Logistics is the management of the flow of resources, between the point of origin and the point of destination in order

to meet some requirements, for example of customers or corporations. The resources managed in logistics can include physical items as food, materials, equipment, liquids and staff as well as abstract items as information, particles and energy. Minimizing time and use of resources, are common goals. Logistics is one of the main functions within a company. The main targets of logistics can be divided into performance related and cost related. They are high due date reliability, short delivery times, low inventory level and high capacity utilization. But when decisions need to be made, there is always a trade off between these targets

The logistics of physical items usually involves the integration of information flow, material handling, production, packaging, inventory, transportation, warehousing and oftentimes security. Logistics is considered to have originated in the military's need to supply themselves with arms, ammunition and rations as they moved from their base to a forward position. The Oxford English Dictionary defines logistics as "the branch of military science relating to procuring, maintaining and transporting material, personnel and facilities. Logistics is the process of planning, implementing, controlling, effective and efficient flow of goods and services form the point of origin to the point of consumption. Lean is an enabler to identify optimal value for the customer and the value stream for a product. It focuses on eliminating wasteful activities and creating smooth product and process flow, enabling an effective pull system. As a mindset, culture, and toolkit, lean is applicable to all organizational areas. A lean environment requires all team members' dedication and commitment to continuous improvement. Inbound logistics is one of the primary processes and it concentrates on purchasing and arranging inbound movement of materials, parts and/or finished inventory from suppliers to manufacturing or assembly plants, warehouses or retail stores. Outbound logistics is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user. Given the services performed by logisticians, the main fields of logistics can be broken down as follows: Procurement Logistics Production Logistics Distribution Logistics After sales Logistics Disposal Logistics Reverse Logistics

Procurement Logistics consists of activities such as market research, requirements planning, make or buy decisions, supplier management, ordering, and order controlling. The targets in procurement logistics might be contradictory - maximize the efficiency by concentrating on core competences, outsourcing while maintaining the autonomy of the company, and minimization of procurement costs while maximizing the security within the supply process.

Production Logistics connects procurement to distribution logistics. The main function of production logistics is to use the available production capacities to produce the products needed in distribution logistics. Production logistics activities are related to organizational concepts, layout planning, production planning, and control. Distribution Logistics has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differs with the time, place, and quantity of consumption. Disposal Logistics' main function is to reduce logistics cost(s), enhance service(s), related to the disposal of waste produced during the operation of a business. Reverse logistics stands for all operations related to the reuse of products and materials.The reverse logistics process includes the management and the sale of surplus as well as returned items of products. Logistics management: Logistics is that part of the supply chain which 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 and legal requirements. A professional working in the field of logistics management is called a logistician. Logistics management is known by many names, including: Materials Management Channel Management Distribution (or Physical Distribution) Supply-Chain Management Although there is some functionality overlap, warehouse management systems (WMS) can differ significantly from warehouse control systems (WCS). Simply put, a WMS plans a weekly activity forecast based on such factors as statistics and trends, whereas a WCS acts like a floor supervisor, working in real time to get the job done by the most effective means. For instance, a WMS can tell the system it is going to need five of stock-keeping unit (SKU) A and five of SKU B hours in advance, but by the time it acts, other considerations may have come into play or there could be a logjam on a conveyor. A WCS can prevent that problem by working in real time and adapting to the situation by making a last-minute decision based on current activity and operational status. Working synergistically, WMS and WCS can resolve these issues and maximize efficiency for companies that rely on the effective operation of their warehouse or distribution center. Logistics outsourcing involves a relationship between a company and an LSP (Logistic Service Provider) which, compared with basic logistics services, has more customized offerings, encompasses a broad number of service activities, is characterized by a long-term orientation, and, thus, has a rather strategic nature.

Third-party logistics (3PL) involves using external organizations to execute logistics activities that have traditionally been performed within an organization itself.
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According to this definition, third-

party logistics includes any form of outsourcing of logistics activities previously performed in-house. If, for example, a company with its own warehousing facilities decides to employ external transportation, this would be an example of third-party logistics. Logistics is an emerging business area in many countries. Emergency logistics is a term used by the logistics, supply chain and manufacturing industries to denote specific time critical modes of transport used to move goods or objects rapidly in the event of an emergency.
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The reason for enlisting emergency logistics services could be a

