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INTERNATIONAL LOGISTICS AND SUPPLY MANAGEMENT

BUSINESS, MILITARY, AND HUMANITARIAN LOGISTICS AND SUPPLY:

COMPARATIVE PERSPECTIVES

A LOGISTICIANS HANDBOOK
ALAN CARROLL

Acknowledgements

For Sheila P; Wife and best friend , and my logistics mission comrade

Performance of a system depends on how the parts interact, never on


how the parts act separately.
Russell Akoff 1919-2009

Authors note
This handbook began as an idea of sharing experiences as a professional practitioner logistician in
the military, humanitarian and business operations fields over the years, and then subsequently as an
academic teaching the disciplines. The handbook is intended as a practical knowledge and problem
solving guide that can be used by practitioners, or integrated into academic or vocational learning and
training programmes. The comparison of logistics and supply principles in business, military and
humanitarian operations has not been addressed so far and this handbook is intended as the footprint
from which further development in the field may take place. With the exception of free to use material
all source material in this handbook is developed from the authors training, teaching and operational
practitioner notes. Any errors or omissions are my own alone.
Websites: all websites referenced are correct and live at the time of publication (2016). Where
there is difficulty in access, the use of the website title or topic for online search should resolve
access problems

Alan Carroll 2016


CONTENTS

Chapter 1 DEVELOPING LOGISTICS - MEANING, FUNCTION & RELATIONSHIPS


1. Introduction
1.1 The comparator approach
1.2. Logistics - What exactly does it mean?
1.3. Redefining Logistics
1.4. Logistics as a Science, or Logistics as an Art?
1.5. What is Logistics and supply-what does it actually do?
1.6. What do Logistics and supply networks look like?
1.7. Why do logistics and supply? career connections and skills
1.8. Historical grounding old game, new name
1.8.1. Modern Grounding
1.9. Logistics Modalities
1.10. The foundational concept of business, military and humanitarian logistics systems-definition and
development
1.11. Key concept-perfect fulfilment
1.12. The same, but different? Critical relationships- business, military and humanitarian logistics
operations
1.13. Developing logistics and supply-working hypothesis
1.14. Getting logistics and supply right
1.15. New logistics and supply concepts-success, failure and contemporary challenges
1.16. Developing logistics and supply -key words
1.17. Developing logistics and supply - problem solving
1.18. Logistics and supply in action-basic principles beneath the complexity
1.18.1. Logistics providers
1.19. Logistics and supply in action lead time
1.20. Logistics and supply in action technology, software & digital applications
1.21. Logistics and supply in action -Insights from industry: examples of track and trace technology
development
Overview
Consolidation learning activity
Concluding practical case activity constructing an integrative comparator model
Final Discussion Topics
Conclusion
Grounding for the chapter:
Further reading:
Additional sources: web sites (accessed Jan 2016)
Chapter 2 LOGISTICS AND THE SUPPLY CHAIN
2. Introduction
2.1. Understanding the supply chain
2.2. Supply chain activities
2.3. Supply chain components
2.4. The concept of the supply chain-working definition
2.5. The concept of the supply chain(s) forms and functions
2.6. Comparator supply chains - similarities and differences
2.7. Supply chain interface
2.8. Regulatory and ethical requirements for supply
2.9. Sustainable supply
2.10. Social value- adding supply
2.11. Lean & Agile supply
2.12. Supply management multi-disciplinary connections
2.13. Developing supply chain concepts
2.14. Beware of supply chain analytic models
2.15. Global supply
2.16. Supply chain distribution strategies
2.17. Supply chain facility using the cube
2.18. Digital supply management
2.19. Enterprise resource planning systems for supply management
2.20. Wicked logistics and supply management
2.21. Measuring supply performance supply metrics which work and supply metrics that do not
Overview logistics and supply, new perspectives: the same old problems?
Consolidation learning activity
Concluding case activity
Final discussion topics
Conclusion
Grounding for the chapter
Further Reading
Additional sources: web sites (accessed Jan 2016)
Chapter 3 SHIFTING PRODUCT
3. Introduction
3.1. Essential Components of excellence in logistics-identifying the beat
3.2. Supply chain syncopation-getting the beat harmonised
3.3. Up and down the tiersthe players
3.4. Managing the beat- core logistics effectiveness
3.5. Managing the beat-variety
3.6. Maintaining the beat: comparative perspectives
3.7. Maintaining the beat -the pipeline concept
3.8. Synchronisation, sustainment,scheduling
3.9.Logistics and supply responding to change
3.10. Critical comparator difference-BUSLOG, MILOG, HUMLOG
3.11. The Logistics footprint
3.12. Logistics Communications, Coordination, Command, Control, Cost (LC5)
3.13. Information systems for logistics and supply
3.14. Logistics and supply risk
3.15.Legal and ethical issues for modern logistics and supply
3.16. Green logistics and supply
Overview -new logistics and supply perspectives
Consolidating learning activity
Concluding practical case activity: Distribution Centre layout
Final discussion topics
Conclusion
Grounding for the chapter
Further reading
Additional sources: web sites (accessed Jan 2016)
Chapter 4 Balancing act - techniques for logistics and supply success
4. Introduction
4.1. A new logistics and supply paradigm-logility
4.2. Techniques for success-components of applied logistics & supply management (ALSM)
4.3. Modern logistics and supply essential pressures
4.4. Adding value and staying in budget -logistics and supply role
4.5. Balancing risk whilst adding value - differing scenarios
4.6. Customer-supplier interface - the critical logistics path
4.7. Logistics and supply in a bad world - crime and security
4.8. Logistics and supply in a sustainable world environment and modality choices
4.9. Logistics and supply in a digital world-tracking technique
4.10. Building logistics and supply network capability: the architecture for total integration
4.11. Skills for logistics and supply-comprehensive performance
Overview dealing with demand
Consolidation learning activity
Concluding practical case activity HUMLOG planning and design
Final discussion topics
Conclusion
Grounding for the chapter
Further Reading
Additional Sources: websites (accessed Jan 2016)
Chapter 5 MEGATRENDS, SUMMARY, AND CONCLUSIONS
5. Introduction
5.1. Future proofing-whats going to be new, what should I know, what skills should I update?
5.2. Social media applications for logistics and supply management
5.3. Collaborative solutions to logistics and supply management control towers
5.4. The final frontier for logisticians mastering uncertainty and achieving maximum service
5.5. Achieving maximum service of supply
5.6. Automata and Artificial Intelligence (AI) applications for logistics and supply
5. 7. Redefining supply routes for future logistics and supply
5.8. Going local - logistics and supply and 3D printing (additive manufacturing)
5.9. Urban logistics and supply
5.11. Ethical issues in logistics and supply
5.12. Social logistics and supply management
5.13. Global legislation, regulation and standards
5.14. New frontiers for logistics and supply- the 3dimensional logistician and network master?
Overview
Consolidation learning activity
Concluding Practical Case-MILOG planning and design
Final discussion topics
Conclusion
Afterthoughts - why get qualified?
End Note
Grounding for the chapter
Further Reading
Additional Sources: websites (accessed Jan 2016)
GLOSSARY

INTERNATIONAL LOGISTICS AND SUPPLY MANAGEMENT COMPARATIVE


PERSPECTIVES
Chapter 1 DEVELOPING LOGISTICS - MEANING, FUNCTION & RELATIONSHIPS
Learning objectives
At the end of this chapter, you will be quite confident about being able to:
Recognise the fundamental principles of logistics management and their origins
Understand logistics relationship to and with the supply chain
Identify logistics and supply managements contribution to operational success
Apply the tri-axial business, military and humanitarian logistics comparator context
Visualise the logistics world of work and its demanding operational and strategic
context
1. Introduction
This book intends to develop a user-friendly deeper awareness and critical understanding of the role
of international logistics and supply management practices for professional practitioners, lecturers,
trainers and students. More specifically, it aims to promote a comprehensive and coherent
understanding of the multi-disciplinary conceptual and technological skills required of the modern
logistician for World Best Class logistics and supply management.
To achieve these aims I will introduce comparator logistics and supply operational scenarios in
business, military and humanitarian aid operations that offer an overarching best practice conceptual
development and innovative approach to logistics and supply management. The comparator approach
uses the tri-axial process-based activities to identify and demystify universal basic principles of
logistics and supply management practice.
1.1 The comparator approach
The unique comparator view that we will use compares Business (BUSLOG), Military (MILOG),
and Humanitarian emergency logistics (HUMLOG) concepts, theories and operational examples.

The principles and key concepts highlighted in the initial chapter will reappear through each
successive chapter in the analytic and evaluation activities examining international business logistics.
These set the scene for, and examine, the current concepts and practices of international logistics for
similarities, differences, and shared fundamental operational and strategic principles (or not). This
comparator view is a new approach to examination of logistics and supply management across a trio
of what appear to be totally different operational sectors.

The whole text intends to give the reader, student or professional practitioner, a far wider
perspective of logistics and supply management that will feed back into their academic and
professional development and employment capability, and give them a credible range of crossover
skills.

Four grounding chapters examine and re-examine a number of comparator topics relevant to analysis,
evaluation, design and operation of business (BUSLOG), military (MILOG) and humanitarian
(HUMLOG) logistics networks and their contexts. These are supported by a concluding chapter that
enables the prior learning in chapters 1-4 to be applied to consideration of trending and future
logistics developments and planning around the topics and principles examined.

This first chapter is intended to define exactly what I mean by logistics The historical grounding
and evolution of the discipline, its definitional understanding(s), its military antecedents and
terminology, the interconnected logistics and supply management and supply processes and the key
logistics dynamic of velocity.
1.2. Logistics - What exactly does it mean?
Many existing texts are unclear regarding the relationship between logistics and supply management;
others morph the two into a unified concept, whilst others categorise logistics as part of supply chain
management and vice versa. Some representative examples from European and US professional and
government institutions show confusion in different definitions:
Confused? Logistics is supply chain or supply chain is logistics or logistics and supply both
complement or blur across each others boundaries?

Which is it?
You are not alone, many other students, academics and professional practitioners both in and outside
business logistics and supply chains at all levels, including often senior management are uncertain of
definition. Military logistics (the supply, movement and maintenance of an armed force both in
peacetime and under operational conditions) and humanitarian logistics (logistics seen as the major
part of disaster relief that can mean the difference between life and death) tend to be more mission
specific and much clearer in definition.

What logistics is NOT, however, is the common assumption or depiction of a truck on the highway
somewhere in Europe or elsewhere in the world. Transport is an important component of logistics, a
discipline that is a lot more complicated, and which we will begin to examine in this first chapter.
1.3. Redefining Logistics
In my experience these differences in terminology have been confusing, and continue to be confusing,
for students and practitioners, especially in the business world. The integration of concepts has long
been acknowledged within the military logistics and supply management sector, and is now being
acknowledged in the humanitarian logistics and supply management sector. Yet it bafflingly still
remains confusing (from the authors experiences) within the context of commercial business sectors
and the literature that accompanies business learning and training.

To clear any confusion and set a firm grounding for the purposes of learning and teaching in this
handbook, I formally delimit and discuss logistics as the overarching concept within which the
functional activity components of supply chain management are situated.
Logistics, in its pure form is not about physical distribution, (which is part of supply chain
management activity), or supply (ditto). It is the science, and art, of movement of resources (the
logistics mission); whatever the sector (industrial, financial, service, technology) .The supply chain is
the logical set of functional components for each distinct logistics mission that enables the movement
of resources. The combination of the two then gives logistics and supply management its rightful
role and title, which will be used in this handbook but acknowledging the critical integration of
supply chain activities.

Logistics and supply management is a complex and strategically connected legitimate and credible
discipline for mission success, whatever the operation. The logistician is the specialist who operates
the whole or its parts.
1.4. Logistics as a Science, or Logistics as an Art?
It might seem a somewhat grand claim that logistics becomes an application of science in the
systematic planning, preparing and moving of product and service from source to customer. To do this
effectively within cost there must be data, data which must be rigorously measured, analysed,
evaluated, assessed, subsequently effectively scheduled, with the aim of total network management
and improvement for competitive superiority, whatever the logistics business mission. However the
practical (hands on) activities from daily operational contact also widen logisticians knowledge and
perspectives within their intuitive fields, whatever the level of management, supervision or
operational role. That intuitive field comes from experience and instinct, and this employment of
knowledge from experience generates what can rightly be called the art of logistics management.
Learning activity#1
A model which summarises points I have made so far might look like this (figure 1):

Figure 1 Logistics and supply activity (Source-Author)

Consider:
Which part of logistics do you think is a science, and which the art,
Why?
The claim to scientific application does not mean that logistics management can achieve scientific
precision, (if there is such a thing as absolute precision). Any scientist will tell you that discoveries
in any field proceed by research and experiment, success and/or failure, and it is thus so with
logistics and supply management. The planning, design and application activities will have successes
and failures in meeting product and service requirements, but the very act of attempting to achieve
network improvement will reveal areas of potential failure that must be repaired.
1.5. What is Logistics and supply-what does it actually do?
While logistics incorporates a range of supply chain functions, each with its own challenges and
skills, they are all interdependent, and logisticians must work together with other actors along the
network and impact on the overall logistics and supply network with coordinated logistics
management to deliver results. To manage, co-ordinate and continuously improve and optimise the
total supply network demands very high-level operational, supervisory and managerial levels skills
and the capacity to play a key part in meeting a company's longer-term strategic objectives, their
tactics for competitiveness, and:

Specifying the types of resources used in specific logistics operations


Identifying the factors that could affect the use of resources
Applying the methods for optimising resources
Solving the types of problem associated with the use of different types of resources
Note the action verbs that must (not should) be used in any method for logistics and supply analysis!
The fundamental and permanent problem of logistics and supply
management, whatever its operational context, may be summarised solely as:

And providing the balanced logistics capability that will resolve this very challenging problem,
because if matching supply and demand fails (stockout), so will the operation.

Global logistics activity at the time of writing (2016) is estimated at Euros 4 trillion+ and increasing
(that is a major element of global GDP) so failure of any kind has serious financial and economic
implications! Logistics costs currently comprise about 15%+ of the finished cost of a product or
service (when the total cost breakdown is known, often it is not!).Therefore, provision of efficient
logistics capability is important.

In turn, resolving the day-to-day operational problems that are associated with the above will enable
the logistics process to have the ability and capability for achieving:
1. Faster delivery to market of product and/or service
2. Improved end to end customer service
3. Acceleration of the logistics process cycle times and reduction of lead time
4. Reduction of inventory or resource capability requirement in the network
5. Improvements to production and service delivery planning and scheduling
6. Longer term and consistently growing repeat business year on year
The nature of the logistics process, its arrangement and complexity, its interconnections and
intersections of diverse activities, its internal and external chains of supply, working simultaneously
to meet demand, stress the need to treat logistics as a network in the definitive sense of the term (as
an arrangement of interlinked lines forming the pattern of a net).
1.6. What do Logistics and supply networks look like?
Traditionally, for the purposes of examination, demonstration and teaching and learning, logistics and
supply networks are usually shown as neatly composed linear flows, in precise blocks of activities,
with delineated components that integrate precisely with each other.
An example of a generic logistics network is shown below (figure 2),

Figure 2 a generic logistics and supply network (Source- Author)


Of course, there will also be supporting information flows, finance flows, document flows, people
flows, equipment flows, and the option to reverse flow at whatever stage for either rework,
replanning of resource, or return of goods. This fundamental example is the source for all activity that
follows in logistics and supply management, and should construct and remain the foundation of your
logistics and supply management knowledge base.

All logistics and supply networks everywhere conform to this basic generic model, whether they are
business multi-national organisations, small or medium enterprises or even micro-businesses,
military logistics formation or humanitarian logistics aid projects. The basic network plan begins to
change in form and design dependent upon the product or service, the logistics missions, and the
context of those missions. That form and design then becomes incrementally more complicated,
matching the complexity of the organisation and its product or service range. In some networks it can
be extremely complicated, with multiple layers at each stage, multiple movements and multiple
supporting flows at every stage and every level.

The point to remember here is that all logistics networks conform to a generic outline as outlined
above. This knowledge gives you the entry point into understanding and having the confidence to
begin untangling more complicated networks, and making them work, better and better.

1.7. Why do logistics and supply? Career connections and skills


At any level, whether it is as a designated manager, a supervisor or a logistics operative (all
logisticians), the optimisation and efficient completion of the logistics mission requires a set of
skills and capability to meet complexity that is generated in modern logistics operations.
Modern logistics and supply management is situated in an increasingly competitive and intensely
visible complex global context, as economic power shifts around the planet and new markets are
created or developed, and as operational scenarios become more chaotic in many instances. The
intense competition for secure supply resources and best cost of supply, always within a volatile
variation of demand, supply and commodity costs, confirms the strategic contribution that logistics
must make to whichever mission within which it is operating.

Modern professional logisticians must be able to add value to the product or service activity,
anywhere in their network, by continuous optimisation of the logistics process, which will result in
meeting the on time in place, on-requirement specification, on-cost, and on-quality expectations of
the customer, whoever the customer is in the network. Meeting those rigorous requirements
successfully across the commercial (BUSLOG) sector will generate repeat business, contribute to
competitiveness and increase profitability. In the military(MILOG) and humanitarian(HUMLOG)
sectors mission success (whatever the mission is) replaces cash profitability, but requires to remain
in budget and costing parameters if possible. Success ultimately confirms that logistics must be
recognised and take its place within the organisation, as a significant contributor to achieving the
strategic and operational aims of the business or operational organisation.
This means that modern logisticians at all levels must have a range (a specialist toolkit) of universal
integrative skills that are different only in level of sophistication and detail:

Strategic
Knowledge of the business or operation, internal and external, its competitive
context
Awareness of the mission strategic focus, and the necessity for continuous
adaptation and change to meet customer and strategy requirements
Operational
Inventory or resource management capability
Process awareness and functional adaptability across the network
Definitive knowledge of quality and what it means specifically for the operation
Planning and scheduling competence and the ability to prioritise
Interpersonal and intrapersonal skills for logistics teamwork
Cost awareness and implication of cost penalties and savings
The ability to be able to negotiate across all operational logistics levels
Individual Analytical and technical capability
Confident in decision-making
Positive communication skills
Advanced Information and communication technology skills
Continuous commitment to training, education and personal development
The nature of this very broad and complicated set of knowledge and skills requirement means that
there are close cross-connections with the skills from other academic and professional disciplines.

This cross-connection is essential to forming a 3-dimensional approach to logistics that


incorporates the capability of every logistician to taking a richer and deeper view of the logistics
operational process, and becoming a multi-faceted practitioner.I think that it is crucial that logistics
and logisticians incorporate principles from the applied sciences as well as integrating and adapting
those from the functional processes of business,research,sales, marketing,
finance,operations,engineering, HRM, etc.(figure 3).

Any good logistician at any level using variants of thought experimenting for design of logistics and
supply networks should take and adapt any suitable cross-disciplinary techniques (figure 3).
Figure 3 the 3 dimensional operational approach to logistics and supply (Source-Author)

All these concepts can be, and are,adaptable and modified and can be applied outside the pure
business arena into our other comparator sectors in adapatable form that retains the fundamental
principles.

Later within the handbook you will be introduced to other concepts,references and comparator
thinking that will hopefully contribute to your 3-dimensional development, take it forward to the
future logistics context and, more importantly, subsequent employability (figure 4) that rests upon a
permanent personal foundation of continuing professional development (CPD).

Figure 4 benefits of 3-dimensional development approaches (Source- Author)

The next few decades are going to generate very difficult international resource supply problems and
challenges from global infrastructure changes in geography, climate and politics.

These problems will require logisticians in all sectors to be very professional in strategic and
operational vision, thinking and application. This means that you must be a different kind of
logistician to those who have gone before. You must have logistics skills and knowledge that will be
recognised as crucial to maximising logistics mission efficiency and profitability, and to making
significant competitive and operational contributions to the organisation(s) supported. Part of your
knowledge should be the historical development of the discipline which will give you firm grounding
for your professional profile.
1.8. Historical grounding old game, new name
The concept, principles and practice of logistics is not new, not even modern, although the term itself
is relatively new. It has been practiced instinctively wherever humans have come together in
combinations of activities involving the supply of products and services to achieve a common end.
The term itself is claimed to derive from the Greek, logos= the application of rationality to systems
and processes of thought. The reality is that it probably derives from the French logis, the 18th century
term for the officer who supervised quarters for the army on the move, and did not appear in
specialised military use until used by Jomini (1838).

The building activities of the Egyptians, Greeks and Romans in antiquity, the exploitation of their
respective empires, trading networks, and planning and supply of the military operations they
frequently undertook to maintain their conquests all required a degree of planning and coordination of
supply activities over time.

Figure 5 Roman army logistics- Column of Trajan Rome (Source- http://cheiron.mcmaster.ca/~trajan/


(free to use)
Although there are no detailed references to logistics and logistics management as specific
management techniques in antiquity, observation of surviving historical relics and objects can detect
references to activities involving the collection, consolidation and delivery of supplies of materials,
equipment, manufactured goods and food for both civil and military operations. There are also
classical references to and titles of officials dedicated to the supply function and its primary focus of
the supply and movement in support of military activity. In other words, logistics and supply
management activity on an international scale is not a modern invention, only the term is modern- the
functional activities are historical and military (figure 5).

The development of European regional and global trading and associated military activities
throughout history until the present day continued the requirement for the capability to formulate,
design and administer the means to move products and goods over distance from suppliers to
customers or end users. As the supply networks became more complex the requirements of finance,
receiving payment for the goods, and of regulation, clearance and payment of customs dues added
communications, logistics activities, information and paperwork, to the physical movement. The early
19th century in Europe sees the first reference to embryonic logistics management and logistique
(Jomini 1992:2).

In the military campaigns conducted Europe wide, time was quickly identified as the definitive
factor in relational network activities, comprising movement from sources, through links, to the
user. Time generated velocity dynamics that could ensure success or failure of the military
operations. It is still worthwhile examining historical commercial and military development and
surprising yourself by identifying logistics and supply management principles that we would
recognise today.

1.8.1. Modern Grounding


The European Napoleonic wars of the early 19th century, with huge mass armies on the move,
virtually shaped the fundamental concept, logistics, which we now use. The term itself will not be
seen in Napoleonic references of the time except for Jominis later writing. Further USA and
European, national, and world wars (particularly World War 2) influenced its conceptual and
practical developments and a literature (e.g. Brinkerhoff 1865; Thorpe 1917/2002; Van Creveld
2004), and military research continues to develop the concept, giving us the strategic and
operational format, as we know it today.

The principles have been adapted and modified by both the humanitarian emergency planning and
business supply chain operations sectors; with re-adaptation and re-application by the defence
industry and military operational planning sector, in a continuous referential loop since WW2.
This interaction is important because it connects the three comparator sectors
(BUSLOG,MILOG,HUMLOG) from a common base of logistics and supply management
principles (figures 1&2) which can be adapted, developed, and applied to each sectors specialist
mission. That common base gives tactical capability for pre-planning and design of logistics
networks for multi-situational scenarios.

Logistics and supply military origins, its capability to handle huge amounts of materiel and
administer the associated supply activities, and its potential for organisational development are what
made the concept eventually attractive to business, and subsequently humanitarian operations. The
term logistics began to appear in the business world context of advanced western economies mid-
20th century, after World War 2 (Eccles 1954), and became established in physical distribution
management terminology by the 1960s (Heskett et al 1964). It was firmly established in international
business terminology as business logistics by the 1990s, and is now a topic of major academic and
professional business practitioner focus in the 21st century. The interaction between business,
military and humanitarian logistics developments continues.

The way in which logistics and supply management has evolved and is used now in business and in
the other two major sectors of military and humanitarian operations logistics forms the tri-axial
comparator basis of this text. The tri-axial basis gives a wider, richer and deeper perspective, and
will demonstrate that logistics is more than distribution management, has a complex theoretical and
conceptual perspective, and may lay claim to a place in the applied sciences (Thorpe 2002).
However, because of the complexity involved in moving products or services, or a mix of the two, it
can, and does, involve the instinctive/ intuitive feel for logistics management conditions and activity
that might be considered more art than science (figure 1)! One of the themes encouraged throughout
this handbook is the reader establishing which is which.

1.9. Logistics Modalities


We have established that logistics has always involved shifting products, that is, goods and/or
services within dedicated networks, but from where to where, and how? Product and/or services
movement from source to final customer is usually epitomised by the stereotype that is associated by
most people with the movement of goods, the truck, and this is quite wrong. There are many types of
goods, products and services, and the basic set of logistics movement modalities to
meet business, military and humanitarian operational requirements typically fall into one, or a
combination, of the following 7 modalities for goods and services:
(NOTE: Resupply of the International Space Station has added a new (8th) special modality, the
extra-terrestrial resupply and return missions).

Knowledge of the detailed characteristics and variety of these modalities is essential for logisticians;
the modality always affects time and cost decisions within the design of the logistics network.
1.10. The foundational concept of business, military and humanitarian logistics systems-
definition and development
A good working definition of logistics that incorporates everything discussed so far and that replaces
the multiple definitions complexity and confusion is:

The time related positioning, availability, and movement of goods, materiel and services,
together with integrated supplementary and support activities, to meet final customer or end
user requirements

The mix of goods, services and supplementary and support activities can be combined within the
specialist term materiel (not to be confused with materials) which means the totality of the
composition of the products or services being delivered that are required for the successful
completion of the organisations mission.

Logistics materiel-based principles also give a built in capability for quantitative analysis for
management control, and together with improving technology applications , provide source to user
visibility, that is the track and trace of product and/or service in real time. Visibility along the
network is now a, if not the, critical component for logistics success.

Taking forward and developing the fundamental logistics systems process model (figure 2)may be
likened to visualising a flow of materiel similar in character to water flowing through a pipeline (the
link) from source activity to process activity (the operational nodes)through to the final user or
customer:
Figure 6 developing logistics and supply - end to end process (Source-Author)

This concept of process (figure6), combined with the logistics and supply activity (figure1) and the
logistics generic structure (figure2) gives the base for network design for specific business, military
or humanitarian operations, simple or complex.

Within the logistics process (figure 6), there is a source to customer supply activity, centred on the
supply chain activities. These activities consist of a multiplicity of functional activities, simple and
complex, that make up the whole logistics network, and which will be examined in the next chapter.

At this point, it is important to remember that for the purposes of study, analysis and initial design,
logistics networks are always usually shown as simple, straight, linear flow processes, with
designated activity (or node) points, all connected by the process (the links). However, reality is
usually different; the complexity of global logistics operations for business, military and
humanitarian operations exacerbates potential failure problems at the node and link levels of their
networks. Each node and link within the network will have activities that are critical and/or none-
critical; the problem for the logistician is deciding which failure of activity might be fatal, and which
might not.

The primary, and absolutely critical, dynamic of logistics that has to be maintained and monitored at
movement in time and space,(velocity) together with position in
all times is
the network (place)of the product or service until it is finally received by the final customer
or end user. This has become more critical because of the change in customer expectations generated
by the technological context of modern business logistics operations, particularly from on-line
shopping activities, where the customer often now expects the right product or service, of superior
quality within an acceptable price, right now! These expectations are shared in the military and
humanitarian sectors, but for different user reasons.

Enhanced expectations are generally termed customer pull, and have a major influence upon
logistics service network design, where the pipeline has had to become very flexible, very
adaptable, and radically optimised to give maximum service, whilst maintaining an acceptable cost
base to the activities.
The dark side of this movement dynamic (or monster in the network as it might be designated) is
that any changes to the logistics network that are intended to have beneficial outcomes of efficiency
and customer service response may also have unintended negative effects that destroy the original
intentions. So any improvements or user market-devolved changes, which are essential parts of
continuous network improvement, must be thoroughly assessed both for their positive AND negative
implications before applying them.
1.11. Key concept-perfect fulfilment
The core dynamic of logistics and associated supply chain management that has resulted from
enhanced customer expectations, whatever their context (and this is important-the context for military
and humanitarian operations generates different expectations of higher intensity), has become quite
simply perfect fulfillment as it is known by many logistics professionals. That means
exactly what it says, attempting to meeting the customer requirement on time, every time and within
their (and your) cost expectations and limitations. That obviously poses some problems, not least of
which is meeting the cost implications of perfection, if absolute perfection was achievable.

This can generate a set of numeric operational service levels (0-100%) for each type of logistics
and supply management operation, which has serious logistics and supply management implications
that will be examined later. Although I have mentioned that many logistics networks, especially those
used in professional and academic texts, show the linear concept for purposes of analysis and
understanding (figure 7), it must be remembered that there are many other factors which complicate
logistics networks layouts as physical operational activities.

Figure 7 developing
logistics and supply - nodes and activities (Source- Author)

Physical complexities are always a logistics constant, which generate further complexities around
time and space i.e. the movement of product or service within and through the total network. It is
best to always keep in mind that classic linear configuration activity models are good take-off
points to gaining knowledge of each specific logistics network and its supply chain activities, but do
not reflect reality of the logistics situation.

However the reality of a specific logistics network and its supply activities for one product or
service may be (and often are) quite different and consist of a number of interacting and holistically
connected clusters of activities (figure 8):
Figure 8 developing logistics and supply- the operational reality (Source- Author)

Logistics activity reality will not just be linear; it may be multilinear and also be located in multiple
locations around the globe. You should examine this figure (8) in some detail and become familiar
with the activities.

Take detailed note of the above (figure 8), and compare it with the comfortable nodes and activity
model (figure 7). It reflects the complicated operational reality of a real inbound & outbound
logistics and supply network that has to deliver goods and/or services and allow for all the conflicts
and tensions that will arise within the network. A multitude of detailed activities combine into
clusters of activities, and they must be managed, at the detailed and at the cluster level. All of this
will be taking place in a dynamic business, military or humanitarian operational situation of
different, but equally intense, pressure and tensions.

This is the reality for product or service delivery; imagine the complexity that you face in a multi-
product, multi-service network that will also more than likely be situated in an international
context. Add to that the requirement for reverse/return logistics which will mirror the
inbound/outbound in greater or lesser detail and you can see why logisticians must be capable and
competent to deal with complexity and challenge right through every network, end to end, rear to
front and front to rear.

Within this complexity of network and nodal activities, you obviously need to start somewhere to
begin to get control of the logistics system. I consider that the nature of the product, the nature of the
goods, or the nature of the service requirement, always determines the final internal and external
operational nature of the logistics network, all the way down to the fundamental activities. This
means that the internal and external design of logistics networks must always be configured to the
nature of the product or service to maintain the availability of supply throughout the system at all
times, and in all situations. The aim of perfect fulfillment with the objectives of on-time/ on-cost/
every- time/every product/every service cannot be met unless the logistics network and supply chain
activities have been designed for meeting demand.
1.12. The same, but different? Critical relationships- business, military and humanitarian
logistics operations
Business logistics (BUSLOG) has the challenging commercial objectives of placing the required
product or service with the correct customer, at the correct time of requirement, within the correct
product or service specifications, and meeting mutually beneficial cost and profitability margins
funded from product or service cash flows and investment. Modern business logistics can be
summarised (figure 9) as meeting customer demands:

Figure 9 developing logistics and supply- the dynamics of business logistics (Source- Author)

Military logistics (MILOG) has the sole ultimate objective of enabling the war fighter to deliver
aggressive action to their opponent, which negates their capability to resist, enables the military
strategy to be met, and therefore successfully complete the combat mission. Funded solely from
government resources it involves (figure 10):

Figure 10 developing logistics and supply-the dynamics of military logistics (Source-Author)

Humanitarian logistics (HUMLOG) underpins the application of aid activities that will save life in
the first instance and then support subsequent recovery of a disaster area. HUMLOG is funded by
both governmental and None Governmental Organisations (NGOs), themselves funded by taxpayers
and donors. Its initial operational objectives are in rapidly providing the capability for humanitarian
assistance to address the basic needs of disaster casualties (figure 11), followed by recovery activity
support:
Figure 11 developing logistics and supply dynamics of humanitarian logistics (Source-
Author)
1.13. Developing logistics and supply-working hypothesis
Each of these logistics mission scenarios (figures 9, 10, 11) may seem to be very conflicting;
however they do all share fundamental logistics characteristics:

1) Logistics and supply activity nodes, links, modalities plus supporting communications
networks are essential to each
2) They each have a customer (more about who they are later)
3) They share the same principles of customer-pull that influences a preventative approach
for successful supply
4) The basic philosophy of Materiel management, speed (velocity) in moving product or
service, applies to each
5) The operational aspects of each are closely interconnected with meeting the aim of last
50 metres to the customer
6) Geographical constants will influence modality decisions and design of the logistics
network
7) Volatility and the potential for instability in the supply context is always a constant
8) Collaboration at all levels is a prerequisite
9) They all have the operational capability to influence the success or failure of the strategic
mission
10) The logistics concept for each scenario must stress balance throughout the
networks, unbalanced logistics= failed mission
11) Cost is a universal component of each scenario, although profitability in the case
of MILOG and HELP missions can be redefined as success in operations

Learning activity#2
Take a close look at the summaries in figures 9, 10, 11;

1) The working hypothesis posits similarities, not least of which is supplying demand.
2) Do you see any important differences to those basic sets of dynamics that might affect
each of the scenarios of business, military and humanitarian operations?
All logistics networks share a common logistics tendency to distortion and ultimately to become
unbalanced as a result of the constant interaction of the dynamics summarised below (figure
12):

Figure 12 developing logistics and supply- acknowledging instability (Source-Carroll & Neu 2009)

Volatility here means very sharp and rapid change, asymmetry can mean that the whole network is
misaligned, not connected together correctly, and unpredictability means just that, unknown factors of
demand and supply. Taken together they can and do cause chaos and failure throughout any supply
chain and logistics network.

What might unbalanced logistics mean for business, military or humanitarian operations? In every
case, it will mean the failure to produce and deliver the required goods and/or services that have
been requested by the final consumer, whoever they may be. That is why knowledge of the variables
contained in the model (figure 12), and their tendency to cause failure, is very important for
logisticians.
1.14. Getting logistics and supply right
I have emphasised continually so far that modern international logistics network planning and design
is essential and has to be right before the supply event.
Planning and design can only go so far for either simple or complicated projects. So, what do I mean
by right and can logistics ever be right? It is a truism, with which everyone in the military
operations world is familiar, that the meticulous planning and design for military combat and
logistics operations only lasts until initial operational contact, when the original plan is usually
always jettisoned. Adaptation to meet the very volatile and changing contact needs of the combat
mission takes place on a daily, sometimes hourly, basis.

It can also be argued that the same rule holds, but to different degrees, for business logistics
operations where initial contact with unpredicted market volatility may require fundamental
replanning, but market consumption can be predictable to a degree and therefore supply stability may
be a lot more achievable. In humanitarian logistics operations, initial contact with disaster area
requirements can and does change humanitarian relief logistics operational requirements at very short
notice. Initial and continuing volatility in the operational scenario is a major problem for stability in
relief operations.

Military logistics (MILOG) operates with a formal chain of command and the sanctity of that
command is also its major strength in operational environments where reaction to unpredictability
and volatility must be swift. Business logistics (BUSLOG) and humanitarian logistics (HUMLOG)
generally operate under informal management concepts, conditions and structural techniques. These
have been developed from commercially derived shared organisational management practices, with
an informality that can be a major flaw in conditions of stress.
This does not mean that business or humanitarian logistics operations should be run like a military
operation; military logistics procedures do offer an alternative view of how to run logistics in very
stressful scenarios that may offer useful transferable techniques to the other two sectors.
Alternatively, the business and humanitarian logistics operations sectors have their own unique
techniques that can be useful when adapted for military logistics operations.

The critical logistics relationships in the three comparator sectors can then be accepted as being
generically similar, but they will then develop and generate different problems depending upon the
operational scenario. The value of comparing each of the above sectors is that by the very act of
comparison it drives the development of a different perspective for logistics and supply
management. That comparison then enhances the capability to evaluate and analyse logistics and
supply performance and activity requirements to a much wider and deeper level. It constructs a
richer picture of the logistics context and the gives the capability for improved logistics and supply
management decision making in each of the comparator sectors, comparability= commensurability,
the same improved higher level of logistics effectiveness by comparing best practice that has
worked.

