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Chapter 1. Logistics Introduction

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Chapter 1. Logistics Introduction

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chinph224022c
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UNIVERSITY OF ECONOMIC AND LAW

Course

INTERNATIONAL LOGISTICS
(LOGISTICS QUỐC TẾ)

Instructor: Dr. Nguyễn Duy Quang


Email: [email protected]
2024
Vrije Universiteit Amsterdam
CHAPTER 1. INTRODUCTION

Contents
 Logistics definition
 Main activities of logistics
 Systems and total cost approaches to logistics
 Integrated logistics
 Logistics concepts
 Logistics vs supply chain management

Vrije Universiteit Amsterdam


LOGISTICS DEFINITION

 Logistics is responsible for the movement of raw materials, work-in-


process, finished inventories from suppliers through an
organization to customers.
 “Logistics management is that part of supply chain management
that plans, implements, and controls the efficient, effective forward
and reverse flow and storage of goods, services, and related
information between the point of origin and the point of
consumption in order to meet customers’ requirements.” (CSCMP)

Vrije Universiteit Amsterdam


LOGISTICS IN VIETNAM’S COMMERCIAL LAW

“Điều 233. Dịch vụ logistics


Dịch vụ logistics là hoạt động thương mại, theo đó thương nhân tổ chức
thực hiện một hoặc nhiều công việc bao gồm nhận hàng, vận chuyển, lưu
kho, lưu bãi, làm thủ tục hải quan, các thủ tục giấy tờ khác, tư vấn khách
hàng, đóng gói bao bì, ghi ký mã hiệu, giao hàng hoặc các dịch vụ khác có
liên quan đến hàng hoá theo thoả thuận với khách hàng để hưởng thù
lao. Dịch vụ logistics được phiên âm theo tiếng Việt là dịch vụ lô-gi-stíc.”

 Further detailed in Decree No. 163/2017/NĐ-CP

Vrije Universiteit Amsterdam


LOGISTICS DEFINITION

vận hành, điều phối


External Operations within External
supplier the organization bao trùm hơn doanh nghiệp customer

gỗ, bột gỗ vải cả nhà phân phối, siêu thị


nội bộ ng tiêu dùng cuối
trang thiết bị phòng học,... Internal Internal
supplier customer

cắt vải

Inbound Outbound
Materials management
logistics logistics
đầu vào: từ bên ngoài vào quản lý nguyên vật liệu
bên trong: bao gồm CO,
chứng từ XNK, đáp ứng
yc của quốc gia
Logistics

reverse forward
Source: Waters (2003)

tối ưu hóa thời gian, chi phí, vị trí,... của logistics

Vrije Universiteit Amsterdam


mục tiêu

AIMS OF LOGISTICS

 Product giao đúng, đủ,

 Customer phân phối, để DN forcast để mua sp


 Quality chất lượng sau khi vận chuyển dc đảm bảo

 Condition sự nguyên vẹn của hàng hóa


 Place giao đsung địa điểm

 Time
 Cost

Vrije Universiteit Amsterdam


MAIN ACTIVITIES OF LOGISTICS

 Customer service  Packaging


 Demand forecasting  Material handling
 Inventory management  Transportation
 Facility location decisions management
 Warehousing  Reverse logistics
management  Communication

Vrije Universiteit Amsterdam


MAIN ACTIVITIES OF LOGISTICS

Source: Waters (2003)

Vrije Universiteit Amsterdam


SYSTEMS AND TOTAL COST APPROACHES TO LOGISTICS

 Systems approach: goals and objectives of major functional


areas compatible with company’s goals and objectives
 Total cost approach: all logistics cost items considered
simultaneously when making a decision

Total logistics cost = transport cost + warehouse cost +


stock holding cost + packaging cost + information
processing cost + other logistics overheads

Vrije Universiteit Amsterdam


INTEGRATED LOGISTICS

Facility network

Warehousing
Integrated logistics
Material handling Order processing
management
Packaging

Transportation Inventory

Source: Bowersox et al. (2012)

Vrije Universiteit Amsterdam


LOGISTICS CONCEPTS – OMNI-CHANNEL RETAILING

Source: Deloitte (2015)

Vrije Universiteit Amsterdam


LOGISTICS CONCEPTS – OMNI-CHANNEL RETAILING

Physical and online channels are interchangeable and seamless

Source: Dreamtimes.com
Vrije Universiteit Amsterdam
CHANGES OF PURCHASING MODELS

Source: Zebra Technologies (2018)

Vrije Universiteit Amsterdam


LOGISTICS CONCEPTS - POSTPONEMENT

 The delay of final activities until the latest possible time


o Risk is minimized in meeting various customer demands
o Total inventory can be reduced by using inventory of the
base product
 Types
o Manufacturing postponement
o Geographic postponement

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LOGISTICS VS SUPPLY CHAIN MANAGEMENT

Supply chain consists of all links/stages involved directly or


indirectly in fulfilling customer’s request /order

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DETERGENT SUPPLY CHAIN

Paper Packaging
Timber Company
Manufacturer Company

Retailers
FMCG
Wholesalers (Wal-Mart, Customers
(P&G, Unilever)
Carrefour)

Chemical Plastic
Manufacturer Producer

Source: Chopra and Meindl (2016)

Vrije Universiteit Amsterdam


SUPPLY CHAIN MANAGEMENT

“The planning and management of all activities involved in


sourcing and procurement, conversion and all logistics
management activities. Importantly, it also includes
coordination and collaboration with channel partners,
which can be suppliers, intermediaries, third-party service
providers and customers.” (CSCMP)

Vrije Universiteit Amsterdam


LOGISTICS VS SUPPLY CHAIN MANAGEMENT

Logistics management Supply chain management


Logistics management basically consists of activities SCM refers to network among organizations
within an organization (intra-organization) coordinating to deliver products to markets
(inter-organization)
Logistics management focuses on transport, SCM consists of procurement, logistics
inventory management, warehousing, etc. activities, distribution, sales and operations,
etc.

Vrije Universiteit Amsterdam


LOGISTICS VS SUPPLY CHAIN MANAGEMENT

Source: Rushton et al. (2014)

Vrije Universiteit Amsterdam


FREIGHT FORWARDING

 Function by a freight forwarder on behalf of


shippers/consignees to arrange and ship the merchandise
 Focusing on specific areas e.g., negotiating freight
charges, booking cargo space, cargo insurance,
preparation of shipping and export documents, filing of
insurance claims, tracking transportation

Vrije Universiteit Amsterdam

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