Series Editor
Jean-Paul Bourrières
First published 2018 in Great Britain and the United States by ISTE Ltd and John Wiley & Sons, Inc.
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Library of Congress Control Number: 2018941063
British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library
ISBN 978-1-78630-310-3
This book is comprised of 42 complementary sheets exploring logistics. Each sheet provides a key point, in-depth analysis and dedicated references.
Several definitions are linked to the supply chain. These include ASLOG (Association française de la Supply Chain et de la Logistique) and CSCMP (Council of Supply Chain Management Professionals).
For ASLOG, the supply chain is defined as “the global supply chain, which goes from supplier to customer and where production is demand-driven. Its objective: the right product in the right place, at the right time”. For CSCMP, the supply chain is apprehended “1) starting with unprocessed raw materials and ending with the final customer using the finished goods, the supply chain links many companies together; 2) the material and informational interchanges in the logistical process stretching from acquisition of raw materials to delivery of finished products to the end user. All vendors, service providers and customers are links in the supply chain”.
Nevertheless, only the definition of the AFNOR standard NF X 50-600 (1999) prevails. It is not about supply chain, but logistics. In this regard, it can be said that “logistics is defined as the planning, execution and control of the movements and implementations of people, goods and support activities related to these movements and implementations, within an organized system to achieve specific objectives. […] The purpose of the logistics function is to satisfy expressed or latent needs at the best economic conditions and for a given level of service”.
Seven main stages are assigned to the logistics process by the experts of this standard (derived from [GIA 03]):
Since the 1990s, the term “Supply Chain Management” has been gaining popularity. Supply Chain Management is the management of global logistics. This global management underlines the strategic, intra- and inter-organizational role of logistics. One of the main differences between supply chain and Supply Chain Management is that in Supply Chain Management, there is a clear desire to establish long-term partnerships in order to share gains and losses.
It was through the writings of Martin Christopher [CHR 92] that the notion of Supply Chain Management (SCM) took off. At the time, he defined SCM as:
“The supply chain is the network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer” [CHR 92].
Several other definitions followed, the most referenced of which are the following:
“There is a need for some level of coordination of activities and processes within and between organizations in the supply chain that extends beyond logistics” [LAM 98].
and
“The systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole” [MEN 01].
Currently, the focus is on Sustainable Supply Chain Management. All of the research reveals a wide range of application areas for implementing sustainable logistics. Works can be found on waste management, green logistics, reverse logistics, eco-design and the reduction of greenhouse gas (GHG) emissions through rationalization and massing of transport routes, particularly on the logistics of the last mile [COL 03, BER 08, BAZ 08, BLA 08, DUR 10, GON 10, MAS 10, PAN 10, SAV 10, BLA 10]. However, sustainable logistics considerations are gradually converging towards the inclusion of the three economic/environmental/social–societal pillars, throughout the logistics chain [MOR 13].
In terms of the definitions of Sustainable Supply Chain Management (SSCM), we can quote:
“SSCM requires a broadened approach to SCM. It should emphasize economic, ecological and social aspects of business practices and theory.” [SVE 07];
“Sustainable Supply Chain Management (SSCM) is the strategic, transparent integration and achievement of an organization’s social, environmental and economic goals in the systemic coordination of key inter-organizational business processes for improving the long-term economic performance of the individual company and its supply chains.” [CAR 08];
“We define Sustainable Supply Chain Management as the management of material, information and capital flows as well as cooperation among companies along the supply chain while taking goals from all three dimensions of sustainable development, that is, economic, environmental and social, into account which are derived from customer and stakeholder requirements.” [SEU 08];
“A sustainable supply chain is then one that performs well on both traditional measures of profit and loss as well as on an expanded conceptualization of performance that includes social and natural dimensions”; “If a sustainable chain is one that performs well on all elements of the triple bottom line, Sustainable Supply Chain Management is then the specific managerial actions that are taken to make the supply chain more sustainable with an end goal of creating a truly sustainable chain.” [PAG 09];
“Sustainable Supply Chain Management is valued as the management flows of material, information, financial, people and intelligence for economic, environmental and social/societal purposes. From a strategic management approach, it is driven by the voluntary interplay of intra- and inter-organizational connections and the long-term performance of each company and its supply chain.” [MOR 13].
As it evolved, logistics saw an increase in the number of flows associated with its practice. Basically, logistics refers to two main flows [HES 73, TIX 79, COL 88, FAB 97, ARN 98, PAC 99]:
These first two flows maintain links upstream and downstream of the supply chain.
Aurifeille et al. [AUR 97] integrated the cash flow into these two basic flows, with the aim of short- and medium-term profitability. This flow goes from downstream to upstream, and also in the opposite direction.
