Logistics engineering

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Logistics engineering is a field of engineering dedicated to the scientific organization of the purchase, transport, storage, distribution, and warehousing of materials and finished goods. Logistics engineering is a complex science that considers trade-offs in component/system design, repair capability, training, spares inventory, demand history, storage and distribution points, transportation methods, etc., to ensure the "thing" is where it's needed, when it's needed, and operating the way it's needed all at an acceptable cost.

Contents

Overview

Logistics is generally concerned with cost centre service activities, but provides value via improved efficiency and customer satisfaction. It can quickly lose that value if the customer becomes dissatisfied. The end customer can include another process or work center inside of the manufacturing facility, a warehouse where items are stocked or the final customer who will use the product. Another approach which has appeared in recent years is the supply chain management. The supply chain also looks at an efficient chaining of the supply / purchase and distribution sides of an organization. While logistics looks at single echelons with the immediate supply and distribution linked up, supply chain looks at multiple echelons/stages, right from procurement of the raw materials to the final distribution of finished goods up to the customer. It is based on the basic premise that the supply and distribution activities if integrated with the manufacturing / logistic activities, can result in better profitability for the organization. The local minimum of total cost of the manufacturing operation is getting replaced by the global minimum of total cost of the whole chain, resulting in better profitability for the chain members and hence lower costs for the products.

Logistics engineering as a discipline is a very important aspect of systems engineering that also includes reliability engineering. It is the science and process whereby reliability, maintainability, and availability are designed into products or systems. It includes the supply and physical distribution considerations above as well as more fundamental engineering considerations. Logistics engineers work with complex mathematical models that consider elements such as mean time between failures (MTBF), mean time to failure (MTTF), mean time to repair (MTTR), failure mode and effects analysis (FMEA), statistical distributions, queueing theory, and a host of other considerations. For example, if we want to produce a system that is 95% reliable (or improve a system to achieve 95% reliability), a logistics engineer understands that total system reliability can be no greater than the least reliable subsystem or component. Therefore, our logistics engineer must consider the reliability of all subcomponents or subsystems and modify system design accordingly. If a subsystem is only 50% reliable, one can concentrate on improving the reliability of that subsystem, design in multiple subsystems in parallel (5 in this case would achieve approximately 97% reliability of that subsystem), purchase and store spare subsystems for rapid change out, establish repair capability that would get a failed subsystem back in operation in the required amount of time, and/or choose any combination of those approaches to achieve the optimal cost vs. reliability solution. Then the engineer moves onto the next subsystem.

Terminology

There are few differences between the terms business logistics and logistics engineering. Logistics engineering is more focused on the mathematical or scientific application of logistics. [1]

Fields and topics

The various fields and topics that logistics engineers are involved with include:

Performance metrics

Different performance metrics (measures of performance) are used to examine the efficiency of an organization's logistics. The most popular and widely used performance metric is the landed cost. The landed cost is the total cost of purchasing, transporting, warehousing and distributing raw materials, semi-finished and finished goods.

Another performance metric equally important is the end customer fill rate. It is the percentage of customer demand which is satisfied immediately off-the-shelf (from on-site inventory). An alternative to fill rate, is system availability.

In recent years, the United States Department of Defense (DoD) has advocated the use of performance-based logistics (PBL) contracts to manage costs for support of weapon systems.

Education

Many top universities offer Logistics engineering programs at undergraduate and graduate levels. These programs generally combine strategy, operations, facility design, technology and management. The following institutions provide Logistics engineering programs around the world:

See also

Associations

Related Research Articles

<span class="mw-page-title-main">Supply chain management</span> Management of the flow of goods and services

In commerce, supply chain management (SCM) deals with a system of procurement, operations management, logistics and marketing channels, through which raw materials can be developed into finished products and delivered to their end customers. A more narrow definition of supply chain management is the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronising supply with demand and measuring performance globally". This can include the movement and storage of raw materials, work-in-process inventory, finished goods, and end to end order fulfilment from the point of origin to the point of consumption. Interconnected, interrelated or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain.

<span class="mw-page-title-main">Logistics</span> Management of the flow of resources

Logistics is the part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the point of consumption according to the needs of customers. Logistics management is a component that holds the supply chain together. The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items.

