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I n t r o d u c t i o n to L o g i s t i c s

Discover the significance of logistics in the shipping industry, from its origins in military operations to its role in global supply chain management. Explore key activities, sectors, and major steps in logistics, uncovering its importance in meeting customer requirements efficiently and effectively. Gain insights into the rise of logistical operations, major wars impacting logistics, and the evolution of shipping practices over time.

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I n t r o d u c t i o n to L o g i s t i c s

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  1. I n t r o d u c t i o ntoL o g i s t i c s K Y Ng Shenship.com 17 September 2008

  2. 1. What is Logistics 2. Why it comes 3. How it works 4. Where it goes

  3. 1. What is Logistics ?

  4. A Fashionable but Puzzling Word in Nowadays’Shipping Industry ….after adding…

  5. -CommercePolicy… Real Time Customer Service Knowledge Management e-Supply Chain Management

  6. Pioneers in e-Commerce www.amazon.com www.dell.com www.ebay.com

  7. SURVEY: LOGISTICSThe physical internetJun 15th 2006From The Economist print editionLike information on the internet, goods are moving around the world with ever greater efficiency.

  8. Logistics Sectors • Military Logistics • Public-Sector logistics • Business Logistics • International Logistics • Domestic Logistics • Service Industry Logistics • Coordinating and Managing Logistics • 3rd Party Logistics • 4th Party Logistics • etc…..

  9. Customer Service Demand Forecasting/Planning Inventory Management Logistics Communications Material Handling Order Processing Packaging Parts & Services Support Plant & Warehouse Site Selection Procurement Return Goods Handling Reverse Logistics Traffic & Transportation Warehouse & Storage Key Activities

  10. Oxford Advanced Learner’s Dictionary 4th Edition 1994Logistics:Organization of supplies and services, etc. for any complex operation 後 勤 支 援 服 務

  11. 貨 物 流 程 管 理 S u p p l y C h a i n M a n a g e m e n t

  12. Logistics ………..is concerned with effective and efficient movement of goods,services, funds andinformation at the right time at the right place andin the right order……… - Professor Kevin CULLINANE

  13. “Getting the right productto the right place, in the right quantity at the right time, in the best condition and at an acceptable cost, in the supply chain “ - Institute of Logistics and Transport -

  14. “ Logistics is 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 the point of origin to the point of consumption in order to meet customers' requirements “- Council of Logistics Management - plans implements controls effective flow point point of of origin consumption customers' requirements

  15. Major Steps in Global SCM

  16. LIU ChuanzhiFounder of Lenovo

  17. Procurement, Production, Sales & Marketing, R&D, Services, etc. SCM ERP CRM CFM HRM Organization Structure, Vision, Mission, Core Value, Company Culture, Policy, etc.

  18. The tool that helpscompanies deliver values at the lowest cost

  19. 2. Why it comes ? The term was first associated with the military but gradually spread to cover business activities

  20. (1838 ) Henri, baron de Jomini “Summary ofthe Art of War” defined logistics as “the practical art of moving armies,” by which he evidently meant the whole range of functions involved in moving and sustaining military forces—planning, administration, supply, billeting and encampments, bridge and road building. The word, he said, was derived from the title of the major général (or maréchal) des logis in French 18th-century armies, who, like his Prussian c ounterpart, the Quartiermeister, had originally been responsible for the administrative arrangements for marches, encampments, and troop quarters (logis). (1890 ) Alfred Thayer Mahan “Influenceof Sea Power upon History 1660–1783” introduced logistics into U.S. naval usage and gave it an important role in his theory of sea power .

  21. 1914 - 1918 The World War I 1941 - 1945 The World War II1945 - 1975 The Vietnam War1991 The Gulf War2001 The Afghanistan War2003 The Iraq War Military logistics operations demonstrated how distribution activities could be integrated into a single system

  22. 1901 John F. Crowell, Report of the Industrial Commission on the Distribution of Farm Products. Vol.6 (Washington, DC : Government Printing Office ) The first text to deal with the costs and factors affecting the distribution of farm products

  23. Conventional Shipping 1930s Containerization is an important element of the logistics revolution that changed freight handling in the 20th century. Malcolm McLean is the “The Man who puts the Boxes on the ship“ in the 1930s in New Jersey… m.s.”Sealand Quality”

  24. 1980s Development and implementation of MRP, MRPII, ERP, DRP, WMS Use of computers, especially PCs Widespread implementation of these techniques highlighted the need for Integrating logistics activities and maximizing their effectiveness

  25. 1990s Globalization + substantial productivity growth of China and other Countries J I T Re-engineering Workflow Software Apps/ e-Commerce/ Web Portal Out-sourcing/ Off-shoring Costs Leadership Down Sizing M&A

  26. The top nine countries of the world account for 66% of the world’s GDPUnited States (26%)Japan (8%)Germany (6%)China (6%)United Kingdom (5%)France (5%)Italy (4%)Spain (3%)Canada (3%)

  27. US Companies make their revenue abroad..Exxon Mobil - 72.2 %HP - 66.6%Dow Chemical - 65.9%P&G - 58.2%GE - 49.0%Johnson & Johnson - 46.9%General Motors - 44.2%Boeing - 40.7%Dell - 38.9%Wal-Mart - 23.9%Source : Tompkins Associates I 06 August 2008

  28. S C M 2000s vs S C M

  29. 3. How it works ?

  30. O l d E c o n o m y 流 程 表 現 的 量 度 顧 客

  31. N e w E c o n o m y 流 程 表 現 的 量 度 顧 客

  32. It’s the FAST that eats the SLOW It’s not the BIG that eats the SMALL……..

  33. Up Productivity Transaction Costs 75 – 85 % Transformation Costs 15 -25%

  34. End-to-end Solution Desk Door Port Port Door Desk

  35. Will you raise a Cow to get a Milk a day?? =

  36. Economy of Scale

  37. by …Outsourcing Management

  38. Fee Models of Outsourcing

  39. 1. Cost  Plus Profit / Handling fee for Contractors is fixed…. operating costs to re-bill Company. No motivator to maximize the efficiency and minimize the costs… as no gain… No motivator

  40. 2. Gain Sharing Contractors are motivated to boost up productivity and minimize costs. Costlyanduneasy to identify and analyze the gain.

  41. 3.  Fixed Price Contractors will try their best to minimize costs and boost up productivity Gain isguaranteed…

  42. 4. Where it goes ?

  43. Future Challenges • Globalization • Imbalance of Trade Technological Progress • Technological Progress • Market Recognitions • Environmental Conscious • Global Ban on Terrorism and Quarantine

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