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What is logistics ? Logistics definition and 7 right of logistics explained! - YouTube
Channel: Daily Logistics
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Welcome to daily logistics.
in this video, we are going
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to learn about what is logistics, 7
Rights in logistics, and supply chain.
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it further elaborates the functions
of logistics from the beginning.
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I recommend you to stick to the very end.
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What is Logistics ?
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Have you ever wondered about the
correct explanation for Logistics?
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The word “Logistics” first appeared
in the Summary of the Art of War”
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book by Mr. Antoine-Henri Jomini,
a military officer and a writer.
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It was attested to the English language in
early 1846 from the French word ‘Logistique’.
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The Oxford dictionary defines Logistics as
”the practical organization that is needed
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to make a complicated plan successful when
a lot of people and equipment are involved”
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or “the business of transporting
and delivering goods”.
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In the military, Logistics was defined as “The
discipline of planning and carrying out the
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movement, supply, and maintenance of military
forces”, which was crucial during world war II.
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The word was added to the commercial world due
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to its importance from a point
of production to the consumer.
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In the commercial world, Logistics
has given many definitions.
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Yet the bottom line is to improve
the efficiency of the resources.
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Logistics of a value chain contain material
handling including packing and labeling,
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transportation, warehousing, inventory
management, demand projection, and procurement.
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Looks like a simple process, but there is a lot to
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dig in within one element. Logistics play
a crucial role to keep the world running.
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Most of the time, the Logistician
does the hard work being backstage.
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i.e. Consider a situation where person A in
country B Order a product from supplier C in
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country D. To deliver the product from country
D to country B there is a lot of work involved.
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First, this product should be produced.
Supplier C has to purchase raw materials
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to produce the product. Then the product
should pack and store until it is delivered.
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Then a booking has to make from a
shipping line or from an airline.
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Then the product should deliver to the
airport or the seaport for transporting.
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Once the product is at the destination
port, from the port it should deliver to
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the customer’s doorstep. So, there are
a lot of logistics activities involved.
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The undiscussed documentation process also has a
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lot more to do along with the risk
mitigation throughout the flow.
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There are arguments on giving a clear
definition and setting a dedicated work
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to the word “Logistics”. Industry
experts were confused on whether
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to place logistics as a sub-category of
the supply chain or whether supply chain
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and Logistics are two different
categories having common terms.
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Yet there is no agreed work limit on
whether Logistics is a sub-category of
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Supply Chain or two different terms
with a common series of activities.
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Logistics is a very old term where
the supply chain is a new concept.
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Both terms target the smooth and efficient flow of
products and services from the point of origin to
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the destination. I am keeping a question mark for
you to decide what is best suited for Logistics.
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Michael Kirby of National Distribution
Centers defined Logistics and Supply Chain as
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“Supply chain management incorporates the
field of logistics and logistics is a number
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of sub-processes within SCM,” confirming
Logistics as a subcategory of Supply Chain.
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Yet, Wayne Johnson of American Gypsum
stated “There isn’t a difference today”
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saying Logistics and Supply Chain are the same.
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7 Rights of Logistics.
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Logistics could be defined as a combination of 7
rights, where 7 rights include the right product,
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the right price, the right quantity, the right
quality, the right place, the right customer,
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and the right time.
Right Product
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The product should be the same as what the
customer has ordered which is a basic requirement
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of placing orders by a customer. Placed orders
should not substitute with other products.
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Right Quality
Product quality is
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another key component in Logistics. There are
different standards for different goods. Or
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there is a quality which customer demand for
the payment they make in return. The quality
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of a product should not dissatisfy customers,
It may make the customer satisfied or happy.
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Right Quantity
The right quantity is the volume a customer
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has ordered. Receiving less than or more than
the ordered quantity could become a burden to the
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customer. Receiving less will fail customers to
cater to the market he/she is having a presence.
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Right Price
The right price
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is the payment done for the valued customer
receives with procuring a product or a service.
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The right price depends on the
other 6 rights of Logistics.
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Right Customer
The ordered products
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or services should reach the right customer
who requires the products or the services.
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Receiving a product or a service to
the wrong customer leads the right
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customer to be dissatisfied and fail
the logistics of the product chain.
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Right Time
The right product should be
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produced at the right time to cater to the demand.
If jerseys are manufactured, the right time for
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them to be on the market is in the winter. If the
product doesn’t reach the market prior to winter
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there won’t be a demand for the jerseys.
Hence right time is very critical in Logistics
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Right Place
The right place
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is the 7th right factor in logistics. Even the
right product reaches the wrong place/market
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it won’t be easy to see the expected demand for
the product. For example, ladies in some Asian
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countries wear sarees. The demand sarees
have in Europe is not the same as in Asia.
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Hence the right place for sarees is the
Asian market and not the European market.
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that's all for this video I hope you
have a basic idea of what logistics is
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thank you for watching the
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