An illustration of a company's supply chain; the arrows stand for supplier-relationship management, internal SCM and customer-relationship management

(cf. Chen/Paulraj, 2004)Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996). Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption (supply chain). Idea The definition one American professional association put forward is that Supply Chain Management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies. More recently, the loosely coupled, self-organizing network of businesses that cooperates to provide product and service offerings has been called the Extended Enterprise. Supply Chain Management can also refer to Supply chain management software which are tools or modules used in executing supply chain transactions, managing supplier relationships and controlling associated business processes. Supply chain event management (abbreviated as SCEM) is a consideration of all possible occurring events and factors that can cause a disruption in a supply chain. With SCEM possible scenarios can be created and solutions can be planned. Supply Chain Management Problems Supply chain management must address the following problems: Distribution Network Configuration: Number, location and network missions of suppliers, production facilities, distribution centers, warehouses, cross-docks and customers. Distribution Strategy: Including questions of operating control (centralized, decentralized or shared); delivery scheme (e.g., direct shipment, pool point shipping, Cross docking, DSD (direct store delivery), closed loop shipping); mode of transportation (e.g., motor carrier, including truckload, LTL, parcel; railroad; intermodal, including TOFC and COFC; ocean freight; airfreight); replenishment strategy (e.g., pull, push or hybrid); and transportation control (e.g., owner-operated, private carrier, common carrier, contract carrier, or 3PL). Trade-Offs in Logistical Activities The above activities must be coordinated well together in order to achieve the least total logistics cost. Trade-offs exist that increase the total cost if only one of the activities is optimized. For example, full truckload (FTL) rates are more economical on a cost per pallet basis than less than truckload (LTL) shipments. If, however, a full truckload of a

product is ordered to reduce transportation costs there will be an increase in inventory holding costs which may increase total logistics costs. It is therefore imperative to take a systems approach when planning logistical activities. These trade-offs are key to developing the most efficient and effective Logistics and SCM strategy. Information: Integration of and other processes through the supply chain to share valuable information, including demand signals, forecasts, inventory, transportation, and potential collaboration etc. Inventory Management: Quantity and location of inventory including raw materials, work-in-progress (WIP) and finished goods. Cash-Flow: Arranging the payment terms and the methodologies for exchanging funds across entities within the supply chain. Supply chain execution is managing and coordinating the movement of materials, information and funds across the supply chain. The flow is bi-directional. Activities/functions Supply chain management is a cross-functional approach to manage the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and then the movement of finished goods out of the organization toward the end-consumer. As organizations strive to focus on core competencies and becoming more flexible, they have reduced their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other entities that can perform the activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing management control of daily logistics operations. Less control and more supply chain partners led to the creation of supply chain management concepts. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and improving inventory velocity. Several models have been proposed for understanding the activities required to manage material movements across organizational and functional boundaries. SCOR is a supply chain management model promoted by the Supply Chain Management Council. Another model is the SCM Model proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can be grouped into strategic, tactical, and operational levels of activities. Strategic Strategic network optimization, including the number, location, and size of warehouses, distribution centers and facilities. Strategic partnership with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping, and third-party logistics. Product design coordination, so that new and existing products can be optimally integrated into the supply chain, load management Information Technology infrastructure, to support supply chain operations.

