Logistics Management is a very important part of Supply Chain Management which plans, controls and implements the effective, efficient, forward, and reverse flow and storage of goods, services, and many other related information between the point of origin and the point of consumption in order to meet the requirements of the customers [1].

Logistics management is the flow of the goods, material, information and other resources in a continuous cycle between the point of origin and the point of consumption in order to meet the customers' requirement. Logistics involves the consolidation of transportation, information, warehousing, inventory, material handling, and packaging, and sometimes security. Logistics is a very important channel of the supply chain that adds the value of place and time utility. Logistics management is also known by many other names, the most common are as follows:

Materials Management

Channel Management

Distribution (or Physical Distribution)

Business or Logistics Management or

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Supply Chain Management

There are many departments in Logistics few of them are, namely: Conventional Department, Container Department, Warehouse, Marine Engineering, Heavy Haulage, etc. [2].

2. Origin:

The term logistics has been derived from the Greek word logos (λόγος), which means "speech, reason, ratio, rationality, language, phrase", and to be more specific from the Greek word logistiki (λογιστική), meaning accounting and financial organization. The word logistics has its origin in the French verb loger to lodge or to quarter. It was originally used describe the science of movement, supplying & maintenance of military forces in the field. Then later on it was started to describe the management of materials flow through an organization, from raw materials through to finished goods.[2]

3. Literature Review:

In the opinion of John E. Sussams "Logistics" is one of those words which have recently come into trend although the ideas have been across ever since man stopped being a hunter gatherer who lives literally from hand to mouth, and began the use of shops of various kinds. Thus the original supply chain and the original buffer stock were created. [3]

Logistics, as the term is now used in industry, it is the science which incorporates all the activities that are required to move goods from the original source of raw materials to the location of the ultimate consumer who uses the finished product. [3]

Logistics is a holistic science. It does not look into the individual parts of any system in isolation; it looks at the ways in which all the different parts are connected and suggests any better connections that can be made. [3]

Logistics is thus a "green" science. Logistics aims at controlling the total flow as efficient as possible, that is, with the least possible energy consumption and consistent with the system objectives. It does not query the objectives themselves. That is a matter for politicians and bureaucrats who are outside the system or, rather, part of a higher level system. Given that it is the right and privilege of a citizen to read a newspaper delivered to his door every morning at seven o'clock, then it is for logistics to determine:

What trees are cut down and when.

How the logs are transported to the pulp mill.

Where the pulp mill is best located.

Where the paper mill is best located.

Where the printing works is best located.

How the various processes are controlled.

How the transport from process to process is organized.

What stocks should be held and where.

How the distribution of the finished product should be effected:

from printer to wholesaler;

from wholesaler to retailer;

from retailer to consumer.[3]

Another list could be produced relating to the information which the newspaper contains. A third list could be produced for the ink. Further lists could be produced for the provision of the buildings, the machines and transport equipment required at each stage. [3]

A list could even be produced relating to the birth, growth, education and training of all the staff whose work is required to make it all happen. And then there would be sub-lists relating to the parents, teachers, doctors, nurses and numerous other people whose services are required to place a worker in a factory, in a supermarket or in the cab of a truck. And what about all the other products which the newsagent sells: confectionery, cigarettes, soft drinks, ice cream, stationery, toys...? How does the logistician cope with this enormous complexity? There is an answer. It resides in:

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classification of the elements of a system so that in any modeling of that system large groups of elements can be handled together; and

Definition of the boundaries of the system such that only activities within those boundaries are studied in detail and the rest of the universe is left out. [3]

4. System Boundaries:

Logistic modeling is mostly done at a fairly higher level of collection. Therefore it is very important that any hierarchy of levels should be based only on a well-defined and appropriate set of categories of classes and sub-classes. Otherwise control can be marred. It is evenly important that the limitations of the system under the study should be evidently defined. Logistics is not at all concerned with the operations of any single shop or a single department. And it is not very likely to be concerned about following the supply chain back to bundles of seeds or nutrients in the ground. Often system that is studied has a focus on: manufacturing, physical distribution, retailing or whatever. [3]

Considering physical distribution as the focus of the study. Minimum a single stage should be include in this side on the activity which is the system of supply and demand which is the raison d'être for physical distribution. Such a system is represented in a diagrammatic in figure 1. This figure is at a high stage of aggregation in which only five boxes compresses the logistics. Within the upper boundary the supplier have the systems definition and within the lower boundary which lies with the bankers of the organization. There are very relevant connections between the suppliers and between the bankers and the rest of the universe since the universe contains policy makers who, godlike, provide the framework of rules and objectives within which the system being studied has to function. [3]

The different types of flow or connections within the system are the main reason for simplifying the figure. There are three different types of flow in the system that of goods, of money and of information. The primary distribution from suppliers to distribution centers and secondary distribution from distribution centers to retail outlets are depicted in the figure. [3]

Source [3]

The cost of operating centers are shown in the accounts, the costs such as wages, salaries, rent, rates, energy, depreciation and maintenance are shown in the figure, this shows the money flowing into distribution centers. The flow of money into retail outlets and into the control system can be likewise analyzed. The flow of money into suppliers in fact goes into the suppliers' bank and is analogous to the money going into the retailer's bank. However, from the purchaser's point of view it is simply the cost of the goods which he wishes to process or resell. [3]

In the views of Stig Johannessen and Olay Solem the concept behind Logistics Organizations is not defined clearly. The term has conventionally been use for describing the part or function in the organization which has to deal with the purchasing, storage and transportation of raw materials and finished goods or products. Anyhow, many firms today are strategically committed to logistic thinking for their advantage in competition. The whole business is to be build around the principles of logistics. The technological developments and globalization of the economy in the electronic based business have accelerated many firms to see logistics capabilities to be at the very center of their competition power. [4]