<span class="mw-page-title-main">Supply chain</span> System involved in supplying a product or service to a consumer

A supply chain, sometimes expressed as a "supply-chain", is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers. Meanwhile, supply chain management deals with the flow of goods within the supply chain in the most efficient manner.

<span class="mw-page-title-main">Logistics automation</span> Application of computer software or automated machinery

Logistics automation is the application of computer software or automated machinery to improve the efficiency of logistics operations. Typically this refers to operations within a warehouse or distribution center, with broader tasks undertaken by supply chain engineering systems and enterprise resource planning systems.

Engineering management is the application of engineering methods, tools, and techniques to business management systems. Engineering management joins together the technological problem-solving ability of engineering and the organizational, administrative, legal and planning abilities of management in order to oversee the operational performance of complex engineering-driven enterprises.

<span class="mw-page-title-main">Cross-docking</span> Practice in logistics of unloading directly to customer or other transportation

Cross-docking is a logistical practice of Just-In-Time Scheduling where materials are delivered directly from a manufacturer or a mode of transportation to a customer or another mode of transportation. Cross-docking often aims to minimize overheads related to storing goods between shipments or while awaiting a customer's order. This may be done to change the type of conveyance, to sort material intended for different destinations, or to combine material from different origins into transport vehicles with the same or similar destinations.

Purchasing is the procurement process a business or organization uses to acquire goods or services to accomplish its goals. Although there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations.

<span class="mw-page-title-main">Distribution center</span> Building stocked with goods for delivery

A distribution center for a set of products is a warehouse or other specialized building, often with refrigeration or air conditioning, which is stocked with products (goods) to be redistributed to retailers, to wholesalers, or directly to consumers. A distribution center is a principal part, the order processing element, of the entire order fulfillment process. Distribution centers are usually thought of as being demand driven. A distribution center can also be called a warehouse, a DC, a fulfillment center, a cross-dock facility, a bulk break center, and a package handling center. The name by which the distribution center is known is commonly based on the purpose of the operation. For example, a "retail distribution center" normally distributes goods to retail stores, an "order fulfillment center" commonly distributes goods directly to consumers, and a cross-dock facility stores little or no product but distributes goods to other destinations.

<span class="mw-page-title-main">Cold chain</span> Low-temperature supply chain

Cold chain is a set of rules and procedures that ensure the systematic coordination of activities for ensuring temperature-control of goods while in storage and transit. The objective of a cold chain is to preserve the integrity and quality of goods such as pharmaceutical products or perishable good from production to consumption. Cold chain management earned its name as a "chain" because it involves linking a set of storage locations and special transport equipment, required for ensuring that temperature conditions for goods are met, while they are in storage or in transit from production to consumption, akin to the interconnected links of a physical chain.

Inventory control or stock control can be broadly defined as "the activity of checking a shop's stock". It is the process of ensuring that the right amount of supply is available within a business. However, a more focused definition takes into account the more science-based, methodical practice of not only verifying a business's inventory but also maximising the amount of profit from the least amount of inventory investment without affecting customer satisfaction. Other facets of inventory control include forecasting future demand, supply chain management, production control, financial flexibility, purchasing data, loss prevention and turnover, and customer satisfaction.

<span class="mw-page-title-main">Nile University</span> Research and entrepreneurial university in Giza

Nile University (NU) (Arabic: جامعة النيل) is the first non-profit, research and entrepreneurial university in Egypt. Founded in July 2006 with the support of the Egyptian Ministry of Communications and Information Technology. The university has undergraduate programs and graduate programs alongside its research centers. It is located in Juhayna Square on 26 July Corridor, Sheikh Zayed, Giza. It includes 5 Schools: School of Engineering and Applied Sciences, School of Information Technology and Computer Science, School of Business Administration, School of Biotechnology, Graduate School of Management of Technology.