As the modern global economy changes ever more rapidly, it generates even more far-reaching
logistics and supply management challenges which require swifter responses. Security of supply
becomes more than a basic sourcing problem for supply from suppliers; it incorporates an increasing
number of material, service, relational and now social, ecological and political dynamics that have
to be considered.
Acknowledging this complexity then should confirm that proactive logistics management is the only
key to success for solutions to complex business, military and humanitarian operations and projects
and should drive the development and application of enhanced logistics concepts. The principles
that enable successful supply to war fighters on asymmetric and intensive military operations or by
Red Cross/Red Crescent operatives in major disaster relief also enable the efficient and successful
supply of multiple tiers of commercial customers across global markets.
1.15. New logistics and supply concepts-success, failure and contemporary challenges
Concepts such as Lean, Agile, Just in Time (JIT), their integrated derivative Leagile and subsequent
spin-offs from Total Quality Management (TQM) integrating waste reduction philosophies and
comprehensive logistics network and supply chain concepts have become dominant in the last two
decades. They have allowed companies to apply logistics and supply solutions using a methodology
that has been successfully developed and applied by some very large multinationals such as GE,
Microsoft, SAP, and DeutschePostDHL group (use keywords online for additional interesting
company data and information).
You may be thinking why this BP case study is relevant to comparator logistics? Its because it
demonstrates the failure that can occur from a flawed management vision that did not fully consider
failure, and had no contingency plan-both absolutely key to good logistics and supply management.
Operations were contracted to a supplier and it appears that logistics and supply perspectives were
not applied as we would understand them here.

Global logistics and supply for BUSLOG, MILOG and HUMLOG encompasses activities across a
spectrum of small, medium and large operations. These activities require differing and radically
tangential logistics perspectives to meet both simple and complex requirements. However, they all
respond to similar relational dynamics that will influence success or failure, but in different ways
depending upon their size, operational and competitive context, and their product/service activities.
Its a multiple-perspective requirement that emphasises the need for a deeper and wider
understanding of the multi-disciplinary conceptual and technological skills required of the modern
logistician for global best class logistics and supply management.
Needing both an internally and externally aligned approach to logistics operations the modern
logistics thinker and professional needs to develop practical methods that can provide the elusive
logistics and supply management goals of best practice and highest service efficiency levels, all at
optimised cost. Whilst always acknowledging that failure will occur, and being very aware of the
likelihood of potential failure from unbalanced logistics, the professional logistician will also
always have factored in contingency that incorporates the capability to respond quickly to network
failure. There is always going to be risk, the logisticians issue is how to manage it.
Modern global logistics not only has to contend with the complexity arising from global sourcing and
supply, and the problems associated with successful supply to rapidly expanding and changing
operational scenarios, it has to have the capability to integrate and apply new concepts to the logistics
operation that previous logistics operations never had to address. The global logistics and supply
management world now needs to cope with definitional issues around the nature of concepts which
fall within the umbrella of sustainability and social responsibility. These two
concepts must now be integrated and acted upon in every logistics operation in business, military or
humanitarian activities. Basically they wrap around issues that we will examine later, in
Urban (city) Logistics -
Green Logistics and sustainability issues
Social logistics the total impact of logistics networks
Ethical logistics
What this means at this point is that every logistics action, whatever it is and wherever it is, will
have to meet increasingly strict standards of responsible performance for structures, processes,
equipment and human activities within the logistics network.

These concepts which we will develop further later, confirm that new logistics perspectives and
ways of thinking must be developed and encouraged; the old linear and functionally focused ways
are no longer suitable for the present or the future.
1.16. Developing logistics and supply -key words
Logistics and supply management has a language of its own, as do many other specialisms. A
supporting glossary is at the end of the handbook. Throughout the chapters there are aids to your
building of a glossary tool, by the use of bold type for specific terms that you should know and
understand, and maybe delve into a little further, as part of your knowledge base build-up. Other
bold type emphases are to stress that a point being made is important.

Learning activity#3

Using these practitioner and professional Institute websites:

https://www.cips.org/en-GB/Knowledge/procurement-glossary/
http://www.ciltuk.org.uk/Knowledge/KnowledgeBank/Resources/OtherResources/Usefulglossarie
http://www.inboundlogistics.com/cms/logistics-glossary/#M

Find the meanings of these logistics and supply management terms:


This learning exercise will reintroduce you to terms that you will read throughout the handbook. It
will also bring you in contact with useful professional practitioner materials that give additional
reference resources for building a logistics and supply management language, a language which is
universal to logistics and used across all our comparator sectors.

1.17. Developing logistics and supply - problem solving


So far, I have introduced and defined logistics, what it means and what it incorporates looked at it
from different perspectives and operational contexts, and given you a series of comparator models
and directed you into a basic logistics terminology language. These will give you the basic toolbox to
help you evaluate and design logistics a logistics network and integrate processes, in which every
stage is capable, supply is always available, and network design is adequate to avoid unbalance.

You should now be aware that while logistics covers a range of supply chain functions, each with its
own challenges and skills, they are all interdependent. This means that logisticians at every level
and every stage of logistics operations must work together and understand the impact on the overall
supply chain of coordinated logistics management to deliver results that meet the requirements of that
elusive perfect fulfillment. This is because the architecture of logistics and supply management is
similar to building a house using thousands of bricks; one missing piece can snowball and wreck or
compromise the whole of the logistics structural activity.

To manage, co-ordinate and continuously improve and optimise the total logistics and supply
network demands very high-level operational, supervisory and managerial skills. Logistics
competency requires the personal and professional capacity to be able to play a key part in making a
critical contribution to meeting a company's longer-term strategic objectives, whatever your
operational position or logistics skill level. These skills are transferable across the business, military
or humanitarian logistics fields and the logistician must be able to identify and then to operate and
manage:

types of resources used in the logistics specific to each product or service


logistics nodes, clusters and network operations requirements
the factors that could affect the use of logistics resources
methods for optimising and streamlining logistics resources
the types of problem associated with the use of different types of logistics resources
perfect process and velocity as key unique drivers to the total logistics concept
the multi-dimensional perspectives of the logistics operation
To find out more about the detailed specification of skills and knowledge required by European
professionals logisticians at all levels that met the requirements above visit the European Logistics
Association:

And examine and consider the examples of logistician certification requirements at ELAQF
Qualification standards for Europe. The skills and the knowledge capability required there may
appear intimidating, but their basics have already been introduced in this chapter, and will be
developed as the handbook progresses.

By now you should also be acknowledging that a logistics and supply management operation involves
much much more than trucks on roads! It is a working jigsaw puzzle of complicated activities that
requires many kinds of resources. Because those resources and activities are in a continuous linked
set of time related movements from end to end of the logistics and supply networks involved, the
ability to be able to read the network and solve problems is paramount. Good logisticians have the
combination of formal and instinctive experience and skills to do just that.
1.18. Logistics and supply in action-basic principles beneath the complexity
Whatever the scenario for logistics management in business, military or humanitarian relief
operations, I have argued that the same basic set of principles can be applied to begin to get control.
Its all about the successful movement of product and/or service, using appropriate modality to an end
user that results in customer satisfaction, ultimate profitability for business success, and however
success is defined for each military and humanitarian specific mission (figure 13).
Figure 13 developing logistics and supply- principles for a comparator model (Source- Author)

No matter whether it is a single delivery of a single product, a shipload of single or multiple products
for business, an aircraft load of air cargo for war, a road convoy to an aid construction project, the
principles remain the same; they are foundational, with a commonality of logistics language.

Their vocabulary is, underneath the technicalities specific to each type of operation, quite similar,
united by a common theme (figure 13), successful product and service delivery to an end user. Each
organisation does different things, has different operational views, different processes and different
infrastructure, but all are playing the same game beneath all the apparent layers of complexity; they all
have a customer.

So far we have identified that different organisations in different operational sectors start from basic
similar principles (figure 13) then generate their own complexity with which logistics and supply
management must engage.
You cannot engage with complexity as a logistician unless you have a picture of the economic context
within which the supply chain is operating. The economy, underpins and influences all logistics
activity design and planning and it is not a single easily identifiable phenomenon. To start with the
economy has a number of complicated activity sectors:

The primary sector, involves obtaining raw materials and resources, usually from natural
environment activity e.g. mining, farming, fishing, gas and oil exploration, water supply.
The secondary sector, which usually involves making or supplying products derived from
the primary sector e.g. metals, car manufacture, food and drink manufacture, technical
equipment manufacture, fuels manufacture, chemicals manufacture, pharmaceuticals.
The tertiary sector which involves the supply of services e.g. banking, finance, insurance,
call centres, education, social services, health and geriatric care, fitness centres.
The quaternary sector, which is thinking, research and development, knowledge activities,
centred upon the extensive use of ICT systems.
The quinary sector, which could be included in the quaternary sector, but can be
considered as a separate entity, involving decision making by high level government, industry
and business leaders, for a whole society or an economy, or a global problem.
These sectors can and do cross over boundaries with each other, and every sector, and every sector
activity will have a logistics and supply management element based upon basic logistics principles,
but each generating its own complex logistics profile. Complexity generates potential problems to
solve, and potential failures to prevent, at each level and each sub-level of supply chain activity in
every one of those economic sectors. This is normal and is the strategic and operational scenario for
logisticians in business, military and humanitarian operations that reflects the real nature of the
modern world in which logistics operates.
1.18.1. Logistics providers
Within the economic sector context logistics providers fall into 5 generally accepted categories:
1PL - First-party logistics provider is the product or service shipper or the product or
service receivers who use their owned internal logistics resources.
2PL - Second-party logistics is provided by an outside contractor organisation which also
owns the modality for movement.
3PL -Third-party logistics provider provides integrated contract logistics services and is
sole contact for the logistics service array provided for the supply chain of an organisation.
4PL - Fourth-party logistics provider offers integrated resources from own and/or sub-
contracted organisations, together with comprehensive logistics technology
5PL -Fifth party logistics provider brokers activities and solutions from 2PL-4PL providers
and offers total logistics management of the whole supply chain package to obtain best
modality volume rates.
In reality the borders between 2, 3, 4, and 5PL can be blurred depending upon the product or service
logistics requirements and the complexity of the supply operation. Business, military and now
humanitarian relief operations may use a blend of the above providers for simple to complex
operations. 1, 2, 3, 4, and 5PL usage will be met in the business logistics world.

Contractor Logistics Support (CLS, sometimes Contractor Logistics (CONLOG) is a term usually
used in military and humanitarian logistics and supply operations. Contractors deployed on
Operations (CONDO) means exactly that, civilian contractors deployed on military operations.
Basically they all result in logistics operations being contracted out to other parties when own
resources are not available. The business logistics and supply equivalent of this is outsourcing. In all
cases, this means that logisticians will be required to carry out oversight and monitoring of
operations either as part of the contracting out organisation or as part of the contractor organisation.
1.19. Logistics and supply in action lead time
If the fundamental problem for logistics planning is matching supply with demand, then the core
element to that problem is lead-time and the distortion and instability that can result across the nodal
interconnections and decoupling points within the whole network. The variable of velocity contains
an accelerating effect, meaning that if something goes wrong, velocity magnifies it and the time
variable for the mission can be fatally affected.

There is no set solution for lead time control being promoted here, as each product or service will
generate its own characteristics and signature. What is universal is maintaining the availability of the
total logistics system, in other words maintaining efficiency. Each product or service will have a
logistics configuration that is different for each operational (business, military, humanitarian) and
economic sector, and trigger different lead time problems. You must be able to identify the tensions
and destabilising influences that may lead to an unbalanced logistics typology.

How do you do that?

Lead-time incorporates crucial components from the sum of the elements of velocity + complexity
+technology +Information and it can be given a simple formula;

The effects of these components can be understood by the use of metrics, quantitative data that can be
obtained from analysis of the sum of the following activities:

Data from the above can be processed using set formulas and will give quantifiable information used
to tell you if you are meeting the core logistics requirement for each supply mission, are you
supplying on time every time. But evaluation and analysis is not just about metrics, you must also
consider the logistics process, the logistics skills being used and the culture, both of the logistics
operation, and the organisation(s) with which it is working.
1.20. Logistics and supply in action technology, software & digital applications
Modern information computer technology (ICT) has solved many of the problems of control of
moving product or service associated with logistics. But ICT solutions and increased efficiency have
generated new problems. The problems have come about as the result of increased speed of supply
response, and have generated a corresponding increase in customer expectations of supply
performance, i.e. meeting all the rights expected from logistics and supply:
These expectations can be seen affecting logistics operations across our three comparator sectors.
These expectations have become central to demand from all customers or end users in logistics and
supply networks, whatever they are and wherever they are operationally. A major positive outcome of
technology availability has been logistics ability to meet these expectations by real time track and
trace of materiel, products or services.

I have emphasised that the introduction of technology-based systems has solved many of the tracking,
trace and network response management problems that used to be associated with logistics and
supply management. Therefore, business customers expect more management information, and they
expect it via technology, in real time. For military and humanitarian logistics operations, the
benefits of technology for rapid deployment response have been even more matched by the increase
in the intensity of expectations around users response to demand.

A technology strategy is essential then for modern logistics, whatever the size or type of the business
operation and mission. To meet the core commitment of perfect fulfillment situated around
movement, time and position of products and/or services in the network AND incorporating the
potential to be able to meet sustainability requirements (whatever they may be for that particular
product, service and logistics mission) requires a technology architecture that works. For logistics
management the technology architecture requirement is based on the integration of computer, Internet
and digital applications that can respond right down to personal (e.g. i-phone) level globally. Many
applications now available do virtual track and trace, meet RFID and GPS requirements for
identifying where product and service is currently located in the logistics network, and will inform
you in real time exactly when you can expect to receive it.

As you can imagine this has had a major effect upon global business and logistics planning and
management particularly. New and existing product or service placement across the global customer
community has to be fast, slick and efficient in new product or service deployment, order placement
and order fulfillment to meet competitive pressures and survive. Technology has been a major
component of logistics success, and also now enables operational organisations to begin to address
the legal requirements of sustainability.
For modern military logistics operations, very intense and operating over sometimes huge distances
in isolated areas, current technology has given strategic and operational efficiency in speed of
response all the way down to the individual logistician or war fighter. In humanitarian logistics
deployments technology has again given enhancements in speed of assessment and planning of
response for disasters in remote parts of the globe.

The down side, as I have pointed out, is that customers and end users, whoever they are, have become
and are increasingly becoming, ever more and more demanding, whether in the business, military or
humanitarian operations context.
There has been a significant increase in the velocity requirement for meeting those expectations that
then has major implications for cost. The other downside is technical; technology systems are always
vulnerable to interference, from hackers to natural disaster, and disaster recovery measures must be
built into the process, always.
1.21. Logistics and supply in action -Insights from industry: examples of track and trace
technology development
What are the technology applications for track and trace? Examples of current and developing
logistics track and trace concepts with which with you should be very familiar can be seen at the sites
below. Take time out to familiarise yourself with current and future developments at:

http://www.savi.com/
http://www.sap.com/index.epx
http://www.apec.org/
http://www.rfidc.com/
http://www.paragonrouting.com/
http://www.tis.pt/proj/edrul/Project_Description.htm
There are of course many more applications, and they all serve the same logistics end, visibility of
the product or service in real time enabling coordination and integration of supply chain activity
into the whole logistics plan. The power of technology has benefits at whatever level of business, and
you should always be up to date with logistics technology solutions and developments.

Learning activity #4
Logistics technology is here to stay and has revolutionised logistics and supply management, but what
about the dark side of technology solutions?
Consider some of the major real failure problems that might affect logistics technology
applications.
How would you, could you, plan for recovery from a major failure?
Overview
What sort of picture of logistics have we constructed so far?
This chapter has provided a general overview of the subject of logistics and supply management,
within which the supply chain is a component element, or set of elements. It has established
logistics importance in being critical to the success of modern international business operations
(BUSLOG), to complex military operations (MILOG), and difficult humanitarian operations
(HUMLOG). We have examined and clarified its continuing definitional division (Logistics and
supply Management) and introduced some debates that are topical in academia and the professional
sectors.

The logistics picture developed so far has been supported and illustrated with practical experiences
from the author, and has connected to Logistics and supply Management (LSM) current practice, using
the tri-axial comparator model of business, military, and humanitarian logistics to investigate some
fundamental principles. These interconnections are important because best practice principles can be
taken from each comparator sector and adapted to and for each sector. You should now have be clear
about basic logistics terminology, and also have some clear ideas of essential logistics and supply
generic and specific terms.

Shown below is a diagrammatic summary of the points that have been introduced in this chapter (fig
14). It consolidates the general thrust of this chapter as grounding and a reflective model that can be
useful for an overall initial understanding of principles of business (BUSLOG), military(MILOG)
and humanitarian (HUMLOG) logistics in action. It also forms the take-off point for a deeper and
wider understanding of the multi-disciplinary conceptual, theoretical and technological skills
required of the modern logistician that we will build upon in the remaining chapters.

Figure 14 logistics and supply in action the basic framework of understanding (Source- Author)
These are the introductory concepts framework for understanding logistics and supply management,
and they underpin everything that goes into delivering product and/or service to the final customer
or end user. Being able to understand the role of these key concepts play in logistics and supply
management enables logisticians to design for and deal with the stress of incessant demands,
pressures, and ever more demanding expectations that comprise the universal challenges for any
logistics operation.

We will explore them further in the succeeding chapters


Consolidation learning activity
You should now be pretty clear in understanding what logistics is basically all about, whether it is
supporting every day business activities, military operations, or humanitarian relief projects:

1. Now consider all that you have read in this chapter do you agree or disagree that
logistics is a directly critical element to the success of any mission, business, military or
humanitarian?
2. Summarise very briefly the key points, pro and con, that have influenced your decision.
Concluding practical case activity constructing an integrative comparator model
Examine and consider, then complete the template below (criteria for unbalanced logistics):

Consider each of the component dynamics above, be clear about what exactly they mean?
Apply each dynamic to each of the logistics activity sectors, providing a credible example.
Are there any similarities, or does each example have significantly different
characteristics?
Now examine then complete the template below, (criteria for balanced logistics):
Consider the component dynamic, be clear about exactly what it means?
Apply the dynamic to each of the activity sectors, providing a credible example for each.
Again, are there any similarities, or does each example stand alone with its own
characteristic?
Compare and evaluate the two sets of data and consider:
Are there common logistics characteristics?

Final Discussion Topics


Find some specific examples of logistics that you might have seen around you recently, in your work,
in the media, online, or in any studies or training. Compare them with the introductory principles
outlined in the chapter.
Do you see any themes from your reading so far in those examples?
Can you see any examples of demand in these examples?
Is the customer visible or acknowledged in these examples?
Conclusion
This introductory chapter is intended to establish the main aim of the handbook and set the scene for
the comparator business (BUSLOG), military (MILOG) and humanitarian (HUMLOG) logistics
and supply management examination and evaluation that follow in the next four chapters.

You should now be comfortable with the essential points of this chapter, viz how to define and assess
logistics and supply capability upon which to build and develop deliver superior customer and end
user service, optimising logistics and supply network assets, and achieving the best possible cost-
benefits ratios. Be careful though in generating aspirations for an efficient logistics network,
aspirations need to become real application, in a network that works, not just having a theory of
how it should work!

You should by now also be aware that you need some specific lifelong skills, conceptual ability and
formal professional qualifications to succeed in the logistics specialism whatever your area of
operations. The logistics family is global (see the grounding for this chapter) and the skills are
international and transferable, so of course are the opportunities for logisticians.
In the next chapter we go on to look more closely at supply chain components, the criticality within
the total logistics concept of the supply chain, and why detailed supply chain knowledge is crucial
for logistics missions success.
Grounding for the chapter:
Carroll, A. (2015), Logistics and supply Operations management, lecture, seminar and professional
course materials and resources, 2004-2015
Chartered Institute of Logistics and Transport UK, (2015), Vision Values and professional Standards,
https://www.ciltuk.org.uk/AboutUs.aspx
Chartered Institute of Procurement and Supply UK, (2015) About CIPS and CIPS Standards,
http://www.cips.org/en-GB/aboutcips/
Cozzolino, A. (201, Humanitarian Logistics: Cross-Sector Cooperation in Disaster Relief
Management, London, Springer
Fritz Institute, (2015), Partners for Effective Relief, http://www.fritzinstitute.org/aboutUs.htm
International Federation of Purchasing & Supply Management, (2015), Embracing procurement,
materials, logistics, supply management and strategic sourcing, http://www.ifpsm.org/
NATO, (2015), Logistics, http://www.nato.int/cps/en/natohq/topics_61741.htm
Van Creveld, M. (2004), Supplying War: Logistics from Wallenstein to Patten, 2nd Ed, Cambridge,
Cambridge University Press
Further reading:
Brinkerhoff, R.(1865), The volunteer quartermaster: containing a collection and codification of
the laws, regulations, rules and practice governing the Quartermasters Department of the United
States Army in force Ma7 9 1865, New York, Van Nostrand.
Carroll, A. & Neu, J. (2009), Volatility, unpredictability & asymmetry: An organising framework for
humanitarian logistics operations? Management Research Review 32(11):1024-1037. (Available
from author-pdf)
Heskett, J.L. Ivie, R.M. & Glaskowsky, N.A. (1964), Business logistics: management of physical
supply and distribution, New York, Ronald Press Co.
Jomini, H. (1838/1862/1992), Precis de lart de la guerre (The Art of War), London, Greenhill.
Thorpe, G.C. (2002), Pure Logistics: The Science of War Preparation, Honolulu, University Press
of the Pacific.

Additional sources: web sites (accessed Jan 2016)


Supply Chain Management Association Canada, (2015), Training, Education & Professional
Development for Supply Chain Management, http://www.scmanational.ca/
Skills for Logistics UK, (2015), Attract, develop, Support, http://www.skillsforlogistics.org/about/
UK National Occupation Standards, (2015), NOS Logistics,
http://nos.ukces.org.uk/Pages/index.aspx
INTERNATIONAL LOGISTICS AND SUPPLY MANAGEMENT-COMPARATIVE
PERSPECTIVES
Chapter 2 LOGISTICS AND THE SUPPLY CHAIN
Learning objectives
At the end of this chapter, you will have gained further confidence about being able to:
Recognise the fundamental principles of supply chain management
Define the supply chain and supply chain management
Clarify supply chain managements relationship with logistics management
Distinguish what supply chain management means for the purposes of shifting product or
service.
Identify common critical elements of the tri-axial comparator supply chain context
2. Introduction
This second chapter is intended to develop further what is meant by supply chainthe
interconnected supply chain management and processes, and their position in, and relationship to,
logistics as introduced and defined in chapter 1.
You also need to be able to understand the terminology used in supply chain management, and why the
supply chain management concept is an operation critical application in business, military and
humanitarian operations.
2.1. Understanding the supply chain
Although the term supply has been around as long as logistics, its first formal origins are again in
the field of military operations. Although supply of materials and resources has always been a
historical concern in business (although never defined as such), the evolution and modern business
use of the term supply chain management is a late 20th century business school phenomenon. The
term came out of operations management and research activities in the last 50 years, primarily
grounded in the military operational field of massive logistical analysis for global operations in
World War II. Lately it has been picked up by humanitarian relief agencies for optimising effective
and efficient development of disaster aid operations.

Take a quick survey (use the search term supply chain and competitive advantage) of a range of
on-line professional and academic literature from the business world (BUSLOG) and you will see
that supply chain management is acknowledged by business, education and professional institutes not
only as important to business success but is also recognised as a crucial strategic element for global
competitiveness. A similar survey of military logistics (MILOG- use the search term supply chain
military operations), and humanitarian logistics (HUMLOG-use the search term humanitarian
supply chain operations) online will show a similar acknowledgement.

All major players in the logistics and supply world are now pursuing improvements in efficiency and
operational enhancement development.
Business, military and humanitarian emergency logistics and supply management sectors are actively
investing in, researching, developing and applying advanced technology and collaborative activities
to their operations. The aim is to be ahead of the field in optimisation, effectiveness and efficiency,
and therefore successful and dominant players in their particular sectors.
Supply chain management, like logistics, is a deceptive term that covers a massive range of supply
operations across every economic sector (chapter 1), and requires sophisticated management and
operational perspectives and skills from logisticians at every level. You will note that throughout this
handbook the comprehensive term logistics and supply management is preferred to supply chain.
This is to highlight the overarching concept of supply, which incorporates the functional operations
of the supply chain. First, you need to understand the role of the supply chain, what it is, and how it
can, does, and will always determine organisational success in modern operations (figure 1).

Figure 1 the basic supply chain model (Source- Author)

Learning activity #1
Just like logistics, all three sectors of supply chain management, whether business, military or
humanitarian, conform to a basic pipeline model, that we have met already (chapter 1 figure 6, figure
1 above), of supply meeting demand:

Consider both figures and decide from the models:


Why is supply chain management important to the BUSLOG, MILOG, HUMLOG
sectors?
How can good or bad supply chain management affect operations in those sectors?
2.2. Supply chain activities
To understand why supply chain management is an important element of each of our comparator
sectors you need to be familiar with its components. Supply chain management theory, supply chain
management concepts, supply chain terminology, supply chain applications, and importantly, supply
chain leadership all interact to produce supply activity within the logistics and supply total concept.
Without knowledge of how supply works, you cannot understand fully the concept of logistics nor
operate efficiently as a logistician.
A range of supply chain operations and services, including adaptable service and product solutions
are now offered by external third party (3PL) and fourth party (4PL) and fifth party (5PL) logistics
operators (chapter 1). Your involvement may be as a logistician with one of these parties, or
overseeing their activities for your organisation, or both. Whatever your position, you must be able to
understand that the primary business objective of revenue and profits, or the military or
humanitarian primary objectives of mission success relies on a very complicated set of physical
supply activities and their components. These components, as we shall see, can make or break any
operation depending upon how well or how badly they are done.

So what do you need to know?


To be effective, the supply activities that you must have knowledge of as a logistician range over:
where to find sources of information on the supply chain
how the supply chain physically operates
supply chain design
the needs of different customers in the supply chain
who are the supply chain customers
omni-channel supply
systems and procedures for operating the supply chain
customs requirements (security controls, excise, taxes, reliefs, and documentation)
the range products, materials, and services that comprise supplies
types of supply chains
legislation and regulations for supply chains
system and activity as unique dynamics within the supply chain concept
diversity of supply
new concepts of contractor logistics for all three sectors
reverse supply
sustainable supply
e-supply channels
ethical supply
social value-adding activities
Looks daunting?

It is daunting, but thats the complexity of the knowledge that you must have, or know where to find,
to understand and operate and manage inside and outside the overall management of logistics and
supply. There is no escape! This range of activities covers the critical components, the nuts and
bolts that build the supply chain structure and hold it together within the logistics and supply
network. You must have the knowledge.
Too often, in the authors experience, these activities are frequently not acknowledged nor understood
in either their actual functional activities, nor in their criticality to the success of the logistics
mission, although this is now changing rapidly in the business world. Key concepts from this range
have long been well understood for the success of military missions, and the same acknowledgement
has now quickly taken place in the humanitarian operations sector.

As in life, things change, and supply chain management has changed over time. It has moved generally
onwards and upwards in professionalism, during the authors experience, and is still changing for the
better. Responsiveness to customer needs was not always the key driver, but is now the primary
dynamic, as it should be, in tandem with the requirement for waste reduction and value adding in
supply chains. For the 21st century, the critical objectives of supply chain management activity in
every one of our comparator sectors are to become ever more adaptive.
As a logistician you will frequently hear and see terms such as collaborative, joined-up supply,
total supply, dynamic supply , real time response agile supply and other jargon in
business(BUSLOG), military(MILOG) and humanitarian (HUMLOG)operations supply chain
activities. They really mean the same thing adapting to meet volatile demand in an effective and
efficient way whilst maintaining cost constraints.

We will examine all these concepts and terminology in this chapter. With your grounding in and
understanding of logistics management gained from chapter 1 you will now begin to develop further
your understanding of the total logistics concept. At the same time you should begin matching the
skills and capabilities required now and in the future by professional logisticians to the activities that
we cover.
2.3. Supply chain components
In chapter 1, we examined the meanings of logistics and supply chain in relation to each other as
interconnected in any supply operation. Figure 6 in chapter 1 gave us a working model of the
logistics process, with a supply chain element whose detailed components we are now about to
examine in this chapter. This supply chain element can be summarised as a set of assessable dynamics
that are:

functional to deliver the product or service


operationally important to the whole mission
chunked into operational nodes for evaluation, analysis and control
activity defined by product or service characteristics
These are distinct characteristics that can stand-alone for examination and evaluation but they all
share a common element, they are all subject to pull by customer or user demand.

They overarch and incorporate the supply chain nuts and bolts activities discussed above, which
have to integrate with the total logistics network activity in its adaptive form to meet customer
pull. We now need to examine and try to explain what these distinct characteristics mean in relation
to meeting the adaptive requirement that will enable 21st century logistics and supply to guarantee
success in the overall business, military, or humanitarian operational mission.
2.4. The concept of the supply chain-working definition
It follows that if the permanent problem of logistics is matching supply with demand, then logistics
and supply managements permanent problem is to achieve that matching of supply and demand by
making the nuts and bolts of the supply chain work and keeping them working. To do that we must be
absolutely clear what we mean by the concept of the supply chain in order to precisely position
supply chain activities in the logistics missions aims of perfect fulfillment, achieving competitive
edge for business, and mission success and customer/user satisfaction for military and
humanitarian operations.
You saw in chapter 1 that the terms logistics and supply chain all had variations in meaning in
different definitions by different organisations. If you accept that logistics management, in the
logistics definition that has been proposed, covers the whole network process driven by a primary
dynamic of velocity, then it is now proposed that the supply chain comprises an interconnected
group of distinct source and intermediate nodal activities that ultimately provide finished product or
service resource to a final user.

Supply chain management can then be defined as:

This is fine as a definitional stepping-stone with which to enter into the supply chain and to begin
examining its components. It also defines and situates supply chain activity clearly within the total
logistics and supply network concept.

Definition and theory are always fine, but supply management needs to be engaging very different
and very real and very volatile functions of the supply chain within logistics support for the business,
military or humanitarian operational activity. This engagement needs to be following a truly
integrated supply planning approach that achieves the logistic objective of matching supply with
demand.

Category leadership in the supply of products and service drives many global businesses, taking
brand and category management beyond best practice to even higher levels of excellence that focus
on the customer. Military and humanitarian logistics and supply operations operate to the same
ethos, but with different takes on the customer. All well and good, but many companies and many
operations still only manage to provide an average, adequate or good logistics and supply service,
and average, adequate or good service performance rates of supply rather than excellence.

An ethos of excellence requires organisations to recognise their shortfalls, and to taking complete top
to bottom redesign of supply chain operations and planning that:

The supply chain that meets these very demanding and long-term requirements (and they are
demanding, which is why so many organisations fail spectacularly) will then be able to address:
If these requirements are met, you are delivering, or will have the capability of delivering, superior
logistics and supply

Learning activity#2
I said above that excellent organisations should be striving to design supply chains that manage
demand, growth, cost and risk and meet ALL customer requirements, by aligning and integrating the
whole of the supply process to that objective.

1. Would the same concept be applicable to all three comparator sectors (BUSLOG,
MILOG, and HUMLOG)?
2. If not what would be the differences?
3. Go online (you may have to copy and paste the following URLs) and briefly examine the
information displayed:
http://www.logisticsbusiness.com/
https://www.gov.uk/government/organisations/defence-equipment-and-support/about
https://www.wfp.org/operations/10342.2-unjlc-united-nations-joint-logistics-centre-common-
logistics-services-logistics-planning-and-facilit

Do you see at these sites the same commitment to an ethos of excellence underlying the supply
planning in all three comparator sectors?
2.5. The concept of the supply chain(s) forms and functions
We already know the basic supply chain pipeline model (figure 1) that is the foundation for every
supply chain. The supply chain model then has to develop a functional or generic form depending
upon the product or service mission and the logistics and supply context.

What does that fundamental form look like? It consists of the following generic components in or
linking each node (figure 2):
Figure 2 generic supply chain components (Source -Author)

From generic characteristics we then have to consider the specific characteristics for each of our
comparator sectors (BUSLOG,MILOG,HUMLOG).You can develop their specific characteristics
by identifying a further influential and critical set of specific supply chain dynamics, summarised
below, which depend upon the logistics and supply context within which they are operating (figure
3):

Figure 3 specific supply chain characteristics and tri-axial comparators (Source- Author)
These comparator examples (figure 3) make the point that the supply chain concept can claim its
position as a business critical element within the logistics concept, (whatever the business is).
Without effective supply the end game of meeting user demand is a failure.

The examples (figure 3) clearly show that the supply chain is absolutely central to successful mission
logistics and supply that are in turn crucial to the successful totality of all business, military and
humanitarian operations

The centrality of supply functions to the three logistics operational activity areas emphasises that
supply chain nuts and bolts are crucial to achieving the strategic and operational objectives of
every total mission. The supply chain concept is not just a theoretical concept, it is real hard and
soft activities, and its form and functions, if well applied within the overall logistics and supply
network, underpin success and add real value to the whole operation.

Why do I make this claim, and what is meant by value?

Adding value is a commonly used concept in business operations training and education. It simply
means accepting that delivering the best customer-defined high quality, minimum cost, product or
service, is the rationale for all of the activities in the supply chain, and then attempting to achieve that
course of action. Dont be fooled by this theorising, talking adding value is easy, achieving it is hard,
and may not be possible, at least not to the levels that the customer demands. It does though set the
objectives and defines the actions that you must follow to undertake the value adding quest.

That means redefining and redesigning the supply chain from a totally demand-led perspective, i.e. as
I said above, understanding the whole logistics and supply network as a customer pulled supply
entity. The totality of activities must be pulled only by the customer, whoever they are, and only by
the customer or end user.

The comparator examples above (figure 3) are intended to reinforce the point that all supply chains
are generically similar in concept but clearly defined and different for operational reality. And each
operational reality for each sector may also be different Even so, they all must have the same specific
and defined characteristic; they must all be aimed at and pulled by the customer, whoever the
customer is. If we accept that, and we must, the whole of every supply system, its activities and
interfaces within the overarching logistics management concept MUST only have one logistics and
supply vision objective- satisfying ALL customer needs, and nothing else!

As a logistician you will face organisational objections to this vision of 100% service, ranging from
costs, human resource implications, infrastructure limitations, and sheer performance limitations.
But it must be striven for, even if not deliverable to 100%. Reasonable trade-offs can be made, but
limitations to supply form and functions must be explained to the customer/end user before the supply
commences.
2.6. Comparator supply chains - similarities and differences
You should be comfortable at this point in accepting that logistics and supply management is a whole
series of interlocking and complex functions and activities that operate to a commonality of form and
should share a common characteristic (similarity). Supplying distinctive types of products and
services in distinctive types of business, military and humanitarian operations means similarity ends
and separateness begins (difference).
In chapter 1 we looked at the primary, secondary, tertiary, quaternary, and quinary sectors that
influence design of logistics operations in the context of an economy (more difference).