Where-to-make and what-to-make-or-buy decisions Aligning overall organizational strategy with supply strategy. Tactical Sourcing contracts and other purchasing decisions. Production decisions, including contracting, scheduling, and planning process definition. Inventory decisions, including quantity, location, and quality of inventory. Transportation strategy, including frequency, routes, and contracting. Benchmarking of all operations against competitors and implementation of best practices throughout the enterprise. Milestone payments Focus on customer demand. Operational Daily production and distribution planning, including all nodes in the supply chain. Production scheduling for each manufacturing facility in the supply chain (minute by minute). Demand planning and forecasting, coordinating the demand forecast of all customers and sharing the forecast with all suppliers. Sourcing planning, including current inventory and forecast demand, in collaboration with all suppliers. Inbound operations, including transportation from suppliers and receiving inventory. Production operations, including the consumption of materials and flow of finished goods. Outbound operations, including all fulfillment activities and transportation to customers. Order promising, accounting for all constraints in the supply chain, including all suppliers, manufacturing facilities, distribution centers, and other customers... Supply chain management Organizations increasingly find that they must rely on effective supply chains, or networks, to successfully compete in the global market and networked economy.[2] In Peter Drucker's (1998) management's new paradigms, this concept of business relationships extends beyond traditional enterprise boundaries and seeks to organize entire business processes throughout a value chain of multiple companies. During the past decades, globalization, outsourcing and information technology have enabled many organizations, such as Dell and Hewlett Packard, to successfully operate solid collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities (Scott, 1993). This inter-organizational supply network can be acknowledged as a new form of organization. However, with the complicated interactions among the players, the network structure fits neither "market" nor "hierarchy" categories (Powell, 1990). It is not clear what kind of performance impacts that different supply network structures could have on firms, and little is known about the coordination conditions and trade-offs that may exist among the players. From a system's point of view, a complex network structure can be decomposed into individual component firms (Zhang and Dilts, 2004). Traditionally, companies in a supply network concentrate on the inputs and outputs of the processes, with little concern for the internal

management working of other individual players. Therefore, the choice of an internal management control structure is known to impact local firm performance (Mintzberg, 1979). In the 21st century, there have been a few changes in business environment that have contributed to the development of supply chain networks. First, as an outcome of globalization and the proliferation of multi-national companies, joint ventures, strategic alliances and business partnerships, there were found to be significant success factors, following the earlier "Just-In-Time", "Lean Management" and "Agile Manufacturing" practices.[3] Second, technological changes, particularly the dramatic fall in information communication costs, which are a paramount component of transaction costs, have led to changes in coordination among the members of the supply chain network (Coase, 1998). Many researchers have recognized these kinds of supply network structures as a new organization form, using terms such as "Keiretsu", "Extended Enterprise", "Virtual Corporation", "Global Production Network", and "Next Generation Manufacturing System".[4] In general, such a structure can be defined as "a group of semi-independent organizations, each with their capabilities, which collaborate in ever-changing constellations to serve one or more markets in order to achieve some business goal specific to that collaboration" (Akkermans, 2001). The security management system for supply chain is described in ISO/IEC 28000 and ISO/IEC 28001 and related standards published jointly by ISO and IEC. Developments in Supply Chain Management Six major movements can be observed in the evolution of supply chain management studies: Creation, Integration, and Globalization (Lavassani et al., 2008a), Specialization Phases One and Two, and SCM 2.0. 1. Creation Era The term supply chain management was first coined by an American industry consultant in the early 1980s. However the concept of supply chain in management, was of great importance long before in the early 20th century, especially by the creation of the assembly line. The characteristics of this era of supply chain management include the need for large scale changes, reengineering, downsizing driven by cost reduction programs, and widespread attention to the Japanese practice of management. 2. Integration Era This era of supply chain management studies was highlighted with the development of Electronic Data Interchange (EDI) systems in the 1960s and developed through the 1990s by the introduction of Enterprise Resource Planning (ERP) systems. This era has continued to develop into the 21st century with the expansion of internet-based

