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Keywords
Supply-chain management, Logistics, Transportation method, Distribution
Abstract
Over the past few years there has been confusion and disagreement among general business practitioners and operations professionals concerning the terms "logistics" and "supply chain management". Various formal definitions have been offered for both terms. In addition, the common usage of each term in industry varies. Business terms are often defined over time, by the common use or application of the term. Examines the historical definitions of both terms, looks at current practitioner views of the terms, and proposes a hierarchy for the relationship between logistics and supply chain management.
History and definitions of logistics
It is a common notion that logistics involves the movement of physical goods from one location to another. As long ago as the construction of the great pyramids, man was concerned with how to move materials to a construction site. The expansion from Europe to the Americas is another example of significant logistical challenges. Early references to logistics are found primarily in military applications. In an article as early as 1898 (Simpson and Weiner, 1989) logistics is discussed as:
Strategy is the art of handling troops in the theatre of war; tactics that of handling them on the field of battle ... The French have a third process, which they call logistics, the art of moving and quartering troops.
A 1947 publication (Simpson and Weiner, 1989) on the science of war stated:
The Americans use the word "logistics" to describe the technique of packing stores ... It is derived from the French maitre du logie.
Logistics received much attention from the military during both World Wars. The Second World War necessitated greater movement of troops and supplies than any other period in history. A Dictionary of Modern War
(Luttwak, 1971) described logistics as:
... all the activities and methods connected with the supply of armed force organizations, including storage requirements, transport and distribution. Since in modern conditions a wide range of equipment and supplies is employed in widely varied "mixes", logistics involves a great deal of planning and calculation as well as physical activities. The aim is to provide each echelon of the armed force organization with the optimum quantity of each supply item, in order to minimize both overstocking...