Now examine this selection of complex public and private enterprise activities in an average
economy and consider, from what we have discussed so far, what influence their differences will
have on their logistics and supply network activities and designs:

Figure 4 supply chain diversity by economic enterprise sectors (Source-Author)

The economic sectors influence design of the supply chain and the logistics and supply methods
required. This is because the huge diversity of product and service range that they contain will
require different methods of production, packing, moving, handling, and delivery. Remember that
the diversity of supply in product, service and economic sector will also affect supply chain design
and the logistics and supply activity for each comparator business, military and humanitarian supply
operation, which will be sourcing from and through these supply sources. For the logistician supply
diversity=difference, and whatever the diversity is, it will generate a different logistics and supply
response and system and process design.
This is an important point and it is worth emphasising again, the commonality of the supply chain
form across these sectors is the supply of materials or resources into a product or service
transformation, which results in product or services output to meet customer requirements (figure 1
& 2). The diversity comes from the nature of each particular product or service requirement within
each sector typology, which generate conflicting tensions that will affect each typology, each supply
chain, and ultimately logistics and supply within each sector (figure 3 & 4). As a logistician, you must
be able to identify the internal and external tensions at work and the differences particular to your
particular supply chain sector and typology.

What are the types of differences which will affect these supply chains? Each sector and each supply
typology within each sector means that a different product or service will be generated in response to
demand. Each of these products or services will have a different character, and different types of
customer. That will require different knowledge to manage each product or service and its
associated supply chain operations effectively for different customers, and to design the operating
systems and procedures that move particular product or service through the chain.

Where, how and when that product or service is to be sourced, where, how and it is produced and
where, when and how it is finally delivered, influence how each supply chain will operate.
Knowledge of the total logistics and supply resources required means that you have detailed
information to provide a factual approach to supply capability decision making which can incorporate
diversity in supply and the possibility of risk of failure.

The supply chain system and each operational supply chain activity must be integrated for all of
the above examples (figure 4) whatever the system and activity requirements are for each one.
Hence the importance of supply chain leadership to the supply system designs, operation,
management and operational applications. To repeat, achieving customer pulled perfection in a
scenario of such intimidating complexity may not be possible. The attempts to achieve perfection
will always be worthwhile if they are concentrated upon adding visible and real value to the process
that makes the final transfer to the final customer, whether consumer (BUSLOG), warfighter
(MILOG), or relief aid recipient (HUMLOG).

Learning Activity #3
Consider a product, or service example from any three of the sectors above (figure 4):

What do you think the important similarities and differences in supply chain structure and
activity might be for each of your examples?
2.7. Supply chain interface
We have identified a number of supply chain similarities and lots of supply chain differences.
Supply chains are not only linked activity nodes but these nodes are often broken down into separate
internal and external activities. This means that they can be, and often are, in separate locations,
either within one facility, or geographically distant, locally, regionally or globally. The product or
service may be at the raw material/conceptual stage, at work in progress stage, or at finished product
or service ready for sale/delivery, at multiple locations separated by distance. There may be multiple
movements back and forth in the supply chain for production reasons. Alternatively, an independent
contractor may operate each supply chain stage or node all the way through the supply chain to the
final customer.

All these supply chain stages require connection (the interface) of a combination of data,
information, movement modality management and storage and handling facilies to make the whole
logistics and supply network work.

Globalisation of supply chains in particular has driven the development of solutions to the
complicated interface problems that have arisen from widely separated logistics, supply chain and
product or service provision, and the need for a seamless flow philosophy throughout the supply
chain. Enhancing the supply chain interface to achieve coherent, flexible and optimised supply
performance has been one of the reasons for a close interest in 2PL-5PL contractor solutions for the
business, military and humanitarian logistics sectors. Contractor logistics solutions offer:

Access to wide and up to date industry knowledge of operating concepts, techniques and
applications
Provision of added value by optimising and streamlining supply chain interfaces
A single point of management authority and contact
Global capability and reach
This has made contractor supply chain provision and management of physical supply chain tasks
attractive to business, military and humanitarian operations planners. There are reservations in
military and humanitarian operations sectors about outsourcing critical supply activities to for-profit
contractor organisations whose operational objectives may be influenced by cost considerations.
Debate in the business sector has also been intense with arguments for and against giving up control
of business critical activities to outsourcing by contractor.

The central problem for each sector when it considers outsource to a 2PL-5PL contractor is how
much and what to contract out, and how to control contract performance? The whole concept of
contractor logistics makes good commercial sense, and can make good operational sense, but it
requires detailed analysis before decisions are made. Performance in business (BUSLOG),
military (MILOG) and humanitarian (HUMLOG) supply chain provision has been mixed, the chief
criticism of contractor supply chain management being in the lack of transparency of costs, which
ultimately escalate.
2.8. Regulatory and ethical requirements for supply
Product or service quality, ethical, sustainable, and socially responsible supply are mandatory
regulatory concerns which are major issues for supply chain management. They will appear
frequently through this handbook, for two very good reasons. Those two reasons are the requirements
for product traceability for all of its supply chain transit and user life, and product quality
conformance to standards that ensure its use does not cause harm before, during and after its transit
through the logistics and supply network.

National and global legislation makes laws and regulatory requirements from governments and
regulatory bodies that impact on all operations particularly to meet customer/user rights to quality in
provision of product or service.
This means that supply chain traceability and quality conformance are major issues for logistics and
supply management, they cannot be ignored, and as a number of product and service quality failures
across the globe have demonstrated (and still do), it is right that that should be so. Military and
humanitarian supply operations are bound by the same legislation, but interpreted as it applies to
their unique operational scenarios; the important point is that their supply chain operations are not
able to disregard regulatory and ethical responsibility.

In the European Union (EU) for example, each type of product is required to have a relevant standard
of traceability and quality, currently a legislative requirement, and soon to be a statutory requirement
for each EU country. Similar standards are increasingly required across the global network. Meeting
these standards requires a close degree of cooperation between producers and suppliers (upstream)
all the way through the supply chain to the final customer (downstream).Cooperation entails both
system and documentation integration, and more importantly, physical traceability of products and
services at any time of their life.

If a product or service-related item requires a return activity be implemented because of a quality


failure, the return activity will be from the final customer or a nodal link activity somewhere in the
supply chain backwards to a dedicated return point. The return procedure that would be required to
do this is reverse logistics or reverse supply, depending upon the degree of activity required to
return product back to either a modifier or the initial supplier. In both cases, there is a requirement for
detailed records of production and operational activity to be made and retained for verification.

Many business companies are unwilling, nor capable, or geared up for return supply chain activity
and rely on contracting reverse supply out to reverse solutions suppliers. The result has been major
scandals involving dumping of toxic waste in Third World countries, penetration and control of
developed countries waste management systems by criminals, and redirection of faulty and
dangerous products to resale in less sophisticated markets.

The design and management of reverse supply chains has to incorporate a total overview of the whole
reverse logistics and supply system, the network nodes and process requirements, together with
verification audits for traceability at each stage. Exactly the same principles for business reverse
supply apply to military and humanitarian logistics and supply, but with adaptations for special
handling requirements e.g. weapons, munitions, casualties, specialised equipments.
2.9. Sustainable supply
Logistics and supply management always involves movement, physical or digital activities from the
production and supply of products and services. Movement means that both can contribute in
different ways to negative impacts upon areas in which they operate via:

environment
resource consumption
carbon footprint creation
financial cost
social responsibility
Sustainable supply to minimise the effects of logistics and supply operations is now a regulatory
and ethical imperative. It has to be considered and balanced alongside the unintended consequences
that the application of sustainable standards can have on economic growth, and the society in which
it is being implemented, e.g. employment and standards of living. However sustainable supply design
must be considered and implemented at every stage of every supply chain because the costs of
minimal conformance or avoidance can far outweigh the savings of avoidance.
Conformance of the supply chain to its sustainability obligations make for positive outcomes that
meet the following criteria:

Strategic - internal and external stakeholders are more and more aware of environmental
and social impacts of the supply chain.
Supplier Monitoring data requirements from the whole supply chain to meet (and
disclose publicly) environmental and social audit and verification requirements.
Financial the cost of meeting additional sustainability responsibilities (e.g., carbon
prices and carbon costs attached to each product) generates intense pressure to reduce
waste throughout the supply chain
Brand or reputational visibility supply chain failures in the social and sustainability
aspects of their operations can and do create huge damage to established brands and
reputations.
Operational a credible supply chain approach to sustainability must include all those
activities that are considered to be within the remit of the operation
For logisticians the concept of sustainability confirms the need for regulatory knowledge, data
requirements, analysis, and risk evaluation competences.

The business sector are the front runner in addressing the above issues,(mainly because of impending
legislation and consumer pressure) but the military and humanitarian sectors no longer focus purely
on their operational mission objectives, the acknowledgement of responsibility for meeting
sustainability requirements has begun. Planning for all supply operations now looks beyond the
primary supply mission objectives to secondary supply missions of alleviating the impact of their
supply chains activities upon local communities and the whole environment context.
2.10. Social value- adding supply
Quite simply, social adding requirements for supply chain activity centres upon the acknowledgement
that any supply chain activity should incorporate and assist the local, regional, national or global
community from a none-financial impact of the supply chain operations taking place (Leighton &
Wood 2010).
Supply chain activity generates business profit (BUSLOG), or achievement of mission objectives
where profit is not an issue (MILOG, HUMLOG).Each can have social value inputs into the
community context of their operations.

Supply chain activities have a multiplier effect from their forward and reverse flows, which
influences winners and losers affected by those activities. The social value responsibility that must
be acknowledged by supply chain management in all three comparator sector operations
(BUSLOG,MILOG,HUMLOG) is that the impact of the operations must be mitigated in whatever
way that can give the losers (socially, developmentally, culturally, economically) in their
community contexts a leg up. The transformative effect of any supply chain operation upon its
operational community either influence new ideas and concepts, or even offer basic employment
opportunities.

Any planning blueprint for supply chain operations means that product or service life cycles need to
be fully understood and documented, from birth, to death. That requires every product or service to
have a detailed profile of its constituent make-up and all the collateral activities around it for its
lifetime, including its final disposal.
That disposal capability must be addressed at the design stage for a product or service, and continued
throughout its transit along the whole supply chain until it is finally disposed of by consumers/users.
The life cycle analysis offers an ideal tool for adding in sustainability and social and ethical issues to
be addressed, before they occur.

Learning Activity #4
Consider an important example of supply chain activities from each of the business, military and
humanitarian operational sectors that could provide sustainable, social and ethical community
benefits to communities where they would operate.
2.11. Lean & Agile supply
Planning and optimising demand and supply, incorporating inventory management, are the basic
components of lean and agile strategies for logistics and supply management. From raw materials or
basic resources, through all the transformative stages to the final product or service delivery,
removing unnecessary waste and responding flexibly to customer demand is the key to a successful
supply mission.
That requires supply chain synchronisation of a high order, and synchronisation that meets both the
strategic and operational requirements for specific BUSLOG, MILOG, HUMLOG operations. The
ability to match supply to demand means the difference between success and failure for an operation
because customer expectations, whatever the supply context, have also now been massively
increased. The impact of the digital economy, and its technology, that we met with in chapter 1 and
the influence of the ubiquitous 8Rs from chapter 1 (remember this?)

Fast response to fast changing needs requires eliminating waste at every part of the supply chain,
waste being any activity that does not add value to the product or service delivery process.

Lean and agile supply chain solutions result from what we call logistics network and supply chain
waste walks, where the whole logistics and supply system is examined, points of waste identified
and eliminated or reduced as far as is possible.
Waste reduction makes the supply chain lean and able to become agile and then to respond very
quickly to fast changing demand. To become lean and agile may require significant capital
investment in supply chain infrastructure and resources, cost reductions throughout the supply
chain, optimised and integrated collaborative supply at every stage of the logistics and supply
process, and sophisticated real time information flows, and access to them at every point. That may
mean a dynamic re-alignment of supply chain activity, or possibly total logistics and supply network
redesign, internally and externally, and who pays?

Both lean and agile concepts have in the past, and are still, revealing tensions and contradictions
particularly applying them in the context of global and green supply chains (Mollenkopf et al
2009). There is no definitive single application for the concepts across the supply chain; they have to
be adapted to the context of each of the business, military or humanitarian supply chain that intends
to use them. They can, and do, change in form and structural requirements from product to product
sector and for different operational contexts. The driving force behind them should remain the same,
waste reduction leading to faster response. It is the logisticians responsibility to formulate,
develop, and lead lean and agile logistics and supply.
2.12. Supply management multi-disciplinary connections
The old convention of the supply chain as a distinct and separate functional entity has to be
discarded. To be fully focused on the ultimate customer, logisticians must be familiar with, and
confident in use of, concepts from other disciplines that help to drive forward the totally integrated
supply chain. Traditional functional boundaries must be crossed and traditional functional mind-sets
discarded. Supply management and its supply chain activities require multi-disciplinary approaches
for achieving detailed analysis.

Multi-disciplinary applications to effective and efficient supply, I argue, have to use a combination of
concepts and theories from:

This combination applies to any supply chain activity sector, (BUSLOG, MILOG, and HUMLOG),
and through their entire logistics and supply networks. That means a complex skill set must be
acquired and developed. Logisticians must back up their experience with more learning, and their
learning with experience, using appropriate elements from the whole multi-disciplinary range
displayed above.

The problem of perfect fulfillment that we have been introduced to is not just a buzzword for
discussions of logistics and supply management policy, it is a reality, as customer expectations
accelerate, influenced by the increasing visibility of just about everything, available to them from
social networks. With their new worldwide visibility, consumers and end-users also have the
expanding global ability to punish organisations for failure.

The new total logistics and supply and supply chain management required for meeting these
demanding expectations cannot be grounded upon 20th century notions of quantitative supply chain
service and performance measures. The whole range of contributory factors which influence the
expectations of the new modern customer have to be understood in order to design and operate the
requisite optimised supply system that fully meets their demands (figures 2, 3, 4). Those contributory
factors can only be identified by a multi-disciplinary approach to supply chain management which
requires a new logistician with total supply understanding and the capability to respond to its
dynamics (figures 3 & 4 chapter 1) in any operational scenario.
2.13. Developing supply chain concepts
So far, I have presented and attempted to develop and build a cumulative set of supply chain
concepts, with the objective of identifying exactly what supply chain management is and what it does
within the logistics and supply concept.

We know by now, and hopefully accept, that the supply chain is complex because of the modern
supply chains requirements to be synchronised, coordinated, collaborative and communicating
along its whole length. That can only be achieved, and the supply chain controlled, by visibility of the
whole supply chain. Visibility can only be achieved by rapid real time flows of information and
integration of the vertical and horizontal supply elements into optimised chains that will address the
constant problem of demand uncertainty.

Instant global access to operational information has been a benefit for logisticians in the digital age,
but its downside has been in demands for increased velocity and product or service availability
across the whole supply chain that have exacerbated demand volatility. So the type of supply chain
required has to be tailored and adapted for each supply mission (BUSLOG, MILOG, HUMLOG),
and also for each product and service to be supplied within the logistics and supply mission.

The type of supply chain that you decide to design for a supply mission has a direct bearing upon
achieving collaborative activities up and down the supply chain, and between different nodes in the
supply network. HolIweg et al (2005) made an important distinction that helps to decide upon supply
chain strategy and subsequent operational design for supply missions. They distinguished between
four types of supply chain:

Type 0 supply chain traditional nodes and links functional relationships-each supply and
demand entity standing alone in formal contract association
Type 1 supply chain exchange of information (EDI)relationships-connected in computer
to computer relationships but relationships may still be stand alone and formal
Type 2 supply chain - Vendor Managed (VMI) Inventory relationships-supplier led
technology manages all information and product/service flows from demand data
Type 3 supply chain Synchronised enterprise resource(ERP)relationships-whole of
supply planning activities and data are visible to all end to end
The distinction in categorisation above is important because it helps to determine the level of
relationship requirements for supply planning decision sharing. Ideally, everyone should be in a type
3 supply scenario, with total synchronicity right along the supply chain, leading to world best
performance.

That will be modified by the supply context, where type 0-2 relationships may be acceptable. You
might not need type 3 supply chains where the nature of the product or service lends itself to a type 0,
a type 1 or a type 2, and you can still achieve world best performance using the other levels. You
dont need a type 3 for a corner shop, but you probably do need a type 3 for major military operations
or simultaneous global release of a new I-phone!
The modern supply chain should be a temporary rather than permanent phenomenon, with a ready
capability for swift modification. For any type (0, or 1-3) the core outline for each supply mission
(business, military or humanitarian) should be identified by the logistician applying the following
questions for the operation:

Is this an intra-supply chain? (Is it intended to operate within a single organisation?)


Is it an extra-supply chain? (Is it intended to connect to a global supply network?)
Does it have sustainability requirements built in?
Where is it going (from- to?)
How long for?
How long is the supply chain?
What is the volume of demand?
Who is the customer?
Will it demonstrate full flexibility in action?
What is its reverse supply capability?
What is the ultimate influence of optimised supply on the final cost of products or services
sold?
Each of these questions needs to be set bearing in mind the context of the fundamental objective for
each of the tri-axial comparator operational supply scenarios, which is:

BUSLOG - mediated by pulled (or make to order)consumer market requirements


MILOG- direct and instant contact in combat,
HUMLOG- disaster relief and remedial,
Remembering that traditional/transactional/functional and/or adversarial relationships dont work in
any of these scenarios. Collaboration is required in some degree, even for a type 0 supply chain to
work effectively.

Learning Activity #5

Return to the four supply chain types above type 0, 1, 2, 3) and consider them for BUSLOG,
MILOG, and HUMLOG operations.
1. Should each comparator operation always strive to achieve a type 3 supply chain form?
2. If not why do you think that is?
2.14. Beware of supply chain analytic models
The need for organisations to know what is going on in their industry or operational sectors and to
avoid risk has driven the use of data-driven intelligence (usually based on historical data) from
which predictions of future response are attempted. Supply chain management is central to the
logistics and supply organisational capability for responding rapidly to changes in demand and
supply which affect their and their parent organisation operational strategies and objectives.
As a result the market is awash with software offering certainty for supply chain and logistics and
supply analytical purposes. Many produce impressive amounts of sometimes useful data but their
predictive capabilities usually do not work perfectly when applied to real operational scenarios.
The reason for this is obvious; the real supply chain operational world is subject to volatility and
complexity that rapidly destroys theoretically derived models of behaviour for business supply
activity. In military and humanitarian supply activity, volatility can be even more violent from the
intensity of events in the context in which they are operating.

Theoretically derived models describe strategic and operational phenomena, enabling a technological
guess (and it is a very sophisticated guess) at the end, but too often do not offer any practical
applications for solving the real physical problems within the supply chain. There is no absolute
certainty from prediction.

This handbook does not offer or recommend specific sophisticated technology solutions for the
logistics and supply management world that we are examining. Although we do include technology
trends and developments as necessary background knowledge, the aim is to get you critically
engaged and thinking about real supply chain issues and applying solutions. Physical supply of
products and services is a very different animal from theoretical assumptions. Whilst theory is useful
as a tool to engage with a logistics and supply subject, the logistics network and physical supply
chain will be moving in very different ways, engaging with managers, team leaders, operatives and
other logisticians in high velocity and extremely volatile situations.

Certainty and risk are terms which seem pretty definite in text book description, but both are
subject to randomness, which means that you can never predict absolute results. Stochastic
(mathematical) models may help reduce risk and increase certainty, within limitations. Mathematical
models all have some degree of certainty, but cannot provide specific predictability, with calculated
margins of error for global supply chain nodes subject to disruption from weather, natural disasters,
politics, war or terrorism. Logisticians always apply the cautionary what if question to any
prescribed actions arising from decision-making software.
2.15. Global supply
The material world of logistics and supply management operations for BUSLOG, MILOG, and
HUMLOG is now (2016) predominantly global, and likely to remain so.
The critical dynamic for modern supply chains and logistics and supply management is distance from
sources, whatever your operating location, international, national and regional (figure 5).
Figure 5 globalisation - the context (Source-Author)

Globalisation and international trade-type activity are normal for all three operational supply
sectors, and so add complications to resolving the problems of velocity, time and distance within the
total logistics and supply concept of supplying demand on cost for each product or service delivery.

Supply routes are influenced by the sophistication (or not) of the local infrastructure, use of which
enables the logistics of products and services moving from and into operational areas, and from and
into international supply routes. Supply chain connections at points of contact between global routes
and local distribution points must be integrated as networks that can then enable efficient logistics
management of the whole supply chain. Movement in global networks is primarily by ocean,
supported by air for priority goods and equipments. Primary nodal connection points are sea ports,
followed by airports, both feeding out into road, rail, and inland water and pipeline networks.

Each nodal point must have a network connection into the distribution network from its landing point.
The global geophysical context for supply is huge, diverse, at different stages of development, and
often underestimated by supply chain planners in terms of distance, velocity and time
interconnections and their impact upon fulfillment targets. Supply chain synchronicity in the global
supply context can pose problems and is a major cause of logistics failure. For business failure of
synchronicity can mean loss of market and revenue, for military and humanitarian operations it can
be disastrous, and lead to mission failure.
2.16. Supply chain distribution strategies
Behind every supply chain design, planning and management decision sits the actual strategy for
fulfilling the logistics and supply mission for products and/or services and meeting the overall
strategy for the operation. That strategy is or should be, based upon what I call synchronicity drivers.

These drivers are the competitive benefits (success & gains) and competitive disbenefits (failure &
loss) that come from distributing the product or service effectively or ineffectively through the
supply chain all the way to the ultimate customer or end user. To achieve the benefits and avoid, or
minimise, the disbenefits, supply chain managers must be aware of two potentially fatal supply chain
variables that can kill synchronicity if not assessed in depth:

1. Risk
2. Location decisions
Pooling risk, i.e. sharing risk, means that all suppliers and customers must be fully integrated into the
supply chain. Supply chains risk covers just about every physical eventuality that stops the product or
service moving through to each customer at each part of the chain and finally to the ultimate
customer. The risk of failure can only be reduced, or eliminated, by sharing of risk by each node and
link in the chain. Sharing means that each part of the chain acknowledges their role in reducing or
eliminating risk of failure, and taking active risk reduction or elimination measures, whatever they
might involve. The driver for risk reduction and everything connected with it is the avoidance of
supply chain failure (usually in lead time-chapter 1) that will affect the supply service level required
by each component of the supply chain.

Risk reduction involves very tight supply chain partnerships having to be established, and the
problems of establishing active and close supply chain partnerships in the adversarial business world
(BUSLOG) should not be underestimated. Having said that, risk from problems of establishing close
partnerships in the military (MILOG) and humanitarian (HUMLOG) supply chain worlds exist,
have been identified and acknowledged, and despite best intentions still require attention. These two
are sectors where one might think that the intensity of mission objectives would drive total
integration of the supply chain.

The dynamics of inter-service or even inter-organisational politics within service, with conflicting
interpretations of mission objectives, can and do deflect military logistics and supply managers from
optimising efficient performance for mission success. Humanitarian supply chain operations require
the merging together of a wide and disparate variety of none-governmental aid organisations (NGO)
for aid missions. This can be, and often still is, a difficult logistics management task, and deficiency
in delivery of aid, in this age of almost instant digital visibility, can generate a rapid negative
response from both disaster victims and public donators.

Location decisions are absolutely crucial to any supply chain mission. Service from distribution
centres (DC) or nodes, and associated warehouse and inventory management activity requirements,
are a critical link in the supply chain, and the supply and demand management that underpin the whole
reason for the supply chain. Just in Time (JIT) philosophy has influenced the replacement of any type
of stock (inventory) within the supply chain by on-demand fast replacement or supply from the
supplier.

The application of JIT for BUSLOG forces the collaboration and cooperation of suppliers and
customers because of the supply chain stress and intensity caused by speed of response required for
on-demand supply to meet customer expectations. Product, service and operational characteristics
mean that JIT supply has to be modified for MILOG and HUMLOG operations where pre-
positioned stocks have to be available. The location of service centres in the supply chain can
decide the success or failure of on-time supply for business because the nearest point upstream to the
customer may also be where final assembly, consolidation and configuration of the product or service
are carried out.
For military and humanitarian operations these activities and centres will be a lot further
downstream because of the operational context. In each example a distribution strategy for the
optimised supply chain must acknowledge the potential for risk and location based failures, identify
the possible fail points, and build in disaster recovery measures.
2.17. Supply chain facility using the cube
You should by now have realised, and possibly questioned, that the philosophy of inventory free
supply chains is an ideal that is not always achievable. Identification of problems of supply chain
predictability and manufacturing and throughput of complex products or services require some form
of inventory somewhere in the system. Inventory used as a safety buffer is a safe bet method for
continuity of supply, but it causes considerable cost, hence the business (BUSLOG) use of Just in
Time (JIT).

However JIT is not and never will be a slick definitive solution to low cost supply continuity for
many of the reasons we have examined so far, and inventory in some degree is often required.

MILOG and HUMLOG supply requires a greater degree of certainty of supply for their quick
response operations, which are often at very short notice and with varying degrees of
unpredictability, and large inventory buffers form part of their organisational infrastructures.
Inventory therefore requires storage, and storage means a facility for storage i.e. inventory held in a
warehouse or a distribution centre (DC), or a consolidation centre (CC), or sometimes a combination
of both for activities along the chain. Inventory is also cost, and reduction of that cost impact can be
achieved by using the cube effectively (figure 6), a principle common to supply chain management
in all three of our comparator sectors.

Figure 6 the concept of the inventory cube (Source -Author)


Whatever type it is, inventory moves, into and out of its cube. The movement is generated by
demand usage and breaks down into three distinct types of use activity that are common to
BUSLOG, MILOG or HUMLOG operations and influence logistics modality, movement and
storage decision making:

1. Slow moving low demand patterns usually low volume


2. Medium moving moderate demand patterns usually moderate or variable volume
3. Fast moving high demand patterns usually high volume
Slow and medium usage movers by their nature generate a need for longer term storage time (a
warehouse), than fast usage movers which may be rapid transited through either a warehouse, or a
distribution or consolidation centre, using cross-docking techniques, switching supply directly from
supplier to customer and requiring minimum storage time. Whatever the speed of movement is, each
type will require a storage cube.

Supply chain optimisation for efficient throughput and best cost means maximising the cube, which
is quite simply getting the maximum use from the whole storage facility, whatever and wherever it is.
This principle is universal to the BUSLOG, MILOG and HUMLOG comparator sectors (figure 7),
but must only be driven by the overarching logistics and supply objective what level of customer
service?

Figure 7 maximising the cube - comparator perspectives (Source- Author)

That does not mean looking for the cheapest inventory solution that way can, and often does, trigger
supply failure and disaster. It does mean successfully matching and trading off economies of scale
and costs of inventory against customer service level objectives.

The importance of warehousing and distribution activity in the supply chain management system must
be recognised; often it isnt and is regarded as an avoidable cost. Failure of a warehouse or
distribution node can have a catastrophic effect on the whole supply chain, upstream and downstream.
Despite the successes of lean and agile concepts and their application within JIT systems, inventory
somewhere in the supply chain is sometimes inescapable. No matter where it is situated, its efficient
management is crucial to the success of the whole supply mission.
2.18. Digital supply management
Digital supply is the delivery of data and information, music, video, film, on-line publishing, library
services, the Internet. Digital supply means that electronic architecture takes the place of
warehouses or distribution or consolidation centres. Physical movement modalities are replaced by a
wired or wireless delivery of electronic information and product using digital phenomena of bits per
second speeds. Channels of delivery are via service providers. The physical product or service is
replaced by an on-line form which is transmitted from suppliers to customers, or re-transmitted to
other suppliers and customers. The need for inventory management and forecasting of demand is
mitigated as there is no physical stock or storage requirement, data requirements can be monitored
and calculated in real time. The visibility of product or service by the buyer and seller is total and the
speed of cash settlement instant.

Service level, speed and perfect fulfillment, with cost reduction are the keys to digital supply
success. Supply chain risk areas have become more concentrated, in the fraud and credit management
activities, and with piracy and copyright breaches of intellectual product as the primary focus of
digital supply concern. Logistics and supply management in this rapidly accelerating field require
specific IT specialist skills and the capability for decision making. Use of the cube in this supply
chain has shifted from warehouse and systems design to the design and application of very fast,
efficient and risk-proof IT systems which are web and cloud based.

The functional nature of the supply chain remains the same (figure 8), supplier, intermediary, buyer,
but the actuaries have changed:

Figure 8 the digital supply chain (Source -Author)

The drivers for success for this supply chain model are simplicity of use, complete from end to end,
using shared services of delivery, traceability, financial settlement and the availability of return
activity and financial adjustment. Real time track and trace capability, continuous improvements and
the capability to be adapted into physical supply system technology make it a revolutionary force in
logistics and supply management. The ability of personal digital technology has given logisticians for
the first time almost instant access to their logistics and supply networks anywhere in the world. The
principles of digital supply are practiced across BUSLOG, MILOG and HUMLOG operations and
associated activities suitable for their mission requirements are applied and used, but the business
sector sees the biggest activity in supply of consumer digital products and services.
Learning activity #6
Visit the Internet map website: http://www.ipligence.com/worldmap/ and examine the current
Internet World Map:

Consider one important advantage that digital supply can offer to each of BUSLOG,
MILOG, and HUMLOG operations?
2.19. Enterprise resource planning systems for supply management
Enterprise resource planning (ERP) in logistics and supply management has developed rapidly in the
last decade. It offers a technology solution to the uncertainties around decision analysis and decision
making from modern global supply chain complexity. It is both a concept and a hard and soft process,
involving the use of a software solution, now web or cloud based, that combines ALL of the relevant
organisation product and service management activities into a customer-focused system which is
controlled from end to end.

Combining means just that, the bringing together of information from all the elements involved in the
total supply chain (figure 9).

Figure 9 Enterprise Resource Planning (ERP) for supply systems (Source- Author)

ERP is a single centralised technology based system that avoids duplication of effort, different and
contradictory manufacturing and service supply strategies, unnecessary inventories, and alignment of
the supply chain directly upon the customer. As with digital supply (figure 8) access by user
management and personal digital technology enables almost instant visibility of any part of the supply
system.
The aim and intentions of ERP are an optimised service and supply system that reduces waste in the
form of total infrastructure and production cost, and gives real time data for analysis of the supply
system performance.

For example one ERP system replaces a multitude of internal and external company systems (think of
5 tiers of suppliers and their separate company information systems). It offers capital investment and
operational costs savings, and importantly now, full sustainability overview, as one optimised system
reduces unnecessary organisational supply activity. This makes ERP an attractive solution for
business, military and humanitarian operations, with adaptations and sophistication adaptable for
each context.

A typical ERP type system will offer a range of detailed management support functions, with
language and translation capability, within the following options:

Office (e-mail, administration, front office, back office etc)


Logistics (the whole range of logistics and supply management activities, internal and
external)
Accounting (all investment and return related activity)
Human Resource (Personnel, payroll, training, performance etc)
Information Systems (a whole range of resource data from quality to project management for
operational and executive management use)
Tools for data set up and planning throughout the system
Some leading commercial brand examples of ERP systems, which are worth taking some time to
examine online (key in the name) to gain familiarity with the ERP concept, are:

There are many more proprietary systems on offer, as a quick web search of the term enterprise
resource planning systems will demonstrate, and they can be expensive. Alternative solutions web-
based open source solutions are available which offer cheaper alternatives. The range can be
bewildering and requires expert evaluation from all involved in the supply chain, prior to beginning
any firm planning.
Whilst offering the benefits of optimisation and effective control for complex international supply
network design and management, ERP systems do have a down side. I have found, (and a search of
the business literature particularly will confirm) that there have been many ERP supply chain failures
and subsequent supply disasters, usually influenced by:
Complexity from attempts at integration of a whole range of diverse internal and external
systems, processes and procedures, which can and do conflict
The failure to understand the fundamental premise that any ERP system is based upon a
measure of stability from demand forecasting and mitigation of distortion
Technical competence and skills requirements for all those involved in the system
Incorrect perceptions of the systems performance and capability by senior management
The characteristics of individual products or services, which have not been evaluated
In a global scenario of international markets and international suppliers and supply chain partners
ERP systems do aid supply planning and management. They can be and are used widely in the
business, military and humanitarian operations sectors now. Thorough risk assessment of adopting an
ERP solution for supply chain optimisation must be thoroughly applied BEFORE any decision
making and planning begins.
2.20. Wicked logistics and supply management
Political policy planning and ICT projects management use the concept of wicked to define
potential problems which are unpredictable and will basically cause an uncontrollable mess.
There may be no satisfactory solutions and you have to intervene and deal with them and work around
them as best you can.

The concept of wicked can be particularly useful for logistics and supply chain management. It can
be used for anticipating the interaction of volatility, asymmetry, and unpredictability (figure 12
chapter 1) in logistics and supply planning that arises from the absolute unknowability of demand.
This is particularly stressed as we come to the end of this chapter because volatility, asymmetry, and
unpredictability lie at the root of all LSCM failures. Any logistician who does not take a wicked
perspective in his or her supply chain designs, planning or operational management, or their
overview of their logistics network and supply chain is planning to fail.

Demand variability as demand moves up the supply chain (commonly known as the bullwhip effect)
is a recognised phenomenon (figure 10) leading to demand distortion:
Figure 10 supply and demand variability and the bullwhip effect (Source- Author)

Demand distortion usually comes from irregularity in orders back to suppliers leading to estimates
or even worse guestimates (as supply personnel try to build in buffers in case of problems). These
guesses (sometimes wildly over the top) cause shortages, too high stock levels, and too low stock
levels, bottlenecks in manufacturing and instability in demand patterns right along the chain.
Distortion can and does lead to gridlock in the logistics and supply network as inflated volumes
come back down the supply chain.

Sometimes distortion arises from straightforward inaccurate forecasting by enterprise systems where
data inputs have been corrupted. The mirror of distorted demand is of course distorted supply going
back down the supply chain and it all costs! Physical movement, storage, handling and of course
incorrect supply to the final user all contribute to supply failure and subsequent excessive cost for
business, and mission degradation or failure for military and humanitarian operations with all the
human consequences from that failure.

Distortion can be mitigated to a degree by identifying and mediating the supply tensions that will
occur from variability between nodes and link activity, functions and flows in the chain, dependent
upon the type of supply chain and its supply mission. Wicked supply problems may also combine
distortion and its associated variations, linked with geo-physical, climatic, seasonal, and soft
system variables which may present irresolvable supply problems. What should, or can, logisticians
do? Answer, the best that they can in their operational circumstances, using their own experience and
techniques, and allowing for and anticipating the likely consequences of his or her actions!
2.21. Measuring supply performance supply metrics which work and supply metrics that do not
How are we doing? Key performance indicators (KPIs) of every type dominate logistics and
supply performance measurements to answer that question, and are applied by upstream and
downstream elements in every supply chain. They are used to measure value (whatever that may
be-and it always means different things to different positions on the supply chain).KPIs are part of a
raft of traditional metric based measures which basically assess performance of measurable
dynamics e.g. deliveries on time, deliveries failed, delivery volumes, defective product and service
occurrences, acceptable price, acceptable quality etc.
Modern supply performance metrics methods are grounded in the APICS Supply Chain Council
Supply Chain Operations Reference model (SCOR) which promotes a universal use of detailed
multi-level sets of metrics for performance measurement. SCOR is based upon the fundamental
supply processes of Plan, Source, Make, Deliver, Return, and Enable which require analytic drill-
down through multi levels of the supply system. It is used globally to identify gaps in performance
that require remedial solutions to improve flaws along the whole supply chain, and membership of
APICS (information on-line) is well worthwhile for logisticians and supply managers and
operatives. Although ideal for identifying weakness and failure along the chain, it is not a predictive
model.

Metrics do work if they are applied in practical ways to reveal real problems of supply chain
functional operational performance that can and will affect success of the supply mission.
Unfortunately, and too often, supply chain metrics are applied to produce data that impresses by
presentation of volumes shifted, which is fine, rather than data that can be used for sharing
knowledge of benefits gained from failure avoidance, and future benefits to performance by analysis
of actual and potential failure. There are counter arguments to the application of metrics in that real
supply chain value can be truly gained only by relationships built upon shared knowledge, planning
and crisis resolution along the supply chain in real time before crisis occurs. That forces an intense
supplier/buyer/user relationship development all the way along the supply chain from source to final
customer or user.