collaborative systems. This era of SC evolution is characterized by both increasing valueadded and cost reduction through integration. 3. Globalization Era The third movement of supply chain management development, globalization era, can be characterized by the attention towards global systems of supplier relations and the expansion of supply chain over national boundaries and into other continents. Although the use of global sources in the supply chain of organizations can be traced back to several decades ago (e.g. the oil industry), it was not until the late 1980s that a considerable number of organizations started to integrate global sources into their core business. This era is characterized by the globalization of supply chain management in organizations with the goal of increasing competitive advantage, creating more valueadded, and reducing costs through global sourcing. 4. Specialization Era -- Phase One -- Outsourced Manufacturing and Distribution In the 1990s industries began to focus on core competencies and adopted a specialization model. Companies abandoned vertical integration, sold off non-core operations, and outsourced those functions to other companies. This changed management requirements by extending the supply chain well beyond the four walls and distributing management across specialized supply chain partnerships. This transition also refocused the fundamental perspectives of each respective organization. OEMs became brand owners that needed deep visibility into their supply base. They had to control the entire supply chain from above instead of from within. Contract manufacturers had to manage bills of material with different part numbering schemes from multiple OEMs and support customer requests for work -in-process visibility and vendor-managed inventory (VMI). The specialization model creates manufacturing and distribution networks composed of multiple, individual supply chains specific to products, suppliers, and customers who work together to design, manufacture, distribute, market, sell, and service a product. The set of partners may change according to a given market, region, or channel, resulting in a proliferation of trading partner environments, each with its own unique characteristics and demands. 5. Specialization Era -- Phase Two -- Supply Chain Management as a Service Specialization within the supply chain began in the 1980s with the inception of transportation brokerages, warehouse management, and non asset based carriers and has matured beyond transportation and logistics into aspects of supply planning, collaboration, execution and performance management. At any given moment, market forces could demand changes within suppliers, logistics providers, locations, customers and any number of these specialized participants within

supply chain networks. This variability has significant effect on the supply chain infrastructure, from the foundation layers of establishing and managing the electronic communication between the trading partners to the more-complex requirements, including the configuration of the processes and work flows that are essential to the management of the network itself. Supply chain specialization enables companies to improve their overall competencies in the same way that outsourced manufacturing and distribution has done; it allows them to focus on their core competencies and assemble networks of best in class domain specific partners to contribute to the overall value chain itself thus increasing overall performance and efficiency. The ability to quickly obtain and deploy this domain specific supply chain expertise without developing and maintaining an entirely unique and complex competency in house is the leading reason why supply chain specialization is gaining popularity. Outsourced technology hosting for supply chain solutions debuted in the late 1990s and has taken root in transportation and collaboration categories most dominantly. This has progressed from the Application Service Provider (ASP) model from approximately 1998 through 2003 to the On-Demand model from approximately 2003-2006 to the Software as a Service (SaaS) model we are currently focused on today. 6. Supply Chain Management 2.0 (SCM 2.0) Building off of globalization and specialization, SCM 2.0 has been coined to describe both the changes within the supply chain itself as well as the evolution of the processes, methods and tools that manage it in this new "era". Web 2.0 is defined as a trend in the use of the World Wide Web that is meant to increase creativity, information sharing, and collaboration among users. At its core, the common attribute that Web 2.0 brings is it helps us navigate the vast amount of information available on the web to find what we are looking for. It is the notion of a usable pathway. SCM 2.0 follows this notion into supply chain operations. It is the pathway to SCM results the combination of the processes, methodologies, tools and delivery options to guide companies to their results quickly as the complexity and speed of the supply chain increase due to the effects of global competition, rapid price flucuations, surging oil prices, short product life cycles, expanded specialization, near/far and off shoring, and talent scarcity. SCM 2.0 leverages proven solutions designed to rapidly deliver results with the agility to quickly manage future change for continuous flexibility, value and success. This is delivered through competency networks composed of best of breed supply chain domain expertise to understand which elements, both operationally and organizationally, are the critical few that deliver the results as well as the intimate understanding of how to manage these elements to achieve desired results, finally the solutions are delivered in a variety of options as no-touch via business process outsourcing, mid-touch via managed

services and software as a service (SaaS), or high touch in the traditional software deployment model. Supply chain business process integration This article may require copy-editing for grammar, style, cohesion, tone or spelling. You can assist by editing it now. A how-to guide is available. (October 2007) Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes. An example scenario: the purchasing department places orders as requirements become appropriate. Marketing, responding to customer demand, communicates with several distributors and retailers as it attempts to satisfy this demand. Shared information between supply chain partners can only be fully leveraged through process integration. Supply chain business process integration involves collaborative work between buyers and suppliers, joint product development, common systems and shared information. According to Lambert and Cooper (2000) operating an integrated supply chain requires continuous information flow. However, in many companies, management has reached the conclusion that optimizing the product flows cannot be accomplished without implementing a process approach to the business. The key supply chain processes stated by Lambert (2004) [5] are: Customer relationship management Customer service management Demand management Order fulfillment Manufacturing flow management Supplier relationship management Product development and commercialization Returns management One could suggest other key critical supply business processes combining these processes stated by Lambert such as: Customer service management Procurement Product development and commercialization Manufacturing flow management/support Physical distribution Outsourcing/partnerships Performance measurement a) Customer service management process Customer Relationship Management concerns the relationship between the organization and its customers. Customer service provides the source of customer information. It also provides the customer with real-time information on promising dates and product

