Logistics - (business definition) Logistics is defined as a business planning framework for the management of material, service, information and

capital flows. It includes the increasingly complex information, communication and control systems required in today's business environment. -- (Logistix
Partners Oy, Helsinki, FI, 1996)

Logistics - (military definition) The science of planning and carrying out the movement and maintenance of forces.... those aspects of military operations that deal with the design and development, acquisition, storage, movement, distribution, maintenance, evacuation and disposition of material; movement, evacuation, and hospitalization of personnel; acquisition of construction, maintenance, operation and disposition of facilities; and acquisition of furnishing of services. -- (JCS Pub 1-02 excerpt) Logistics - The procurement, maintenance, distribution, and replacement of personnel and materiel. -(Websters Dictionary)

Logistics - 1. The branch of military operations that deals with the procurement, distribution, maintenance, and replacement of materiel and personnel. 2. The management of the details of an operation. [French logistiques, from logistique, logic (perhaps influenced by loger, to quarter), from Medieval Latin logisticus, of calculation.] -- (American Heritage Dictionary) Logistics - ...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 conforming to customer requirements." Note that this definition includes inbound, outbound, internal, and external movements, and return of materials for environmental purposes. -- (Reference: Council of
Logistics Management, http://www.clm1.org/mission.html, 12 Feb 98)

Logistics - The process of planning, implementing, and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of meeting customer requirements. -- (Reference: Canadian Association of
Logistics Management, http://www.calm.org/calm/AboutCALM/AboutCALM.html, 12 Feb, 1998)

Logistics - The science of planning, organizing and managing activities that provide goods or services. -(MDC, LogLink / LogisticsWorld, 1997)

Logistics - Logistics is the science of planning and implementing the acquisition and use of the resources necessary to sustain the operation of a system. -- (Reference: ECRC University of Scranton / Defense
Logistics Agency Included with permission from: HUM - The Government Computer Magazine "Integrated Logistics" December 1993, Walter Cooke, Included with permission from: HUM - The Government Computer Magazine.)

Logist - To perform logistics functions or processes. The act of planning, organizing and managing activities that provide goods or services. (The verb "to logist." Eg. She logisted the last operation. I will logist the next operation. I am logisting the current operation. We logist the operations. The operations are well logisted.) -- (MDC, LogLink / LogisticsWorld, 1997) Logistic - Of or pertaining to logistics. -- (MDC, LogLink / LogisticsWorld, 1997) Logistical - Of or pertaining to logistics, logistics-like. -- (MDC, LogLink / LogisticsWorld, 1997) Logistics Functions - (classical) planning, procurement, transportation, supply, and maintenance. -(United States Department of Defense DOD)

Logistics Processes - (classical) requirements determination, acquisition, distribution, and conservation. -- (United States Department of Defense DOD)

Business Logistics - The science of planning, design, and support of business operations of procurement, purchasing, inventory, warehousing, distribution, transportation, customer support, financial and human resources. -- (MDC, LogLink / LogisticsWorld, 1997) Cradle-to-Grave - Logistics planning, design, and support which takes in to account logistics support throughout the entire system or product life cycle. -- (MDC, LogLink / LogisticsWorld, 1997) Acquisition Logistics - Acquisition Logistics is everything involved in acquiring logistics support equipment and personnel for a new weapons system. The formal definition is "the process of systematically identifying, defining, designing, developing, producing, acquiring, delivering, installing, and upgrading logistics support capability requirements through the acquisition process for Air Force systems, subsystems, and equipment. -- (Reference: Air Force Institute of Technology, Graduate School of Acquisition and Logistics.) Integrated Logistics Support (ILS) (1) - ILS is a management function that provides planning, funding, and functioning controls which help to assure that the system meets performance requirements, is developed at a reasonable price, and can be supported throughout its life cycle. -- (Reference: Air Force Institute
of Technology, Graduate School of Acquisition and Logistics.)

Integrated Logistics Support (ILS) (2) - Encompasses the unified management of the technical logistics elements that plan and develop the support requirements for a system. This can include hardware, software, and the provisioning of training and maintenance resources. -- (Reference: ECRC University of Scranton /
Defense Logistics Agency Included with permission from: HUM - The Government Computer Magazine "Integrated Logistics" December 1993, Walter Cooke.)

Logistics Support Analysis (LSA) - Simply put, LSA is the iterative process of identifying support requirements for a new system, especially in the early stages of system design. The main goals of LSA are to ensure that the system will perform as intended and to influence the design for supportability and affordability. -- (Reference: Air Force Institute of Technology, Graduate School of Ac

FCL, LCL, CY, and CFS The respective meaning of the terms FCL, LCL, CY, and CFS is as follows:

FCL ----- full container load; full carload LCL ----- less than container load; loose container load; less than carload; loose carload CY CFS ----- container yard ----- container freight station