production delay or anticipated production delay, or it could be that specialist equipment is needed urgently to prevent instances such as aircraft being grounded (also known as "aircraft on ground"-AOG), ships being delayed, or telecommunications failure. Emergency logistics services are typically sourced from a specialist provider. Commonly used LEAN and LOGISTICS terms and practices include 3PL Third party logistics provider; a 3PL is a firm that provides outsourced or third-party logistics services to companies for some portion of their supply chain. 4PL Fourth party logistics provider; a 3PL that is non-asset-based 5S Workplace organization systems; stands for separating, sorting, setting in order (or cleaning), standardizing, and sustaining. 5 Whys This method, which involves five iterations of question-asking, is used to determine the root cause of a defect or problem; five iterations are usually sufficient. genchi genbutsu In Japanese, the term means: Go and see for yourself"; one must see the problem to know the problem. hansei This term, which translates as relentless reflection, is a core idea in Japanese culture; it means to acknowledge ones mistake and to pledge improvement. heijunka The term means "level flow" in Japanese. It is a goal of lean practice to make the material flows throughout the system level to help ensure steady production that optimizes productivity and costeffectiveness, while minimizing waste of time and other resources. jidoka The term, which means intelligent automation in Japanese, is one of two main pillars of the Toyota Production System (TPS). It refers to the ability to stop a production line if there are problems such as equipment malfunction, quality issues, or late work. It helps prevent the passing on of defects, helps

identify and correct problem areas, and enables the building of quality into the production process. It is a quality control process that detects an abnormality, stops, corrects the condition, investigates the root cause, and installs a countermeasure. JIT Just in Time; an inventory control method that brings stock into a production process, warehouse, or customer right before it's needed, reducing excess inventory. Each operation is closely synchronized with subsequent operations. kaizen A system of continuous improvement in which muda (waste) is eliminated by all employees. kanban A small sign that is the key control for the JIT production. It is a visual control tool to check for overproduction and detect irregular processing speeds, instruction for production / conveyance, and tool to perform kaizen. KPI Key Performance Indicator that measures a process or function; metric. LLP Lead logistics provider; a 3PL that is usually non-asset-based. Lean Lean is an enabler to identify optimal value for the customer and each product's value stream. Lean focuses on eliminating wasteful activities and creating smooth product and process flow, enabling an effective pull system. As a mindset, culture, and toolkit, lean is applicable to all organizational areas. A lean environment requires all team members' dedication and is focused on ongoing continuous improvement. Logistics The planning, execution, and control of the movement / placement of goods and / or people, and the related, supporting activities, all within a system designed to achieve specific objectives. LTL Less Than Truckload (multiple suppliers shipping to multiple customers). muda The term, which means waste in Japanese, can involve overproduction, waiting, conveyance, processing, inventory, motion, and / or correction. nemawashi In Japanese, it means going around the roots. It is preliminary work with other areas within an organization to seek input, information, and / or support for a proposal or change that would affect them. PDCA An improvement cycle containing plan, do, check, and act steps. poka-yoke The Japanese word means mistake-proofing by applying low cost, reliable devices used in the jidoka system; it stops processes to prevent the production of defective parts.

pull system A system of manufacturing in which production processes draw output from preceding processes. standardized work The result of organized and defined worker movement, outlining efficient, safe work methods. Total Logistics Cost models The goal is to reduce total logistics systems costs by analyzing alll costs (transportation, warehousing, order processing, lot quantity, and inventory carrying cost) and cost tradeoffs. value stream mapping A technique used to analyze the flow of materials and information required for a product / service to reach a consumer. XY Matrix A tool used to compare two separate criteria by plotting them on an X / Y grid. yokoten In Japanese, it means across everywhere. Countermeasures and / or plant-related activities that are communicated plant wide and with other company affiliates.

Logistics Solutions
Transfreight delivers customized, lean supply chain solutions that reduce your total logistics cost and enhance your competitive advantage. We focus on long-term partnerships and doing the right thing

for each customer every time. In keeping with our kaizen culture, were constantly innovating and refining our technologies and processes to enhance the effective and efficient logistics solutions we provide to our customers. Specific logistics solutions offered include Network Optimization, Cross docking, and Facility Services. All are customizable to enable you to meet your specific business challenges and excel in your industry. Transportation Solutions Your company has unique transportation challenges; Transfreight develops unique transportation solutions. We use our extensive expertise and dedicated fleet to become an extension of your production line and help you reduce your total logistics cost. Operating on rigorous standards, we employ an optimal mix of company, leased, and other assets to help you achieve your business objectives.

Consulting
While network optimization is the area where we can offer you the greatest total benefit, Transfreight would also be happy to talk with you about completing a consulting project. For example, you may have concerns about where to locate your facilities, which modes to select, or how to achieve your inventory goals. Our multifaceted expertise can help you develop one aspect of an overall solution for your business.