availability through interfaces with the company's production and distribution operations. Successful organizations use following steps to build customer relationships: determine mutually satisfying goals between organization and customers establish and maintain customer rapport produce positive feelings in the organization and the customers b) Procurement process Strategic plans are developed with suppliers to support the manufacturing flow management process and development of new products. In firms where operations extend globally, sourcing should be managed on a global basis. The desired outcome is a winwin relationship, where both parties benefit, and reduction times in the design cycle and product development are achieved. Also, the purchasing function develops rapid communication systems, such as electronic data interchange (EDI) and Internet linkages to transfer possible requirements more rapidly. Activities related to obtaining products and materials from outside suppliers requires performing resource planning, supply sourcing, negotiation, order placement, inbound transportation, storage, handling and quality assurance, many of which include the responsibility to coordinate with suppliers in scheduling, supply continuity, hedging, and research into new sources or programmes. c) Product development and commercialization Here, customers and suppliers must be united into the product development process, thus to reduce time to market. As product life cycles shorten, the appropriate products must be developed and successfully launched in ever shorter time-schedules to remain competitive. According to Lambert and Cooper (2000), managers of the product development and commercialization process must: coordinate with customer relationship management to identify customer-articulated needs; select materials and suppliers in conjunction with procurement, and develop production technology in manufacturing flow to manufacture and integrate into the best supply chain flow for the product/market combination. d) Manufacturing flow management process The manufacturing process is produced and supplies products to the distribution channels based on past forecasts. Manufacturing processes must be flexible to respond to market changes, and must accommodate mass customization. Orders are processes operating on a just-in-time (JIT) basis in minimum lot sizes. Also, changes in the manufacturing flow process lead to shorter cycle times, meaning improved responsiveness and efficiency of demand to customers. Activities related to planning, scheduling and supporting manufacturing operations, such as work-in-process storage, handling, transportation, and time phasing of components, inventory at manufacturing sites and maximum flexibility in the coordination of geographic and final assemblies postponement of physical distribution operations. e) Physical distribution This concerns movement of a finished product/service to customers. In physical distribution, the customer is the final destination of a marketing channel, and the

availability of the product/service is a vital part of each channel participant's marketing effort. It is also through the physical distribution process that the time and space of customer service become an integral part of marketing, thus it links a marketing channel with its customers (e.g. links manufacturers, wholesalers, retailers). f) Outsourcing/partnerships This is not just outsourcing the procurement of materials and components, but also outsourcing of services that traditionally have been provided in-house. The logic of this trend is that the company will increasingly focus on those activities in the value chain where it has a distinctive advantage and everything else it will outsource. This movement has been particularly evident in logistics where the provision of transport, warehousing and inventory control is increasingly subcontracted to specialists or logistics partners. Also, to manage and control this network of partners and suppliers requires a blend of both central and local involvement. Hence, strategic decisions need to be taken centrally with the monitoring and control of supplier performance and day-to-day liaison with logistics partners being best managed at a local level. g) Performance measurement Experts found a strong relationship from the largest arcs of supplier and customer integration to market share and profitability. By taking advantage of supplier capabilities and emphasizing a long-term supply chain perspective in customer relationships can be both correlated with firm performance. As logistics competency becomes a more critical factor in creating and maintaining competitive advantage, logistics measurement becomes increasingly important because the difference between profitable and unprofitable operations becomes more narrow. A.T. Kearney Consultants (1985) noted that firms engaging in comprehensive performance measurement realized improvements in overall productivity. According to experts internal measures are generally collected and analyzed by the firm including Cost Customer Service Productivity measures Asset measurement, and Quality. External performance measurement is examined through customer perception measures and "best practice" benchmarking, and includes 1) customer perception measurement, and 2) best practice benchmarking. Components of Supply Chain Management are 1. Standardization 2. Postponement 3. Customization [edit] Theories of Supply Chain Management Currently there exists a gap in the literature available in the area of supply chain management studies, on providing theoretical support for explaining the existence and the boundaries of supply chain management. Few authors such as Halldorsson, et al. (2003), Ketchen and Hult (2006) and Lavassani, et al. (2008b) had tried to provide theoretical