FCL versus LCL The word carload relates to the rail car. The FCL and LCL are differentiated, in practice, on whether the 'whole container' or 'not the whole container' is intended for the consignee. The FCL means the load reaches its allowable maximum (or full) weight or measurement. In practice, however, the FCL in the ocean freight does not always mean packing a container to its full payload or full capacity. For example, an exporter books a 20' container that is intended for a consignee at FCL flat rate of US$1,500. If the consignment occupies 500 cu. ft. and weighs 5,000 kgs. only, the case is still FCL and the exporter has to pay US$1,500. If an exporter intends to pack a container to the full capacity or full payload with the consignments of two or more consignees for the same destination, the case is LCL and the carrier will charge the LCL freight rate on each consignment. In the LCL arrangement, the shipper is required to deliver the cargo to the carrier's container freight station for containerization, thus there is no guarantee that the two or more consignments from the same exporter will share the same container. In some cases, the exporter is allowed to pack the container at their premises in the LCL arrangement, and then the carrier uses that same container to pack in more cargo from other shipper(s) to make a full container load at the container freight station. Referring to the Case Sample: Container Selection (1), if the importer maintains the order at 1,500 cartons and no forwarder is involved, and if the high cube container service is not available, it may mean that there will be one 40' FCL plus 135 cartons LCL. A combination of FCL and LCL in a consignment, which is a typical aftermath from the cargo overflow, is a poor exporting and importing practice, taking into account the additional freight and other charges in both countries. All 1,500 cartons can be shipped by LCL, but the freight cost can be higher and the cargo may be exposed to a higher risk of damage and loss.

CY versus CFS The CY and CFS apply to the manner and the location of the cargo delivery and receipt in a container service. The CY is the delivery (or receipt) of a whole container from (or at) the shipper's or the forwarder's (or the consignee's) cargo yard or premises. The CFS is the delivery (or receipt) of loose cargo from (or at) the carrier's container freight station. The container freight station (CFS) is operated by the carrier for the receipt, forwarding, and assembling or disassembling of cargo. Normally, the container freight station is a customs clearance center. The CFS service may be necessary under any of the following circumstances:

The kind of cargo and quantity of order does not warrant the use of the whole container. The shipper's or the consignee's premises are inaccessible by container due to poor road conditions (e.g. narrow road) and location (e.g. remote area not served by container). The overall load of vehicle exceeds the legal limitation. The shipper or the consignee lacks the necessary container loading or unloading equipment.

Modes of CY and CFS Container Services

CY/CY Container Service The CY/CY (read as 'CY to CY') container service---door-to-door container service or house-to-house container service---broadly means that the whole container received by the carrier is packed at the shipper's or the forwarder's premises, and the delivery of that same whole container to the consignee's premises. In a related term door-to-door service, which is often used in the cargo forwarding and may involve the LCL, refers to a type of freight service available from a forwarder whereby the cargo is picked up at the consignor's premises and delivered to the consignee's premises.

CY/CFS Container Service The CY/CFS (read as 'CY to CFS') container service---door-to-port container service--broadly means that the whole container received by the carrier is packed at the shipper's or the forwarder's premises, and that same whole container is emptied at the carrier's container freight station at the port of destination. The consignee arranges the delivery of the loose cargo from the container freight station to his/her premises.

CFS/CY Container Service The CFS/CY (read as 'CFS to CY') container service---port-to-door container service-- broadly means that the delivery of the loose cargo to the carrier's container freight station at the port of origin is packed into the whole container, and the delivery of that same whole container to the consignee's premises.

CFS/CFS Container Service The CFS/CFS (read as 'CFS to CFS') container service---port-to-port container service or pier-to-pier container service---broadly means that the delivery of the loose cargo to the carrier's container freight station at the port of origin is packed into the whole container, and that same whole container is emptied at the carrier's container freight station at the port of destination. The consignee arranges the delivery of the loose cargo from the container freight station to his/her premises.

supply chain management (SCM)

Definition
Management of material and information flow in a supply chain to provide the highest degree of customer satisfaction at the lowest possible cost. Supply chain management requires the commitment of supply chain partners to work closely to coordinate order generation, order taking, and order fulfillment. They thereby create an extended enterprise spreading far beyond the producer's location.

Definition

supply chain management (SCM)

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Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed). As a solution for successful supply chain management, sophisticated software systems with Web interfaces are competing with Web-based application service providers (ASP) who promise to provide part or all of the SCM service for companies who rent their service. Supply chain management flows can be divided into three main flows:

The product flow The information flow The finances flow

The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs. The information flow involves transmitting orders and updating the status of delivery. The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements. There are two main types of SCM software: planning applications and execution applications. Planning applications use advanced algorithms to determine the best way to fill an order. Execution applications track the physical status of goods, the management of materials, and financial information involving all parties. Some SCM applications are based on open data models that support the sharing of data both inside and outside the enterprise (this is called the extended enterprise, and includes key suppliers, manufacturers, and end customers of a specific company). This shared data may reside in diverse database systems, or data warehouses, at several different sites and companies. By sharing this data "upstream" (with a company's suppliers) and "downstream" (with a company's clients), SCM applications have the potential to improve the time-to-market of products, reduce costs, and allow all parties in the supply chain to better manage current resources and plan for future needs. Increasing numbers of companies are turning to Web sites and Web-based applications as part of the SCM solution. A number of major Web sites offer e-procurement marketplaces where manufacturers can trade and even make auction bids with suppliers.