The answer is a combination of both metrics and relationship development to add supply value and
complete a successful supply mission, and this is true for business, military or humanitarian
logistics and supply. The current fragility of logistics and supply networks, which could be identified
from metrics analysis, lies in the areas of:

Current supply chain volatility from demand-led uncertainty as customer/user consumption


is deferred or cancelled or interfered with because of economic, situational or geophysical
factors
True costs of ownership data are often still not available, so cost optimisation along supply
networks remains difficult and needs to be identified
Supply chain risk of supply failure from resource disruption from increasing security
situations is not assessable, because of lack of data.
Global supply chain networks development and management still displays deficiencies in
performance because volatility around demand and supply capability and capacity is not
understood.
Many organisations still have not identified key suppliers in their supply networks whose
failure would accelerate collapse along the network
The integrated performance approach required for 21st century supply chains remains
constrained by improvement failures as many organisations take a short-term survival strategy
and are reluctant to undertake long-term integrative analysis
Metrics for BUSLOG, MILOG, and HUMLOG supply performance analysis and critical supply
chain improvements are essential for responding to the above examples. However these problems are
deep seated and persistent, and they require major logistics performance warnings by logisticians to
their parent organisation when identified, which are sometimes ignored. The human element can run
parallel, with relational developments contributing to failure, which metrics may or may not identify
nor be able to provide solutions. Supply chains are not machines; they contain major elements that are
human, and therein lay the potential for problems.

Metrics do offer a useful evaluation tool because the major problem facing present logistics and
supply networks is that of resilience, the ability of a network to survive failure or shocks to the whole
or any part of its network components.

Overview logistics and supply, new perspectives: the same old problems?
This chapter introduced more logistics and supply and supply chain topics, with the intentions of
developing a deeper critical knowledge that continues to widen your understanding of the
fundamentals of supply chain excellence and its role in superior logistics and supply management.
The comparator view again demonstrated that military and humanitarian supply networks share the
fundamental characteristics of business supply. This means that each sect (BUSLOG, MILOG,
HUMLOG) rests on common logistics ground, which gives the logistician a control advantage in
entering them and operating them, then building the specialist techniques required for each sector.

Whatever the operational sector, (BUSLOG, MILOG, or HUMLOG) it is argued that logistics and
supply, and the functional supply chains for each, must operate to a single imperative. That
imperative is quite simply, planning to avoid failure by identifying the weak links in the whole
logistics and supply network:

Fundamental problems remain, centred on the historic objectives that as we have observed in
examples across our comparator sectors still need to be addressed in modern logistics and supply
operations. These unfulfilled objectives are summarised below (figure 11):
Figure 11 unfulfilled objectives for logistics and supply (Source-Author)

Why do these objectives (figure 11) still remain unfulfilled? Partly because cheap options have
always been preferred for what was always seen as a necessary but unwelcome cost on the business
or operation involved. Partly because the necessary skills were lacking (the military were an
exception to this), that would enable visible and effective logistics and supply to be performed. That
is changing rapidly as you read this, and the logistics discipline takes its place as a recognised key
player in any operation that shifts product or service.

However these unfulfilled objectives remain, still common to business, military and humanitarian
logistics and supply management, to a degree, and relevant to their specific operational
circumstances. Focus on them will result in achieving success from targeting upstream, downstream,
customer service and cost optimisation factors (figure 11). They can be resolved, by adopting,
adapting and applying the principles we have identified so far, and which we will now go on to
develop further in this handbook.
Consolidation learning activity
Examine the unfulfilled objectives of the logistics and supply at figure 11 above:

How might these objectives translate into a specific example from each of BUSLOG,
MILOG and HUMLOG operations?

Concluding case activity


Service level has a different specific meaning at different stages of the supply chain to different users
and for different logistics and supply contexts. It is always generated as a % figure out of 100 to
illustrate supply performance and of course in a perfect supply world that would be100%?

Or would it?

Examine the simple cost/service level example below:

100% service level inevitably leads to excessive cost, its a given, has been well researched and
still generates controversy.
Consider this service level problem for BUSLOG, MILOG and HUMLOG supply scenarios and
decide what acceptable service level as a supply chain manager you could offer (and defend why).
Final discussion topics
1. Re-examine the terms predictability, stability, synchronicity in relation to logistics and
supply management. Now that you have read chapters 1 & 2, can they ever be fully
achievable for BUSLOG, MILOG, and HUMLOG supply?

2. Give an example for each of BUSLOG, MILOG and HUMLOG showing why
contracting out logistics and supply activity and management to a 5th party (5PL) logistics
provider might be disadvantageous as a supply strategy?

Conclusion
In these two chapters you have been given the essentials of logistics and supply management that are
needed to begin to understand and assess the fundamental principles required for world best
logistics and supply capability. You can now argue that business (BUSLOG), military (MILOG)
and humanitarian (HUMLOG) logistics and supply management do share some common
characteristics. Having developed an understanding of a range of principles and practices for
applying the total logistics (end to end) concept, you will be able to resolve some of those supply
problems discussed (particularly figure 11) and that you are going to meet, whatever your
operational sector, as a logistician.

The common heritage of business, military and humanitarian logistics is supplying demand,
whether that is fast moving consumer goods to retailers, spare parts to a logistician supporting an
Apache attack helicopter maintenance team in a hostile scenario, or water, food and medical supplies
to a relief aid worker assisting victims of disaster.
In the next chapter we go on to examine in detail more essentials of logistics and supply, and
developing further the fundamental and specific concepts for BUSLOG, MILOG and HUMLOG
operations that were introduced in chapters 1 & 2.
Grounding for the chapter
Carroll, A. (2015), Logistics and supply Operations management, lecture, seminar and professional
course materials, 2004-2015
Chartered Institute of Logistics and Transport UK, (2015), Vision Values and professional Standards,
https://www.ciltuk.org.uk/AboutUs.aspx
Chartered Institute of Procurement and Supply UK, (2015) About CIPS, http://www.cips.org/en-
GB/aboutcips/
Fritz Institute, (2015), Partners for Effective Relief, http://www.fritzinstitute.org/aboutUs.htm
MIT Supply Chain 2020 scenarios, http://ctl.mit.edu/research/sc2020
Slack, N. Brandon-Jones, A. & Johnston, R. (2013), Operations Management, London, Pearson Ed
Supply Chain Operations Reference model, http://www.apics.org/sites/apics-supply-chain-
council/frameworks/scor
Further Reading
Gattorna, J. (2009), Dynamic Supply Chain Alignment, Surrey, Gower
Mollenkopf, D. Stolze, H. Tate, W. & Ueltschy, M. (2009), Green, lean and global supply chains,
International Journal of Physical Distribution & Logistics Management, 40 (1/2):14-41
OHanlon M.E. (2009), The Science of War: Defense Budgeting, Military Technology, Logistics,
and Combat Outcomes, Princeton, Princeton University Press
Russell, T. (2005), The Humanitarian Relief Supply Chain: Analysis of the 2004 South East Asia
Earthquake and Tsunami, unpublished MSc Eng Log dissertation, MIT
(http://dspace.mit.edu/handle/1721.1/33352#files-area)

Additional sources: web sites (accessed Jan 2016)


https://hbr.org/2004/10/the-triple-a-supply-chain
http://www.defencemanagement.com
http://www.unlb.org/
INTERNATIONAL LOGISTICS AND SUPPLY MANAGEMENT-COMPARATIVE
PERSPECTIVES
Chapter 3 SHIFTING PRODUCT
Learning objectives
At the end of this chapter, you will have developed the introductory essentials that we covered in
chapters 1 & 2 in further detail and will understand:
Incorporating of process, velocity, system and activity concepts into logistics
operational strategy and design
Evaluation of key points of developing contingency plans for failure prevention
Optimising techniques for cost making the best use of logistics resources
Relationships of technology for modern logistics and supply operations
Synchronisation perspectives for logistics and supply
These objectives do not contain anything that a professional logistician will not have covered in their
training and qualifications development. The knowledge that you will have gained so far, and will
now develop further, is critical to understanding the application of logistics concepts for operational
supply situations, and the performance of the logistics network. You will be able to shift product
faster, more efficiently, on time, and on cost.
3. Introduction
Business, military and humanitarian logistics incorporate a comprehensive and complicated range
of general and specific supply activities that must meet the fundamental and critical principle of
satisfying customer or end user service requirements.

This overriding principle is always (and should always be) driven only by the specific expectations
and requirements of customers or end users for meeting their demand. Commercial expectations will
derive from the levels of excellence of business service offered by you and compared to other
competitors by customers. Competitive levels of service are also an issue in operational scenarios
for military and humanitarian logistics and supply management, the expectations and requirements
for exceptional service are similar and paramount, but for different reasons. So for BUSLOG,
MILOG and HUMLOG operations, the overriding principle remains the same for each, meeting
customer service requirements; however they are defined, for each particular operational scenario.

Chapters 1 and 2 covered a range of key principles, concepts and offered a useable theoretical basis
for logistics and supply management practice required for supporting real operational activity. This
chapter examines in more detail the nuts and bolts aspects that underpin logistics and supply which
you should now be aware of. In particular you must be aware of the importance of managing logistics
and supply network velocity from end to end and the trading off that is always required in meeting
customer expectations for on time on cost on target delivery.
Learning Activity #1

Three pallet loads of supplies for each of our comparator sectors are shown ready to be moved:

Identify ONE different velocity characteristic that might be specific for each type of load.
3.1. Essential Components of excellence in logistics-identifying the beat
The essential components of highly competitive and successful logistics and supply management
form a recognisable set of characteristics that are visible in any world class leading organisation.
Competitive means exactly that, that it can compete with and outperform other comparable
operational organisations in business, military or humanitarian operations or projects. In other
words it is the best.

These characteristics are simple, but effective, and incorporate three important components:

1. the declaration and commitment to excellence from the creation and application of
innovative logistics strategies integrated with the operational strategy and objectives
2. logisticians involved always display dedicated and inspirational operational leadership,
and logistics team total engagement to the tasks required
3. proven benefit to the performance of the operational enterprise is always visible and
available-success can be demonstrated in hard and credible numbers, whether it be
bottom line margins for business, or successfully achieved mission objectives for military
and humanitarian operations.
These essential characteristics and their components for logistics success derive specifically from the
activities of identifying the detailed requirements for the logistics and supply management strategy
that will work for the organisation it is supporting, and its primary mission. In the authors experience
these characteristics can always be identified from evaluation of the variables associated with:

Defining the logistics and supply task(s) and the operational vision for the logistics team(s)
Identifying the appropriate, and accurate, data and production of data, which will enable
information for the determining of an effective strategy and network design for the task(s)?
Simulating, comparing, and then assessing the advantages and disadvantages of a
centralised, decentralised logistics approach, or combination of both, that maximises
customer response and service level
Identify supply chain risk, and incorporate risk minimisation along the whole network by
risk sharing (pooling) with all supply chain actors
The simulation and matching of push and pull-based logistics and supply models to
operational requirements that will identify the model that will be most successful in achieving
maximum and optimised customer service.
Always trialling a distribution strategy to operational practice that builds in contingency,
i.e. always has a fall-back and reserve backup plan.
Continual analysis of the operations supply chain that considers the implementation of
effective alternative logistics strategies in any number of assumed scenarios (gaming).
The evaluation resulting from applying the variables above will not only confirm the characteristics
for logistics success but will also identify a more subtle characteristic, the beat of a successful
world-class logistics network.

The logistics and supply game, in business (BUSLOG), military (MILOG) and humanitarian
(HUMLOG) logistics operations, always works to a beat, and it can be detected. The beat of a
logistics network determines its success or failure.

What is it?

As in music its the detectable rhythm along a working system, with all the elements of the supply
network working in harmony, no failures. Professional practitioner logisticians instinctively look for
that beat as the key to assessing supply network performance. If variations are detected then the
network is not in harmony. How to get that beat harmonised is examined further in the chapter and
subsequently throughout the remainder of the handbook.
3.2. Supply chain syncopation-getting the beat harmonised
Successful evaluation and application of the essential characteristics for management of velocity in
the logistics network generates assumptions that supply chain optimisation and harmony takes place
as an automatic end result.

Not so.

What cannot be assumed, and is often underestimated, is the very difficult problem of integration and
continuous collaboration of all elements of the supply chain and the overarching logistics and supply
network. Collaboration is required to maintain continuous momentum (the beat) in the supply chain,
but collaboration comes with problems (figure 9).
Figure 9 supply chain players- integration and the challenges of maintaining harmony (Source-Author)

Harmonising the dynamics of process, velocity, and system and activity (and their players)
and achieving integration up and down the multiple tiers of supply (figure 9) requires a conductor
the skilled logistician, for syncopation of the whole network.
3.3. Up and down the tiersthe players
Major factors which are involved in supply network velocity are illustrated at figure 9, where the
players are nicely grouped in a comfortable relational alignment, with harmony maintained by
skilled logistical control (the conductor). The operational reality for BUSLOG, MILOG and
HUMLOG supply missions will be of various complex configurations up, down and across and
within the tiers. Within supplier tiers for example, there may be more lateral and linear complexity
(figure 10) and multiple levels of players all the way to the ultimate customer or end user.

Figure 10 maintaining velocity multiple logistics players (Source-Author)


The supplier tiers example (figure 10) illustrates the perennial problem of logistics and supply
management, that of who is influencing if not directing, the whole beat of even the most basic supply
chain activities (Figure 11).Oftentimes it is not the conductor it should be, the logistician, but a
dominant player in the chain.

Figure 11 maintaining velocity -who maintains the beat? (Source-Author)

Now we know who should direct the beat, the key question is who maintains the beat? The answer is
of course the primary player, the customer or end user and their demand requirements. Delivery of
that demand is overseen by the BUSLOG, MILOG, or HUMLOG logistician responsible for the
whole or designated part of, supply network. However the nature of the product or service (fast,
medium, slow mover from demand that was introduced in chapter 2) will also influence the
logisticians response plan for directing velocity and timings.
Although customer pull should be the principle dynamic of primary process, system velocity and all
supply activity. That is not always the reality of working supply systems. Principle influence is
sometimes usurped and degraded by another primary player in the chain e.g. the dominant
manufacturer or materials supplier, distributor, modalities provider, or retailer etc. If this occurs,
supply chain distortion follows quickly. Logisticians must maintain constant vigilance over the
network and pre-empt or recover any loss of momentum (the beat) to the primary user.

Learning activity #2
Consider what a slow ,medium, and fast moving usage item might be in business, military and
humanitarian operations inventories,and give an example of each.
3.4. Managing the beat- core logistics effectiveness
Organisations everywhere continually seek major improvement that will give them competitive edge
in efficient response to customer and user demands. Logistics and supply management is increasingly,
and rightly, acknowledged as a key component for business or operational mission, but barriers to
logistics effectiveness still need to be addressed. Academic research, professional institutes surveys,
consultancy initiatives and post-operation analysis (much information available online for you under
supply chain failure) reveal constant weaknesses in core areas that impose barriers to logistics
improvements in our BUSLOG, MILOG, and HUMLOG sectors.
Logistics and supply improvement requirements to core functions and activities that deliver logistics
effectiveness and operational excellence currently range across:

Procurement- the critical process that is still regarded as a reactive administrative type
function in many companies, driven by lowest price strategies, and resulting in lowest
quality supply management.
The total supply chain (internal and external) to the final customer, recognising that
integrating the total chain as crucial to effective response times, logistics management, and
quality assurance.
Information and knowledge management is poor; surprisingly in this digital age, silo
functionalism is still the norm, a continuing problem identified by major professional Institutes
world wide
Size of the operation logistics effectiveness problems are most intense in business,
military and humanitarian operations from SME (small, medium enterprises) who constitute
major parts of the supplier base and who would benefit from supplier development
programmes by the prime logistics manager.
Current logistics and supply management methodologies are considered as none
strategic and are frequently outsourced to 2-5PL providers, with no skills for monitoring the
service
Training, education and skills deficits with the result that many organisations use out-dated
operations management methods and techniques, make them up as they go along, or none at all.
This is quite a list of challenges and demonstrates that there are major problems out there for
logisticians to solve. For every major global player with logistics and supply operation excellence
there are twenty others with flawed performance- leading to operational degradation of total failure

The problem for logisticians is that the twenty will probably comprise part of their supply network
and will compromise the search for logistics and supply network harmony. Logistics effectiveness
cannot be taken for granted, it has to be demonstrated and examined. If discord is present, the beat
will be lost, syncopation is impossible, failure follows. This rule applies (and has been broken) in a
number of BUSLOG, MILOG and HUMLOG operations to present date, sometimes with
catastrophic human, financial and economic results.
3.5. Managing the beat-variety
Logistics effectiveness, network harmony and maintaining the beat of the system might seem a tall
order, and it is. Logisticians do it instinctively once they have experience, but it is difficult and
intimidating to conceptualise, do not underestimate the challenge. At this stage you will be well
aware that managing the system beat means managing complexity and that complexity is compounded
further by variety. Business, military and humanitarian operations will each have a different
variety perspective, but bound by some common characteristics:
The variety of customers, products and service-linked activities that need to be
processed, hourly, daily weekly, monthly, annually (24/7/365 as it is known in the trade).
The variety of distinctive routing, handling and processing requirements required for
every customer, for each product, and for each service-linked activity.
The variety and number of different orders in the supply network at any one time.
The variety of operational scenarios in which the logistics network has to operate, can be
local, regional, national, global, or a combination.
The variety of velocity, time and cost issues that all this activity generates.
Solutions for variety-based problems and achieving logistics effectiveness (managing that beat)
come from applying a combination of logistics integration, logistics economy and logistics
efficiency methods viz:
Switch to pull supply chains where provision is customer-driven
Supplying fast, reducing inventory/buffers/stores as much as possible, or pushing them as
far back upstream as you can
Time reduction out of the total supply chain, by elimination of all waste activities that
make no contribution to value
Designing 100%+ network ability in at your logistics concept stage and totally
eliminating performance problems, supply failures and customer returns and complaints
before they occur.
Simple but effective supply chain functionality, leading to reduced resource
requirements.
Error elimination in working supply processes as soon as identified.
Integrated information management and control systems-ALL players in the supply
chain working together through effective knowledge management
Continuous identification and application of techniques and activities that enhance the
system design and accelerate delivery to the ultimate customer.
You could argue here that this focus on effectiveness, managing the beat and coping with variety
emphasises that logisticians must be capable of producing an effective and flexible delivery
specification, every time, which covers every eventuality, an impossible task. The point being made
here is that any form of logistics management must always incorporate critical criteria, (observation
and questioning), at every stage, before, during and after logistics and supply management events.
Even if total harmony is restricted by velocity, time, resource or cost limitations, doing this will
make you look at your network from a thorough critical perspective. You might not achieve perfect
supply, but you will have improved it.
3.6. Maintaining the beat: comparative perspectives
The emphasis on maintaining the beat of any logistics system and supply chain processes is vital.
Good business logistics operations (BUSLOG) can and do energetically engage with all the points
for logistics effectiveness that we have examined so far in this chapter. Each of the points made above
can be and are also being applied to development and improvement of military (MILOG) and
humanitarian logistics (HUMLOG) operations as you read this.

Common methods of modality apply, but with the MILOG and HUMLOG customer (end user)
pulling the logistics activities, and arguably with more intensity of demand, than the average
BUSLOG consumer, for obvious reasons of different operational contexts.

Syncopation for military and humanitarian logistics networks, arguably more so than the business
logistics network requires:
More tightly centralised coordination of information flows from end to end of the network
Even more precise integration of product and service order handling, production and
distribution, and transport modalities management.
Unhindered access to and availability of local, regional, national and international
transport modality and secure distribution channels
Track and trace capability for the location and movement of every item in the logistics
network in real time
Knowledge of the overarching political and media context, an important element often
ignored or sidelined in the intense focus upon the logistics mission
In particular, both of these operational sectors have to plan for, and design for, logistics network
contingency for situations that can generate specific mission-related issues arising from distance
capability and logistics competence for their particular operations (figure 12).

Figure 12 distance capability requirement for MILOG & HUMLOG (Source-Author)

Contingency will need to range over:

The logistical impact of the destination area of the operational organisation (from political,
economic, geographic, climatic, demographic, topographic infrastructural, temporal dynamics)
The physical distance from the home base and supply base to the operational area over
which supply must be maintained
The time period over which the operation is planned that incorporates and integrates
distance and velocity
The volatility and intensity and volume and variety of user demand over that distance
The order of priority in which demand must be met over that distance
The modality decisions that must be made for priorities over distance and within time
All of these factors will influence the planning, the design and the application of the type of logistics
network operation and the resources that it will need to maintain the beat of the supply system. So not
only does complex variety have a major influence on the supply system here in military and
humanitarian operations, so in tandem does secure access to the supply area play a defining role.
But, you could respond here, doesnt business logistics have to overcome the same problems from
global supply over distance, albeit of a different intensity (the market is not a combat or disaster
area despite many of its players affecting military metaphors in business and marketing planning),
but with a definitive user at the end of it (figure 13)?

Figure 13 distance capability requirement for BUSLOG (Source-Author)

The answer is, yes,the essential requirement for business logistics (BUSLOG), military logistics
(MILOG) and humanitarian logistics (HUMLOG) is always end-to-end logistics management and
control.It goes without saying that this is important for business competitiveness and survival, it is, I
argue, even more imperative for the success of MILOG and HUMLOG supply missions, whose flaws
or failures will have significant human consequences.The conflicting tensions and challenges that
arise from attempting to maintain the logistics network beat can be intimidating for all three
comparator sectors,to differing degrees of consequence. But they will have similar characteristics of
failure,as we have seen, and these must be met and overcome if capability is to be
maintained.Losing the beat means loss of momentum,supply failure and operational and strategic
mission crisis.

Learning activity #3

Try to identify a real and important example of the variables of variety and access that might
have an impact upon logistics operations in the comparator sectors:
3.7. Maintaining the beat -the pipeline concept
Maintaining the beat is always concerned with keeping the flow of materials, services,
communication, information, finance and personnel constant. A steady throughput velocity is
essential for monitoring and managing the whole flow. Think of a constant flow of water through a
pipe and the problems that will arise if the flow is impeded, or misdirected, hence the term pipeline
when discussing logistics and supply management.

The logistics pipe line concept (figure 14) that we have already met incorporates materials or
service acquisition and subsequent manufacture,service provision development, and some type of
storage. From storage, the supply management process moves materials and products through for
deployment and distribution activity and then into deployment area(s).The deployment areas for
business are the general consumer market, for the military and humanitarian logistics operations,their
particular markets - their operational area(s).

Figure 14 the ideal pipeline concept for steady throughflow (Source-Author)

The pipeline concept is a relatively simplistic ideal upon which to define and build logistics and
supply network knowledge. In reality pipeline design, development and application for different
product, service and operational scenarios can and does generate a number of complex operational
challenges for logisticians.These challenges always arise from the need to provide the right product
or the right services,at the right velocity (remember the 8Rs at 1.20 & 2.11?), and they must
maintain momentum to the final user or customer.

The challenges intensify when the demand for supply is unforeseen, a problem common to business,
military and humanitarian logistics and supply management where future markets can be
predicted or assumed but not defined.An additional factor for military logisticians ,and to a certain
extent humanitarian logisticians,is that in their operational context pipelines can also be on the move
even as they supply, as they extend further to user areas.Business channels are static or fixed in this
respect.
Mobility of any kind immediately implies problems of resupply once original operating materials,
supplies and resources have run, or are running, down. The solution for any operational logistics
problems is always of course to have sufficient inventory or resource capability (stock) to provide
buffers of supply for any unknown future requirement.These can be physical stocks or resource
capability available at short notice by pre-planned contract arrangements with suppliers. In both
cases the cost of buffer inventory, or permanent contract arrangement which involves suppliers
keeping capacity and inventory available for short notice requirements, will be excessive.

This problem, the problem of demand and maintenance of steady pipeline throughflow, has been
addressed in the business logistics world by Just In Time (JIT) and its associated end to end pipeline
techniques. But it is not the complete solution,the underlying problem of supply system failure due to
unforeseen and/or unplanned contingency (quite simply bad weather in a European winter) can and
does still cause major disruption.The military and humanitarian logistics sectors have addressed
their particular potential problems by using a combination of JIT techniques and by holding pre-
planned major inventory (including supplies, equipment resources and manpower) for key critical
items,either in centralised or decentralised stock holding facilities, or on call from suppliers. The
penalty of substantial buffer stocks is always subsequent cost add-ons, usually to already
overstretched budgets,but sometimes is inescapeable.

To re-emphasise,what are critical constants in maintaining the logistics beat?Velocity and time
have been identified as key components that influence everything in the logistics and supply
networks.They are common to each of our our comparator sectors (BUSLOG,MILOG,HUMLOG)
and failure to address them at the logistics network design phase will inevitably ensure failure.
3.8. Synchronisation, sustainment,scheduling
Maintaining the beat of the logistics network, keeping the pipeline flowing, dealing with all the
variants that can and will arise produce logistics problems that must be solved around the clock.The
underlying dynamics of velocity and time are always there, and are always a recipe for failure if not
closely monitored.Every professional logistician is trained to cope with the variety of failures that
can occur, but in the final resort, prevention is always preferable to disaster recovery.

What to look for as a fundamental preventive measure?In short, is the network synchronised
(chapter 2). For logistics and supply network and process integrity it is an absolutely fundamental
dynamic for any type of successful logistics network, particularly so in a global operational
context.Within synchronicity,lies the integral component of sustainment, that is, is the logistics
network maintaining supply, and is it continually monitoring, adapting and upgrading itself whilst it is
doing so?We are back to velocity and flow again, in this case using continuous assessment of the
schedules of materials and service delivery that form an integrated part of any pipeline design and
asking these key questions:

Are the delivery schedules being met?


Are the required volumes and variety of materiel being shifted?
Is the scheduling pattern sufficient to keep the supply requirements maintained?
In a difficult and stressful combat (MILOG) or humanitarian relief operation (HUMLOG) these key
questions are crucial to mission success and should have been addressed before the logistics mission
activation and launch.Whilst the synchronisation, sustainment and scheduling dynamics are equally
important for business (BUSLOG)(think of NHS supplies to a Primary Care Trusts hospitals
failing!), there is some flexibility to modify the pipeline once supply is under way.Not so with the
other two sectors where logistics failure may mean increased casualties and flexibility may be more
constrained by the need to conform to, and be aligned with, the overall operational generation and
take-off.There may be little room for adaptation of the general plan until things go wrong.

Do not underestimate the logistics and supply management task,it is complex,time driven, and very
stressful whichever operation it is supporting, and requires relevant degrees of skill at every
level.Where the operation is global, with an extended logistics network (figure15), the stress levels
and failure factors from vulnerabilities in the network can increase dramatically!

Figure 15 the extended logistics mission-maintaining the beat (Source-Author)

Failure will occur because no logistics planning or supply network design is or ever will be perfect,
so flexibility in concept must always be factored into the BUSLOG MILOG and HUMLOG
operational design to respond to sudden and possibly volatile change as soon as failure occurs.
Across the three comparator logistics sectors (BUSLOG, MILOG, HUMLOG), planning and
design activity must drill down deep as far as it can into the appropriate levels of micro-detail to
provide an image of the operation that is as comprehensive as possible, and then formulating the
logistics strategy for the mission ,the logistics detailed plan and the rhythm for the network (figure
16).

Figure 16 the logistics mission defining the rhythm (Source-Author)


3.9.Logistics and supply responding to change
Logistics Planning - The wisdom to realize when working on plan A, you'll run into conflicts in
executing plan B, and being properly prepared, and successfully executing plan E.
Capt. John P. Laverdure, Scott Air Force Base, HQ Air Mobility Command, USA, 1996
The only things certain in life are death and taxes!
Anon
The basic truths above might seem trite,but they emphasise completely that fundamental rule of
logistics management that every logistician knows, there will always be uncertainty, and that it is
centred upon demand:

any change in the logistics plans arising from changes in the strategic and operational plans
will change the demand rates
changes to the missions macro and micro infrastructure will change demand rates
ignore planning for external contingency and you will be surprised by a change in demand
rates!
a change in demand rate (volatility) will cause distortion in supply as changed demand
requirements from those originally calculated flow back from the customer to supply nodes.
the changes in original capacity to order and hold, and capability to lift and deliver can be
(will be)seriously compromised
there are no certainties, so plan for change-always
Global logistics and supply is particularly vulnerable to distortion in supply arising from changes to
original logistics plans which may change the volumes of products and services from those originally
envisaged.Extended logistics networks, business, military or humanitarian, require a level of
stability in order to function effectively towards achieving the sole objective of any supply
mission,that of meeting customer and user requirements.The longer the extended distance of the
logistics network, the more the potential for distortion and disruption within the supply chain is
likely if demand becomes volatile.

How to maintain stability from demand planning is probably the last major frontier for logistics and
supply management demand forecasting.Despite the availability now, and use of,sophisticated
technology and mathematical algorythms, there will always be an element of unknown demand,
because demand forecasting uses historical data of past usage, extrapolated in mathematical
projections (computer guesses) tempered by market-based research (statistical guesses).

Business forecasting uses at best in-depth customer surveys and at worst product or service
comparator studies.Military and humanitarian operational planning also use historical data,
tempered by contingency planning for optional and alternative types of operational scenarios, which
again always have an element of the unknown that can never be planned for.

We met demand variation over time and distance in chapter 2.It will cause distortion (the bullwhip
effect) of some kind in either over-stocking or under-stocking or a combination of both. Distortion is
especially violent and dangerous for extended logistics networks where response capability may be
limited by distance.Any distortion will generate additional costs, of time, resource,storage, transport,
personnel, and of course the ultimate cost, of mission degradation or failure (figure 17).

Figure 17 effect of distortion on the logistics mission over time and distance (Source-Author).

Failure (figure 17) can be mitigated, reduced and sometimes circumvented altogether by continuous
and dynamic (rapid) planning, logistics execution monitoring and continuous replanning of the
logistics network whilst it is in operation (Plans A through E and possibly XYZ!).Maintaining the
logistics beat may require more than one rhythm, do not underestimate the tendency of the beat to
change and be prepared for that change (figure 16).
Real time technology, particularly real time track and trace, offers logisticians the potential for
swifter replanning and redesign of logistics networks that are under threat from any distortive
occurrences, by indicating choke points as they occur. Just as important is the ability of every
logistician to continually refresh and regroup their mind-sets, their operational assumptions, and
their general and specific knowledge around each supply operation that they undertake. Logistics
learning never ends, the last operation influences the next, and the unknown will always be a major
factor.

Learning activity #4

Define a single major factor that may cause change in demand, and that might affect each of the
business (BUSLOG), military (MILOG) and humanitarian (HUMLOG) logistics operations.
3.10. Critical comparator difference-BUSLOG, MILOG, HUMLOG
At this point in your reading it should now be pretty clear that there are similarities, but also some
crucial differences between business logistics (BUSLOG) and military(MILOG) and humanitarian
logistics (HUMLOG).Our three sectors DO share similarities in principles of the general functional
areas required for logistics and supply operations:

Logistics network research, design & development


Procurement
Costing and measurement
Inventory management
Distribution & delivery
Maintenance of product and services and logistics infrastructures
Reverse supply, recycyling and disposal
Training and Skilling of staff to operations
There is one area where MILOG and HUMLOG do not share similarity, and that is in the human
element of the logistics and supply networks coming into contact with death and injury, and the
associated trauma of having to deal with possible casualties. There may be a tenuous connection
with business operations and their company health and safety provision, but that is all.Security of
staff and supply perimeters in military and humanitarian logistics operations is a critical area and
must be addressed at the planning stages.

MILOG and HUMLOG logistics and supply operations by necessity must be in the proximity of the
events that they are supporting.Both have the greater likelihood of physical attack upon their
networks and the subsequent possibility of catastrophic mission failure.Military and humanitarian
logistics personnel must be prepared for and trained for the likelihood of becoming, or having to deal
with, casualties whilst implementing logistics operations.Human casualties will also have the
potential to influence operational outcomes: military logistics in the effectiveness or not of its parent
operations fighting power and mission success, and humanitarian logistics in the successful
deployment, rapid aid and reconstruction required for disaster relief.
Both these sectors rely heavily on their human element and the capability of their people, to face and
deal with extensive physical and emotional intensity of trauma in their operations that is not seen in
the comparator business logistics sector. Operational context and operational environment are
distinctly different, even though operating methods may be related.Flawed business logistics may
directly and indirectly impact upon the people with whom it comes into contact, in matters of stress,
employment conditions and requirements for business success. But nowhere nearly as catastrophic as
the impact of flawed military or humanitarian logistics operations would be upon the people
directly and indirectly connected with those operations.
3.11. The Logistics footprint
The logistics pipeline concept (figure 14) is a simplistic model that demonstrates the need for end to
end flow management,and maintaining the beat and rhythm of the logistics network. The logistics
footprint is a result of the physical activities and use of resource by personnel and equipment for
making the pipeline flow (including the carbon footprint-now a major issue in modern logistics
operations-3.14). If we consider the pipeline concept as focused on maximum constant velocity with
minimum inventory and optimised cost, the footprint around that flow must also follow the same
principles.

There is no standard footprint for logistics operations, it will vary with each supply mission and
with specific impacts from products and services being supplied, although the generic characteristics
will be similar (figure 18).

Figure 18 the logistics footprint (Source-Author)

Business, (BUSLOG), military (MILOG), and humanitarian (HUMLOG) logistics operations will
each generate a unique physical footprint, within which will be variations arising from the type of
product and service being supplied.A further complication for modern logistics operations is the
requirement for the logistics footprint to now incorporate and address environmental, sustainable
and ethical issues as they arise from or are influenced by, the physical activities of the logiostics
network and its supply chains.
Although they incorporate the generic characteristics above (figure 18) the detailed operational
logistics footprint for each sector will differ because of operational capability requirements.
Business Logistics (BUSLOG)has a commercial focus on the dominant commercial priorities
arising from time, cost, and service quality in either regional, national or international business
missions (figure 19).

Figure 19 logistics footprint for BUSLOG (Source-Author)

Military Logistics (MILOG) and Humanitarian Logistics (HUMLOG) will incorporate similar
generic characteristics (figure 18) AND the variants of time, cost and quality specific to each of
their type of logistics mission (figure 19).However the characteristics unique to these types of
mission still have to meet the variants of time, speed and availability, they are universal.

The difference is from the specific requirements for maximised sustainment over time, usually over
extended international supply chains, that attach to the logistics operations supporting these
missions (figure 20).

Figure 20 logistics footprint for MILOG & HUMLOG (Source-Author)

Cross-sharing of concepts, techniques, models and terminology across the three comparator sectors is
ongoing as you read this, as each attempts to import best practice from the other sectors and improve
capability. There is a constant interplay between the sectors.
There have been moves to achieve the equivalent of best commercial practice in the consideration of
contractor logistics for example (CONLOG - introduced chapter 1)) in the military logistics field.
The uptake of military logistics and business logistics best practice is also under way in training and
planning in the humanitarian field. In the end, commonality within diversity can and does lead to
revitalised theoretical and conceptual approaches to some common problems. The unique context and
operational specialization within the military and humanitarian logistics sectors makes the total
application of business logistics solutions difficult, and vice versa, but all can benefit from cross-
communication of best principles and practices.

The concept of best practice application across the sectors can, and should, and must be undertaken,
but be aware of the practical difficulties which may apply because of sector specialist logistics
characteristics:

The difference in sheer volumes is the critical factor, but any good contractor should be able to scale
the capability, inventory and equipment and personnel requirements effectively, and tight monitoring
of their performance would be the key.
3.12. Logistics Communications, Coordination, Command, Control, Cost (LC5)
As we have seen, logistics organisations have to acknowledge the impact that will arise from the
complexity of its operational logistics role and network (BUSLOG, MILOG, and HUMLOG) and
the number of players involved in the networks.
Global logistics must address particular issues from the underlying principles for multi-task, multi-
context operations which have been introduced and discussed so far. We have identified that
international logistics has specific differentiation challenges to local and regional logistics. Global
logistics requires a higher degree of focused analysis, evaluation and estimating activities and
foresight in planning, economic and efficient use of resources, and collaboration and co-operation
between all the supply network players.