foundations for different areas related to supply chain with employing organizational theories. These theories includes: Resource-based view (RBV) Transaction Cost Analysis (TCA) Knowledge-based view (KBV) Strategic Choice Theory (SCT) Agency theory (AT) Institutional theory (InT) Systems Theory (ST) Network Perspective (NP) Components of Supply Chain Management Integration The management components of SCM The SCM components are the third element of the four-square circulation framework. The level of integration and management of a business process link is a function of the number and level, ranging from low to high, of components added to the link (Ellram and Cooper, 1990; Houlihan, 1985). Consequently, adding more management components or increasing the level of each component can increase the level of integration of the business process link. The literature on business process reengineering,[6] buyer-supplier relationships,[7] and SCM[8] suggests various possible components that must receive managerial attention when managing supply relationships. Lambert and Cooper (2000) identified the following components which are: Planning and control Work structure Organization structure Product flow facility structure Information flow facility structure Management methods Power and leadership structure Risk and reward structure Culture and attitude However, a more careful examination of the existing literature[9] will lead us to a more comprehensive structure of what should be the key critical supply chain components, the "branches" of the previous identified supply chain business processes, that is, what kind of relationship the components may have that are related with suppliers and customers accordingly. Bowersox and Closs states that the emphasis on cooperation represents the synergism leading to the highest level of joint achievement (Bowersox and Closs, 1996). A primary level channel participant is a business that is willing to participate in the inventory ownership responsibility or assume other aspects of financial risk, thus including primary level components (Bowersox and Closs, 1996). A secondary level participant (specialized), is a business that participates in channel relationships by performing essential services for primary participants, thus including secondary level components, which are in support of primary participants. Third level channel

participants and components that will support the primary level channel participants, and which are the fundamental branches of the secondary level components, may also be included. Consequently, Lambert and Cooper's framework of supply chain components does not lead us to the conclusion about what are the primary or secondary (specialized) level supply chain components (see Bowersox and Closs, 1996, p.g. 93). That is, what supply chain components should be viewed as primary or secondary, how these components should be structured in order to have a more comprehensive supply chain structure, and to examine the supply chain as an integrative one (See above sections 2.1 and 3.1). Reverse Supply Chain Reverse logistics is the process of planning, implementing and controlling the efficient, effective inbound flow and storage of secondary goods and related information opposite to the traditional supply chain direction for the purpose of recovering value or proper disposal. Reverse logistics is also referred to as "Aftermarket Customer Services". In other words, anytime money is taken from a company's Warranty Reserve or Service Logistics budget, that is a Reverse Logistics operation.

Logistics is defined as handling an operation that involves providing labour and materials to be supplied as needed. E-logistics is defined to be the mechanism of automating logistics processes and providing an integrated, end-to-end fulfilment and supply chain management services to the players of logistics processes. Those logistics processes that are automated by e-logistics provide supply chain visibility and can be part of existing e-Commerce or Workflow systems in an enterprise. (Watson Research Center, 2007).

In a typical E-logistics process, three components come into play: Request for Quotes (RFQ), Shipping and Tracking. The Logistics intercommunicate with the business process manager in an e-commerce server. It is the role of the business service manager to invoke the RFQ (request for Quote) process. After getting the response, the purchase order is updated, after which the shipping process is invoked by the business process manager. Once the products are shipped for the specified destination, the tracking number is then provided to the customer. This tracking number is mapped to the PO number in an e-commerce system. This facilitates easy tracking of shipments for the customers. This is the essential interaction of a business process manager and e-logistics.