Recognizing the development, we find it very necessary to define or have a understanding of logistics organization as any of the business organization where there in critical importance for logistics activities and logistics management for competitiveness and survival in market. In the past and today we have found many manufacturing firms that have fit this description. And the large companies that rely on the flow of information and services can also be called as logistics organization. [4]

Source [4]

The diagram tries to capture in one picture how the several perspectives on reality might relate to the normative thinking of organizations and their subsequent practice in logistic organizations. The frame work consists of mainly two ways of understanding reality, i.e. two ontological views; Mechanical systems and Process systems. [4]

5. Machine Ideology:

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The mechanical systems view gives two directions of organizational ideologies; the machine ideology and the process ideology. The first one is linked with Tayloristic and the other to modern logistical principles of Just-in-Time (JIT) and customer orientation. This system also gives ways to mainly two organizational ideologies. In a sociotechnical ideology, the incorporating ideas on human needs of social activity and psychological development are of supreme value in organizational thinking. And the network ideology the cooperation between relations and dependencies between organization produce competitive advantages. [4]

The above figure explores some possible relations that can exist between theoretical and practical ideas in logistics organizations. It is not to be treated as deterministic model of organizational behavior. The relationship seen in the figure is the result of a new perspective evolving over the period of time. The arrows pointing both up wards and down, showing the changes in underlying assumptions, as well as a change in the normative action, that can be brought forward by any new practical experience and any new theoretical perspectives. [4]

The contents of the five action principles in the machine ideology, viz. a)Management principle b) Value-creation principle c) Human Value principle d) Information principle and e) Change principle; these provide us with an idea of how the organization should be rum if it has to create value. The total control of system is very important for the management. Value is being shown as it has been created from coordination in productions and humans to add to the value in their capacity as productive parts of the "great machine" organization. The information is to be kept restricted so that the management has total control over everything. This is best achievable target of the organization as that be predicted and be stable, leaving change as something undesired. [4]

6. Process Ideology:

The Japanese management philosophy which stated with JIT thinking that was associated with The Toyota Production System has helped in the evolution of the second logistics organizational ideology. The development of this ideology can be landmarked with the lean management and time-based management that was embodied in team philosophy, when taken logistics in to consideration. The focus on business process is another aspect. Internally restructuring of power of management and competencies was called for when there was a radical change in the focus from internal function "stovepipes" to customer-oriented "pipelines"; which is generally called as the Business Process Reengineering (BPR). With regard to this model, this refers to the change in the contents of the action principles and the organizational practices. [4]

Although the delegation of the power to make operational decision is required, the process ideology in the management principle is needed to control the organization. Coordinated supply and delivery are the two elements that helps create value, which refers to the efficient flow to customers from suppliers. The system holds the humans as the productive and knowledgeable parts. It is important to use humans as productive parts of the processes to customers from suppliers, however in the making of team decisions social an intellectual capacity of people are recognized as valued. In order for the value to be created, the information principle holds the information must be shared. The most important goal is to obtain stability contained in the change principle, which requires in response to the market continuous adaptive actions. [4]

The above discuss shows the inclusion of process ideology in the organizational practices. According to their business processes, the companies organize themselves. The relevant process decisions are all made by the empowered cross-functional teams, which leaves the functional organizational redundant decisions to the control oriented middle-manager level. As shown in the below figure, the structure represents activities that seen as processes controlled and owned by the teams. [4]

Source [4]

Between the teams and the CEO, team leaders or the process owners are the only level. The whole operation of input, transformation and output are handled by the process teams. In the organizational structure information flows vertically and horizontally. Activities concerning production and on building external relationships towards suppliers and customers are planned by the management process. Strategies are formulated by the management which relates to the long-term expectations; however it is continuous, adaptive process to some extent with regard to both external and internal focus. [4]

7. Conclusion:

We would like support John E. Sussams for his views on logistics management as he has been able to define the term logistics in various dimensions which would be logistics as holistic science and as a 'green science' he was also able to connect the term logistics to industries and corporate sector. He was able to classify logistics through elements of a system and definition of the boundaries of a system. In his study he used these classifications to simplify enormous complexities through a simple figure. The reason to do so was to isolate and illustrate the different types of flows or connections within the system suggesting that better connections can be made. The system provides as detail information of supply and demand for physical distribution. The study of the system by Stig Johannessen and Olay Solem represents an extensive format for logistics frame work with and is based on normative thinking of the organizations rather than logistics for physical distribution, it also fails to represent or isolate different types of flows and connections in the systems. The studies undertaken by John E. Sussams related to the moment of goods from original source of raw data to the consumers as finished products; where as when we compare this to the study of Stig Johannessen and Olay Solem it dealt purchasing storage and transportation of good or products. It fails to represents customers as the ultimate consumers of products or goods. Also John E. Sussams was able to represent the cost of operations in accounting term like wages, salaries, rent etc and was able to show the flow of money from retail outlets to control systems, which was not represented in the studies undertaken by Stig Johannessen and Olay Solem. The flow of information by study undertaken John E. Sussams is rather simple and clear as compared to what is shown by Stig Johannessen and Olay Solem. Agreeing with John E. Sussams in the future there will be further developments with regards to communication and control systems wherein processing of information and movement of people will take place more efficiently and effectively even though the back bone for the flows and connections will still remain to be wages and salaries which paid in exchange for the goods and services provided therefore making logistics as a major contributor towards the improvement of production, retailing and physical distribution.