dept. of Logistics Management,
• National Kaohsiung Marine University

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Contents

• Introduction
• The allusion of logistics from the Orient
• The definitions of logistics in the west
• Logistics lies in making the best use of
  resources
• Logistics stresses the use of tools for fluent
  delivery
• Logistics lies in making the best use of human
  resource
• An integrated logistics management system
• The Best Achievement among Generations Ever
• The future development of logistics

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Introduction

• Reengineering the Corporation
• (Champy Hammer, 1993 )
• X-engineering the Corporation
• (Champy Hammer, 2003)
• Logistics revolution
• after World War II
• Chinese logistics
• back to the Chu-Han empire

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The purpose of this paper

• To integrate the understanding of the west and
  the oriental society towards logistics
• To explore the concept, definition, and
  management model of logistics from the past to
  the present through the resource-based theory
  and the customer-oriented views
• To figure out a global logistics philosophy
• The definition of logistics and also be applied
  to the new classical business model in
  trans-national and trans-corporation
  reengineering
• To benefit the development of the global
  logistics industry and the competitive strength
  of individual enterprises.

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The allusion of logistics from the Orient

• Logistics is derived from The Biographic
  Sketches of Emperor Gaozu, Shihji
• Mapping out a strategy in the command tent to
  determine the victory in thousands of miles away
• What is logistics?
• Strategic resources planning
• An effective vertical integration system which
  demands fully support to provide all of the
  usable resources, frames the best strategy and
  tactics for aiding the front-line team to achieve
  target, and wins every encountered battle with
  limited resources

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The definitions of logistics in the west

• In Greek French
• Logistikos indicates having logisticsal concept
  and calculation measures.
• Logistique, it implies quartering the soldiers.
  Hence, the concepts of logic, calculation,
  and quarter comprise the basic meaning of the
  western logistics
• Logistics Definitions
• inventory, customer, dictionary, International
  Society of Logistics, famous nebulous, Biblical,
  utility, Council of Logistics Management,
  component, functional, and common culture

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Logistics Definitions

• Inventory
• Management of materials in motion and at rest.
• Customer
• Getting the right product, to the right customer,
  in the right quantity, in the right condition, at
  the right place, at the right time, and the right
  cost. (called the Seven Rs of Logistics.)

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Logistics Definitions

• Dictionary
• The branch of military science having to do with
  procuring, maintaining, and transporting
  material, personnel, and facilities.
• International Society of Logistics
• The art and science of management, engineering,
  and technical activities concerned with
  requirement, design, and supplying and
  maintaining resources to support objectives,
  plans. and operations.

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Logistics Definitions

• Famous Nebulous
• World War ? Chief of US Naval Operations Admiral
  Ernest H. King I dont know what the hell this
  logistics is that (Army Chief of Staff General
  George C.) Marshall is always taking about, but I
  want some of it.
• Biblical
• I have heard of youthat light and
  under-standing and excellent wisdom are found in
  youI have heard that you give interpretations
  and solve problemsyou shall be clothed with
  purple and have a

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Logistics Definitions

• Utility
• Providing time and place utility/value of
  materials and products in support of organization
  objectives.
• Council of Logistics Management
• 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
  origin to point of consumption in order to meet
  customers requirements.

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Logistics Definitions

• Component
• Supply management for the plant (inbound
  logistics) and distribution management for the
  firms customers (outbound logistics) or material
  support of manufacturing and product support of
  marketing operations.
• Functional
• Materials requirement determination, purchasing,
  transportation, inventory management,
  warehousing, materials handling, industrial
  packaging, facility location analysis,
  distribution, return goods handling, information
  management, customer service, and all other
  activities concerned with supporting the internal
  stores) with product customer (manufacturing)with
  materials and the external customer (retail
  stores) with product.
• Common culture
• Handling the details of an activity.

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Logistics lies in making the best use of
resources

• Resources-based perspective
• A sort of enterprise logic which lay emphasis on
  the core capability and invisible asset
• Enterprise as a combination of visible and
  invisible asset. (Collis and Montgomery, 1995)
• Resources hierarchy model
• The logistics role includes acquiring resource
  formally, owning resource necessarily, mobilizing
  resource positively, managing resource
  systematically, and using the resource
  functionally.
• Logistics as a philosophy
• A philosophy in the use of resources
• Lead the modern managers to make good use of the
  internal and external resources in the
  traditional enterprise, reengineer the
  corporation effectively with careful calculation,
  and leap over the boundaries of traditional
  corporations so as to propose new operation model
  as well as recreate new business opportunity of
  logistics and turn into high-quality
  businesspersons.

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Resources hierarchy model

• using .. functionally
• managing .systematically
• mobilizing positively
• Owning... necessarily
• Acquiring. formally

resource
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Logistics stresses the use of tools for fluent
delivery

• Tools
• Communication tools
• Storage Facility
• Transport system
• Information technology
• Regulation system
• The future development in logistics field will
  also advance with the improvement of technology

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The best use of human resource

• Human resources
• Personal competence
• Corporation capability
• Logistics is also a science and an art in making
  use of human resource for accomplishing the task
  commissioned by the clients with personal
  competence and corporation capability
• Waste no talent

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An integrated logistics management system

• Supply system
• Customer system
• Business system
• Goods-flow system
• Information system
• Cash flow system

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A teaching and research framework
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The Best Achievement among Generations Ever

• Sustained business is the basic hypothesis of
  enterprises
• Sustained competitive advantage could be The
  Best Achievement among Generations Ever.
• Logistics depends on logistics support in
  accomplishing The Best Achievement among
  Generations Ever

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The future development of logistics

• Logistics is a sort of philosophy in using
  resources, including human resources, tools, and
  material
• Logistics is a sort of strategic planning for
  developing sustained competitive advantage
• Logistics is an fully integrated support
  management system
• Logistics is a sort of new classical business
  model for meeting the customers needs with
  careful calculation

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Summary

• The new paradigm
• Logistics is logic, wisdom, calculations, models,
  networks, inventories, transportation,
  distribution, customer service, time-and-place
  utility, storage, flow, details, optimization,
  and collaborating.
• A set of support activities
• Being responsive to customer requirements for
  materials, goods, and services
• A science of developing and managing the
  capabilities an protocols that are responsive to
  customer-driven service requirements.

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The end
Thanks for your listening!!