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Logistics is 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 conforming to customer requirements.

The mission of logistics is to get the right goods or services to the right place, at
the right time, and in the desired condition and quantity in relation to customers
order.

Main  and decisions:

? cooperate with marketing to set customer service levels,

? facility location decisions

? transportation activities ( transportation mode selection, vehicle scheduling,

carrier routing)

? inventory management (inventory short -term forecasting, planning and

control, cooperate with production to calculate EOQ, sequence and time
production),

? information collection and flows and order processing,

? warehousing and materials handling,

? packaging and packing,

›ccording to the Council of Supply Chain Management Professionals (former
Council of Logistics Management): ³Supply Chain Management is the systemic,
strategic coordination of the traditional business functions and the tactics across
business functions within a particular company and across businesses within the
supply chain for the purposes of improving the long- term performance of the
individual companies and a supply chain as a whole´

Ñ  ± relationship matrix Cooper and Slagmulder distinguished

four key decisions and activities areas in the integrated supply chains, such as:

? configuration of product and network, which covers the decisions concerning

the main rules of cooperation,

? formation of the production network, mainly the choice of production facility

and warehousing locations as well as their capabilities,

? product design with involvement the research and development abilities of

suppliers,

? process optimization in order to reduce cycle times and inventory level in the
cost-effective way.

? delivering raw - materials, parts or modules for the final goods producers,

? delivering customer goods to wholesalers or selling small quantities of this

goods to the final customers,

? providing transportation and forwarding services,

? manufacturing goods and providing other services for market niches which
are considered as not enough profitable for big companies.
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SCM has been interpreted bï
 

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    procurement of materials, transformation of these
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finished products t    ï  stated that SCM consists of
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To understand the key issues in Logistic and Supply chain management of the
different level, these levels are-

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The decision making at this level is made with long term objectives and with long
lasting effects. These include decisions regarding location of various facilities,
including the manufacturing plant, distribution warehouses and the structure of the
distribution channel.


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|ecision making at this level is concerned with purchasing and production
functions, inventory policies and transportation strategies. These decisions will be
usually updated on an annual basis.



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|ecision making at operational level will concern day to day management of
activities such as scheduling, routing and vehicle loading etc.
Your text provided details of some of the key issues identified by the authors. Your
text is laid out in that line. The key issues in contemporary supply chain
management are:

ï? $ $% &': This issue deals with the design of

a distribution network to serve a specific market. This will consist of a set of
warehouses and retail outlets, together with the manufacturing plant and
supply sources. The design will be based on consideration of location and
 capacity of each of these elements. The total network cost will include the
costs of inventory at various levels and costs of transportation between
various facilities. This will also determine the level of service available to
the customers.

ï? c("This is concerned with the levels of inventory to be held

at various points in the supply chain. ›s inventory represents costs, the
sensible approach is to hold as low an inventory as possible but businesses
are forced to hold inventories as a buffer to counter the affects of an
uncertain demand. How to minimise the uncertainty and therefore the
necessity of holding unnecessary inventory which increases the cost at the
end?? This is one of the key issues in supply chain management.

ï? %  ("The distribution strategy is concerned with the

distribution of the firm's products. There are several strategies available such
as cross-docking, the classical distribution strategy or direct shipping. Which
one is the best suitable for the firm to achieve its supply chain and corporate
goals??

ï?
(     "This is concerned
with the complex issue of strategic inter organisational partnership for
achieving competitive advantage. This is about sharing of information and
efficient use of the information for coordinating business processes to
 deliver a superior value to the customers. How to achieve this and what are
the challenges? This is one of the emerging issues in supply chain
management.

ï?   "This is concerned with the design of the product and its
impact on total cost of the product. How does the design of a product affect
the various cost elements within the supply chain? It is possible that the
design determines the strategies to be followed regarding inventory or
transportation. The design may also determine the length of the product life
cycle and the extent of uncertainty associated with demand for this product.
How to leverage design to achieve supply chain management objectives.

ï? c$)( ()"The enabling role

of information and communication technologies has been identified. The
concerns of contemporary supply chain management are the efficient use of
modern technology including the Internet and computerised decision support
systems. The technology allows acquisition of vast quantity of data,
information and their subsequent processing in accordance with selected
decision criteria. Will these technologies emerge as key determinants of
success in the management of supply chains?
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ï? ›dhitya ›., Srinivasan R. and Karimi I. ›., ³› model-based re scheduling

framework for managing abnormal supply chain events´, Journal of
Computers and Chemical Engineering, (31: 5/6), ·
, pp. 496-518.