An extended distance, over which supply is required, combined with size and complexity of the
primary operational mission being supported will combine in a logistics network requirement that
will have a greater potential for failure. Simplicity in logistics network design should be seen as
strength. Integrated with network flexibility and adaptability, simplicity as a focus in design will
give both implicit and explicit resilience to the logistics network across all three sectors.
Why simplicity? Because of two basic factors which can and do inhibit effective logistics
performance:

1. The nature of the supply structure- a permanently fixed supply system (logistics
infrastructure permanently in place), a task oriented supply system (logistics
infrastructure activated for operation), or a combination of the two.
2. The nature of the product(s) or service(s) being supported- and their compatibility with
the supply system.
Requirement for simplicity but effectiveness is best illustrated by the visual problems demonstrated
by the following examples of multiple players who will influence logistics design, beat and
subsequent operational rhythm (figures 21, 22, 23):

Figure 21 representative multi-national business logistics (BUSLOG) (Source-Author)

The representative multi-national multi-company organisation (figure 21) is useful for demonstrating
models for todays global business market, there are many variations to this mode but it is basically
representative. It is complicated, despite flat and matrix management structures dogma
promoted over the years, which have compounded response problems in dealing with demand
volatility and supply chain failure.

It requires a permanent supply system structure for stability in dealing with intense challenges and
problems of managing the global complexity of multi-echelon demand and supply over distance.
They rely upon timely information supply to optimise production and service capacity, close
coordination with suppliers and customers, and a stable market, all under the umbrella of
profitability encompassing optimised cost.

Military logistics (MILOG) has to combine a fixed supply system from its industrial support base,
which may be regional, national or global, with task-oriented supply missions which often have to
change quickly as the combat mission progresses.The military inventory range is highly
technical,expensive, and diverse, and consists of very large numbers of equipments requiring close
support and maintenance, which generates a formidable logistics challenge and requires a vast
inventory. Military logistics is particularly sensitive to the inhibiting effects upon logistics
effectiveness of the compatibility, interoperability, interchangeability and commonality effects of
differences in equipment.
Figure 22 representative NATO military logistics(MILOG)(Source-NATO ftu)

The NATO countries (figure 22) can be in the same operation with different equipment, different
logistics systems and different strategic and tactical operational doctrines for operations, all of
which have to be accommodated in the overall logistics plan.

The permanent supply structures of national members have to be integrated towards a task-oriented
supply structure that can be managed logistically as a unified entity. Sustainment can be a major issue
because of the ages, ranges, variety and effectiveness of equipment and service requirements to be
supported, and the capability skills of the personnel. Although in theory all members operate to a
common logistics planning and operating system, the supply reality at operational level can be quite
dysfunctional, and requires close oversight by the logistics commander(s).

Humanitarian logistics (HUMLOG) requires management and provision of a product and service
range which encompasses a known variety of line items of survival, medical, food,
water,accommodation and sanitation requirements,depending upon the nature of the aid operation
being supported.

There are logistics coordination tensions and potential for coordination failure when a large variety
of humanitarian relief providers appear in an aid operation scenario.The United Nations Joint
Logistics Centre (UNJLC) and the World Food Programme (WFP) coordinates overall
humanitarian logistics operations world-wide, but the potential for logistics coordination failure at
the regional or country operational level remains. The fundamental problem can and often is with the
number of aid players involved (figure 23).
Figure 23 representative humanitarian logistics (HUMLOG) (Source-Author)

The level of volunteer aid workers skills is a concern that is being addressed by logistics training
organisations of the UN (see the Fritz Institute site). Inventory range for disasters can be
reasonably predicted and planned for, with pre-positioned stocks available for immediate response.
Plans for multinational responses and sustainment coordinated (a permanent or semi-permanent
supply structure) to logistics point of entry for aid (where the task-oriented supply system is
applied) can be made in advance.

The aims and objectives of logistics network analysis and management by the business (BUSLOG),
military (MILOG) and humanitarian (HUMLOG) logisticians share grounding. They identify the
focus and objectives for competitive or operational mission success and align the logistics effort to
those objectives. Business logistics must respond to the business needs, which in turn are responding
to the management pressures influenced by shareholders. Military logistics is specifically
accountable to its military commanders who in turn are accountable to their political
chiefs.Humanitarian logistics is particularly responsible to its political, corporate and individual
donors (who contribute the funds to provide disaster aid and recovery).

All the comparator operations do have a similar imperative, in meeting customer demand, however
that may be manifested for their specific operations.

The operational difficulties in sustaining supply may be different, but the common thread that
connects business, military and humanitarian logistics processes is the paramount necessity for an
effective overview of the logistics and supply process at all times.You might also call it total
transparency of the logistics network.

I call this overview requirement the LC5 evaluation for logistics,it encompasses five critical
components for ensuring that the logistics control plan has:

clear communication of all supply channels forward and backwards along the networks
coordination of all supply chain activities within and and up and down the logistics
networks
command of all logistics resources
control of all connections to the logistics network
a constant awareness of all costs
Learning activity #5
Summarise, with an example for each, the types of product or service that might be moving through
each of the supply systems below:

3.13. Information systems for logistics and supply


The need for logistics control (LC5) and communication, coordination, command, control and costs
information is vital as a means to give an overview of the logistics network. Overview requires
network visibility in real time, by which is meant knowledge of the network, which in turn means
information to furnish that knowledge. In modern international logistics networks, information
technology and digital application use has helped resolve the universal problem from lack of up to
date information that once crippled logistics network management and efficient and responsive
supply. Why do we need consistent and constant information? Consider:

For a real time hour by hour view if necessary, of the performance of the logistics process
To give logistics managers, commanders and aid project leaders the capability for credible
and effective decision-making
The supply of updates of the overall performance of the business, military or humanitarian
mission within which the logistics process is situated
Performance analysis of supply chain components
For the compilation of estimates of future resources and cost and budget requirements
For consideration of options for delivery modification of logistics support
To provide sustainability statements for the overall mission to senior management,
operational commanders, and aid project management
Information technology must provide logistics information systems that are dedicated to the logistics
network and that are reliability and security assured (hacking into systems is now a major
headache for planners).
Communications providers who can give a fast and reliable and secure service are essential to the
functioning of modern international logistics systems at maximum capacity and service level
efficiency. The delivery and maintenance of effective logistics control (LC5) to manage logistics
once the technology is in place requires strict compliance with several key criticals:

That accurate, timely information is essential as the foundation of the whole logistics
network
That all logistic data is from within the operational structure, the logistics business
That common IT information exchange standards apply so that operations on the ground
can link in from a multiplicity of applications
That mere upgrade and automation of existing systems is insufficient as a solution to
effective logistics
The maximum advantage from modern digital system availability for logistics operations lies in
system integration and the innovative capability to re-adapt and re-route as necessary from data
received. This gives business, military and humanitarian logistics very resilient flexibility of
response to changes in the primary operational missions.

Logistics and supply network superiority for all three sectors (BUSLOG, MILOG, and HUMLOG)
will only be realisable from having end to end control of the logistics pipeline, getting total logistics
visibility and keeping it. That requires fail-safed and survivable logistics networks, which will only
be achievable with a logistics communications architecture that provides up to date and regular
information.
3.14. Logistics and supply risk
Risk assessment and risk avoidance in logistics and supply networks is as important as the supply
focus on the ultimate customer.One cant go without the other, which is why risk is a constant theme
throughout this handbook, as you may have noticed!Its there, in every network, every day,
everywhere, and it must be dealt with.

Risk assessment for logistics is all about avoiding risk of supply failure but it also has to incorporate
analysing cost of risk avoidance actions taken as opposed to the end benefit that might be obtained
from the contingency action required to mitigate possible failure (figure 24).Everything in logistics,
as in life, costs at some time and at some point.

The definitive decision for logistics risk avoidance is to plan nothing or to plan something (figure
24), taking into account the cost/benefit results of your action.
Logistics risk avoidance has to be assessed whatever the operation being supported
(BUSLOG,MILOG,HUMLOG),despite the operational requirements that may override any
unacceptable logistics risks.The final overall operational decision from logisticians advice comes
from the mission management, not the logisticians,who can only advise on the possible implications
for decisions taken.Whether logistics advice is taken seriously can give a clear indication of the
status of logistics and supply management in an organisation.
Figure 24 do
nothing v plan something conundrum for logistics(SourceAuthor)

We have already identified that logistics network redundancy is indivisible from visibility and
maintaining sustainment in the logistics pipeline.Logistics redundancy being the means for
alternative systems and processes to switch in in the event of any logistics failure.End to end
visibility gives the means for designing in redundancy and maintaining the continuity of supply
(sustainment) that is the sole reason for being in all logistics networks.

In the end,the future is always unknown and definitive risk prediction is unverifiable and
unforecastable. In the business, military or humanitarian logistics worlds, where velocity and time
are key common dynamics in sustaining supply, anything that might deter or degrade sustainment must
be addressed though. Contingency planning must be implemented all along the supply chain and
logistics network, and this comes only out of risk assessment.Any on-line information search using
supply chain or logistics failure will quickly show you a surprising amount of debate and analysis
around actual logistics and supply failures in business (particularly business!), military and
humanitarian operations past and present.Risk is real, and it happens, and it is not addressed often.

Remember that matching of supply to demand is and always will be the primary task of logistics
and supply management,and is the central theme of this handbook. But be prepared to make trade-
offs in any logistics and supply risk analysis. Anything that detracts from the logistics mission poses
a threat that must be planned for, but in the end complete network redundancy may not be feasible or
desireable because of cost and resource implications and restrictions.We are back to the
logisticians friend, compromise. Any logistics network worth its name though must be ready to
respond to any threat to the logistics network, and must have the capability to recover from any
damage to the logistics network that will damage the network beat and degrade its primary mission
of supplying demand.

Sources of risk that must be considered for any logistics planning and design of logistics networks
should include (there may be others unique to each operation-you decide which for your operation):

Supplier failure
Demand failure
Product and service quality failure
Network and supply chain failure
Personnel failure
Economic failure
Civil unrest
Unstable political and social operational areas
Network failure from climatic interventions
Network failure from geographic limitations
Enemy action
Criminal activity
Terrorist activity
Equipment failure
Communication failure
Accidents
Natural disaster
You cannot plan for every logistics failure, and given this intimidating range, it would be
impossible for logistics contingency for everything! The idea and the aim is that making the
attempt, however limited,at logistics risk assessment gives you an evaluation,and is better than no
attempt at all. Knowing who your key supplier(s) are through the tiers is a definite start point for
any assessment!

Learning activity #6
1. Take some time to consider the range of sources of logistics network risks above in
sources of risk.
2. Now try to prioritise the order in which you would consider them in risk assessment for
each of a BUSLOG, MILOG, HUMLOG operation planning and design activity.
3.15.Legal and ethical issues for modern logistics and supply
Legal requirements for modern logistics operations come as a result of various legislative and
statute activity for business in the industrial world.Ethical requirements have traditionally been the
reserve of individual companies and organisations,influenced by contemporary mores and values (or
not) in the various societies in which operations have been placed.Globalisation and social
networking particularly have begun to change the whole ethos of the legal and ethical position of
business, military and humanitarian operations and their logistics components.

Operations of any kind are now almost instantly visible via social media to a huge global audience.
This has been, and is,having an increasing accelerator effect upon government legislation,
organisational values and procedures and practices for operations worldwide.This in turn has had,
and is having, a top down effect upon logistics and supply management activities.There is a growing
focus, particularly in supply chains, on outsourced manufacturing and service providers coming from
developing economies, and on in-country manufacturing and service provision in developed
economies.

Many business companies now pay attention to statements of ethical practice and intent, numerous
scandals in supplier companies having focused more and more attention upon company procurement
and supply practices and processes.
The impact of commercial procurement cost-down strategies e.g. Factory Gate Pricing (FGP) and
supply strategies such as co-opetition, where the emphasis is on suppliers picking up the cost of
inventory and logistics and supply costs has influenced bad practice in logistics and supply activities
globally. Commercial competitive practice is not always best practice, and sooner rather than later
bad supply chain practice comes back to bite the organisation.

Abuses in all the economic activity sectors (chapter1) that have spilled over into logistics and supply
management in the authors experience cover:
Use of child labour
Use of sponsor type lock in contracts that encourage indentured or forced labour
Use of prison labour for hazardous conditions in production
Low wages and arrears of wages
Poor or hazardous working conditions
Nil or inadequate health and safety assessments and conditions
Intimidation of workers who attempt to question abuses
Badly maintained equipment and transport
Falsification of records to demonstrate compliance with procurement and supply
fair trade requirements
Use and disposal of hazardous materials with no protection for the operatives
The digital nature of modern communications has enabled these abuses to be swiftly publicised,
sometimes with disastrous impact upon organisations reputations and competitiveness.

Logisticians, who plan, design and manage logistics and supply operations, have a legal, moral and
ethical responsibility for the people who work in those operations, whether direct or indirect
contract labour.

There can be no discussion around this, the responsibility of logisticians and others involved in
logistics and supply is inescapable. This applies equally to business (BUSLOG), military
(MILOG), and humanitarian (HUMLOG) operations. They must ensure compliance of logistics
operations with statutory legislation, current and impending regulations, and their own organisational
ethical procedures. If the operational area is in a developing country, then they should apply the
standards that would apply in their own country of operations!

The difficulties in applying standards along the logistics and supply networks should not be
underestimated, but they must be attempted, logistics and supply operations can be a major lever for
change. Logisticians in any business, military or humanitarian operation have close contact with
and knowledge of supply functions and activities at local, regional and international level. They are
the process and procedural experts who should be consulted for guidance BEFORE any
organisational supply system is implemented.
3.16. Green logistics and supply
Logistics and supply activity is a key element in achieving specific primary objectives for
business, military and humanitarian operations of :
1. Competitive success, profitability and growth for business
2. Success in achieving operational and strategic objectives for military action
3. Delivery of humanitarian aid as fast and as effectively as possible to point of need
However logistics activities for products and services to the end user, whoever they are, involve
movement,lots of movements usually, and those movements may be using all seven modalities
(chapter 1),plus supply chain nodal activity, all with subsequent environmental impacts.With
logistics mand supply activities, just as in ethical and legal responsibilities, now comes
sustainability responsibility

Business, military and humanitarian logistics operations have two major specific problems within the
sustainability requirements of the modern green logistics concept:

1. Balancing the ethical, legal and physical impact issues of respecting the community and
environment in which they must operate,whilst focusing on the primary objectives of the
missions that they are supporting.
2. Measuring and monitoring the environmental impact of logistics operations.A
sustainability impact model for logistics operations must be applied which will indicate
the inputs required for and the subsequent outputs to be produced by each operation.A
simple and effective example of a set of measures that can be used to produce the
logistics green foot print (within the whole logistics footprint (figure 3.10) and a
green target ratio should cover (figure 25):

Figure 23 measuring and monitoring logistics impact (Source-Author)

There is no right answer to mitigating the impact of logistics operations. The right answer is
considered,defined, planned, designed and applied to each individual logistics operational scenario,
then modified as the network has to adapt actual operations to the results from measuring and
monitoring inputs and outputs(figure 25).
Logistics and supply network operations have social and environmental impacts that always create
additional direct or indirect cost along the supply and logistics network. The aim of responsible and
sustainable logistics and supply is to reduce the social and environmental impact of the logistics
beat, and operate in a responsible fashion that replaces, mitigates or ultimately pays in some form for
the use of all resources along the total BUSLOG, MILOG and HUMLOG supply network.

If there has to be a cost born, then so be it. It is the logisticians responsibility to mitigate that cost to
the organisation by best practice advice, whilst not evading responsibility.
Overview -new logistics and supply perspectives
This chapter intended to take you further into thinking about the nature of logistics and developing
some new perspectives from the comparator method. The topics that we covered in chapters 1 and 2
have been developed further, and your logistics knowledge base should now have grown, or at least
have been updated.

Because of digital development and increased knowledge sharing, logistics and supply is moving
into a new world of more intense performance requirements and behavioural expectations. These
expectations come from end users and the communities in which logistics and supply networks
operate. The emphasis in this chapter has been to develop your understanding of the need for the
thorough critical analysis before, during and after logistics and supply operations that will go some
way to meeting those increasingly rigorous expectations.

There is now no hiding place for incompetent, uncaring, exploitative or low-calibre logistics and
supply management practice and processes. Logistics is the first face of business, military or
humanitarian operations that the end user comes into contact with in the shape of their demand
being met. Logistics and supply management must display intense professionalism in all its forms, in
logistics network research, design and performance and its interactions with all users and end users
involved in supply. To do this, to maintain the logistics beat and incorporate the new perspectives of
logistics and supply that we have discussed in this chapter into practice means continuous redesign
and adaptation of the logistics and supply network.
Consolidating learning activity
Go to YouTube on the Internet, key in the search term supply chain exploitation:

1. Identify and consider specific areas of exploitation that are demonstrated in the material
2. What major measures as a logistician can you apply to logistics network design that could
prevent or mitigate abuses such as those demonstrated?
Concluding practical case activity: Distribution Centre layout
Tasks:
Construct a basic infrastructure template as a drawing, (use MS Word draw or equivalent, or AO size
paper or equivalent for a hand drawing), for a generic Business distribution centre (DC) in a
logistics and supply operation that:
Handles none-perishable hard goods -slow, medium and fast movers, for both to-stock
and cross-docking operations,
Receipts into site will be from air/sea/rail movement, by road modality
Site has to have vehicle capacity 24/7/365(all vehicle types, light, medium heavy)
Plan for a staff of 120+ (permanent core & supplementary casual/contract)
Hazardous goods will be handled
High Value goods are frequent
Break bulk and Repacking requirement
Consider the location for access
Now assess your final design:
1. Does it incorporate all or some of the principles introduced in this and previous chapters?
2. Will it flow?
3. Where are the nodal fail points?
4. What contingency should you consider and build in?
5. How will cost impact upon your decisions?
6. How will you measure performance?
Final discussion topics
In this chapter and chapters 1 and 2 we have covered a lot of ground. What do they all mean, what is
their underlying imperative, and how do they emphasise the ultimate aim of logistics for business
(BUSLOG), military (MILOG) and humanitarian (HUMLOG) operations?

Basically its all about value in logistics and supply management. Value can be defined as the
measurable relationship between logistics network function, effectiveness and cost which results in
profit for business, and operational success with objectives met for military and humanitarian
logistics summarised thus:

Where function is the logistics or supply chain individual, nodal or collective activity that shifts
product or service to the end user, and cost is the total cost of operating that function. Positive value
comes from being equal to or greater than profit for the business bottom line, or mission success for
the military operation or humanitarian aid project i.e. the logistics network is not running at a loss
(inefficiently, failing or failed).

Logistics and supply management and operation therefore should always be seeking how to provide
the same function (the logistics system) at an optimised cost, or more importantly providing an
increased and enhanced function (the logistics and supply system and beat+) at the same optimised
cost.
Conclusion
We have developed further emphasis on the concept that logistics and suply management must operate
as a network and not as a set of separate but connected supply chain functions.
The logistics network must be fast, and it must be very flexible for rapid change and adaptation to
changing operational circumstances.It must be able to provide a demand-based customer pulled
responsive throughflow.It must contribute value and continuous success capability to the parent
operation, it must integrate suppliers, manufacturers and service providers, retailers and point of
service suppliers with the ultimate end user. It must be connected, end to end, with monitoring and
assessment visibility, and with tripwires built in to warn of actual or impending failure.It must
maintain velocity (the beat)across the whole of supply activity, process and system.

Managing logistics and supply sustainment, maintaining velocity from end to end in the network,
lubricating and fine tuning the nuts and bolts of the network process provide a challenging and
demanding task for logisticians.Add in the trade-off conundrum that needs to resolve balancing
logistics performance, network costs, sustainability and ethics responsibilities against ultimate user
expectations in our three comparator sectors (BUSLOG,MILOG,HUMLOG) and you definitely
face some challenges.

Logisticians now have more responsibilities than ever before, they also have the opportunities now
to make major visible contribution to business, military and humanitarian operational success in the
modern world context of complexity, risk and responsibility within which each has to operate. This
chapter should have given you added confidence in your knowledge base and for further developing
your professional capabilities.
The basic logistical skills and knowledge base necessary for maintaining that logistics beat that you
must develop and build upon (figure 24) are quite comprehensive:

Figure 24 the logisticians skill and knowledge- basics (Source-Author)


Building up the further advanced knowledge and skill sets from the basic grounding (figure 24) will
give you the superior logistical capability that supports logistics and supply claims to be recognised
and acknowledged as an applied science as well as an intuitive art.

In the next chapter we will take further the themes from chapters 1, 2, and 3 by developing and
expanding the use of logistics techniques for specific logistics and supply problem solving.
Grounding for the chapter
Carroll, A. (2015), Logistics and supply Operations management, lecture, seminar and professional
course materials, 2004-2015
Department of the Army, (1994), Peace Operations: FM 100-23, US Army Training and Doctrine
Command, Washington, USA
Defence Equipment & Support, (2008), Business Strategy 2008-2012, Ministry of Defence, Bristol,
UK
Dicken, P. (2007), Global Shift: Mapping the Changing Contours of the World Economy, Sage,
London
Kovcs, G. & Spens, K. M. (2007), Humanitarian logistics in disaster relief operations,
Langley, C.J. Coyle J.J, Gibson, B.J, Novack, R.A. Bardi, E.J. (2009), Management of Supply
Chains- A Logistics Perspective, South- Istern, Cengage Learning.
Walden, J.L. (2005), Velocity Management in logistics and distribution: lessons from the military
to secure the speed of business, London, Taylor & Francis.
Further reading
Freight Transport Association, (FTA) UK, (2007), The Managers Guide to Distribution Costs,
Tunbridge Wells, FTA.
Potts, D. (Ed), (2003), The Big Issue: Command and Combat in the information age, Strategic and
Combat Studies Institute-The Occasional No 45, Washington, DOD Command and Control Research
Programme.
Slack, N. Chambers, S. Johnston, R, (2011), Essentials of Operations Management, Harlow,
Pearson Education.
Smith, R. (2007), Humanitarian Relief Operations: lending a helping hand, Philadelphia, Mason
Crest.
Additional sources: web sites (accessed Jan 2016)
The Chartered Institute of Procurement and Supply UK -Global Standards
http://www.cips.org/en-GB/Careers/Global-Standard-for-Procurement-and-Supply/
Fritz Institute Humanitarian Logistics
http://www.fritzinstitute.org/prgsc-cert_main.htm
RAND Corporation USA Military logistics
http://www.rand.org/topics/military-logistics.html
UNJLC/WFP Logistics cluster
www.wfp.org/logistics/cluster
INTERNATIONAL LOGISTICS AND SUPPLY MANAGEMENT COMPARATIVE
PERSPECTIVES
Chapter 4 Balancing act - techniques for logistics and supply success
Learning objectives
At this point we must bring together the introductory themes from chapters 1 & 2 together with the
broader critical engagement, using the comparative analysis, which we have developed in Chapter 3.
At the end of this chapter, you will be able to:

Use and develop the groundwork knowledge laid down in chapters 1, 2 and 3 for the
identification, evaluation and analysis of potential logistics and supply mission problems
Apply logistics and supply assessment techniques for the prevention and resolution of
issues inherent in dealing with demand from the ultimate customer or user whilst
remaining in budget
4. Introduction
You will be aware by now that the challenges of successful distribution of products and services are
not easy, they are hard, and becoming harder. That is not a reason to give up because the challenges
and requirements seem to far outweigh your skills, competence and motivation!

The balancing of logistics and supply risk whilst maintaining a demanding customer relationship
interface, (and in this context suppliers are also always considered to be customers), by meeting
demand, on cost, on time, on budget, and on the customers terms is not new. It has always been
around in business, either explicitly or implicitly, sometimes not demanded, but always expected.

What is new is the intensity of expectations, a new and very radical perspective that has changed
views of physical supply and demand now across all of our three comparator logistics and supply
sectors, (BUSLOG, MILOG, and HUMLOG) and their parent operations. Real time technology
has been the prime mover in these expectations and has, crucially, also re-emphasised the strategic
importance of logistics and supply management for success in modern business, military and
humanitarian operations. The profile of logistics and supply and its integral supply chain functions is
higher now than at any time in the authors experience because of its recognition as a crucial element
in all operations, whatever they may be. The secret of successful modern logistics contributions to
operational missions now is in achieving the balancing act required, and this requires specific
control and coordination techniques.
There has been a reluctance, and sometimes resistance, in the business world to avoid the extra effort
that is required of the modern business to achieve competitive success by acknowledging this
perspective and applying the principles we are examining here. There are many reasons for
resistance, and Business logisticians have generally had an uphill struggle to convince their business
colleagues of the importance of these logistics concepts, principles and practice.

Thankfully attitudes are changing rapidly; because of the realisation that business survival may
depend upon the contribution of excellence in logistics and supply management. Similar attitudes
were present in the military and humanitarian operations sectors, where logistics and supply
management were considered simply functional reactive activities in the primary mission.
Acknowledgement of logistics and supply as pivotal to success, here has been more rapid, with
commitment to best practice logistics and supply management fully acknowledged as critical if not
vital, to operational missions success.
4.1. A new logistics and supply paradigm-logility
An overview of the operational context of our modern world will demonstrate pretty quickly that
distribution of products and services has changed compared even with ten years ago. The reality of
logistics and supply management has had to adapt very quickly to what can rightly be called a new
logistics and supply management paradigm for the 21st century.

Tensions have always abounded, politically, socially, economically and ecologically, and world trade
and migration issues have always been evident global problems. The context now though is more
acute, and liable to very swift, unpredictable, and volatile changes. This has had an effect on
logistics and supply principles and practices required to meet market requirements and the
operational criteria which apply to modern business (BUSLOG), military (MILOG),and
humanitarian (HUMLOG) operations. Instability in the logistics context was introduced in chapter 1
(figure 12), and we have examined throughout chapters 1,2, and 3 various examples of potential
failure and losing the logistics beat that can arise from unstable conditions.

As a logistician it is vital that you understand and connect conditions of and for instability to logistics
and supply networks planning and design. We have looked at numbers of examples of unstable
(wicked) conditions in which logistics and supply must operate and these conditions grow in
complexity as our own times progress. There have always been supply problems in every age, but
from more mundane sources (basic infrastructures, low or no technology, and knowledge and
understanding deficiencies).

Our own age has specific complex and immediate issues and challenges from instability which affect
the new logistics paradigm, these originate from:
conditions of volatility, unpredictability and asymmetry generated by physical, social and
economic and ecological demands and expectations leading to turbulence in commercial
markets
aggression and natural disasters (or combinations) leading to violent instability and
requiring intervention by military and humanitarian organisations
fragmented business markets from both the above with insecure military and humanitarian
operations areas for interventions
accelerating technological innovation in products and services leading to shorter and
shorter product and service life cycles
personal solutions for customers complete product and service packages tailored and
customised for customers
tensions generated by modern modality choices and impacts upon their operational context
multinational distribution issues of ethical sourcing
risk and security management in the nodal network
environmental constraints and sustainability assessment as a logistics management
requirement
e-logistics, RFID & nano-technology developments
Whats the common denominator to get a grip of the above? It is logistics knowledge, the acquisition
of and evaluation of, data and information that will give you the ability to mitigate potential and
actual problems in your logistics networks. Because logistics in any of our tri-axial operational
sectors (BUSLOG, MILOG, and HUMLOG) makes a definitive contribution to strategic aims and
objectives of any of the organisational missions, knowledge of conditions in and around the logistics
networks is crucial.

Logility for the integrated global logistics and supply model (figure 1) requires advanced techniques
and digital technology from end to end for business, military and humanitarian missions.

Figure 1 advanced logistics techniques-end to end logility (Source-Author)

The logistician has to act within current logistics paradigm and techniques which are grounded, as we
have seen repeatedly in earlier chapters, on customer pull influenced by lean, agile and just in
time(JIT) adaptations.
For the advanced techniques required for modern logistics and supply management this approach
requires a rethink and redefinition into what can be termed the logile paradigm, which can
accommodate distortion. My intentions in this chapter are to get you engaged with evaluating the
current logistics paradigm, and then to decide whether you agree or not with suggested alternative
perspectives, or to formulate a new logistics paradigm, and also to use some useful techniques. Even
if you do not, it will have made you consider and, possibly, re- evaluate the existing logistics
paradigm and associated techniques for applying logistics Communications, Coordination,
Command, Control, and Cost management techniques, (LC5), that we met in chapter 3.

Logility is used as an analytic lever to examine once again the similarities and differences across
and between the comparator areas of business (BUSLOG), military (MILOG) and humanitarian
(HUMLOG) logistics operations. The intention is to attempt to work out the practical problems
associated with maintaining modern logistics networks within this new paradigm, and to apply some
advanced techniques. The ultimate aim is to develop further your ability to confidently and
competently assess, evaluate and swiftly gain control in whatever future logistics and supply
management operational scenario in which you may be involved.

Learning activity #1
Evaluate the components of the model summarised from figure 1:

1. Select ONE action word for each of the five data header boxes above that would
summarise the knowledge that you would require to assess the situation for each of the
comparator logistics operations (BUSLOG)MILOG)(HUMLOG)
2. Compare and contrast the similarities or differences for each operational scenario
4.2. Techniques for success-components of applied logistics & supply management (ALSM)
At this point in the handbook, we have covered a lot of ground, and a wide range of logistics and
supply activity, and it is time to step back, reprise and confirm exactly what we consider it is that
now comprises the working components of applied logistics and supply management.

Applied means the application of logistics and supply management theory and concepts to practical
logistics management and control techniques for the operational logistics and supply functional
activity areas that we have identified so far. These are summarised below (figure 2) and you might be
surprised at the depth and range of what we have covered so far:

Figure 2 applied logistics and supply management (ALSM) functional areas identified so far (Source-
Author)

These functional areas (figure 2) are those nuts and bolts functions, the ordinary but absolutely
vital activities for successful logistics and supply that we have met throughout chapters 1,2, and
3.They comprise the everyday requirements of logistics management planning and hands on
activities. They can be concisely defined as sourcing, making, storing, moving, delivering and
recovering products, services and people in business (BUSLOG), military (MILOG) and
humanitarian (HUMLOG) logistics and supply operations. In the authors experience ignoring any of
these functions at any level in any operation soon develops into flawed logistics and supply activity,
followed swiftly by failure.
We are steadily building a picture now of exactly what the transformation and application of the
above terms (figure 2) into physical logistics activities means. The range looks impressive, it is
impressive, and it all happens, in similar or different forms, out there in the logistics discipline
across all three clusters, of business (BUSLOG), military (MILOG) and humanitarian logistics
(HUMLOG) activities.

The specific terminology changes in each cluster but the same fundamental principles apply to each.
The fundamental principles give the foundation for logisticians to devise appropriate techniques for
controlling, measuring and monitoring the logistics and supply flow for each particular operation or
mission. Once you know the logistics flow then you can decide how to keep it flowing and to know
when it is not flowing correctly.
To devise workable techniques you must be clear about the critical parameters within which each
set of activities are applied, and the best way to do this is to consider the whole logistics and supply
cycle as a continuously moving wheel (figure 3):

Figure 3 parameters for ALSM functional areas-the continuous logistics cycle (Source-Author)

This is complexity, again, this time summarised as the continuous logistics cycle (figure 3), and this
cycle is a crucial element in achieving logility. It summarises and encompasses quite simply all the
logistics network activity from beginning to end. The cycle enables formulation of adaptable
techniques for the identification and monitoring of all components of the logistics network, (what goes
in, what comes out (and how), and at what costs).It implies velocity, flow and flexibility as the
fundamental dynamics of the network and can incorporate assessment measures for the ALSM
functional activities (figure 2).The logistician must know this cycle intimately and has to decide what
and how to assess in line with their specific logistics operation, and to adapt the parameters as
necessary.
Within this very important activity wheel (figure 3) is another also important activity set of
wheels, and activities that cannot be ignored whatever the operation, and whatever influences that
may be at work. It is the wheel effect of the cost cycle, because whilst the whole network is
revolving and continually moving onwards within the cycle summarised at figure 3 it must be
acknowledging and applying costs consciousness at every stage(figure 4).

Reducing all logistics component complexity to a simple and manageable logistics cost life cycle
(figure 4) ensures that whilst the prime logistics objective of meeting demand is achieved, it achieves
logility within cost, and ensures that cost implications are continually addressed by the logistician.
The aim of perfect fulfillment is legitimate, always, but always has to be situated within the realities
of cost constraints.

Figure4 the logistics mission cost cycle wheels (Source-Author)

The models (figures 3 and 4) then provide (or should provide) the trigger to intervene and take cost
control measures for the whole logistics cycle and the applied logistics and supply management
functional areas (figure 2).

The cost control measures must be mission friendly not mission killing (i.e. functional cost-cutters
indiscriminately applied), or any attempts to achieve logility will fail. The practical logistics and
supply management capabilities that are needed to resolve these intense (and they will be intense)
cost-related pressures for the new logistics paradigm can then be applied. The end result should be, if
not perfection, at least improvement in defining the final logistics and supply mission (figure3), end
to end (this is crucial), and at best cost.

Learning Activity #2
A comparison sample of basic logistics costs:

1. Examine and assess the costs descriptors above and then tick each box across the tri-axial
comparators if you think each of the logistics cost element(s) apply to business, military or
humanitarian logistics operations.
2. Compare the completed columns.
3. Consider any similarities or differences, why do you think this might be?
4.3. Modern logistics and supply essential pressures
The previous three chapters and the introduction to this chapter have formulated and emphasised the
positive and negative pressures faced by logistics and supply managers in business, military and
humanitarian logistics and supply operations. In this chapter we have begun to consolidate these
essential pressures of modern logistics and supply management. These critical and ever present
pressures impact upon and influence the daily, weekly, monthly and annual assessment, evaluation
and application of logistics networks. They can and will affect the logistics and supply primary task
of supporting business, military or humanitarian operational missions. They generate a set of
common logistics concerns across any mission, as we have already identified.

An essential driver of any logisticians concerns for their logistics and supply management mission
should always be how to avoid or reduce excessive logistics and supply costs (identified at figures 3
and 4).Techniques for mitigating current and future costs must be applied, and specific examples
are summarised below (figure 5):
Figure 5 specific logistics and supply costs concerns-and their origins (Source-Author)
These costs issues (figure 5) are not new, that they are still around displays the difficulties in
addressing them, and they are important because logistics costs, logistics activities planning and
logistics investment and future funding are tightly connected within organisational strategic
decision making.

Efficient movement of products or services, their optimised logistics and supply execution within
budget, is recognised as an important contribution to the success (or failure) of any business
organisational strategy and the business operational missions which are supported by logistics and
supply. Exactly the same rationale fits and influences the military and humanitarian organisational
and logistics strategy decisions that are made for their particular areas of operation. Investment in
resources and planning for present and future operations is affected by similar costs-based concerns,
and the necessity to address precisely the same principles illustrated at figure 5.

