Topic One - Overview of Logistics

MAKERERE UNIVERSITY BUSINESS SCHOOL
PROGRAMME: BTLM
YEAR OF STUDY: III
SEMESTER: II
COURSE UNIT: LOGISTICS PLANNING & REGULATIONS
COURSE CODE: BTM3202
FACILITATOR: Wilson and Herbert
1 wilson and Herbert 11/22/2021

TOPIC ONE
OVERVIEW OF LOGISTICS
Lecture outline
Introduction to Logistics
Scope of Logistics
Logistics components & Decisions
Logistics Activities
Pressures influencing Logistics systems
Logistics Functions
Importance of Logistics
Logistics Management
Introduction to Logistics
The term Logistics dates way back to the late 19 th century.
It originated from a French word ‘logistique’ which translates
into ‘lodge’ in English.

It has since been defined by various scholars as;
 ‘A branch of military science relating to procuring, maintaining
and transporting material, personnel & facilities.’

 The management of the flow of resources between the point of
origin and point of consumption for the purpose of conforming

to customer requirements.
Introduction to Logistics Cont’
 ‘the process of planning, implementing, and
controlling the efficient, effective flow and storage of
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).

The Scope of Logistics (21st Century View)
Business Logistics – supply chain process that plans, implements, and
controls the efficient, effective flow of goods, services, and related
information from the point of origin to the point of use or consumption
in order to meet customer requirements.
Military Logistics – design and integration of all aspects of support
for the operational capacity of the military forces, and their equipment
to ensure readiness, reliability, and efficiency.
Event Logistics – network of activities, facilities, and personnel
required to organize, schedule, and deploy the resources for an event to
6 take
wilsonplace and to efficiently withdraw after the event.
and Herbert 11/22/2021
Scope of Logistics Cont’
Inbound Logistics; deals with purchasing and arranging the movement of
materials, parts or finished goods from suppliers to manufacturing/

assembly plants, warehouses or retail stores.
Outbound Logistics; deals with storage and movement of the final
products and related information flows from the end of the production line
to the final user.
Reverse Logistics; the flow of surplus/unwanted materials, goods or
equipment back to the firm through its logistics chain for reuse, recycling
or disposal.
Forward Logistics; movement of the final products and related
7 information flows from point of origin to the point of consumption.11/22/2021

wilson and Herbert
Logistics Components
Purchasing
Demand forecasting
Production planning
Inventory management
Transportation
Storage & materials handling
Information processing
Packaging
Facility Location
Customer service

Logistics Decision Areas
Sourcing & Production Demand
procurement planning manageme
&inventory nt
control
Supplier information
Logistics
Customer
materials
Transportatio Order
n(inbound, Warehousing managemen
inter- facility Plant t
&outbound distribution

Logistics Activities & Decisions
Transportation: rate &contract negotiation; mode & service
selection; routing & scheduling.
Inventories: finished goods policies; supply scheduling &
short term forecasting.
Warehousing: space determination; stock layout & stock
placement.
Facility Location: determining location; number & size of
facilities
Customer service; determining customer wants; determining
customer response to service changes.
Materials handling; equipment selection; equipment
replacement; order picking procedures.
 Production scheduling: aggregate production quantities;
10
sequencing
wilson and Herbert & timing of production runs. 11/22/2021
Pressures Influencing Logistics Systems
Changing costs
Pressure for financial performance
Pressure to reduce inventory
Requirement for innovation
Constantly improving IT availability
Regulatory change
Globalization of trade

Importance of Logistics
Effectively managed logistics can enable a firm attain
the following;
 Increased revenue
 Improved operating cost structure
 Improved customer service
 Reduced overall transportation costs
 Proper coordination of resources within the
organization

Logistics Functions
These can be grouped into three namely;
 Strategic functions
 Tactical functions
 Operational functions

Strategic Logistics Functions
Where to buy from, what to buy/make
Information technology infrastructure to support
supply chain functions.
Strategic partnership with distributors, suppliers and
customers.
Aligning overall organizational strategy with supply
strategy.
Strategic network optimization e.g. the location,
number &size of warehouses and distribution centers.
Product design coordination so that new & existing
products can be optimally integrated into the supply
chain.
Tactical Logistics Functions
Inventory decisions such as; quantity and quality of
inventory
Benchmarking all operations
Sourcing contracts and other purchasing decisions.
Transportation strategy including; routing and
frequency.
Production decisions such as scheduling
Making milestone payments

Operational Functions
Demand planning & forecasting
Inbound operations such as; transportation from suppliers
and receiving inventory

Production operations
Outbound operations; transportation to customers
Daily production and distribution planning
Production scheduling for each manufacturing facility in the
supply chain.
 Accounting for all constraints in the supply chain .
Logistics Management
Defined as ‘that part of supply chain management that plans,
implements and controls the efficient and effective flow and

storage of goods ,services and related information from the point
of origin to the point of consumption for the purpose of
conforming to customer requirements’.
Objectives of Logistics Management include;
 Customer satisfaction
 Controlling inventory
 Quality improvement
 Reducing time spent at every stage of the supply chain

The End
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MAKERERE UNIVERSITY BUSINESS SCHOOL

YEAR OF STUDY: III

COURSE UNIT: LOGISTICS PLANNING & REGULATIONS

COURSE CODE: BTM3202

FACILITATOR: Wilson and Herbert

1 wilson and Herbert 11/22/2021

Logistics components & Decisions

Pressures influencing Logistics systems

It originated from a French word ‘logistique’ which translates

into ‘lodge’ in English.

 ‘A branch of military science relating to procuring, maintaining

and transporting material, personnel & facilities.’

origin and point of consumption for the purpose of conforming

5 wilson and Herbert 11/22/2021

controls the efficient, effective flow of goods, services, and related

information from the point of origin to the point of use or consumption

in order to meet customer requirements.

Military Logistics – design and integration of all aspects of support

to ensure readiness, reliability, and efficiency.

Event Logistics – network of activities, facilities, and personnel

required to organize, schedule, and deploy the resources for an event to

materials, parts or finished goods from suppliers to manufacturing/

7 information flows from point of origin to the point of consumption.11/22/2021

8 wilson and Herbert 11/22/2021

9 wilson and Herbert 11/22/2021

11 wilson and Herbert 11/22/2021

12 wilson and Herbert 11/22/2021

13 wilson and Herbert 11/22/2021

Sourcing contracts and other purchasing decisions.

Transportation strategy including; routing and

Making milestone payments

Inbound operations such as; transportation from suppliers

and receiving inventory

Outbound operations; transportation to customers

Daily production and distribution planning

Production scheduling for each manufacturing facility in the

implements and controls the efficient and effective flow and

 Reducing time spent at every stage of the supply chain

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