Supply Chain Management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible. A retail supply chain may pose a few challenges like linking the consumer in the supply chain planning

process, managing product life cycles, promotional planning, planning for seasonal products, determining cost-effective supply channels, forecasting (CPFR) and scheduling in a volatile economic environment and many more. (Wipro Technologies, 2007).

The process of Supply Chain Management includes the movement and storage of all raw materials, current inventory, and the finished commodities from point-of-origin to pointof-consumption. The Supply Chain Management process embraces all related aspects including planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. It also involves effective integration of supply and demand management, both within and between companies.

The process of Supply Chain Management is all-inclusive, comprehensive, complex and needs to address issues like:

Distribution Strategy: Centralized versus decentralized, direct shipment, Cross docking, pull or push strategies, third party logistics; Distribution Network Configuration: Supplier location, number of suppliers, production facilities, distribution centres, warehouses and customers; Inventory Management; Cash-Flow and streamlined information process i.e. integration of systems and processes through the supply chain which includes information like demand signals, forecasts, inventory and transportation etc to be shared.

In order to stay within the league of competitors and successfully compete in the global market, it is important for the organizations that they rely on effective supply chains and networks. In simple words, distribution can be described as a commercial activity of transporting and selling goods from a producer to a consumer. A distributor actually serves as a middle man between the manufacturer and retailer. Today, a distribution channel may constitute one or all of the following:

Direct selling, via email or internet. An agent who sells on behalf of the producer A distributor (or wholesaler)who sells to the retailer

A retailer who sells goods to its customers

Distribution in effect is an important aspect of marketing. The other aspects include product management, pricing and information

From Logistics to Supply Chain Management with SAP By Jan Wouters & Dennis Pronk for ITtoolbox ERP Knowledge Base Wouters has 20 years experience in SCM and IT, and has served as a SAP consultant and project manager for PwC, SAP and Capgemini. Pronk works for Capgemini as a SCM consultant, specializing in Forecasting & Demand Management. Summary: SAP and Capgemini have conducted earlier this year a survey at 76 Dutch companies that use SAP as main business application. The study focused on the maturity of and satfisfaction on the main supply chain processes within these companies. The usage of SAP functionality to support these business processes was also part of the survey. The study gives insight in the stages of supply chain maturity and best practices in leading companies. Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers (frequently, and originally, military organizations). Logistics involve the integration of information, transportation, inventory, warehousing, material-handling, and packaging. Logistics is a channel of the supply chain which adds the value of time and place utility. Contents: 1. Origins and definition 2. Logistician 3. Military logistics 4. Logistics management 5. Definitions of logistics outsourcing (3PL) 6. Clarification of definitions of third-party logistics 7. Logistics Management Software 8. Business logistics 9. Production logistics 10. References 1. Origins and definitionThe term "logistics" originates from the ancient Greek "" ("logos""ratio, word, calculation, reason, speech, oration").

