Logistics
refers to the complex systems of the movement of material, component
parts, and information within a business firm, and the distribution of
final products to customers. Logistics and supply chain management are
an essential function that adds value to the final product. The goal of
logistics and supply chain management is timely delivery, competitive
pricing, mobility, and flexibility, together with innovative
transportation services. Today, competitive advantages in global markets
exceed the realm of manufacturing. Companies that master information
technology and logistics are setting global standards for overall supply
chain performance. Firms with a virtual worldwide logistics system view
that carries out dynamic and continuous distribution are gaining the
competitive edge.
Every
organization is engaged in logistics if it has a purchasing function
and/or a delivery process. Prospective employers include business firms,
nonprofit organizations, and government agencies.
Anchorage and Alaska are strategically located
relative to the great markets of Europe, Asia, and the mainland United
States. More freight in tonnage passes through the Ted Stevens Anchorage
International Airport on a daily basis than any other airport in the
United States. Truck and marine transportation is crucial to supplying
Alaska with goods. The state owns a railroad, and pipelines move oil and
other fuels. The military establishment of Alaska is located here
largely because of the logistical advantages obtained from Alaska’s
strategic location. Effective development of the logistics sector
depends on the availability of a labor force that understands and can
manage logistics systems.
Definitions
Supply Chain Management: According
to the Council of Supply Chain Management Professionals, Supply Chain
Management encompasses 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.
Supply Chain Management includes managing supply
and demand, sourcing raw materials and parts, manufacturing and
assembly, warehousing and inventory tracking, order entry and order
management, distribution across all channels, and delivery to the
customer. Due to its wide scope, supply chain management must address
complex interdependencies, in effect creating an "extended enterprise"
that reaches far beyond the factory doors.
Logistics: 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 customer requirements.