Profitability contribution as a real outcome (figure 5) in the not for profit military and humanitarian
logistics and supply operational missions, takes a different perspective, that of mission success, or
failure, outcomes directly focused on the mission objectives. These different outcomes in results
cannot however ignore the implications of mission cost over-runs, which might affect current and
future operations. However in the end all three sectors must show operational profit and cost
consciousness to the ultimate investor, whether they are business shareholder, government taxpayer,
or charitable donor.
This can be, and is, sometimes very difficult, because organisational strategy planning has to cover
micro- and macro-operational scenario frameworks with horizons over hours/days/weeks/months
and years. In business particularly the temptation has been to restrict planning horizons to the short-
term (usually quarterly), although many forward-thinking companies now recognise this is a dead end
for long term success. Military and humanitarian strategy has to contingency plan for a range of
potential alternatives, short, medium and long term. That said, logistics and supply strategies have to
integrate totally with the sector and operations that they are there to support. For any mission example
logistics and supply management ultimately has to integrate fully within its parent organisations
strategic financial planning; it must share the same cost concerns.
4.4. Adding value and staying in budget -logistics and supply role
The value concept for logistics and supply management means delivery with totally optimised
logistics costs (this adds the value).Costs are optimised from addressing and improving the
performance of the whole logistics network and its supply chain components of:

sourcing,
making,
storing,
distributing,
delivering, (product or service flows),
invoicing and receiving/offering payment (cash flows)
Again the same fundamental principles apply across the not for profit military and humanitarian
logistics sectors where the post-delivery payment function is defunct but staying in budget is not. The
principles of contributing to profitability or mission success whilst remaining in budget are crucial to
any logistics operations integration with the overall organisational strategy.

Each functional activity within the supply components of the logistics network flow that does not offer
the opportunity to optimise costs is not adding value, is not contributing effectively to the
organisations overall strategy, and must be reduced or eliminated. Ends and means to achieve
optimisation means that complete product and service packages should be designed for each
customer or end user at the final delivery end of the network. Value can, and often does, mean
different things to different players in the logistics network and it must be clearly defined for each
component of the whole network, as part of a common logistics operational language.

The common logistics language, which defines and promotes value, incorporates what we have
covered so far for concepts and techniques that set competitive and hard to beat international logistics
objectives. These objectives are:

1) always to save time


2) always to reduce costs
3) always to improve customer service
4) always to reduce the logistics footprint
The objectives are all relevant to each BUSLOG, MILOG and HUMLOG logistics operation,
without exception. The objectives rest upon the foundations of optimised scheduling and
multimodality for movement throughout the logistics network, where capacity or capability is never
wasted (e.g. on backhauls -nothing returns empty). A common logistics language (not logistics
terminology) involves shared mutual concepts that integrate value adding in its true form of actually
adding real measurable value to a BUSLOG, MILOG or HUMLOG supply process right up to the
final user.

Adding value should meet what can be termed the triple C+PS frame for successful logility:

Clarity of logistics objectives


Continuous logistics planning, preparation & simulation activity
Continuous intelligence on competitor or better practitioner logistics activities
Positive mindset in logistics people & their engagement with the end to end logistics
process
Social enterprise integration for responsibility, sustainability, social value in
logistics
The challenges for superior logistics and the efficient distribution of products and services are
always about balancing supply chain risks and supplier/customer relationship interfaces within the
logile concept and the associated cost/budget constraints. This balancing forms a constant for
logistics and supply management, every time, everywhere.

The bottom line outcome requirements for business regulates that constant, as does its equivalent-
mission success for military and humanitarian operations Each of these bottom lines, or
equivalents, deliver real added value for the final user of BUSLOG, MILOG and HUMLOG
operations demand met in full on time on cost (figure6).
Figure 6 bottom line success demand met (Source-Author)

The potential for adding real value to organisational budget management gives logistics and supply
management the solid opportunity to claim credible contribution for real value-adding, cost
reduction, and optimisation for the success of organisation strategies and operations in all three
(BUSLOG, MILOG, HUMLOG) operational sectors. This is a significant reason why logistics and
supply is shape shifting, and now moving steadily onto the radar of perceptive senior organisational
managements as a major bottom line contributor.

Learning activity #3: Lean, Agile, or Logile?


From 2010 to present Toyota, Nissan, VW, Fiat Chrysler, and Ford, amongst many more
acknowledged practitioners of lean and agile manufacturing, have faced (and still face) major
problems of supply chain disruption with the need to recall millions of vehicles worldwide. The
recalls are required to inspect and repair defects across a range of vehicles.
The resulting recalls will mean massive cost add-on for the manufacturers, from the need to configure
a recall (reverse logistics) network.

From what we have covered so far about risk, failure reduction and adding value, what
does the number of recalls indicate about the manufacturing logistics and supply planning and
design processes of these companies?
4.5. Balancing risk whilst adding value - differing scenarios
Reduction of risk whilst value-adding in the business logistics world has influenced a shifting of
manufacturing and service provision operations closer to high points of customer demand. In turn
logistics planning for business continuity (i.e. survival) has become a priority and has driven
consideration of re-sourcing or near-sourcing to user markets. This means global supply chains
replaced by local supply chains as part of risk mitigation plans for supply chain disruption.
The major catastrophic earthquake and tsunami damage to Japan in 2011 severely affected global
supply, particularly in manufacturing as companies discovered that contingency plans that they had
put in place were overwhelmed by the scale of the damage to supply sources. In particular, lean
supply and agile supply protocols and processes were affected as supply distortion kicked in.

Competition for the alternative supply sources for materials and components then drove up prices
and influenced adverse economic effects that began to appear from that. This was distortion on a
major scale and tested logistics and supply management theories and concepts that had developed
over the latter half of the 20th century, and found them wanting in a big way.
Subsequently distortion from civil and social unrest in the Middle East, and Asia and continuing
severe weather patterns world-wide have demonstrated quite clearly that current logistics and supply
contingency planning to cover risk reduction whilst retaining value adding strategies was not
sufficient. Contractual obligations arising from supply failure generated a commercial scenario of
uncertainty and multiple force majeure implementations with regard to supplier obligations. This in
turn affected collaborative relationships across many supply chains and logistics networks as legal
battles began over failed supply contracts

Military and humanitarian logisticians have long been familiar, from actual experience, with
logistics networks potential for failure and fragility, and contingency planning for failure is usually
second nature. It does not always work, but can be quickly modified as contingency changes. For
business, military and humanitarian logistics risk reduction and value adding strategies, there is a
common denominator for failure, fragmentation of their particular supply process and in supply
targets. This can arise from consumer/user choice and/or manufacturing or service supply decisions
in business, military or humanitarian operations and their logistics and supply networks
(BUSLOG,MILOG,HUMLOG), where long global or national supply channels then create
continuity and communication problems in the supply tiers.

The operational context for military and humanitarian logistics and supply scenarios can seriously
intensify fragmentation. Whatever the dynamic, supply and demand and lead times failure or
degradation will be underpinning the fragmentation and negate or reduce any potential for logility.

Learning activity #4
1. Decide what might be a particular cause to generate logistics and supply fragmentation
for each of the logistics sectors below:

2. Determine if there is a common theme(s) or not, and consider how risk mitigation and
value adding might be reconciled and planned for?
4.6. Customer-supplier interface - the critical logistics path
Everything introduced and discussed to this point indicates that real customer-supplier interface is
the contributory basis for successful logistics and supply management. This is because the whole of
any logistics and supply network is only as good as its interdependent linkages and interfaces. So
far, so supply chain relational, and maybe nothing new there, but that in turn means that any logistics
and supply network, simple or complex, big or small, has an underlying set of fundamentals. They
were identified earlier, and they form the critical logistics path for any subsequent supply activities.

If there is such a path, and the learning exercise above should have taken you some way into that
evaluation and discussion, then a risk mitigation and value adding action exercise can be applied to
any logistics and supply mission. This critical logistics and supply pathway, has to be identified, and
will be fundamental to operational and strategic level options at the logistics planning phase for any
operation. How do we identify it? By simulating functional activities at each internal and external
component stage of the proposed logistics and supply network, and attempting to highlight their stress
(failure) points.

Figure 7 illustrates a simple general example of a critical logistics pathway that you can develop
further:

Figure 7 critical supply path and failure points-general examples (Source-Author)

The complex pathway will be internal and external to each supply chain and logistics and supply
network component as they interact with each other, the most critical part of the critical pathway is
the final approach to the end user (commonly known as the last mile) where delivery failure is
very visible and very unacceptable.

Innovation and unconventional thinking approaches are key at this point for any simulation activities,
and whilst they are instinctive to many military and humanitarian logistics professionals, business
logistics professionals sometimes find them difficult, particularly because of any cost or additional
risk-based implications for their revenue streams. What do I mean by innovative and
unconventional thinking?

Failure means precisely that for logistics and supply management, and failure always falls between
unconsidered extremes of logistics network vulnerability. The robustness of supply can, and will
often be, tested by failure and/or disruption that may result from supply activities being affected by
the D elements that determine events and consequences in logistics and supply critical pathways:

Disturbance from geopolitical and legislative activities


Disturbance from geophysical factors
Disturbance from climatic extremes
Disturbance from social and cultural instability
Disturbance from economic volatility
Disturbance from operational security
Disturbance from unpredictability of energy supply
Disturbance from environmental and sustainability requirements
It goes without saying at this stage that the critical supply path must be customer or end user-facing.
Yet it must allow for any impact that may occur from none customer- facing activities, which should
not be discounted as low priority, as sometimes occurs in logistics planning and design.

The ultimate aim is to avoid supply failure, and for business logistics supply failure means loss of
customer, and revenue, and ultimately profitability and survival. Military logistics supply failure
will mean the possibility of mission failure or degradation, with all the military, political, social and
economic implications that might arise from that. For humanitarian logistics, supply failure might
mean quite simply total social dislocation through death and disease, and subsequent catastrophe.
Logistics investment in critical logistics and supply path identification and analysis is clearly
important, also clearly evident and measurable in failure cost and consequences.

Planning for failure is NOT an admission of failure, it is a sound and tried and tested logistics
technique in all the best of the best businesses and operational organisations. The final D for logistics
critical pathways evaluation should be Determining my failure prevention measures!
4.7. Logistics and supply in a bad world - crime and security
Shifting product, or service, means shifting something that has real value, and that value will
inevitably attract attention from criminal or terrorist activities. The logistics industry is under
incessant attack from individuals and organisations from beginning to end of the logistics and supply
network, and attack methods do not always mean the physical removal or destruction of the product or
service. Movement means vulnerability, and security in modern logistics and supply networks has
become a major imperative, because the moment goods, services (or people) begin to move, they
become vulnerable to crime or other security issues.

The secure movement of people, goods and services involves control of the modality by road, rail,
sea, air, pipeline or wired/wireless technology, and a combination or combinations of them all.
Criminal and terrorist attacks (reported on professional logistics and supply media) on global and
national and regional logistics and supply networks during the writing of this handbook used:

Cyber-crime methods for data acquisition


Counterfeiting of products and services
Piracy of products and service
Corruption along the logistics network
Terrorism along the logistics network
Physical theft
Fake documentation for ownership switches
Accessing (hacking) funds transfers for goods and service payments
Security incidents usually involved theft and/or damage, physical or technical, to the logistics and
supply infrastructure as well as to the products or services, with subsequent cost add-ons and
supply disruption and failures.

Security breaches are not confined to business logistics; military and humanitarian logistics also
face frequent security threats from crime, terrorism and corruption during operations, in some cases
more deadly to personnel and equipments. Any operation that moves goods and services, whatever
the operational scenario, has always been a target for criminal activity. The techniques of crime and
terror activity have become more sophisticated, although the traditional techniques of blatant piracy
are still being used successfully on the high seas. The threats from physical or cyber attacks upon
logistics networks integrity should not be underestimated when implementing logistics plans.

How do we get the product or service shifted safely?

Solutions can involve smarter logistics networks that can pre-empt and block crime and security
breaches, and smarter logistics networks require smarter technology solutions. The technology must
provide real time track and trace capability that also shows the secure status of products and
services in the logistics network at any time. Hardware and software combinations which provide
tight supply chain connections and alerts to interference within the supply chain are now available.

Good security also means the integration of people, processes and technology into logistics
procedures that deter crime. Smart e- logistics means the ability to use RFID (radio frequency
identification) type methods which scan the supply shipments at determined intervals and positions
and give real time information on secure status (figure 8) via satellite-based technology.
Figure 8 e-logistics & examples of continuous tracking sources (Source-Author)

Nano-technology will eventually give the logistics network the full web-based capability to track
individual items and deliver the information to the logisticians handheld device. The point of origin
and point of ultimate delivery are the beginning and end of logistics and supply procedures. Secure
transit from end to end is the cornerstone of successful business, military and humanitarian logistics
operations. As one solution is found another security challenge will be mounted and security
failsafing of logistics and supply networks remains an on-going imperative, and will be into the
foreseeable future.

Learning activity #5
Consider the crime and security threats to logistics networks from the methods that were discussed
above (section 4.7).

What other security methods, in addition to technology solutions could you apply for end
to end logistics and supply security in BUSLOG, MILOG and HUMLOG operational
activity ?

4.8. Logistics and supply in a sustainable world environment and modality choices
Green logistics was introduced in chapter 3, and now needs to be addressed further. You know now
that techniques for logistics modality choices and network routings and scheduling must include
sustainability option evaluations for products and services. This applies across the three sectors of
BUSLOG, MILOG and HUMLOG, but specific emphasis and regulation is currently upon
business logistics because of greater volumes of movement and the retail context of product and
service consumption. Military and humanitarian logistics operations have not been opted out, but
operational priorities are addressed first, quite rightly, and then sustainability integrated where
possible.

Sustainable compliance is a credible and major component of value adding, from the customers or
end users perspective, when deciding upon logistics operators contracts, and from consumers in
which product to buy. The logistics planning perspective must, as always, contribute to the final target
of customer satisfaction and to gain and retain business.
There is a real and important conflict of interest between marrying the achievements of sustainable
logistics networks and carrying of the costs for this achievement. The decisive trade-off is in
efficiency savings and their cost reductions along the whole network that can be gained simply by a
sustainability review, whose side effects can reveal waste in all its forms throughout the logistics
process.

The dark side of sustainability has been the choice of Africa, South America and Afghanistan as
dumping grounds for reprocessing various lines of waste equipment, toxic chemicals and
manufacturing by-products from the EU and other economies, aided by criminality, instability and
corruption in the donor and recipient countries. The logistics and supply networks that sustain the
illegal trade are assisting none-compliance either knowingly or unknowingly and it is the
responsibility of every logistician to know what is transiting through their network.

The overarching logistics and supply technology based architecture for any business, military or
humanitarian mission design must include consideration and application of these key logistics
operational drivers throughout the network for credible sustainability (figure 9):

Figure 9 hierarchies for logistics and supply sustainability (Source-Author)

Improvements in logistics and supply network quality of customer service can all be realised from
adopting a sustainability-facing planning, design and application philosophy (figure 9), resulting in
an achievable and measurable plan.

All of these key drivers (figure 9) are applicable to business, military and humanitarian logistics
operations planning and design and techniques for sustainability. They must all be measurable in
some shape or form in order to give some quantifiable performance comparisons that will enable you
to plan and design, then re-plan and re-design as necessary.
Accuracy, objectivity and levels of detail are essential to any operational planning, but especially so
where operations may have a social, environmental or economic impact. The analytical
measurements must also have the capability for incorporation into carbon footprint measurement. If
not practicable because of field conditions, these same requirements can be factored into military and
humanitarian supply sourcing activity as part of their commitments to ongoing logistics and supply
footprint reduction.

Sustainable logistics and supply management for BUSLOG, MILOG, and HUMLOG has to
integrate environmentally and financially viable practices into the complete logistics and supply
lifecycle for each type of operation. That includes product design and development, to material
selection, (including raw material extraction or agricultural production), manufacturing, packaging,
transportation, warehousing, distribution, consumption or end use, to return and disposal
4.9. Logistics and supply in a digital world-tracking technique
Modern logistics and supply management, you must agree by now, offers lots of complexity and lots
of challenges for the logistician to manage and cope with at whatever level and in whatever
operational sector. High performance methods are required and these require high performance
connective technology systems of real time control, management command of the network process,
and coordination and communication along the logistics networks.
Thankfully we are in an age of advanced digital technology, some examples of which we have
discussed already, and which we will examine again now, and later in the final chapter when we
examine future logistics and supply.

Digital technology enables a real time visual management of the whole network, it gives a
continuous picture (or should) of activities at each part of the supply chain, at each activity node, and
along the whole set of linkages. In other words it has to offer connectivity that works and digital
technology that does the job in order for the logistics and supply network process to meet its primary
objectives of perfect fulfillment - excellence in meeting customer or end user service requirements
whilst adding real overall value. Connectivity should mean visibility whenever and wherever the
logistician, supplier, customer, end user require it, and digital development has enabled that facility
to any receptive technical medium, laptop to I-phone to tablet.

The technology with which logisticians come into daily operational contact offers techniques for real-
time tracking and traceability of orders, products, services and people. The technology and the
techniques are all based on the International Global Positioning System (GPS) which is a satellite-
based navigation system made up of a network of satellites. It offers an accurate (up to 10-20 metres
depending upon application used) position (latitude, longitude and altitude) of product location at any
time.
Working in tandem with Radio Frequency Identification (RFID), GPS offers track and trace
wireless capability of:

All logistics hard and soft assets


Products and services, materials and parts in the network
All movement modalities
Pipeline flows and content data Pallet loads
Caged/consolidated/batched loads
Individual items
Temperature and heat controls
Equipment serviceability and hours worked
People in the network
Individual Containers (air/sea/road/rail)
All these assets and the associated data can be monitored end to end along the total logistics and
supply network of nodes and supply chain activities direct to mobile device or via logistics base
(figure 10).

Figure 10 GPS technology applications for track, trace, and monitor (Source-Author)

The technique can be, and is, applied in business (BUSLOG), military (MILOG) and humanitarian
(HUMLOG) logistics and supply networks to varying degrees of strategic and operational priority.
RFID and voice technology examples can be seen working together in any distribution centre around
the world, in warehousing picking and packing, in materials handling equipment operations at any
port or airport or in control of flow operations at any petro-chemical terminal. The advanced
technologies of wireless connectivity give the potential to supply mobile logistics and supply data
anywhere, subject only to infrastructure availability.

Logisticians and other activity operatives along the complete network can be brought into the flow
process control in real time. Electronic proof of delivery along the supply chain is now possible.
With international supply now including the supply of many fresh or limited shelf-life products, the
ability to monitor the condition of products whilst in transit through the logistics network has also
become more critical.
For the military and humanitarian operational logistics sectors in particular, GPS based technology
(figure 10 example) has offered military commanders and humanitarian project managers and
personnel a communication, command, control, and coordination tool that has resolved many of the
product and service delivery and recovery problems specific to their operational contexts. Real-time
modality logistics control has now become tighter and finer all the way down the network to the
ultimate customer. The potential from nano-technology of individual personnel and individual
product line item track and trace is adding to an enhanced real-time logistics capability in all three
sectors.

The technology now available also offers track and trace for reverse logistics and a true cradle to
grave capability for monitoring the disposal of waste and obsolete products, the movement and
treatment of casualties in medical logistics, and the ultimate responsibility for reverse activity and
decisions. For logisticians there is also the opportunity for performance, time and cost data sharing
along the whole logistics and supply network using Electronic data Interchange and Interface (EDI)
from supply source to ultimate user.

Technology does not offer perfection by application; it does offer a logistics and supply management
capability for resolution for many of the logistics problems generated by high volatility products and
services delivery. It also enables comprehensive logistics solution packages tailored to specific end
users and markets or operating areas, and to meet the ever increasing challenge posed by shorter and
shorter product and service lifecycles. Integrated network architecture offers opportunities for
visibility, credibility of operation activity and compliance to operational performance objectives
right along the logistics network.

Learning activity #6 technology and Excellence


Business organisations that follow the practice of logistics and supply management excellence as an
integrated element of their business strategies are the organisations that dominate global markets; they
should be familiar to you and include:

DELL, Nokia, RIM, Tesco, Nike, Cisco, Nestle, Shell, GlaxoSmithKline, Baxter Healthcare,
Tenneco Automotive, Motorola, Levis, Dow Chemical, BASF, BP, BAE, Rolls Royce, BA
Military organisation examples include the US Army service of Supply, the UKs military logistics
organisation, NATO logistics
Humanitarian organisation examples are: International Federation of Red Cross & Red
Crescent global logistics service, Humanitarian Logistics Association, the UN Global Service
Centre
1. Take some time to visit any of their websites and see if you can recognise logistics and
supply management key topics and techniques from this chapter, in some shape or form, in their
organisational profiles.
2. In particular examine how they use current technology methodologies to link and manage
their global logistics networks and processes.
4.10. Building logistics and supply network capability: the architecture for total integration
Multinational distribution issues for international logistics will always be a challenge for
logisticians to face as they bring the logistics network and subordinate supply chains into making an
ever more powerful contribution to business or operational mission success. As we have seen so far,
security, integrity, sustainability and reliability of the logistics and supply network are a constant
for all our three sectors. We have also determined that these constants can be mitigated to some
degree by applying technology and detailed in-depth evaluation, planning and design to networks.

Costs management, achieving and sustaining logistics excellence, and managing accelerating change
are a constant theme of professionals in logistics meetings everywhere in the global economy. We
have covered a wide range of possible tensions that can arise in this new logistics and supply
management paradigm, and offered some suggestions as to how a logistician might tackle some of the
challenges. The underlying theme of building logistics network capability remains problematic, and
despite the advantages to be gained from technology, there is no definitive solution.

Business logistics can be argued to be a current leader in technology based logistics solutions, with
military logistics a close second, rapidly adapting and adopting current technology concepts, with
humanitarian logistics now steadily adapting and coming closer. As we have seen they each have the
same customer service problem, right product or service, right place, right time, right cost, right
quality, right packaging, right now!

Getting to market or user end point rapidly, requires a logistics network architecture that can
sustain continuous and very dynamic planning, monitoring and replanning. It must be scaled and
designed to support the whole logistics and supply enterprise and be able to face a multiplicity of
problems, all possibly happening at the same time. It must not be fault-tolerant, that is, accepting
degraded performance because the whole enterprise is actually working, and so encouraging a
reluctance to engage with unification of the whole logistics network.

High speed changes in the logistics and supply operating environment must be accepted and
acknowledged as inevitable, and be prepared for. Change is happening and technology is accelerating
as you read this. The technology concept of cloud computing for a complex logistics operation
(figure 11) offers a good analogy for cloud-based logistics and also indicates how some current
logistics and supply problems may be resolved finally.
Figure11 example cloud architecture for logistics and supply (Source-Author)

Cloud computing (figure 11) is the process of using a cloud, computer technology and computing
power software, which is Internet based and managed by a provider. The architecture is segmented
into a trio of applications, technology platforms, and the supporting infrastructure which is not
owned by the user, who uses only the software available, and has no capital costs of hardware,
infrastructure etc. Information is available for planning and operational control via a medley of
applications (laptops, desktops, iPod, iPhone, Tablet etc).

Cloudbased logistics combines the freedom of technology choice to meet rapidly changing logistics
situations, and the capability to adapt quickly to changing mission requirements, whilst maintaining
all the visibility requirements for the whole logistics network. The integration of the applications
available (the technical agents) together with the expertise and knowledge of logisticians in the
network (the cognitive agents) and the speed of response available from digital technology power
combine in a flexible mode.

This is integrated international logistics leadership (IILL), and it meets all the requirements for
dealing with the many current and future challenges from the complexity and velocity of the new
logistics paradigm for business and military and humanitarian logistics. Because of the availability
of portable and transportable digital connectivity, it offers a flexibility and adaptability in
architecture for logistics and supply management in developed, developing, and undeveloped
operational environments.

Learning Activity #7
Consider how digital technology could give visibility of ONE key operational aspects of each
activity area shown for: international business (BUSLOG), international military (MILOG)
and international humanitarian (HUMLOG) logistics and supply operations:

4.11. Skills for logistics and supply-comprehensive performance


Advances in logistics modality, equipment, technologies and applications are commonplace and
accelerating as digital developments break new ground
Earlier in chapter 3 (figure 24) we summarised a generic set of skills for logisticians. At this stage
we can now also summarise in a logistics and supply mnemonic some comprehensive technical skill
areas where techniques of assessment for efficient and effective logistics and supply systems need
to be applied (figure 12).

Figure 12 mnemonic for logistical performance assessment techniques (Source-Author)

The mnemonic uses logistics and supply as memory tools, examine them and see whether you
agree with them, but remember that these mnemonics (figure 12) are not fixed and are also
adaptable for your own interpretation and application.
Overview dealing with demand
There is only one way to deal with demand, meet it (remember the 6 Rs?). Whether you call it
improvement of resource use, capacity or capability design, alternatives for contingency et al, in the
end effective logistics and supply boils down to one thing only, and it is meeting demand. If you can
do that, you will have directly or indirectly met the requirements of how to be lean, how to achieve
agility, how to compete for mission success with logility, and how to design, operate and lead
successful operational logistics and supply networks.

Credible integrated international logistics and supply leadership means the ability, opportunity and
freedom to reinvent the logistics network and supply chain responses activity to meet each particular
customer, and user mission for business, military or humanitarian requirements. What it does not
mean is giving each and every customer a personal logistics network that meets just their need; that
would generate a cost profile that would be insupportable and would kill or degrade the primary
mission. The logistician must decide on the best trade-off that satisfies the end user whilst meeting
capability constraints.

Logistics leadership brings together the science and the art of logistics and supply management in an
international logistics model that offers competitive, accurate and adaptable delivery capability for
each customer or end user. That can only be achieved from the configuration of cost-base savings,
excess inventory reduction, lead-time optimisation, whilst avoiding a cost-base cuts fixation that
takes logistics away from where it must always be, customer facing. Whether you are delivering
product or service to or for manufacturing or retail operations, the front-line war fighter in
military operations or the casualty of natural disaster, the logistics leadership principles remain
exactly the same: design the network, build the resilient network, and sustain the customer, all in real
time. It is worth re-emphasising that effective and efficient logistics sector operation (BUSLOG;
MILOG; HUMLOG) and the logisticians must be:

Flexible and responsive to dynamic changes in their product, services, modalities,


and customer/user infrastructure requirements
Communication and Information technology capable to enable total transparency in
the logistics and supply network
Trained, equipped and capable of local logistics specialism within the local context
of their supply network activities, and as an integral part of the international activities
of the whole network
We have examined and discussed in some detail the logistics architecture and the logistics
leadership required to face the multiple complexities of the challenges of the new paradigm for
logistics and supply. There is a danger in seeing logistics networks simply as functional and
technical system entities, (which they obviously are), but they are also a complex architecture
combining leadership and people as well as systems, and process technology. This is a critical
point, despite technological advances logistics and supply is, and will remain a strategic, tactical and
operational combination of activities that stand or fall on the logisticians who apply them.
Consumer driven logistics and supply networks, customer facing logistics and supply networks, are
not a text book clich, they are real and so are the logistics skills and management required to satisfy
them. Logility offers the best answer to the question what do I do to deal with demand?
Consolidation learning activity
We discussed earlier (chapter 3) that Value (however you define it) = activities of Function/ Cost,
quite simply , obtaining logistics and supply value from carrying out functions at best or lower cost

for that function, viz the formula:


Or increasing Value (V) by providing the same logistics and supply function(s) at lower cost, or
providing an increased logistics or supply function(s) for same cost. That premise forms the
groundwork to the application of logistics and supply management techniques to the modern logistics
network. The pressure is now on in modern business, military and humanitarian logistics, and it is
on intensely, to obtain ever more value from function and cost activity along the whole logistics
network of supply nodes and links.
Examine the summary below, and suggest what components you think might comprise the basic
formula of Value, Function and Cost for each of business (BUSLOG), military (MILOG) and
humanitarian (HUMLOG) logistics?

Would they be the same, or would they be different? Why?

Concluding practical case activity HUMLOG planning and design


Examine this graphic which illustrates a basic (mythical) operational area (SOCA island-South
Pacific) for major humanitarian operations, and consider how you would deal with the following
examples of logistics network planning:
1. What logistics and supply risk assessment parameters should you consider?
2. Where would your point of entry be for initial logistics and supply operations?
3. What logistics modalities would you use?
4. What logistics and supply infrastructure requirements would you need?
5. What would your logistics and supply planning priorities be?
Final discussion topics
We have covered a lot of ground in this and the preceding chapters, and so at this point you should be
very confident about addressing the following brief self-evaluation that summarises your updated
logistics and supply knowledge and competencies (figure 13):

Figure 13 capability, concept and plan competency for logisticians (Source-Author)


Consider your responses to the above; be rigorous, do you think that you do have the capability now
to formulate a logistics and supply concept, and the ability to plan the logistics and supply network,
for a real business, military or humanitarian operation?
Conclusion
This chapter has been about using logistics techniques that give your networks logility and prevent,
or help reduce, logistics and supply management issues inherent in getting to your market
(BUSLOG) or end user (MILOG, HUMLOG) rapidly, and meeting demand. You need to do this
whilst applying flexibility, efficiency, effectiveness, consistency, optimisation and successful and
capable supply distribution solutions whilst remaining in budget AND within the overarching
concept of sustainability in all its modern formulations?

Its a tall order, which you need to consider carefully as you develop achievable logistics concepts
and designs for networks that work.

There is also a down side to these objectives of perfect fulfillment and logility (figure 14). Be
aware that the capacity and capability for effective logistics and supply networks to degrade
increases over time as attention to the network can slip or move away to other issues, and if so,
failure swiftly follows.

Figure 14 successful logistics performance and degradation over time (Source- Author)

So, a final re-emphasis on logistics leadership + total visibility, built in always into the whole
logistics network, from constant capability monitoring and evaluation. Complacency kills logistics
networks, for BUSLOG it means losing business and customers, for MILOG and HUMLOG it may
mean mission failure and serious human loss, design it right first time every time!!
This chapter and the preceding three chapters have illustrated and developed the challenges faced by
logistics and supply networks and by logisticians. The challenges are not just about identifying and
then using appropriate techniques for managing movement, mitigating distribution risks and
developing customer and supplier nodal interfaces. The challenges are about doing that, but whilst
operating in a new paradigm of high velocity and constant change for logistics and supply, and
managing the complexity within the paradigm.

Our transit so far across the tri-axial comparator sectors of business (BUSLOG), military (MILOG)
and humanitarian (HUMLOG) logistics and supply management has shown that there are some basic
constants within the differences of each of their logistics and supply contexts. These constants make
it easier for the logistician to get a firm logistical grip on any network, and to then develop and adapt
it as required for specific missions.

In the following and final chapter we will re-examine in final detail these constants and differences,
and how they must adapt for future proofing logistics and supply management as change accelerates.
Grounding for the chapter
Carroll, A. (2015), Logistics and supply Operations management, lecture, seminar and professional
course materials, 2004-2015
Global Commerce Initiative, (2011), Future Supply Chain 2016: Serving Consumers in a
Sustainable Way, the Consumer Goods Forum /Cap Gemini, GSI Cologne.
Smith, R. (2006), Humanitarian Relief Operations: lending a helping hand, Philadelphia, Mason
Crest.
Supply Chain 2020, (2008), SC 2020 Baseline Scenarios, occasional paper, MIT Centre for
Transportation and Logistics, USA.
Walden, J.L. (2005), Velocity Management in logistics and distribution: lessons from the military
to secure the speed of business, London, Taylor & Francis.
Further Reading
Christopher, M (2012), Logistics & Supply Chain Management, Rugby, FT Prentice Hall.
Francis, M. Thomas, A. Thompson.G. & Rowlands,H. (2009),Convergence and the digital content
industry: proposing new business models & supply chain structures for a volatile new digital
landscape, Cardiff, Proceedings of the 14th Annual Logistics Research Network Conference, 9th
11th September 2009,742-749,University of Cardiff.
Harrison, A. & van Hoek, R. (2011), Logistics Management and Strategy-Competing through the
Supply Chain, Harlow, FT/Prentice Hall.
European Commission, (2006), Urban Freight Transport & Logistics-An overview of the European
research and policy, Brussels, European Commission, Directorate General of Energy & Transport.
Lysons, K. Farrington, B. (2012), Purchasing & Supply Chain Management, Harlow, Pearson
Mangan, J. Lalwani, C. Butcher, T. (2008), Global Logistics and supply Management, Chichester,
Wiley & Sons.
Prabhu, V.Taisch, M.Kirititsis, D. (2013) Advances in Production Management Systems.
Sustainable Production and Service Supply Chains: IFIP WG 5.7, USA, Springer.
Rogers, D.S. Tibben-Lembke, R.S. (2004) Going Backwards: Reverse Logistics Trends and
Practices, University of Nevada, Center for Logistics Management.
Additional Sources: websites (accessed Jan 2016)
Business Continuity: http://www.thebci.org/
Sustainability issues: www.transparency.org
Sustainability projects: https://tfl.gov.uk/modes/driving/low-emission-zone
Technology for tracking: http://rfidc.com/
Humanitarian Logistics planning: http://www.humanitarianlogistics.org/
Military logistics solutions: https://www.leidos.com/uk

INTERNATIONAL LOGISTICS AND SUPPLY MANAGEMENT COMPARATIVE


PERSPECTIVES
Chapter 5 MEGATRENDS, SUMMARY, AND CONCLUSIONS
Learning objectives
By the end of this final chapter, you should be quite confident about being able to:
Apply the modern logistics concept to your own contemporary situations in business,
humanitarian or military logistics, and be able to plan, design and improve future
operations
Understand and gain overall mastery of the whole operational context of current and
future logistics and supply management operations
Connect concepts, theories and practices to new situations arising from the application of
affordable technology to logistics and supply
Identify current and future personal development requirements for maintaining lifetime
logistics competency, integrating changing techniques, concepts, applications and
technology
Conform to codes of conduct required by professional Institutes
More importantly manage, supervise, or just simply be comfortable and confident in
working in, logistics and supply operations
5. Introduction
This handbook has aimed to promote a comprehensive and coherent understanding of the multi-
disciplinary conceptual and technological skills required of the modern logistician both internally
and external to their supply operations. To do this you have been introduced to and used comparator
logistics and supply concepts that have offered best practice conceptual development and
innovative approaches to logistics and supply management. The comparator approach has been used
to identify and demystify universal good principles of logistics and supply management practice.
The principles learned will be beneficial for you to apply to any applicable operational supply
situation in which you are involved, and to gain and maintain control of supply.

What might the future look like for logistics knowledge and skill requirements? We dont know
exactly, but it is a fair assumption that the requirement for the skills and knowledge grounding that we
have covered in chapters 1-4 will continue, and increase. The use of digital technology and the
internet, PLUS ever increasing scrutiny on, and legislation of, logistics and supply activities as they
impact upon communities worldwide, means that logisticians will need a wider and deeper range of
knowledge acquisition skills.

You should be very aware at this point about the criticality of being able to plan, design and manage
interconnected logistics, supply management and supply processes, within the key dynamic of
velocity. Velocity is permanent, always variable, and never ever ceases to influence logistics
operations, wherever those operations are taking place. Because of that, the logisticians learning
curve never ends; it must go onwards and upwards, to better and better logistics and supply practice.
5.1. Future proofing-whats going to be new, what should I know, what skills should I update?
The digital economy and Internet of things is accelerating a transformation of the role of logistics
and supply management. Any logistics organisations survival will, more than ever, require the ability
to embrace new technology as critical to increasing their missions strategic, tactical and operational
success. Demanding and developing demographic, geographical, climatic and political and cultural
tensions will continue to form the complexity of the operational context within which logistics and
supply must operate.

The way ahead for logisticians will offer many tough challenges, but also many opportunities to
demonstrate their skills and capabilities and to prove to their parent organisation the crucial role of
logistics and supply management in creating tangible value for the organisation. This handbook gives
logisticians the conceptual grounding for practical skills development that will equip them to meet
future change head-on, and to successfully master the complexities that change will pose whatever
their operational environment (BUSLOG, MILOG, and HUMLOG) and mission for logistics and
supply.

Personal development is absolutely central for this, and must be ongoing, and lifelong. That does
not mean just updating current skills; it means identifying and evaluating new personal skill
requirements BEFORE they occur. That means that you must keep up to date with trends and
changes in the logistics and supply management world and try to identify further trends that may
signify future change.