Logistics is considered to have originated in the military's need to supply themselves with arms, ammunition and rations as they moved from their base to a forward position. In ancient Greek, Roman and Byzantine empires, there were military officers with the title Logistikas who were responsible for financial and supply distribution matters. Inside Nexus Distribution, a United States-based logistics provider. Image shows goods stacked on pallets with forklift. The Oxford English dictionary defines logistics as: The branch of military science having to do with procuring, maintaining and transporting material, personnel and facilities.Another dictionary definition is: "The time related positioning of resources." As such, logistics is commonly seen as a branch of engineering which creates "people systems" rather than "machine systems".... 2. LogisticianLogistician is the profession in the logistics & transport sectors, including sea, air, land and rail modes. Professional qualifications for the logisticians can carry post-nominal letters. Common examples include FCILT/CMILT/MILT (by The Chartered Institute of Logistics & Transport) (CILT), EJLog/ESLog/EMLog (by European Logistics Association) (ELA), CPL/CTP (by Transport & Logistics Certification Council of Australia) (TLCC), PLog (by Canadian Professional Logistics Institute, CITT (by Canadian Institute of Traffic and Transportation), CML/CPL (by International Society of Logistics) (SOLE), JrLog/Log/SrLog (by China Federation of Logistics & Purchasing) (CFLP), FHKLA/MHKLA (by Hong Kong Logistics Association) (HKLA), PLS/CTL/DLP (by American Society of Transportation & Logistics) (AST&L). However, some universities (i.e. Istanbul University, Turkey) and academic institutions do help in producing logisticians, by offering academic degree programmes at both undergraduate and postgraduate levels, too. 3. Military logisticsIn military logistics, logistics officers manage how and when to move resources to the places they are needed. In military science, maintaining one's supply lines while disrupting those of the enemy is a crucialsome would say the most crucial element of military strategy, since an armed force without resources and transportation is defenseless. The defeat of the British in the American War of Independence, and the defeat of Erwin Rommel in World War II, have been largely attributed to logistical failure.[citation needed] The historical leaders Hannibal Barca, Alexander the Great and the Duke of Wellington are considered to have been logistical geniuses. Another field within logistics is called Medical logistics. 4. Logistics managementMain article: Logistics Management Logistics management is that part of the supply chain which 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. A professional working in the field of logistics management is called a logistician. The Chartered Institute of Logistics & Transport (CILT) was established in the United Kingdom in 1919 and was granted the Royal Charter in 1926. The Chartered Institute is one of professional bodies or institutions for the logistics & transport sectors, that offers such professional qualification or degree in logistics management. 5. Definitions of logistics outsourcing (3PL)Logistics outsourcing, or third-party logistics (3PL), involves the utilization of external organizations to execute logistics activities that have traditionally been performed within an organization itself. [1] According to this definition, third party logistics includes any form of outsourcing of logistics activities previously performed in-house. If, for example, a company with its own transport facilities decides to employ external warehouse specialist, this would be an example of third party logistics. Another definition [2] has it as long and short-term contracts of alliances between manufacturing and service firms and third-party logistics providers. This definition has been largely used on the needs that firm characteristics influence the decision to contract multiple third-party logistics services, and therefore, firms have to obtain cost savings and to concentrate on their core competencies. The agreement also becomes more formalized with mutual commitments from both parties. In such partnerships the partners attempt to keep their autonomy, while at the same time collaboration is vital to develop more efficient results. Sometimes, the agreement specifies that the external service provider fully or partly takes responsibility over personnel, equipment and plant of the client firmh Similar to the above definition, Hertz and Alfredsson [3] simply stated that logistics outsourcing involves an external provider who manages, controls, and delivers logistics activities on behalf of a shipper. The purpose is that both parties develop a mutually beneficial and continuous strategic relationship and all or a part of the logistics activities are performed in a satisfactory way for the partners, with the guarantee of the quality of performance and benefits involved. Nevertheless, to understand the concept of logistics outsourcing, there are five levels of logistics outsourcing, as follows [4] : 1) In-house logistics or in sourcing logistics, or reverse outsourcing: means that the firm operates its logistics activities in-house. 2) Logistics service provider (LSP), or asset-based logistics (2PL): means the management of traditional logistics functions, such as transport and warehouse. 3) Third-party logistics (3PL/TPL), or forwarding logistics, or contract logistics: This can be also a close relationship between a firm and a logistics provider not only to operate the logistics tasks but also the sharing of information, risks and benefits under long-term contract. 4) Fourth-party logistics (4PL/FPL), or supply chain logistics, or lead logistics provider (LLP): 4PL has been viewed as a single contact that manages and integrates all kinds of resources and directs 3PL function along the supply chain with the sense of strategic advantages, and long-term relationship. 5) Fifth-party logistics (5PL): means serving the

