The relationship of logistics to supply chain management: developing a common industry definition
| Date | 01 November 2001 |
| Published date | 01 November 2001 |
| Pages | 426-432 |
| DOI | https://doi.org/10.1108/02635570110406730 |
| Author | Rhonda R. Lummus,Dennis W. Krumwiede,Robert J. Vokurka |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
The relationship of logistics to supply chain
management: developing a common industry
definition
Rhonda R. Lummus
College of Business, Iowa State University, Ames, Iowa, USA
Dennis W. Krumwiede
College of Business, Idaho State University, Pocatello, Idaho, USA
Robert J. Vokurka
Dwight Look College of Engineering, Texas A&M University, College Station,
Texas, USA
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 maõÃtre 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 (which restricts mobility and
causes diseconomies) and shortages of
essential equipment.
Over time, the application of logistics has
moved into the business arena. Although
several business fields have separately
defined logistics, one organization, APICS
(Cox et al., 1998), defines logistics in both the
military and the business contexts:
In an industrial context, the art and science of
obtaining, producing, and distributing
material and product in the proper place and
in proper quantities. In a military sense
(where it has greater usage), its meaning can
also include the movement of personnel.
In a true business context, Cavinato (1982)
has defined logistics as:
... the management of all inbound and
outbound materials, parts, supplies, and
finished goods. Logistics consists of the
integrated management of purchasing,
transportation, and storage on a functional
basis. On a channel basis, logistics consists of
the management of the pre-production, in-
production, and post-production channels.
The term logistics should be distinguished
from physical distribution in that the latter
normally applies to only the post-production
channel.
It should be noted that this definition
expands logistics beyond merely physical
distribution by including both incoming and
outgoing materials.
The professional organization most closely
associated with the logistics profession is the
Council of Logistics Management (CLM).
CLM (1998) defines logistics as:
...the process of planning, implementing, and
controlling the efficient, 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. Note
that this definition includes inbound,
outbound, internal and external movements,
and return of materials for environmental
purposes.
Even though the common definition for
logistics is very broad, the individuals
actively working in logistics as a profession
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[ 426 ]
Industrial Management &
Data Systems
101/8 [2001] 426±431
#MCB University Press
[ISSN 0263-5577]
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.
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