Chapter one Overview of Logistics Text 1: Logistics : what it is Text 2: Activities in the logistical System Supplementary reading: Career in Logistics

Learning objective To understand the definition of logistics To learn the activities in logistics system To know about logistics career

Text One: Logistics : what it is Key terms Logistics 物流 definition of logistics 物流的定义 Council of Logistics Management (CLM) 物流管理 flow and storage of goods 物品的流动和存储 plan, implement and control 计划，实行和控制 customer requirements 客户需求

Definition of logistics Definition provided by CSCM (Council of Supply Chain Management Professionals ) logistics is 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 meeting customer requirements.

Analysis of logistics definition logistics is a process of “ plan, implement, and control.” That means—logistics should be involved in all three activities, planning, implementing,controlling—not just one or two

Analysis of logistics definition (cont’) Definition also refers to “ efficient and effective flow and storage ”. Question: what is the differences between these two words “efficient” and “effective”?

Analysis of logistics definition (cont’) The definition also indicates that logistics involves the flow and storage of “ goods, services, and related information.” That means-- logistics is as much about the flow and storage of information as it is about the flow and storage of goods. Advances in information technology make it increasingly easy—and less costly—for companies to obtain important information to make logistical decision.

Analysis of logistics definition (cont’) Finally, the definition indicates that the purpose of logistics is to meet customer requirements. This implies that logistics strategies and plans should be based upon customer wants and needs.

Notes: 1. Logistics is a hot topic in China and the whole world. Although it is anything but a newborn baby, lots of people still have limited awareness of, and knowledge about logistics. 物流是一个中 国乃至全世界的热门话题。虽然它已经不是一个 新生事物了，但是不少人对物流的认识仍然有限。 be aware of something ：意识到 Example: John has been aware of having done something wrong. 约翰已意识到自己做错了事情。

2. To avoid potential misunderstanding about the meaning of logistics, this book adopts the current definition provided by the Council of Supply Chain Management Professionals (CSCMP) ——one of the world’s most prominent organizations for logistics professionals. 为了避 免可能发生的对物流含义的误解，本书采用美国 供应链管理专业协会（前身为美国物流管理协会） 目前的定义，该协会是全世界物流专业领域中最 著名的组织。 to avoid something (doing something) 避免，避 开 Example: She tried to avoid answering my questions. 她试图避而不答我的问题。

3. Logistics is 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 meeting customer requirements. 物流是计划实施和控制 商品的快速、高效流动和储存，以及从源头到消 费的服务和信息的全过程，以满足客户的需求。 这里我们要注意 efficient and effective 这两个词的 区别： Efficient 指的是效率高的, 有能力的，而 effective 强调的是有效的，有影响的。

4. First, logistics is a process of “plan, implement, and control.” Of particular importance is the word “and”, which suggests that logistics should be involved in all three activities, planning, implementing, controlling—not just one or two. 首先，物流是 “ 计划，执行与控制 ” 。特 别重要的是这个 “ 与 ” 字，它指出物流应该包 括所有这三方面 —— 计划，执行和控制 — — 而不仅仅是其中一个或两个方面。

Topic for Discussion: 讨论话题 1. Is logistics a new concept? If it is not, do you know anything about the origin and history of logistics? Please share the information you have with your group member. 2. How much do you know about the literal meaning of logistics?

Text Two: Activities in the logistical System Key Terms: demand forecasting 需求预测 transportation 运输 warehousing 仓储 inventory management 库存管理 material handling 物料搬运 packaging 包装 information processing 信息处理 procurement 采购 production planning 生产计划 customer service 客户服务

Logistical activities: Activities include: demand forecasting, transportation, warehousing, inventory control, material handling, packaging, information processing, procurement, production planning, customer service ……

Demand forecasting Demand forecasting refers to efforts to estimate product demand in a future time period. Question: Why demand forecasting is important for a company? Look up the answer from your textbook

Transportation: Transportation refer to the physical movement of goods from point of origin to point of consumption it involves selection of the transport mode, routing of the shipment, compliance with regulation in the region of the country, and selection of carriers. Transportation is often the most costly logistics activity

Inventory Management Inventory refers to stocks of good that are maintained for a variety of purposes, such as for resale to others, as well as to support manufacturing or assembling processes.