The following outline is provided as an overview of and topical guide to business management:

<span class="mw-page-title-main">Packaging engineering</span> Broad topic ranging from design conceptualization to product placement

Packaging engineering, also package engineering, packaging technology and packaging science, is a broad topic ranging from design conceptualization to product placement. All steps along the manufacturing process, and more, must be taken into account in the design of the package for any given product. Package engineering is an interdisciplinary field integrating science, engineering, technology and management to protect and identify products for distribution, storage, sale, and use. It encompasses the process of design, evaluation, and production of packages. It is a system integral to the value chain that impacts product quality, user satisfaction, distribution efficiencies, and safety. Package engineering includes industry-specific aspects of industrial engineering, marketing, materials science, industrial design and logistics. Packaging engineers must interact with research and development, manufacturing, marketing, graphic design, regulatory, purchasing, planning and so on. The package must sell and protect the product, while maintaining an efficient, cost-effective process cycle.

Materials management is a core supply chain function and includes supply chain planning and supply chain execution capabilities. Specifically, materials management is the capability firms use to plan total material requirements. The material requirements are communicated to procurement and other functions for sourcing. Materials management is also responsible for determining the amount of material to be deployed at each stocking location across the supply chain, establishing material replenishment plans, determining inventory levels to hold for each type of inventory, and communicating information regarding material needs throughout the extended supply chain.

<span class="mw-page-title-main">Humanitarian logistics</span>

Although logistics has been mostly utilized in commercial supply chains, it is also an important tool in disaster relief operations. Humanitarian logistics is a branch of logistics which specializes in organizing the delivery and warehousing of supplies during natural disasters or complex emergencies to the affected area and people. However, this definition focuses only on the physical flow of goods to final destinations, and in reality, humanitarian logistics is far more complicated and includes forecasting and optimizing resources, managing inventory, and exchanging information. Thus, a good broader definition of humanitarian logistics is the process of planning, implementing and controlling the efficient, cost-effective flow and storage of goods and materials, as well as related information, from the point of origin to the point of consumption for the purpose of alleviating the suffering of vulnerable people.

<span class="mw-page-title-main">Industrial engineering</span> Branch of engineering which deals with the optimization of complex processes or systems

Industrial engineering is an engineering profession that is concerned with the optimization of complex processes, systems, or organizations by developing, improving and implementing integumentary systems of people, money, knowledge, information and equipment. Industrial engineering is central to manufacturing operations.

Merge-in-transit (MIT) is a distribution method in which several shipments from suppliers originating at different locations are consolidated into one final customer delivery. This removes the need for distribution warehouses in the supply chain, allowing customers to receive complete deliveries for their orders. Under a merge-in-transit system, merge points replace distribution warehouse. In today's global market, merge-in-transit is progressively being used in telecommunications and electronic industries. These industries are usually dynamic and flexible, in which products have been developed and changed rapidly.

Sustainable distribution refers to any means of transportation / hauling of goods between vendor and purchaser with lowest possible impact on the ecological and social environment, and includes the whole distribution process from storage, order processing and picking, packaging, improved vehicle loadings, delivery to the customer or purchaser and taking back packaging.

Third-party logistics is an organization's long term commitment of outsourcing its distribution services to third-party logistics businesses.

Industrial and production engineering (IPE) is an interdisciplinary engineering discipline that includes manufacturing technology, engineering sciences, management science, and optimization of complex processes, systems, or organizations. It is concerned with the understanding and application of engineering procedures in manufacturing processes and production methods. Industrial engineering dates back all the way to the industrial revolution, initiated in 1700s by Sir Adam Smith, Henry Ford, Eli Whitney, Frank Gilbreth and Lilian Gilbreth, Henry Gantt, F.W. Taylor, etc. After the 1970s, industrial and production engineering developed worldwide and started to widely use automation and robotics. Industrial and production engineering includes three areas: Mechanical engineering, industrial engineering, and management science.

References

  1. G. Don Taylor, Logistics Engineering Handbook, CRC Press 2007
  2. "ALRT Engineering | Logisztikai folyamatok tervezése, fejlesztése".
  3. "ТУ - София - Инженерна логистика". www.tu-sofia.bg. Retrieved 2023-12-13.
  4. "FIU Engineering Management | Master Science Logistics Engineering". em.fiu.edu. Archived from the original on 2017-07-19.
  5. Aston BSc Logistics with Supply Chain Management
  6. Fisher College of Business MBLE Program
  7. Hong Kong Logistics Programs
  8. Logistics Engineering – JAMK

Further reading