electronic business (e-business) market. Those 3PL and 4PL providers manage all the parties in the supply chain on electronic commerce (e-commerce). They key to success in this area is the information technology and information systems. 6. Clarification of definitions of third-party logisticsIn addition to the definitions of logistics outsourcing as given above, the term third party, as well as that of fourth party, can be quite confusing, thus Lynch [5] (2000), refers to the outsourcing of logistics activities to firms that are capable of providing the services, rather than to third-party or fourth-party logistics providers (3PLs and 4PLs respectively). Nevertheless, the use of the term third-party logistics (3PL) is rising considerably and therefore further discussion is needed. However third-party logistics are better defined and exemplified as follows: A 3PL is a relationship between a shipper and third party which, compared with basic services, has more customised offerings, encompasses a broader number of service functions and is characterised by a longer-term, more mutually beneficial relationship (Murphy and Poist, 2000, pg. 122). A 3PL is a logistics service provider, usually asset-based, which focuses on specific elements of the supply chain in order to optimise the physical movement of goods from the point-of-origin to the end-user (Stock and Lambert, 2001, pg. 5). According to the definitions above, the 3PL provider specialises in a range of logistics services with the purpose to sell or perform these services to firms that are involved in manufacturing and distribution activities (Baziotopoulos, 2008). For example, small trucking companies are not 3PLs; however, some 3PLs own transportation and other assets to perform logistics needs while others do not. While many definitions suggest that 3PL involves the provision of multiple distribution activities, they often do not include the concept of longer term, mutually beneficial relationships between the parties. Therefore, while logistics activities, in particular, transportation and warehousing, have been outsourced to third parties, generally on a transaction-by-transaction basis, the characteristic of the 3PL is that it, by contrast, is focused on a formal, contractual, long-term relationship between the provider and the user (Murphy and Poist, 2000, pg. 122). 7. Logistics Management SoftwareSoftware is used for logistics automation which helps the supply chain industry in automating the work flow as well as management of the system. There are very few generalized software available in the new market in the said topology. This is because there is no rule to generalize the system as well as work flow even though the practice is more or less the same. Most of the commercial companies do use one or the other of the custom solutions. But there are various software solutions that are being used within the departments of logistics. There are a few departments in Logistics, namely: Conventional Department, Container Department, Warehouse, Marine Engineering, Heavy Haulage, etc. The software used in these departments are,

Conventional department : CVT software / CTMS software / Container Trucking: CTMS software / Warehouse : WMS / 8. Business logisticsLogistics as a business concept evolved only in the 1950s. This was mainly due to the increasing complexity of supplying one's business with materials and shipping out products in an increasingly globalized supply chain, calling for experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time at the right place for the right price and is the science of process and incorporates all industry sectors. The goal of logistics work is to manage the fruition of project life cycles, supply chains and resultant efficiencies. In business, logistics may have either internal focus (inbound logistics), or external focus (outbound logistics) covering the flow and storage of materials from point of origin to point of consumption (see supply chain management). The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation and the organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions so that there is a coordination of resources in an organization. There are two fundamentally different forms of logistics. One optimizes a steady flow of material through a network of transport links and storage nodes. The other coordinates a sequence of resources to carry out some project. 9. Production logisticsThe term is used for describing logistic processes within an industry. The purpose of production logistics is to ensure that each machine and workstation is being fed with the right product in the right quantity and quality at the right point in time. The issue is not the transportation itself, but to streamline and control the flow through the value adding processes and eliminate non-value adding ones. Production logistics can be applied in existing as well as new plants. Manufacturing in an existing plant is a constantly changing process. Machines are exchanged and new ones added, which gives the opportunity to improve the production logistics system accordingly. Production logistics provides the means to achieve customer response and capital efficiency. Production logistics is getting more and more important with the decreasing batch sizes. In many industries (e.g. mobile phone) batch size one is the short term aim. This way even a single customer demand can be fulfilled in an efficient way. Track and tracing, which is an essential part of production logistics - due to product safety and product reliability issues - is also gaining importance especially in the automotive and the medical industry.

Supply chain risk management (SCRM) is "the implementation of strategies to manage both everyday and exceptional risks along the supply chain based on continuous risk assessment with the objective of reducing vulnerability and ensuring continuity".

Supply chain exposures

SCRM attempts to reduce supply chain vulnerability via a coordinated holistic approach, involving all supply chain stakeholders, which identifies and analyses the risk of failure points within the supply chain. Mitigation plans to manage these risks can involve logistics, finance and risk management disciplines; the ultimate goal being to ensure supply chain continuity in the event of a scenario which otherwise have interrupted normal business and thereby profitability. Sometimes, it's possible for supply chain logistics techniques such as supply chain optimization to prejudice contingency planning which would otherwise reduce the overall risk level for that particular supply chain.