Warehousing Warehousing refers to places where inventory can be stored for a particular period of time. In the past decades, important changes have occurred with respect to the role of warehousing in contemporary logistics system

Packaging Packaging can have both a marketing (consumer packaging) and logistical (industrial packaging) dimension. Industrial packaging focus on protecting the product while it is being shipped and stored. Too much packaging increases costs while inadequate protection can result in merchandise damage and, ultimately, customer dissatisfaction.

Materials handling Materials handling refers to the short- distance movement of products within the confines of a facility (e.g., plant, warehouse). Question : why managers tends to to minimize the number of handling whenever possible. Look up the answer from your textbook

Information management Information is what links all areas of the logistics system together. firms are linking their internal logistics information systems with those of their suppliers, customers and other partner. Such an open exchange of information can result in faster order placement, quicker delivery, and greater accountability throughout the logistics process.

Procurement Procurement refers to the raw materials, component parts, and supplies bought from outside organizations to support a company’s operation. Production planning It can be concluded under logistics because manufacturing need component and raw materials in order to mike finished goods that are, in turn, demanded by a customer.

Customer service Customer service involves making sure that the right person receive the right product with the right quantity at the right place at the right time in the right condition at the right cost.

Note 1. Inventory refers to stocks of good that are maintained for a variety of purposes, such as for resale to others, as well as to support manufacturing or assembling processes. 存货指的是为不同目的而保留的储存货物，例 如要转卖给他人的货物，用于支持生产或组装过程的货物。 A variety of 种种，若干。 2. Warehousing refers to places where inventory can be stored for a particular period of time. In the past decades, important changes have occurred with respect to the role of warehousing in contemporary logistics system. 仓库指 的是一段时间内用来存储存货的地方。在过去的十年中， 仓储在现代物流系统中的角色发生了重要的变化。 With respect to 关于，至于。

3. Packaging can have both a marketing (consumer packaging) and logistical (industrial packaging) dimension. 包装包括营销包装（消费 包装）和物流包装（工业包装）两种类型。 4. Materials handling refers to the short-distance movement of products within the confines of a facility (e.g., plant, warehouse). 物资搬运指的是 产品在同一设施（如工厂，仓库）内的短距离移 动。 5. Procurement refers to the raw materials, component parts, and supplies bought from outside organizations to support a company’s operation. 采购是指从公司外部购买原材料，零 部件以支持公司的运作。

6. Customer service involves making sure that the right person receive the right product with the right quantity at the right place at the right time in the right condition at the right cost. 客户服务包括要以恰当的成本使恰当的客户在恰 当的时间，恰当的地点以恰当的状况和恰当的价 格收到他想要的（恰当的）产品。这 7 个恰当 “rights” 就是物流服务的核心理念，他和 CSCMP 所定义的物流的目的，任务是吻合的，只是关注 的角度不同，因此也有学者用这 7 个 “ 恰当 ” 来定义 “ 物流 ” 这个概念。

Exercises: Please translate the following English sentences into Chinese 1) For example, if a company promises that all orders will be shipped within 24 hours of receipt, what percentage of orders are actually shipped within 24 hours of receipt? 2) Transportation refer to the physical movement of goods from point of origin to point of consumption, it involves selection of the transport mode, routing of the shipment, compliance with regulation in the region of the country, and selection of carriers.

3)To achieve good inventory management, logisticians need to balance the cost of maintaining additional products on hand against the risk of not having those items when the customer wants them. 4) Such an open exchange of information can result in faster order placement, quicker delivery, and greater accountability throughout the logistics process. 5) We should keep in mind that one logistics system does not fit all companies. The number of activities in a logistics system can vary from company to company.

Debate Propositions: 1. According to the definition given by CSCMP, the purpose of logistics is to meet customer requirements. But how about the company’s need and benefit? If we always focus on making the customers happy, the company’s profit might drop. What is your idea about this dilemma ( 进退 两难的局面, 困难的选择 )? 2. Some people think logistical professionals should get higher salary, do you agree?