Future change for international logistics is definitely going to centre on technology and the influence
of the digital economy and of the Internet of things via cloud computing. Intensive change for
BUSLOG, MILOG, and HUMLOG activities is predicted around the following (figure 1), for
which the logistician must be future-proofed and ready to engage:

Figure 1 future proofing-prediction (Source-Author)


We have identified and examined all of these areas (figure 1) to some degree in previous chapters;
this concluding chapter now takes them forward and attempts to evaluate their influence on future
change for logistics and supply management. The chapter also provides integrative knowledge and a
range of final learning activities in and around these themes. This will enable your own final
reflection and consolidation of logistics concepts for application to your own existing or planned
operational context.

Learning activity #1 the Internet of things-exercise

1. Decide on a representative product or type of goods or service, tagged for track and trace, for each
of the business (BUSLOG), military (MILOG) and humanitarian (HUMLOG) operations sectors.
2.Consider the type and amount of information that you might typically wish to receive from each of
these tagged products moving through an internal or external logistics network (or both), and the
device that could best display it for availability during your working day or night.

3. Briefly consider any benefits and disbenefits of this information gathering method.

5.2. Social media applications for logistics and supply management


Technology solutions, which are cloud-based and multi-tenanted, were introduced and discussed in
chapter 4.
They are now increasingly available to assist logisticians in achieving full logistics and supply
execution visibility, with realistic cost savings, via collaboration with trading partners across the
total supply chain or chains (Figure 2).

Figure 2 cloud computing concept for logistics and supply (Source- author)
They can be, and are, used in operational situations across the business, military and humanitarian
sectors and will be used increasingly for future operations because of their potential to provide
higher real time visibility of activity in the logistics network.

Social media applications can be used in multi-user communication and collaboration, whatever the
operational scenario, provided the technology infrastructure is in place. Logistics and supply work
force personnel increasingly depend on smart technology to make the job of pick-up, put away,
delivery, and service payment faster and more efficient. Organisations in all three comparator
operational sectors (BUSLOG, MILOG, and HUMLOG) are using or developing cloud based
services and technologies to develop innovative products solutions, improve operations, share
information with customers, end users, partners and suppliers, and run complex enterprise
applications as appropriate.

Based on a collaborative digital approach, social media and collaborative software solutions offer
fast and real time logistics and supply network interaction and problem resolution.

What goals are they aiming for?

Essentially its about solving the old, old, logistics and supply mission problem of achieving the
ultimate objective with which you should now be well familiar supplying demand. This always
involves balancing inventory & service levels to optimise total cost. At the same time maintaining
customer and end user requirements, from the moment of demand through storing, tracking,
collating, and shipping and handling, with maximum accuracy and accountability until and beyond
the moment of delivery. Then managing and operating the probability of returns as a reverse
logistics and supply operation.

This involves managing an ever increasing complicated balancing act of the network connections of
products, services and information using social media and the cloud (figure 3):
Figure 3 future cloud integration of multi-tier logistics and supply (Source-Author)

The primary benefit of this type of system is visibility end to end, giving fast tracking capability in
real time and enabling logisticians to intercede and problem solve at any given portal access point,
locally, nationally or globally. This can be tailored to individual or networked logistics and supply
operations. There is a major weakness, and that is the possibility of technology failure at all or part
of the information system, so redundancy must be built in to enable the recapture of data from any
point in the system.
The overall system data-metrics & monitoring portal in figure 3 is the means by which the whole
network can be managed, and is termed the control tower (or sometimes business intelligence
system) approach for logistics and supply operations management ,depending upon the operational
context.
5.3. Collaborative solutions to logistics and supply management control towers
The logistics and supply management control tower concept, with the help of technology (figure 3),
enables logisticians to obtain a holistic approach that encompasses the full range of logistics and
supply activities. The concept is a simple concept that gives extended visibility, (as in the visibility
from an airfield control tower or port control complex centre, or a road system camera fed control
room).Control tower control overarches end to end warehousing, inventory management, supplier
management, transportation management, performance data, demand patterns and volumes,
procurement, manufacturing and service provision, and people activity.

The visibility is real time and enhances management decision making before, during and after
logistics and supply operations. Real time operations can be connected to real time parent
organisational strategic planning and decision making both short and long-term. Four critical
components are required to identify, capture and apply logistics and supply activity data:
1. Right technology for the mission,
2. Flexible organisation design,
3. Responsive processes along the whole network
4. Expert technical hard and soft skills
Training in technology application and decision making, and collaboration are the key hard and soft
skills without which the whole system, however advanced the technology, will fail.

The control tower concept combines the processes enabled by cloud-based technologies (figure 3),
configuring a set of activity services to customers or final users, operational functional units and
collaborating supplier levels across the supply network. These activities perform a critical set of
logistics and supply activities: collecting and aggregating orders, scheduling shipments, monitoring
product inventory or availability of service, and updating the status of product or service orders.

This information is linked to other logistics and supply management systems (Enterprise Resource
Planning ERP; Customer Relation Management-CRM; Warehouse Management Systems-WMS;
Transportation Management Systems-TMS; Procurement Management Systems PMS) which overall
provide (or should!) end to end global visibility.

The data from all these components can then be managed by the tower concept to anticipate problems
and provide solutions to issues arising during the logistics and supply events. Issues of customer
service failure arising from late delivery, additional materials or service requirements, scheduling
failures, multimodal logistics interconnections, inadequate risk analysis, and financial
settlements issues can be pre-empted or resolved.

Logistics and supply operations in the business (BUSLOG), military (MILOG) and humanitarian
(HUMLOG) activity sectors are subject to the same general principles of failure along their levels
and tiers, but with specific outcomes to their separate operational contexts.

The tower concept for each comparator sector (BUSLOG, MILOG, and HUMLOG) operation
therefore requires different levels of sophistication and information acquisition grids to respond to
different dynamics.
The Internet and associated technology provide opportunities now more than ever before for business
(BUSLOG) to respond and supply new markets, to provide 48 hour (or less) global deliveries, and
to exchange real time information. However those same opportunities are also available for
competitors, from virtually anywhere in the global market.
Consumer demand pulls modern supply chains with an intensity that it never had before. Perfect
fulfillment of the product or service to meet customer expectations of immediate service has
generated incredible stresses on logistics and supply management systems to be continuously
adaptive. Logistics failure will impact on your service efficiency and eventually your ability to
support your corporate strategy objectives.

Figure 4 business logistics and supply (BUSLOG) technology based control tower concept (Source-
author)

The future logistics and supply network for business (BUSLOG) operations must be capable of
managing a complex and closely connected multi-tier supply network. Supply failures in the modern
business world demonstrate that this is not happening. Products and services, information, processes
and people, connected by proactive logistics planning and management must become the norm in a
network (figure 4) with the sole focus on excellent customer service. Advanced digital technology
products such as SAP applications for business enable multiple layers of control from human
resources to modality planning along multiple supplier tiers.
Figure 5 military logistics (MILOG) technology based control tower concept (Source-Author)

To make military operations successful in an environment such as an unstable modern failed state it is
essential the military logistics (MILOG) are flexible and for their planners and managers to know
what is needed from the logistics and supply network. The ability for optimisation of available
resources to operate in a possibly unforeseen event, whilst maximising materiel, movement and
maintenance of the logistics network in a hostile and rapidly changing situation, is a key critical for
success. The logistician must be able to react to rapid change and be prepared to switch from plan A
to and through plans B, C, D, E, F et al at very short notice!!!

Confident decision making and flexibility of mind set are key critical for the logistician in what is
now known as asymmetric combat operations, where fixed plans and secure lines of communications
and supplies (MILOG) are no longer guaranteed. Peace keeping and peace enforcement operations
may also intrude as alternatives to military combat missions, effectively requiring a different
logistics and supply component design. Advanced digital technology available to the military enables
control tower methods of force multiplying technology giving superior flexibility for logistics and
supply design, planning and performance.

The ability to match the logistics design to operate within or alongside a multinational operation can
also test the capabilies of the logistics operation and stretch the capacity of the logistician.
Warfighting introduces dynamics of rapid change that must be responded to, whilst maintaining the
crucial logistics mission of end to end supply, from the source (manufacturer) to the warfighter.
Multi tier complexity along the military supply network must be capable of fast flexible response
(figure 5) as asymmetric combat becomes the norm rather than the exception.
Figure 6 humanitarian logistics (HUMLOG) technology based control tower concept (Source-
Author)

Whilst business (BUSLOG figure 4) and military control tower concepts (MILOG figure 5) can
apply sophisticated real time technology solutions, humanitarian logistics and supply (HUMLOG
figure 6) use an open source IT solution (Helios).This is designed for low IT literacy users operating
in poor infrastructures, but offering real time data for logistics decision making and management.
The solutions may be powered by rechargeable battery (hand or pedal generator recharge as well as
live power source, plus solar photovoltaic means).

Efficient logistics management can mean the difference between life and death in humanitarian aid
scenarios. Faster demand distribution intelligence has improved response times, cost benefits
ratios, and flexibility of relief efforts whilst managing on-site numbers of individual government and
none-government relief agencies (chapter 3 figure 23). The World Food Programmes role as global
lead element in the UN Logistics Cluster and a philosophy of adapting a new retail logistics and
hybrid supply approach to food assistance needs has improved service levels in disaster response.

Although meeting similar BUSLOG and MILOG problems of control of multi-tier suppliers along
the logistics and supply network, HUMLOG logistics complexity can also be exacerbated by the
dynamics of donor and government funding of relief agencies and their immediate expectations
once a relief operation begins. Emotional responses can also play a part in demanding expectations
about success of the supply mission.
The control tower concept has been used successfully by the author (and observed by the author in
use by other operations) in the past and in the present. It gives the capability to deal with a critical set
of fundamental dynamics that will generate thought experimentation for logistics and supply
planning and design. Those fundamental dynamics can be addressed by using the following questions
which should overarch all logistics planning (figure 7):

Figure 7 generic logistics mission framework BUSLOG, MILOG, HUMLOG (Source-


Author)
Thinking through (figure 7) first time, each time and every time, can and usually will influence the
success or failure of present and future business, military or humanitarian logistics and supply
missions.

There is no set methodology for managing logistics networks-any business, military or humanitarian
logistics network does have some limited general characteristics, something which has been
identified in previous chapters and re-emphasised in this chapter in the control tower concept (figures
4, 5, 6). The general characteristics of a BUSLOG, MILOG or HUMLOG operating network
always will revolve around the questions framed (figure 7) above, which may be used to outline a
consistently responsive logistics network framework.
These foundational dynamics will be familiar by now; they consistently appear in one variation or
another whenever we examine logistics planning and its various techniques. Upon that foundation
must then be built the mission-specific model that matches supply with demand and which
incorporates further specific and detailed operational planning data.
5.4. The final frontier for logisticians mastering uncertainty and achieving maximum service
Variance and randomness exist, and will always exist, despite advanced control techniques, and they
will always generate uncertainty in planning logistics and supply operations. Achieving maximum
service means logisticians must always attempt to perfectly co-ordinate and manage the flow of
goods and information, from supplier to inbound logistics, through manufacturing or service
provision, to outbound logistics and movement on to the final customer. Uncertainty applies whether
you are operating in BUSLOG, MILOG, or HUMLOG contexts; its a fact of logistics life.
It means that you must constantly monitor the physical flows, making early identification of problems
possible then taking the right remedial action immediately to achieve on time/on target delivery. The
way to do this is by balancing and synchronising of all parts of the network to respond to time and
velocity variability, as we have already discussed. Remember, unbalanced logistics = logistics
failure and then failure of the whole operational network that is being supported will follow sooner
rather than later.

We have already met some important triggers of uncertainty for logistics and supply operations, and
they are re-emphasised again (figure 8).They are important because they are permanent, always exist
in some form, and crucial to understanding where potential failure will come from.

Figure 8 triggers of uncertainty (Source-Author)

Figure 8 reiterates the common triggers of uncertainty from asymmetry, volatility and
unpredictability variables in BUSLOG, MILOG, and HUMLOG networks that will now and in the
future always generate random difference affecting the balancing of supply and demand. Future risk
logistics and supply management planning for business, military and humanitarian operations must
attempt to forestall those triggers from engaging.

Where uncertainty exists then risk inevitably exists, in varying degrees. Mastering uncertainty and
knowing the principles of risk will remain a constant into the future, and we have already discussed
risk avoidance and mitigation of risk.

What is disheartening for logisticians is the continuing number of high risk countries for logistics and
supply operations that still predominate and can affect international logistics and supply (Figure
9).The Chartered Institute of Procurement and Supply UK (CIPS) offers professional resources that
can be used to plan for risk, and this is one example of resources available for professional
practitioners.
Figure 9 country Heat Map 2014 global risk summary CIPS model (Source Chartered Institute of
Procurement and Supply UK free to use (http://www.cips.org/en-GB/CIPS-for-Business/supply-
assurance/CIPS-Risk-Index/)
They are essential for logistics and supply management planning and are one of the many tools
available from professional Institutes. The Chartered Institute of Logistics UK (CILT) offers access to
similar business intelligence resources for BUSLOG. Business intelligence can also be used to
supplement logistics planning in MILOG and HUMLOG planning.

Learning activity #2 Country risk exercise

The Chartered Institute of Procurement and Supply UK provides a risk assessment resource for its
professional members (figure 8). Examine the risk map and consider:

Why are certain countries low risks?


Why are certain country higher risks?
Give examples of some of the risks for logistics and supply management activity in
the high risk countries.
To repeat, it is a fact that variability, in any system or process will never be completely deleted, and
therefore volatility and unpredictability from asymmetry and dissymmetry will always occur.
Practitioners of focused logistics and supply who are aware of this know that although you cannot
achieve network perfection you can strive for network excellence that contains and mitigates
disruption and failure.
How can logisticians, whatever their sector of operations, achieve future excellence in logistics and
supply management design? Primarily by planning and innovation that aims for network precision
and sustained network velocity. The basic logistics principles to mastering uncertainty and achieving
maximum service have always been, and will remain so for the future:

coordinated delivery of product or service


fast and flexible distribution at user point
superior logistics infrastructure and equipment along the whole network
These very basic, but very effective, principles hold well for business (BUSLOG), military
(MILOG) and (HUMLOG) operations, and they supply the foundation of techniques for deciding
how to master uncertainty and achieve maximum service of supply.
5.5. Achieving maximum service of supply

Figure 9 planning maximum service of supply (Source-Author)


As at present, so in the future, logistics will meet activities and time frame issues (velocity and
time) that must be addressed if maximum service of supply is to be achievable (figure 9).

The benefits of the digital age for logistics and supply management are many, one is the ability to
process very large amounts of real, theoretical and conceptual data to attempt to formulate logistics
and supply plans. Big data is now generated by everything around us at all times. Every digital
process and social media exchange produces it. Systems, sensors and mobile devices transmit it. Big
data arrives from multiple sources at an alarming velocity, volume and variety. To extract meaningful
value from big data, you need capture capability, plus optimal processing power, analytics
capabilities and the skills to do this, and to understand the results.
There are lots of technical options available for gathering data into big data sets, and the technical
capability options for undertaking the analysis, but massive volume (figure 10) means that you must
have the process to sort, validate and structure the data into useable form that gives credible
information for planning, design and decision making for the logistics and supply network. This will
be a key skill requirement for logisticians if they are to fully master their networks.

The more useable data that you have will give you the means to generate information to control and
reduce the logistics and supply uncertainty. BUSLOG, MILOG, and HUMLOG operations,
information requirements will always require the following data range for processing and analysis
(figure 10). This is just a base range, the nature of product, service and operational mission
requirements will increase the number of data required.

Figure 10 data requirements examples for logistics planning (Source-Author)

None of these are new, we have met them throughout this handbook but some are frequently
overlooked and now is a good time for re-emphasis as we consider present and future logistics and
supply planning data requirements. The more data that you have available the more opportunity you
have for logistics and supply failure mitigation.

The 2011 Japanese tsunami shut down much of Toyotas parts and manufacturing capabilities, and
was a classic example of a major supply chain disruption. Boeing massively outsourced their
Dreamliner programme which became victim to supply chain failures and subsequent cost over-runs
into 2015. It can be argued that contingency planning from data acquired covering variables that we
have discussed in detail would have mitigated failures such as these?
Humanitarian logistics operations failures in Haiti, Somalia and Syria are examples of the context
complexity that can accelerate failure in supply. Military logistics operations in Iraq and Afghanistan
were disrupted by automated supply system failures to respond to intensive operations. These
publicised examples (there are many more on-line) emphasise the crucial need for logistics managers
in all three sectors to get in close to their networks BEFORE operations commence and to be
intensely evaluating potential vulnerabilities in their own supply activities.

Every logistics network must have resilience for failure built in that enables fast response and
remedial action to both major and minor disruption and failure. However data acquisition also
generates problem for logistics and supply networks, as cyber security then becomes more
pronounced with increasing data volumes.

Whilst emphasising the important role of complex big data in logistics and supply planning, there are
simpler and effective tools. An example that is often overlooked is a data warehouse option freely
available from Microsoft for your Excel programme. The Solver is an add-in for Microsoft Excel
which can be used for the optimisation and simulation of logistics models and decision making for
logistics risk assessment. It can solve complex linear and non linear problems and also be used with
Solver Visual Basic for automatic problem solving (figure 11).

Figure 11 Solver tool in MS Excel 2010(Source-Author)

Find Solver in MS Excel in the analysis group under the data tab. If it is not there you can download
for free from MS, and it does not need complex user skills to adapt and apply to logistics and supply
problem solving.
5.6. Automata and Artificial Intelligence (AI) applications for logistics and supply
In the search for ever greater cost savings and improved efficiency the business logistics and supply
(BUSLOG) sector has led the way in research, design and application of automated systems and
networks. Military logistics and supply (MILOG) operations have been close behind, often building
on business research and development, and the business sector has also benefited from further
military research developments. The humanitarian sector (HUMLOG) has begun to take and adapt
developments from both.

Unmanned, automated and autonomous logistics solutions offer a wide range of benefits to
business, military and humanitarian operations. They also integrate well with cloud based
applications discussed in section 5.3 (figures 2 & 3).

Artificial intelligence (AI) research is actively examining solutions for current business logistics
systems problems in:

serving different logistics channels (Omni channel logistics)


the further globalisation of goods and service flows that require lean supply chains
and particularly a multi-channel retailing focus to final customers
dealing with the complexity from an ever increasing variety and variability of
products and services
orders from sellers and now customers over social media with no time
constraints (24/7/365)
On-line shopping & picking, packing and shipping huge numbers of small orders
improving logistics systems asset utilisation and contributing to increasingly
demanding rates of return for the business
Business, military and humanitarian logistics and supply approaches to the use of AI have been in
their particular fields of what can be designated QPQP. This means addressing the quality of their
logistics (production & process) networks by developing practical applications that offer improved
and optimised accessibility, flexibility and resilience in logistics and supply systems whilst able to
offer a faster return on investment or greater cost-benefit. Greater investment return or proven cost-
benefit can then enable further research, development and solution responses to ever increasing
challenges to competitiveness in the BUSLOG sector, and to mission success in MILOG and
HUMLOG operational sectors. Artificial intelligence applications may offer more decision making
capability than current big data systems and enhance automata applications in supply activities.

Some important examples of efforts into increasing velocity over time and maximising supply to
demand for logistics operations are summarised below:
UAVs-unmanned aerial vehicles (more popularly known as drones).The UAV is controlled by
onboard ICT or from separate control stations. They have the capability to meet quick response
service levels with final delivery to the customer or end user. In addition they are being considered
and tested for use for logistics and supply route surveys and mapping, mining and construction
logistics, urban logistics, agri-logistics, utilities distribution, nuclear logistics security and safety,
priority supply responses and security cover for secure and valuable deliveries. Many examples can
be viewed online. Problems remain to be solved regarding operating control to meet air safety
regulations. UK Current commercial ideas and policy can be found at:
http://www.supplymanagement.com/news/2014/logistics-firms-positive-about-future-use-of-
drones

Driverless technology - unmanned terrestrial vehicles (known as UTVs) offers single or multi-
vehicle terminal to terminal operations from ship or air or rail to store and distributor to customer
or end-user.
The logistics business (BUSLOG) benefits are the possibility of dedicated convoys working none-
stop which utilises asset value, thus reducing the number of truck fleets required, road use reduction
benefits, and safety offered by removing the human element from the controls How and where to use
them in parallel with other road users remains a problem to be resolved. (For more details see
Mercedes Future Truck: https://www.mercedes-benz.com/en/mercedes-benz/innovation/the-
long-haul-truck-of-the-future/).Concerns of safety, emergency procedures and not least insurance
issues remain to be resolved.

Intelligent transportation management systems (TMS) may be both internal and external to
logistics and supply operations. They can be connected to intelligent distribution systems that use
automation and robotics, intelligent control, for product conveying and sortation. Current pick to
light and pick to voice technologies which direct human pickers in warehouses for example, may be
integrated into automated picking solutions and automated handling systems that reduce the need for
human interaction. Automated storage and retrieval system (AS/RS) and integrated materials handling
tracking systems will offer picking of individual items, cases or pallet loads for a typical
requirement profile. Variances in delivery point format whether customer, war fighter or aid
recipient, will be met by logistics operations offering a wider range of order profile and logistics
response solutions based on automated systems.

Military logistics (MILOG) adoption of automata or AI solutions reduces the need for a large human
resource in the fields of storage, delivery, returns and more importantly casualty evacuations.
Unmanned terrestrial vehicles (UTV) with onboard camera can have a mission triggered by ICT with
automatic pick, load and despatch by UTV of combat requirements, with the capability of return
missions of casualties, and equipments requiring repair, through a hostile environment (figure 12).
The technology to do this already exists as a UAV spin-off, development of the equipment to do the
tasks is under way and many trial equipments can be viewed on-line.US military UAV and UTV
development examples can be seen at:
http://www.army-technology.com/projects/avantguardunmannedgr/
The current and future state of UTV research and development for military logistics can be found by
undertaking on-line research, particularly around USA Department of Defence/UK Ministry of
Defence logistics future developments. Use the search terms UTV as appropriate.

The use of driverless technology has major implications for humanitarian logistics (HUMLOG)
operations. It offers the possibility of moving and lifting supplies into stricken areas where conflict,
geographical restrictions or infrastructure damage and destruction block or hinder relief operations
(figure 12).

Figure 12 visualising a future military or humanitarian


logistics UTV/UAV resupply mission (Source- Author)
United Nations Office for the Coordination of Humanitarian Affairs (OCHA) has begun looking at the
possibilities for UAVs, whilst UTV research in the humanitarian logistics field is attracting scholarly
attention. Current UN policy for UAV technology development in aid logistics can be found by using
this source reference (unocha unmanned aerial vehicles) for an on-line search and access to
information.

There are numerous security and handling and control problems associated with the use of unmanned
equipments, but they offer the chance for cargo to reach relief operation areas quickly and without
threat to relief operations personnel. In a conflict zone particularly, where the logistics and supply
system is under threat, the capability to supply and provide aid using unmanned vehicles, on the
ground and in the air, offers an alternative to putting lives at risk until situations are evaluated.
Further information about types and use of UAVs, for business, military or humanitarian operations
can be found by undertaking online research. You should undertake this research, if only briefly, the
implications for future logistics are major and logisticians need to be on top of development work to
add to their skill sets.

Learning activity #3 UTV/UAV selection exercise

Use an online search engine - enter the key words unmanned terrestrial vehicle (UTV) and
unmanned aerial vehicle (UAV).From the results:

1. Examine and then select an example of a UTV, then a UAV that could be used for each of
a BUSLOG, MILOG, and HUMLOG operation.
2. Consider which priority logistics tasks each could be used for.
5. 7. Redefining supply routes for future logistics and supply
Trade routes for modern global trade are those linking the primary land masses (figure 13) of North
and South America, Africa, the Middle East, Asia and Australasia, and the European continent.

Figure 13 global freight-main supply routes (Source-Author)

The primary modality is sea movements supplemented by air for priority freight, and road, rail,
coastal & inland waterway and pipelines into continental land mass interiors (figure 13). These
routes are unlikely to change, but three important exceptions for future logistics and supply planning
will be discussed below. Knowledge of trade routes is essential for logisticians in all BUSLOG,
MILOG, and HUMLOG operations because of the lead time implications for maximising supply.

Global trade routes are defined and influenced by trade agreements areas and their regulatory
requirements. The major trading blocs for the future will be from:

the Trans-Pacific Partnership (TPPA-figure 14)


the European Unions (EU) Deep and Comprehensive Free Trade Agreements area
(DCFTA); supplemented by stand-alone economic partnerships (the Trans Atlantic Trade
Investment Partnership-TTIP, and Canada-EU Trade Agreement-CETA) (figure 15)
partnership agreements from the Regional Comprehensive Economic Plan for Asia (figure
16)

Figure 14 TPPA trade partnership areas (Source-World Trade Organisation PR release)

Figure 15 EU DCFTA trade connections-agreements in place or pending (Source-EU Commission PR


release)
Figure 16 RCEP Regional Economic comprehensive Plan members (Source ASEAN PR release)

What do these groupings mean for future logistics? Politically these traditional sea freight supply
routes will be redefined and legislated with potential and significant changes that will aid mastering
uncertainty in logistics planning and management. How? By implementation of intensive collaborative
measures between countries (figure 9) that will significantly reduce risk for BUSLOG, MILOG and
HUMLOG operations.

Additional benefits may be the removal of some of the complexities attaching to military and
humanitarian operations planning and implementation as countries develop cooperation and reduce
geographical complexity that will enable swifter deployment responses. Detailed information
regarding these important changes is available online on the respective web sites, and you should
spend some time on familiarisation.

Dead weight tonnage (DWT) Limitations from the size of the Panama (PANAMAX-80000tons DWT)
and Suez (SUEZMAX-200000 tons DWT) canals meant that they have been restricted to the transit
of medium sized cargo vessels and tankers (figure 17). Refurbishment of both canals will see
restrictions reduced by 2016 and will influence logistics route planning for sea freight supply routes.

Global warming may also add an additional supply route to global sea trade as the permanently
icebound Northwest Passage above Alaska and northern Canada thaws or reduces in the near future.
This will definitely have a significant change (if and when it occurs) on logistics and supply route
planning by giving a significantly cheaper and shorter northern route from Asia Pacific areas to the
North Atlantic and Europe (figure 17).
Figure 17 future logistics-the North West Passage, Panama and Suez and land bridges (Source-
Author)

Cost, time and velocity elements of service levels may be significantly improved, and this would
benefit logistics operation planning for BUSLOG, MILOG and HUMLOG via speed of response
uplifts.

The European Unions Trans European Network (TEN) is already well developed and expanding
regularly to the European North, South, East and West to link new EU states and other European states
by road, rail, sea and air.
Intentions are to eventually develop the TEN+ and connect to Asia as the projected ChinaEurope
rail freight corridor (currently under exploration and experimentation) develops further and
complements the Trans-Siberian rail corridor to the Far East (figure 17).
Additional development of a future rail link from the EU to the USA via the European/Far
East/Alaska land corridor is also being envisaged. The implications of these developments for
reduction of logistics costs and enhancement of service levels for business logistics (BUSLOG)
may be significant.

For MILOG and HUMLOG operations there may be opportunities for faster and further reach for
operations in shorter timeframes, depending upon the types of logistics and supply operations
required. New supply routes may also bring new challenges for modalities available, in asymmetries
from velocity, variability, unpredictability and synchronisation of logistics and supply from
political and geographical dynamics over these vast geographical areas. The need for credible and
realisable trade agreements that will stabilise operating contexts is important for future logistics
and supply operations.
Global logistics and supply networks are complicated to understand and are often blurred to parent
organisations, until something goes wrong. With complex interconnections of many supplier tiers,
and movement, consistency and resilience is difficult to plan for and risk from uncertainty remains
a constant. Future logistics and supply will carry the same potential for failure from uncertainty
from unforeseen or unpredictable economic, political, environmental, and social dynamics.

Risk quantification for future logistics operations in new and redefined supply routes is a must for
logisticians. You must be able to assign probability decisions to potential failure effects at critical
points in the logistics and supply network AND assign financial or operational mission costs to those
failures AND build mitigation measures into the networks.
5.8. Going local - logistics and supply and 3D printing (additive manufacturing)
3D printing is a developing technology that will have a major long term impact on redefining
logistics and supply networks and routes if the technology develops as predicted. Print on
demand offers the opportunity to produce a product whenever it is needed. That means that
traditional inventory is not required, and so neither are storage facilities, nor some infrastructure
elements of the logistics network. This is because supply becomes reduced to its basic parts, make
and use, and the need for global logistics and supply networks then reduces or even becomes
irrelevant. The efficiencies from being able to manufacture to demand, in the user location, mean that
massive efficiencies in speed of availability and reduced costs of production and distribution are
available for users.

The logistics efficiencies available from the investment in this new technology are significant for
business, military and humanitarian operations as making product on site reduces the need for
shifting product. Although there are development problems in the manufacture of certain products
still to overcome, the technology is advancing rapidly from producing prototypes in the manufacturing
world to producing finished goods, and may change the whole concept of logistics and supply.

We may see at least refocusing of the logistics concept from global to local area of operations as re-
shoring takes place and manufacturing production returns and is sited in its target market areas for
business requiring major reconfiguration of logistics and supply (BUSLOG) networks. For MILOG
and HUMLOG operations the potential to make on demand on site of operations (possibly at end
user site) will resolve many service level problems attaching to current logistics and supply
operations.

This is a development with major implications for logisticians skills and logistics and supply
network design and further information can be found on-line:
http://edition.cnn.com/TECH/specials/make-create-innovate/3d-printing/
Learning activity #4 - 3D Printing and the supply chain

Chapter 1 (figure 2) summarised a generic logistics network:

take some time to investigate the concept of 3D printing


reconstruct the generic model above, inserting 3D printing activity where appropriate
consider how and why it might reconfigure the design of the logistics and supply network
5.9. Urban logistics and supply
The modern growth of cities and their projected physical change in the 21st century from metropolis
to megalopolis will exacerbate already existing congestion and movement problems in supplying
cities, even if they are better designed. Connectivity to the local, regional and national logistics and
supply infrastructure is essential, but must be a solution that mitigates congestion, pollution, and
noise and infrastructure damage to roads. Urban logistics connects directly to issues of sustainability
as city policy makers address those issues which impact upon the quality of urban living. Movement
(frequency of delivery) and volumes (of freight) will form the core issues at the centre of policy
making for supply to cities.

Cities have to be serviced to meet their citizens needs, and consumer driven supply already generates
huge numbers of small orders (and returns), with volumes predicted to increase. On-line shopping
in every developed country is increasing year on year and the number of rapid response deliveries to
urban consumers rises in return as a result of consumer demand.
Effective last mile urban logistic systems (the final stretch of the delivery response) are essential to
making cities livable, sustainable and survivable, and product (and people) logistics is a key
component in urban infrastructure. Stock and drop shipment direct from suppliers to customers
from on-line orders is generating new supply channels that effectively bypass retailer altogether and
this is expected to increase year on year as digital technology develops further.

We have discussed some of the problems and potential solutions for logistics and supply in this
handbook. UAVs, UTVs and driverless technology offer part of the future solution, supported by a
portal interface system with suppliers, logistics operators and customers all connected. In dense
urban areas cycle logistics is being trialed as this was written and offers a noticeable reduction
potential in parcel delivery vehicles in urban areas. Future logistics problems however still need to
focus upon how to manage traditional logistics modalities, road vehicles, until future alternatives
are available.
Technology as a megatrend in urban logistics and supply is a real and available development that
offers cloud based wireless applications now. These give logisticians the opportunity for applying
real time urban logistics and supply control systems for:

Urban delivery route information


Urban route planning and scheduling
Delivery updates
Track and trace information
SMS text updates to customers
Phone/tablet/laptop as information points
Customer returns data
These systems will need to coordinate and synchronise the fundamental physical logistics activity
set below (figure 18), using the combined technologies.

Figure 18 future urban logistics centralised delivery and return systems (Source-Author)

Problems associated with current and planned solutions using the above technology (figure 18)
involve urban delivery vehicle parking and night time-deliveries and these must also be controlled.

Urban logistics needs to take forward the concept begun with modern urban consolidation centres
(UCCs) which were a freight transport initiative intended to reduce goods vehicle traffic, and other
freight consolidation schemes which are being scoped and trialed worldwide. Current research of
interest to urban logisticians is focusing upon:

Common logistics functions at shopping centres


Integration of forward and reverse urban logistics
Joint procurement and consolidation
Logistics hotels
New distribution models for urban logistics
Clean vehicles, increasing load factors and a floating depot

Learning activity #5-urban logistics for business exercise

Projects such as citylab (http://www.citylab-project.eu/living_labs.php) are actively examining


improved models for logistics operations in cities. Follow the link and:
examine and investigate the examples of urban logistics objectives listed above
be clear about what they mean
briefly list and discuss some of the pros and cons for each objective
Future urban business logistics and supply (BUSLOG) presumes a reasonably stable operational
commercial context, and the primary critical objective of meeting customer demand, in a predictable
context. That ends where military (MILOG) and humanitarian (HUMLOG) urban logistics and
supply operations begin.

The defining characteristic of both MILOG and HUMLOG operations is to contribute to combat or
relief operations (possibly a combination of each). The context and critical objectives may be the
taking control of and restoring stable infrastructure and the ultimate welfare of the urban population
in a potential scenario of devastation and law and order breakdown with large loss of life.

Though a similar basic logistics and supply principle (source-move-deliver) is at work, urban
operations for both MILOG and HUMLOG will be significantly affected by the operational
environment and they will share some common characteristics for urban logistics and supply
objectives (figure 19).

Figure 19 shared characteristics for urban MILOG and HUMLOG operations (Source-Author)
The operational urban terrain, condition of infrastructure, and remaining resources, with a supportive
population, will directly influence logistics and supply operations. Limitations of terrain, damaged
infrastructure and minimal resources coupled with a possibly hostile population element may
impede logistics and supply support to operations, with major issues for security of supply around
volatility, asymmetry and unpredictability.

In such a negative and hostile scenario the close cooperation of joint military and humanitarian
logistics and supply efforts may be required and many of the components of responsive and resilient
logistics and supply discussed so far will need to be addressed (figure 19).

5.10. Zero-carbon logistics


Environmental and socially friendly logistics operations are increasingly required as a result of
governments legislation and consumer pressures worldwide. Logisticians in business (BUSLOG)
and MILOG and HUMLOG operations will not be able to evade implementing an environmental
strategy for their future operations.

To do this they must have an understanding of future developments together with ability and a process
for assessing their own environmental impact (social and ecological) from a particular operation.

Business logistics (BUSLOG) operations must solve the conundrum of lowering costs whilst
increasing efficiency, contributing to higher commercial returns on investment and maximising
profits for their organisation. Military (MILOG) and humanitarian (HUMLOG) operations have a
different incentive which must be centred upon the impact of their operations as they affect the
physical environment that they will be operating in, and upon the local inhabitants of that
environment.

The grounding for future logistics development will be the need for energy-efficient and zero or
minimum carbon emissions. Logistics operations are particularly carbon intensive from their
requirements for fossil-derived fuels to run their equipments and installations. Energy efficiency has
in the past been neglected in logistics and supply management not least because of the costs of
compliance and a narrow focus on service level improvements. Energy efficiency requires
considerable rethinking on the operational level (from transportation modalities emissions to cold
chain requirements for example).Current zero carbon initiatives involve compensatory schemes
whereby operators contribute to sustainable initiatives programmes to balance their carbon
emissions.

Long term the solution must come from options of alternative fuels e.g. ultra low sulphur diesels,
compressed natural gas (CNG), liquefied natural gas (LNG), and liquefied petroleum gas (LPG),
bio fuel derivatives or electric vehicles (EVs) and possibly solar photovoltaic (PV) generated
energy across the primary modalities of road, rail, sea and air movements. Use of fossil fuels will
continue until suitable and workable alternate fuel solutions are available, but subject to ever
stricter carbon emission controls.
Global Reporting Initiative for sustainability (GRI) the Carbon Disclosure Project (CDP) in the UK,
the UN Global Compact (UGC) and the International Standards Organisation (ISO) are formulating
and implementing future environmental and social responsibility standards in the global business
world with which logistics operations must comply. Military and humanitarian logistics operations
are currently aware of the need to integrate responsibility into their activities and are developing
responses suitable to their missions without degrading operational capability, and this must be
developed further for future operations.

