Teacher: Ing. Eva Šlaichová, Ph.D. E-mail: eva.slaichova@tul.cz Business Logistics Teacher: Ing. Eva Šlaichová, Ph.D. E-mail: eva.slaichova@tul.cz

Sylabus of the Subject I. 1. The Way to World Class Logistics 2. Client Service 3. The Process of Creating a Logistics System 4. The Strategy of the Corporate Logistics System 5. The Relation of Methods to the Steps of the Process 6. Logistics Controlling 7. Logistics Reengineering

Sylabus of the Subject II. 8. The Total Supply Chain Concept 9. Customer Order Decoupling Point 10. Logistical Technologies I. - The Establishment of Handling Groups, KANBAN 11. Logistical Technologies II. - JIT , Quick Response, ECR, Hub and Spoke 12. Organization of the Logistics Function 13. Logistics and Transport Policy 14. Outsourcing in Logistics

Literature PERNICA, P., MOSOLF, J. H.: Partnership in Logistics. 1st ed. Prague: RADIX, 2000

Seminar Term-Work choose any theme related to the matter of logistics, e.g.: packaging, container system, handling equipment, storage facilities, transportation services etc. write ca. 5 pages text + figures and pictures presentation: 12th - 14th week of semester Sources: books, magazines, internet (http://www.manufacturing.net/lm)

History of Logistics I. Logistics were employed by one of the authors of military theory, baron Antoine Henri Jomini (1779-1869), a French general with Swiss ancestor. Logistics = a theory of movement, provisioning and accommodation of armies  military logistics.

History of Logistics II. World War II.: Logistics were successfully employed. By means of mathematical methods, a number of problems were solved on the western front in Europe, such as provisioning, transport, deployment. After the War: Logistic activities were extended for the solution of analogical problems in civilian use  beginning of Business Logistics.

Definition of Logistics I. Logistics is the process of planning, implementing and controlling the efficient, effective flow and storage of raw materials, in-process inventory, finished goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements. (Council of Logistics Management)

Definition of Logistics II. Organizing, planning, managing and materializing the goods flow, starting with development and purchases and ending with production and distribution according to the final customer´s order, so that all the requirements are met at the lowest possible cost and minimum capital expenditure. (European Logistics Association)

Definition of Logistics III. Logistics is a tremendous tool to approach systematically a private or public company in order to improve the quality according to the wishes of the clients, to improve the flexibility of the production, to integrate the total organization of partners, service suppliers, collaborators, distributors and clients. (Institute of Logistics)

Definition of Logistics IV. Seven “Rs” ensuring the availability of the RIGHT product, in the RIGHT quantity and RIGHT condition, at the RIGHT place, at the RIGHT time, for the RIGHT customer, at the RIGHT costs. (Institute of Logistics)

A View of Business Logistics In a Company

Logistical Activities I. Logistics manager may be responsible for: Traffic and transportation, Warehousing and storage, Industrial packaging, Materials handling, Inventory control, Order processing, Customer service levels, Demand forecasting,

Logistical Activities II. Procurement, Distribution communications, Plant and warehouse site location, Return goods handling, Parts and service support, Salvage and scrap disposal.

Development of Logistics I. Stage 1: Logistics were limited to distribution. Problems relating to transaction with finished products and related physical distribution were dominant. The problem of inventories was not important. This pioneering period culminated in the sixties - this approach is not used any more.

Development of Logistics II. Stage 2: Corporate logistics were gradually extended to supplying (purchases, procurement) and to production management. The method of the employment of logistics in the distribution, production and supplying departments was insular, and the effects were only partial. Time period: 1970 - 1980.

Development of Logistics III. Stage 3: Companies create complete logistical chains and systems connected with customer and supplier. The integration of corporate activities and the development of supplying, production and distribution systems is actually being materialized. It is an integrated logistics. Time period: 1980 - 2000

Development of Logistics IV. Stage 4: Integrated logistical systems will be optimized as a whole in the foreseeable future. It is a very complex, system-related problem. One of the requirements is the establishment of strategic alliances between companies, their customers, product suppliers and logistics providers.

The Strategic Factor of a Company´s Competitiveness The competition in terms of time takes place in a number of permanent fights: for a shorter delivery time, for better quality, better product variability, product complexity, shorter life cycle of products.

Product Delivery Times The tendency for product delivery times to get shorter:

Product Quality The tendency for product quality to improve:

Product Variability The tendency for product variability to increase:

Product Sophistication The tendency for product sophistication to grow:

Product Life Cycle The tendency for the product life cycle to get shorter:

Logistics Channel (Chain) The network of intermediaries engaged in transfer, storage, handling, communication, and other function that contribute to the efficient flow of goods. The logistics channel can be simple or complex.

Simple Logistics Channel

Multiechelon Logistics Channel

Complex Logistics Channel