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Logistics may be temporarily translated in a meaningless way, "logistics", but perhaps so far Vietnamese has no equivalent term. We can accept from logistics as a Vietnameseized word, similar to many other accepted facts like containers, marketing ...
Logistics history
Historically, the term logistics originated from the ancient wars of the Greek and Roman empires. At that time, the warriors named "Logistikas" were tasked with providing and distributing weapons and necessities, ensuring conditions for soldiers to safely operate from headquarters to another position. This "logistics" work is vital to the face of war, when the parties find ways to protect their supply and find ways to destroy the supply of the enemy. That process gradually formed a system that later called logistics management.
In the Second World War, the role of "logistics" was confirmed. The logistical army of the US and allied troops proved more effective than the German army. American troops ensured supply of weapons, ammunition, and military supplies at the right place, at the right time, with optimal methods. Thanks to the advantage of logistics, the US and its allies have prevailed many times in the war. At the same time, many applications about logics have been developed and still in use today, although there have been many changes to suit the production and business environment.
Logistics in Vietnamese law
The term logistics has also been officially used in the Commercial Law 2005, and transcribed in Vietnamese as "logics". Article 233 Commercial law states:
"Logistics services are commercial activities, whereby traders organize one or more jobs including receiving goods, transporting, warehousing, storage, customs clearance, other paperwork, Customer consultation, packaging, marking, delivery or other goods related services as agreed with customers for remuneration. "
Academic definition
There are many academic definitions of logistics terminology. According to CSCMP Association of Supply Chain Management Professionals (Council of Supply Chain Management Professionals), this term is quite defined as follows:
“Logistics management is part of supply chain management, including planning, implementing, controlling the efficient transport and storage of goods and services as well as relevant information from the origin to the destination. Consumption to meet customer requirements. Activities of basic logistics management include import and export freight management, fleet management, warehousing, raw materials, order fulfillment, logistics network design, inventory management, planning supply / demand, third service provider administration. At different levels, the functions of logistics also include finding sources of inputs, production planning, packaging, customer service. Logistics management is an integrated function that combines and optimizes all logistics activities as well as integrates logistics operations with other functions such as marketing, business, production, finance and information technology. "
Distinguish from "Supply Chain"
If logistics is part of supply chain management as defined above, what is the rest? How to distinguish logistics and supply chain? In other words, how is logistics different from the supply chain?
In order to be discriminated against, we return to the concept of "supply chain" of the Association of Supply Chain Management Professionals. Let's see how they define:
“Supply chain management includes planning and managing all activities related to sourcing, purchasing, manufacturing and all logistics management activities. At an important level, supply chain management involves the coordination and collaboration of partners on the same channel as suppliers, intermediaries, service providers, and customers. Basically, supply chain management integrates supply and demand management within and between companies. Supply chain management is an integrated function with the first role of connecting the business functions and key business processes within the company and the companies together into an effective business model. High fruit and adhesive. Supply chain management includes all of the stated logistics management activities as well as production activities and promotes the coordination of processes and operations of marketing, sales, product design, finance, information technology. "
If you compare the two definitions above, you can see the basic difference. The concept of supply chains is broader and includes logistics and manufacturing processes. In addition, the supply chain pays more attention to purchasing (procurement) while logistics addresses the strategy and coordination between marketing and production.