Certified carbon neutral products will become an important element in product and service selling
points to business consumers who are becoming more interested in the carbon footprint left by
delivery of their products or services. Zero carbon standards will ultimately influence operations in
the military and humanitarian logistic and supply fields. The need to reduce deployed logistics
footprints without compromising capability will drive logistics improvements that should enable
size reductions in mission deployment infrastructures.

Logistics and supply networks optimisation to reduce footprints will also reduce costs (in absolute
and environmental terms) of supply transportation. Carbon level auditing of the logistics network and
the carbon footprint calculations for each product or service moved must become a key skill for
logisticians. Basically for all, the ability to reduce equipment mass and increase carried loads at
lower fuel consumption whilst maintaining emission standards is and will remain a fundamental
challenge.
5.11. Ethical issues in logistics and supply
Business customers are interested in and increasingly demanding social and environmental
compliance requirements to be achieved for their products and services, but without additional cost
to their purchase price. The dynamics are different for MILOG and HUMLOG activities, where the
social responsibility requirements are, as they should be, dominant, but environmental responsibility
remains.

As consumer pressure increases and reputational damage to business particularly can be lethal, the
temptation for covert cost cutting along the supply chain may increase and this gives rise to a vicious
circle of evading compliance. Failures of compliance responsibility by business, military and
humanitarian operations are swiftly visible globally through social and commercial media. Because
of the dominant role that logistics and supply networks play in any operation, logisticians are in an
effective position to ensure high standards of conduct are acknowledged and ethical and
environmental compliance monitored along the logistics and supply network.

The UN Global Social Compliance Programme (GSCP) is intended for global business to undertake
initiatives in ethical and environmentally friendly business practice. For logistics and supply
management, examples of critical compliance practices for ethical operations in BUSLOG, MILOG
and HUMLOG operations must be acknowledged and the GSCP principles applied as far as is
possible and include:

cooperation towards collaborative distribution networks


lighter gauge materials for packaging
energy-efficient ICT equipment
energy and fuels from sustainable sources
shared energy networks
supplier ethics management (SEM) which integrates suppliers into their
organisation code of conduct
common codes of practice incorporating environmental and social impact factors
common waste reduction objectives
conformance to Fair Labour Association (FLA) standards of employment (and now
especially a living wage)
the Ethical Trading Initiative (ETI)
meeting auditable social certification standards of SA8000 global standards
conformance to global slavery legislation e.g.2015 Modern Slavery Act UK
Ethical and moral issues from failure to respect people and their environments have been particularly
prevalent in modern global logistics and supply networks, and ignorance is no defence for modern
logisticians. Professional Institutes certification for membership requires mandatory examination of
personal and professional ethical codes (see CIPS UK).
Logistics operations in support of military and humanitarian operations are more likely to meet
extreme examples of ethical and moral violations, and ethical codes must be an integral part of their
own standard operating procedures.

Professional Institutions worldwide furnish ethical frameworks and standards for their members.
Responsible governments ensure that military doctrine for operations contains ethical standards for
commanders, and OCHA for the UN sets ethical governing standards for humanitarian operations.
Whatever their operational sector logisticians should not be waiting for ethical and moral standards
to be set for them, they should be setting them themselves.

ISO 14001-2015 is the principal management system standard which specifies the requirements for
the formulation and maintenance of an environmental management system (EMS). This helps to
control your environmental aspects, reduce impacts and ensures legal compliance. For logisticians
this is a key opportunity to contribute to organisational leadership by coupling logistics strategy
directly to organisational strategy for business (BUSLOG), military (MILOG) or humanitarian
(HUMLOG) operations.
5.12. Social logistics and supply management
Throughout this handbook we have been examining and comparing how to achieve best practice using
comparator approaches to business, military and humanitarian logistics and supply operations. We
have examined the ecological combination of economic, environmental and human concerns on the
context in which logistics now operates. Those concerns generate what may be termed social logistics
objectives.

What do they mean?


They mean that you must be fully aware as logisticians about the impact of the total integrated flow of
products, services, information, energy and people that comprise end to end business, military and
humanitarian logistics and supply operations networks.

This range of physical flows and activities can add real value to the real world community within
which logistics and supply operations are being undertaken. Why should it do this? Quite simply its
because logistics and supply activity is often the node, the connector, between its organisations
operations and the community within which it is operating, and it cannot operate in isolation from the
existing community, or society, around it.

Logistics and supply operations have the potential to invigorate development in their operational
areas whilst undertaking their specific range of business, military or humanitarian missions. They
can do this by:

accelerating product and service developments and the commercial structure around
them
contributing to effects upon the environment by the efficient use of equipments and
installations that incorporate pollution, activity and noise reduction measures
extended use of reverse logistics that removes and recycles the maximum amount of
supply chain generated waste
engaging with the local populations who are resident along their logistics networks
Logistics and supply operations engagement with their operationally affected communities by
offering opportunities within their operations (figure 20) can encourage community development and
enterprise opportunities particularly by micro- and small or medium business endeavours (SME).
The positive effects can be especially significant in MILOG or HUMLOG operating areas where
proactive measures encouraging by offering employment and training opportunities to surrounding
communities can have a stabilising effect.

Figure 20 social logistics achieving community and operational benefit (Source-Author)


Social logistics and supply as a concept and planning application can be incorporated at each node
planning and design stage of the logistics and supply operation. Successful activities may prove
critical to the success of the logistics mission at each stage of its operational network. Social
logistics planning should form part of the organisational corporate social responsibility (CSR)
vision, and indeed should be considered crucial to the credibility and success of that vision.
5.13. Global legislation, regulation and standards
Global legislation and regulation and international standards increasingly affects aspects of all
logistics and supply management activities. Influential global and national standards not only require
legal conformance but have influenced standards of practice from professional institutes that have
to be met as part of gaining professional qualifications and status.
Problems of jurisdiction over activities in global logistics and supply networks that span multiple
countries are being addressed and clarified by the UN and various global trade groupings, but a
unified global legal system is still some way off.

Logisticians need to be aware of the implications for their networks of global or national regulatory
codes that are in practice at each stage of their network and that will become ever more inclusive of
business logistics activities, products and services in the future.
The asymmetric nature of future military and humanitarian operations which may be operating
within and across no defined regulatory lines of borders and in frequently changing scenarios is
particularly fraught for logisticians with the possibility of unintentionally breaking laws and moral or
ethical codes.

Global issues for logistics and supply management to address now and into the future will centre
upon the concerns from operational behaviour that will contribute to breaches of human rights and
instability or worse (figure 21).

Figure 21 global issues affecting logistics and supply planning and management (Source-Author)
These dynamics (figure 21) are all inter-related, and legislation and regulation attempting to mitigate
activities, practices, behaviours and crimes around these issues will affect logistics and supply
operations. If the requirements to conform to appropriate standards required are ignored when
planning and designing logistics and supply operations, the penalties will combine legal action,
reputational damage and operational failure.

We are on difficult ground when considering the complexities arising from environmental, social,
ethical and moral issues that must be addressed by organisations generally and logisticians
particularly now and in the future. But assistance is available from professional Institutes for
resolving these and more mundane operational logistics issues and keeping logisticians up to date on
requirements. Professional Institutes now incorporate into their competency standards for
professional qualifications the ability to identify failures in their global logistics and supply networks
that will breach global and national legislation, particularly in the areas above (figure 21).

These standards help individual professional practitioners to assess their current skills and abilities
and assess what they need to do to apply pre-emptive or remedial measures that will help avoid
problems. Organisations can also benchmark their own organisation, and their professional
practitioners against the competencies that are being provided, for assessment and guidance of their
corporate performance.
5.14. New frontiers for logistics and supply- the 3dimensional logistician and network master?
Life-long learning for professional logisticians has become increasingly essential with the
accelerating development and introduction of new digital technologies, influencing advances in
logistics and supply operational standards and practices. Whether the latest changes to law in the
countries in which you operate, or new strategies and techniques for logistics and supply, you need
to keep current.

Staying in the same old knowledge and practice place is no longer an option for logisticians as the
operational world changes rapidly. Parent organisations now increasingly expect logistics and supply
excellence (you) to contribute significantly to success of the operations that they are engaged in,
whether its improving the bottom line, helping to meet operational military goals, or ensuring that an
aid mission reaches its responder target.

I have mentioned frequently that the digital world has made the logistics professionals life much
easier. A major benefit has been the opportunity to achieve logistics learning and skills development
and intense knowledge. With existing experience plus professional institutions membership and
qualifications the modern logistician can become 3-dimensional plus (3D+) (figure 22).
Figure 22 The 3D+logistician (Source-Author)

That means they can develop and possess the deeper and wider skills, dexterity, authority and
confidence in their abilities to complement those skills and techniques that we discussed in chapter 1
for 3dimensional logistics (1.7 & figure 3).

Combining the logistics essentials of the need forever accelerating speed of response with flexibility
for adapting to each situation,continuous realignment from present state to future state and total
efficiency of approach will deliver logistics superiority.Whatever your operational scenario,
business, military or humanitarian,you will have a network that is always capable, always
available, always adequate for the mission,and always fully optimised.You will be a logistics and
supply network master,a logistician able to operate and manage the current and future streamlined
customer and user driven network (figure 22).

Learning activity #6 Logistics network master assessment exercise

Take a look at your current logistics and supply activity and your own personal profile, and assess
yourself against the 3D logistician profile proposed at figure 22.

1. Can you now meet, fully or in part, the profile requirements given there?
2. What developmental activities do you need to do to maintain your current competencies
and to develop them for future logistics?
Overview
By this final stage the similarities of the fundamental principles involved should now be firmly
apparent across our three comparator sectors of business (BUSLOG), military (MILOG) and
humanitarian (HUMLOG) logistics and supply operations. Each operation requires the integration
of information, movement, distribution, delivery and positioning for use of the product or service
by the final customer or end user. It should be apparent by now that logistics and supply management
is the key dynamic for organisational success.

Why? Because efficient and effective logistics and supply management coordinates and manages the
value adders of on time, in place, and ready to use, achieving the mission goals, in the fastest time
possible with minimal or zero failure.

How? Superior logistics and supply network flows for business, military and humanitarian operations
can:
aggregate multiple combinations of individual data
cross network and channel boundaries and evaluate interdisciplinary concepts
apply a unified solution from a variety of options
maintain real time orientation along the whole network
acknowledge that quantitative data approaches can solveoperational problems but can
also create problems if the human element of the network is ignored
flow to the final end user at fastest speed and best cost without compromising service
levels
use accurate and opportune information to maintain synchronicity of the supply chain
have real-time inventory information that enables inventory sufficient for each stage of the
supply mission, maintaining service capability, whilst avoiding excessive stockpiles
acknowledge that demand pulled is the only philosophy driving the integrated logistics
network
balance network design, inventory positioning, and management and resource allocation
focused solely on customer or end-user service
Network mastery, striving for perfect fulfillment and shifting product expertly make logistics and
supply management, and ultimately our world, work for us, efficiently effectively and ethically.
Consolidation learning activity
Use the building blocks below to compare against your current (or a planned) logistics and supply
network operation (or even as a theoretical exercise).
Identify and consider in detail against the matching critical data elements shown above and construct
a real building block summary of your logistics and supply operation(s):

How do they compare?


Decide if your network performance needs to be improved
Concluding Practical Case-MILOG planning and design
Examine this graphic which illustrates a (mythical) operational area (Pacifica Island-South Pacific)
for major military operations and consider how you would deal with initial logistics network
planning:
evaluate the geographical picture of this operational area, assess what might be logistics
and supply infrastructure assets
assess what might be logistics and supply infrastructure liabilities
critically evaluate the suitability of each of the transportation modalities that might be
available for constructing the logistics and supply network for this operation
decide your logistics and supply network planning priorities
Final discussion topics
The fundamental principles for applying business (BUSLOG), military (MILOG) and humanitarian
(HUMLOG) logistics techniques, metrics and equipment management require real time
technology. Technology now is a great asset for logistics and supply management, but technology
alone is not enough; it must be part of an overarching whole network flow approach combined with
superior logistics skills to achieve the supply objectives.

The fabric of an efficient and effective logistics and supply system that meets the flow requirements
is communications and logistics leadership.This combination will enable logisticians to confidently
design and operate proactive logistics and supply networks to maintain availability of, and through,
the total system and contribute to the final success of their parent mission .
Superior present and future BUSLOG, MILOG and HUMLOG operations will be enabled by
logisticians; implementing successful relationships techniques along the whole logistics and supply
network supported by real and relevant information and developing the fundamental principles of
velocity and time into specific applications for each mission (figure 23).
Figure 23 fundamental principles for business,military and humanitarian logistics and supply
(Source-Author)

The closing argument of this handbook is that logistics and supply sole reason for being is in meeting
the real needs of the consumer, warfighter or aid relief user in accordance with the mission strategy
of the parent organisation. That means getting commercial goods to market, enabling the warfighter
to use their weaponry,delivering aid assistance to point of immediate need.This is the fundamental
basis for logistics and supply management, it never changes,though specific missions and methods
always will.
Conclusion
The latest digital technology wave is driving logistics and supply efficiency improvements from
increased computing power, data storage and cloud-based applications at lower and lower cost.
Smart and mobile computing devices and applications, give BUSLOG, MILOG and HUMLOG
logisticians the ability to access and apply real-time data to faster and more responsive decision
making in logistics and supply networks. Connecting digital applications to physical devices and
equipments gives the logistician flexibility on the ground that they could only dream of in the authors
early days in logistics.

Technology now gives the capability to support continuous synchronized planning and execution
across the totality of the extended business, military or humanitarian logistics and supply network.
It has added capability for real time vision of the whole of a logistics and supply network in
operation.
It is the authors experience that there probably never can be a perfect logistics system to 100%
degree,nor perfect logisticians, but there can be effective logistics and supply systems and
effective logisticians.Effective logistics and supply, logistics and supply that works, has been the
driving theme of this handbook. The ground that we have covered together in this handbook will
hopefully assist in understanding and resolving some (maybe all) of the existing and future
complexities that you as logisticians are, or will be, meeting.
Afterthoughts - why get qualified?
Professional institutes world wide(figure 24 shows the relevant internationally recognised UK
institutes) offer logisticians resources towardstheir personal logistics mastership that:

Figure 24 UK internationally recognised professional institutes for the logistician(Source-Author)

enable logistics and supply professionals to connect to their sector specific events
gain relevant qualifications from training and courses
receive the latest news and intelligence relevant to their logisticss and supply
management sectors with links to specialist activity forums within each sector
network with like-minded professionals across the business, military and
humanitarian sectors
Professional membership is an essential component of the modern logisticians credentials to
operate, and in future will become mandatory as certification to practice as a qualified
professional.New technology, advances in professional standards required by employing
organisations, global legislation and the need now and in the future for strict ethical practice
emphasise that lifelong logistics career learning is crucial to a professional logisticans profile.

Routes to professional qualifications for logisticians come in three distinct strands (figure 25):

Figure 25 professional qualification routes for logisticians (Source-Author)

Remember that professional development now should be never ending-as the world changes at ever
increasing speed; you must adapt your skills, competences and capabilities to match those changes.

End Note
This handbook has shown that logistics and supply management consists of a multitude of simple to
complex components, over many levels, which are present in every business (BUSLOG), military
(MILOG) and humanitarian (HUMLOG) supply mission. These components must be identified,
evaluated, coordinated and totally integrated to maximise the single logistics and supply aim of
effective customer or end user service that supplies their demand.
The logistician is the key human component who must drive that aim at every element of the supply
chain and the logistics and supply network. Recent industry surveys (2016) are again finding that
many organisations are still uncertain as to the composition of their supply chains, or even who their
key critical suppliers are! There is clearly something wrong out there, and the techniques and
concepts that you have been introduced to in this handbook will give you the edge in offering logistics
and supply solutions to organisations that will make the difference between survival and extinction.
Grounding for the chapter
Carroll, A. (2015), Logistics and supply Operations management, lecture, seminar and professional
course materials, 2004-2015
Carroll, A. & Neu, J (2009), Volatility, Unpredictability & Asymmetry-An organising framework for
humanitarian logistics operations? Management Research Review 32(11):1024-1037 (pdf available
from the author)
CILT (2015), CILT UK Vision 2035 - Political, environmental, technological, social and
demographic change will impact on the way I travel and transport goods,
http://www.ciltuk.org.uk/PublicPolicy/Vision2035.aspx
CIPS (2015), CIPS UK Global Standard for Procurement and Supply and the CIPS common vision,
https://www.cips.org/en-GB/Careers/Global-Standard-for-Procurement-and-Supply/
Humanitarian Logistics Association -Mission
http://www.humanitarianlogistics.org/AboutUs/Mission.aspx
Dun & Bradstreet (2015), Country Insight Snapshot reports, http://www.dnb.com/company/my-
data/risk-management-tools-dnb-ratings/country-insight-for-global-risk-management.html
(accessed Oct 2015)
Hinkelman, E.G. (2014), Dictionary of International Trade-Handbook of the Global Trade
Community, California, World Trade Press
ISO (2016), Environmental Management Standards and others, http://www.iso.org/iso/iso14000
Leighton, D. & Wood, C. (2010), Measuring Social Value: The Gap between Policy and Practice,
London, Demos.
National Research Council, (2014,) Force Multiplying Technologies for Logistics Support to Military
Operations, Board on Army Science and Technology; Washington, National Academies Press

NATO (2015), Logistics, http://www.nato.int/cps/en/natohq/topics_61741.htm,accessed Sept 2015


World Bank, (2015), Logistics Performance Index 2014, http://lpi.worldbank.org/ accessed Oct
2015
Further Reading
Christopher, M. Tatham, and P. (2014) Humanitarian Logistics: Meeting the Challenge of
Preparing for and responding to Disasters, London, Kogan Page
Deming, E. (1986), Out of the Crisis, Cambridge, Cambridge University Press
Gonzales-Feliu, J. & Sernet, F. (2013), Sustainable Urban Logistics: Concepts, Methods and
Information Systems, London, Springer
Mangan, J, J. Lalwani, C. Butcher, T. (2011), Global Logistics and supply Management, Chichester,
John Wiley & Sons
OCHA, (2014), Unmanned Aerial Vehicles in Humanitarian Response, Policy Development and
Studies Branch, United Nations Office for the Coordination of Humanitarian Affairs (OCHA)
Ramsden, G.P. (2014), Managing the humanitarian supply chain: a collaborative approach?
Thesis PhD, University of Lincoln
Additional Sources: websites (accessed Jan 2016)
http://www.citylab-project.eu/living_labs.php)
http://www.mckinsey.com/insights/travel_transportation
http://logisticsbusiness.com/
http://www.wfp.org/logistics?icn=homepage-logistics&ici=mywork-link
http://www.unocha.org
http://www.cgi-group.co.uk/public-sector/defence/logistics
http://www.sole.org/ethics.asp
http://www.un.org/en/sections/what-I-do/deliver-humanitarian-aid/index.html
http://go.sap.com/uk/index.html
http://www.nap.edu/catalog/18832/force-multiplying-technologies-for-logistics-support-to-
military-operations

GLOSSARY logistics and supply terms used


ABC analysis: A method of categorizing products, system activities, customers and end users for
priority of service, where A is the most important, B is the next important, etc
Adaptive supply: has the ability to meet rapid changes in demand activity
Agile supply: where the supply chain can become truly responsive to fast changing demand, once
waste has been removed
Architecture for logistics: the physical design of a logistics network that incorporates technology to
achieve business profitability or other mission success, to meet sustainability requirements, and to
deliver a quality-based service
Artificial intelligence (AI): The computerised equivalent of the human thought process for decision
making, using computers and software that are programmed to make logistics management decisions
Asymmetry: not symmetric
Automatic guided vehicle systems (AGVSs): A transportation network that automatically routes one
or more material handling devices to positions at predetermined destinations without human operators
Bar code: A symbol consisting of a series of printed bars representing specific values that enables
optical character reading, scanning and tracking of units by translation into a numeric or alphanumeric
identification code
Benchmarking: externally the process of comparing performance against the practices of other
leading operations for the purpose of improving performance; internally the standard of personal or
organisational logistics performance that can be assessed against actual performance
Big data: massive volumes of structured and unstructured data
Budget: a fixed sum of funding for logistics operations which affects planned expenditure
Buffer inventory: or safety stock, built up to al level that may cover unforeseen demand or
unforeseen failure along a supply chain
Business continuity: logistics plan for continuing supply operations despite major disruption
Capability: the ability to undertake the logistics mission and meet all the operational requirements
Carbon neutral: compensating for releasing carbon dioxide
Certainty: I know a supply situation will occur exactly as predicted
Channel of distribution: The means by which products are moved from producer to ultimate
consumer or end user
Channels: A method whereby an operation dispenses its product, examples are retail or distribution
channels, call centre or web based electronic storefront
Cloud based: coordinated collection of web based applications
Cloud Computing: using a facility on the Internet to store, manage, and process data, rather than a
local server or a PC
Collaborative; every part of the logistics network and the supply chain working together in harmony
Collaborative planning and forecasting (CPFR): A collaboration process whereby trading or
operational partners can jointly plan key logistics and supply chain activities from production, and
delivery of raw materials to production and delivery of final products, to end customers or users
Commonality: sharing the same supply chain characteristics
Competitive: being the best
Components: the joint activities and processes used to build and sustain the whole activity or
process
Concept: the intention of an idea for logistics and supply
Connective logistics technology: a means and a method for transporting data and information,
within, amongst and between the logistics network components and partners
Constant: a factor that is always present in logistics operations
Contingency: prepared for any failure event
Contract carrier: A carrier that provides transportation for one or a limited number of shippers
Control chart: A statistical approach used in statistical process control that permits examination of
the process or system behaviour against upper and lower limits
Coopetition: suppliers working together for optimised supply price
Corporate social responsibility: mandatory social objectives and standards included into an
organisations overall strategic plan that are expected from the whole business or organisation
Cost trade-off analysis: Identifying the interrelationship among system variables of a change in one
and its cost impact upon other variables (cost reduction in one variable may be at the expense of
increased cost for another)
Cross-docking: A distribution system practicing close synchronization of all inbound and outbound
movements in which delivery received at the warehouse or distribution centre is not put to storage,
but is readied immediately for shipment to retail consumer or end user
Cube (the): the 3dimensional space in which inventory is held
Customer order cycle: The elapsed time between when a customer or end user places an order until
the customer or end user receives the order
Customer satisfaction: Represents a customer or end users overall assessment of all elements in the
supply process when receiving goods or services
Cycle: a continuous & repeating series of events
Data analysis: Advanced analysis of data by mathematical or statistical means to provide
information for strategic and operational decision-making
Data processing: The ability to transform raw data into a more useful form of information
Data retrieval: The ability to recall data in its raw form conveniently and quickly
Decision support systems (DSSs): Sophisticated software that speeds access and simplifies data
analysis, queries, etc. within a database management system that can suggest alternative actions
Demand forecasting: predicting future demand using analytic techniques
Difference: needing to have special supply chain design for each feature
Digital: the production storage and movement of data in numerical language form translated by
computer
Direct costing: A cost that can be directly traced to a cost object in a supply system
Distortion: a violent change to demand
Distribution centre (DC): The warehouse facility which holds inventory from manufacturing sources
pending distribution to the appropriate stores
Distribution requirements planning (DRP I): A system of determining demands for inventory at
distribution centres and consolidating demand information as an input to the production and materials
system
Distribution resource planning (DRP II): the planning of the key resources in a distribution system:
warehouse space, workforce, money, trucks, rail freight, vessels, aircraft, pipeline requirements et al
Diversity: having separate & distinct supply chain features
Doctrine: principles of policy and objectives for military operations
Dissymmetry: lacking symmetry
Driverless technology: electronic control and operation of air, ground and water modalities without
a human driver
Economy (the)-the connected trade and industry network of production, distribution, and
consumption of goods and services in a country/region
Efficient consumer response (ECR): A demand-driven replenishment system designed to link all
parties in the logistics and supply system to create a massive flow through the total distribution
network
Electronic data interchange (EDI): Inter-operational computer-to-computer transmission of
business or user data and information in a standard format
Energy efficient: giving more activity for the same (or less) amount of energy
Enterprise: business activity begun from new which involves risk taking, is difficult, and hard work,
with a risk of failure higher than average
Enterprise resource planning (ERP): A class of sophisticated software for planning and managing
all the materials and activity resources needed for making customer requirements, shipping them,
accounting for them and replenishing them as needed- based on customer orders and forecasts
Ethical logistics: responsibility for none-harmful practices along the whole logistics network
Failsafing: building in automatic recovery or switching to an alternative logistics system
FGP Factory gate price : paying only the manufacture cost price
FEU: forty foot equivalent international container unit
Fill rate: The percentage of order items that the operation actually fills within a given period of time.
Finished goods inventory: products manufactured, packaged, stored and ready for distribution
Force-majeure: reduction of supply contract obligations because of impossibility to supply, from
extenuating circumstances
Forecasting: an estimate of future demand, a forecast can be constructed using quantitative methods,
qualitative methods or a combination of methods using sophisticated digital techniques
Formal: authoritative and standard, informal-none standard, more relaxed
Fossil fuels: naturally formed fuels in the ground containing polluting hydrocarbons
Freight forwarders: logistics services intermediaries between the shipper and the carrier, usually on
international shipments
FTL: a full truck or container load
Fundamental: the basic and essential foundation that is similar to all forms of logistics and supply
processes and structures
Generic: the common characteristic of a thing (or things)
Green logistics: The concept of introducing an integrated ecological approach to the usual economic
and operational approach in logistics and supply management
Hard and soft skills: hard skills describe specific job skills whilst soft skills are the skills which
characterise relationships with other people in your network
Horizontal supply: less well defined system of supply management, crossing boundaries in the
supply chain
INCOTERMS: International terms of sale developed by the International Chamber of Commerce to
define sellers' and buyers' responsibilities as goods move through a logistics and supply network
Interface: the points at which flows & knowledge move between internal or external players in the
supply chain
Integrated logistics management: A comprehensive, system-wide view of the entire supply chain as
a single process, from raw materials supply through to finished goods delivery, combining all the
functions that make up the supply chain and managing them as a single entity, rather than as individual
functions
Intensity of demand: more extreme than normal consumer demand
Interdependent: two or more activities that depend upon each other
Internet of things for logistics: information transmitted from sensors embedded in objects, linked
via wired or wireless networks, and displayed on any receptive media device
Inventory carrying costs: One of the elements comprising a company's total supply-chain
management costs=opportunity or capital costs, inventory service costs, storage space costs and
inventory risk costs
Inventory risk costs: The costs of obsolescence, pilferage or shrinkage, relocation within the
inventory system, damage to inventory or delivery failure
Inventory service costs: The costs of insuring inventories and taxes/charges etc associated with the
holding of inventory
Inventory turnover: Operationally, inventory turns are measured as total throughput divided by
average level of inventory for a given period; how many times a year the average inventory for a firm
changes over, or is sold or delivered for use=slow, medium or fast movers
Just-in-time (JIT): An inventory control system that controls material flow into assembly and
manufacturing operations by coordinating demand and supply to the point where desired materials
arrive just in time for use - a pull supply process without stocks in which no supply is activated
until a demand order occurs
Just-in-time II (JIT II): Vendor-managed (supplier) operations taking place within an operations
facility. The supplier representatives place orders to their own companies, relieving the customer's
buyers from this task.
Landbridge: The movement of containers across one country or land bridge en route to another
country, for example from Germany to China via Russia
Lead-time: the time between the start of logistics activity and the final completion of that activity
Lean supply: where waste (whatever that is), has been minimised or removed from the supply chain
Legislation: laws made by a governing body affecting standards of supply activity Legislation-
Less-than-truckload (LTL): consolidation and transportation of smaller (less-than-truckload)
shipments of freight by utilising a network of terminals and relay node points to optimise movement
Life cycle analysis: A financial and performance analysis of a products life cycle, from concept,
design, production and sale to final disposal
Linear programming: Linear programming is a mathematical technique for finding optimal or
minimal solutions for an objective logistics and supply function, within various constraints
Logile: able to swiftly adapt to meet changing operational circumstances or failure
Logistician: The specialist person who coordinates the whole end to end supply activity of the
product or service
Logistics choke point: place where blockage has occurred or may occur
Logistics effectiveness: co-ordinated and best in class operational functions and activities
throughout the entire network
Logistics footprint: the actual physical impact of the logistics operation upon its surrounding
environment
Logistics language: sharing the same ideals for success
Logistics knowledge: theories, facts, principles obtained from training, education & experience
Logistics mission statement: A logistics mission statement is an overriding objective of an
organisations logistics strategy to support the primary operation
Logistics Network: the total logistics system of supply activities
Logistic pipeline: the route of activities and modes through which supply and resupply moves
Logistics strategic planning: The process of planning logistics strategy within an organisation that
fits the organisation strategy
Logistics variety: similar systems, different supply problems
LSCM: logistics and supply chain management
LSM: logistics and supply management
Manufacturing resource planning (MRP 2): The computerised method for the effective planning of
all complex linked resources of a manufacturing process-business planning, production planning
(sales and operations planning), and master production scheduling, material requirements planning,
capacity requirements planning, and the execution of logistics and supply support systems
Matching supply with demand: enabling the supply system to meet all customer requirements
Materials management: The movement and management of materials and products from procurement
from suppliers (inbound logistics) through the production process.
Materials requirements planning (MRP I): computerised decision-making methodology used to
determine the timing and quantities of materials to purchase for operations
Metrics: measures of logistics performance
Metropolis: a major city viz megalopolis: a much larger combination of cities
Modalities: the methods used for movement of goods or services
Moral logistics: having and promoting principles for the best operational behaviour along the whole
logistics network
Multi-Disciplinary: combination of separate and different skills into one logistics approach
Nanotechnology for logistics: the ability to integrate a micro tracker INTO an individual product
NGO: a none profit usually voluntary organisation providing funds and equipment for aid supply
missions
Node & link: a start point, modality point, redistribution or end point and its connections
Outsourcing: Using a third-party provider to perform logistics services previously performed in
house, giving supply chain activities to another company under a performance contract
Overview: observation of a wide range of key logistics activities
Own account carrier: A company that transports its own goods and supplies in its own equipment
Paradigm: the typical pattern or form of a logistics network and its associated supply chain
components
Perfect fulfillment: meeting the customers requirements on time, every time
Practical logistics: actually doing the physical logistics activities
Procurement: The business functions of procurement planning, purchasing, inventory control, traffic,
receiving, incoming inspection, and management of the supply system delivering the procured goods
Profit: the financial gain from a business operation
Pull supply: product or service supply volume activity that is pulled forward by the customer
demand, and which influences the design of the supply chain for rapid response
Push supply: product or service volumes activity predicted by forecast calculation
Pull versus push systems: If products are produced to a forecast of customer demand then it is
pushing its inventory, if products are not produced until a customer demands them, the customer or
end user is pulling the inventory
Quality: a product or service designed, made and supplied to the highest standards
Rationale: the reason for a set of supply chain actions
Real time: the display of information about logistics activity whilst it is happening
Redundancy: duplication processes which are used to backup data separately to recover from the
failure of a part, or the whole of, a system
Regulation: the rules of conduct for operations, activities and behaviours constructed from the law
made governing bodies
Report generation: The ability to generate various activity reports from data processing and analysis
in a logistics information system
Reverse logistics: A specialised logistics and reverse supply activity focusing on the movement and
management of products and resources after final sale and after delivery to the customer or end user
e.g. returns for repair
RFID & nanotechnology: the tracking of products or services by means of data signals from an
embedded source in consignment or product
Risk: the possibility of failure affecting the supply chain from chance events or conditions which will
damage or destroy the logistics mission
Science: result of systematic examination that can be tested and used- Art-imaginative activity that
can be used
Shifting product: the aphorism for what logisticians do
Simulation: A mathematical technique for testing the performance of a system due to uncertainty about
the real operational results
SKU: stock keeping unit=individual product line
Social responsibility: the overarching concept of logistics behaviour to the communities within which
it operates
Social value: the range of positive economic, social and environment benefits from supply operations
Statistical process control (SPC): A visual means of measuring and plotting process and product
variation, used to adjust variables and maintain quality and performance targets
Stockkeeping unit (SKU): A unique category of product having combination of form, fit, and
function
Strategic alliances: Organisational relationships in which two or more independent organizations
cooperate and willingly modify their operational objectives and practices to help achieve long-term
goals and objectives
Strategic plan: Looking into the operational future over the long term and designing a logistical
system (or systems) to meet the needs of the various operations
Strategy: a logistics plan for the full term of the operation, (operations-the actual acts for achieving
strategic plans, tactics-the method for carrying out the logistics operation) and the pathway on which
the organisation, or a specific mission will travel within a distinct time frame and within a set budget
Supplier tiers: the layers of suppliers who may be supplying the main supplier(s)
Supply chain: The supply chain links many coordination and collaboration activities and functional
nodes together, starting with unprocessed raw materials and ending with the final customer using the
finished goods
Supply chain leadership: setting the best standards for supply chain operations
Supply routes: the air, sea, or ground links from supply source to user
Supply service level: the level of service over time as a percentage figure out of 100
Supply value: the progressive improvement of the product or service activity until the product or
service reaches the final user
Sustainability: the overarching concept of responsible logistics activities in the present ecology,
and the planning of supply for minimal long term damage on its operational environment
Sustainment: maintaining the correct balance of ALL resources for successful supply
Synchronicity: making a supply system or network work together at the same standard tempo, or beat,
a little like an orchestra or rock group
Syncopation: ALL the elements of the supply chain working in harmony to the same rules
Symmetry: regularity/harmony
Systems approach: A concept that considers all functions or activities in a logistics and supply
system need to be understood in terms of how they affect or are affected by other elements they
interact with in the system.
TEU: the standard international twenty foot equivalent container unit
Terminology: using standard logistics technical terms
Three-D (3D) printing: Synthesis of a solid object from a digital file
Time utility: A value created in a product by having the product available at the time demanded
AND a process for taking time out of operations and logistics in order to reduce costs and give an
operation a competitive advantage
Total cost analysis: A decision-making approach that considers minimisation of total costs and
recognizes the interrelationship among system variables such as transportation, warehousing,
inventory and customer service
Total cost: A concept that considers the costs of all logistics activities need to be considered in total
to effectively manage logistics processes- total cost analysis (above) is the tool used
Total quality management (TQM): A management approach where managers constant
communication with organisational stakeholders emphasises the importance of continuous quality
improvement of product, service, and activity
Traceability: a visible trail (or footprint) of a product or service throughout its life
Trade off: accepting the best supply result from that which you wanted
Traffic management: The management and controlling of transportation modes, carriers and services
upstream & downstream & in reverse
Tri-axial: having three axes or positions
Value analysis: A method to determine how features of a product or service relate to cost,
functionality, appeal and utility to a customer or end user
Vehicle telematics systems integrate telecommunications and informatics and are used for a number
of purposes, managing road usage, tracking fleet vehicle locations, providing automatic location-
driven driver information services, security
Velocity: movement, the fundamental dynamic of all logistics and supply chain activity and
management
Vertical supply: defined and clear top to bottom system of supply management
Volatility in demand: violent change, up or down
Warehouse: Storage place for products. Principal activities include receipt of product, storage,
shipment and order picking, sometimes assembly.
Warehousing storing (holding) of goods in a warehouse
Waste walk: planned observation through a logistics and supply system or supply chain that looks for
specific failure points
Web based: using the World Wide Web to connect activities
WIP Work-in-process inventory: Parts and subassemblies in the process of becoming completed
finished goods
Zero-carbon: no release of carbon dioxide