The supply chain is thus generally represented by these three flows:
However, it should not be forgotten that the fulfillment of an order requires a fourth type of flow, namely the people flow [HES 73, TIX 83], without which the existence of the first three flows could not exist!
Finally, a final type of flow is suggested, in order to express the functioning of a supply chain, namely the intelligence flow [MES 99]. Through the basic logistics triptych “cost – quality – time”2, these two authors argued over an intelligence flow, with the aim of maximizing the exploitation of all information, in order to optimize 1) responsiveness, in the sense of identifying and then satisfying unforeseen demands; (2) agility, in other words, the ability to rapidly reconfigure an offer system by redeploying available resources and (3) efficiency, in the ability to systematically eliminate all forms of waste.
In logistics, reference is also made to three types of internal flows that can be found in production management. These flows are applied according to the company’s policy and also according to the competitive level of the activity sector in which the company is located. For example, a company that is part of a “niche” strategy, where expensive products are generally found with a selective clientele, can more easily apply a pull-flow or tight-flow policy.
The three “internal” flow policies in production that can be used are:
For companies confronted with competition, it is almost impossible for them to have a policy based solely on pull and/or tight flows. Companies must therefore respond to the dilemma of a search for economic profitability, by minimizing inventory costs while proposing a customization of their order, in order to increase customer loyalty, and all this while within the delivery time. This often takes the form of a combined push-flow–pull-flow policy. Upstream, we standardize products as much as possible with the setting up of stock, and when the order arrives, we customize the product. This approach is apprehended under the concept of “delayed differentiation at the production level [… which] delays changes in the form and identity of products and production processes” [GAR 08, p. 32].
Martin Christopher [CHR 92, CHR 94, CHR 97, CHR 99, CHR 00] was one of the first authors to highlight the importance of Supply Chain Management in logistics practices. From these early writings, we will retain the aspects presented in Figure I.2.
For Christopher [CHR 00], the notion of partnership is important for the practice of SCM. In order for a partnership to be set up, there must be a combination of agility, reliability, responsiveness and proactivity. For this author, agility implies “the ability to move quickly and to meet customer demand sooner”. Reliability in logistics depends on the ability to deliver to the right place, at the right time, on the right date and to the right customer. The difference between responsiveness and proactivity is that the former identifies and responds quickly to changes in its environment, while the latter responds quickly when proactivity influences changes in that environment.
In addition, for SCM to succeed, internal actions are needed. As such, four elements must be interlinked: good process management, performance measurement, value creation for ultimate customers (that is, downstream logistics) and integration with suppliers (that is, upstream logistics).
The WCL model (World Class Logistics) [GLR 95, BOW 99] advocates four areas of competence. These four areas of skill are themselves divided into several success criteria. These areas of competence are:
Introduced in 1996, the SCOR model is the product of the Supply Chain Council, a group of consulting companies of Pittiglio, Rabin, Todd and McGarrah, and AMR5, as well as 69 initial companies from various economic sectors (more than 400 companies currently registered). The SCOR model is structured into four levels:
The structure of Supply Chain Management according to Lambert et al. [LAM 98] is broken down into several elements:
Mentzer et al. [MEN 0l] suggested two projects to structure Supply Chain Management:
In 2004, Min and Mentzer completed these two projects with a third, which developed a “performance” axis with five principles to consider: availability (inventory), the offer of products and services, timeliness (just-in-time delivery), profitability and growth (turnover and market share).
AFILOG is a French professional association created in 2001. Its objective is to “answer the questions of its members on the problems of a sector that is both rapidly developing and changing, composed of a mosaic of professions whose universe is often complex to understand”. Seven working themes are to its credit: the sustainable development commission, which deals with the Norme Française Bâtiments Tertiaires – HEQ® process (High Environmental Quality), the AFILOG charter, the evaluation of the energy performance of existing buildings, green rating™ and technical innovations; the urban logistics commission; the communication commission; the taxation commission; the risk prevention and regulation commission; the training commission and the prospective commission.
http://www.afilog.org/
Founded in 1972, ASLOG has had several names including the “Association des logisticiens d’entreprise” (Association of Company Logistics Specialists), the “Association pour la logistique dans l’entreprise” (Association for Company Logistics) and the “Association française pour la logistique” (French Association for Logistics). Now known as the French Supply Chain and Logistics Association, ASLOG “aims to promote supply chain and logistics professions on a national and international level. Multi-sectoral and representing more than 600 companies, it is the only association covering all activities in the global supply chain”. Currently, 11 thematic commissions are on the agenda within this association: benchmarking, the reading committee, skills/jobs and salaries, the e-supply chain, real estate and trends, health logistics, social and solidarity logistics, urban logistics, risk management, regulations in real estate and agile supply chain. ASLOG is also affiliated to the European Logistics Association (ELA).
https://www.aslog.fr/
The BP2S is an association under the law of 1901, which was created in 2000. Its role is to promote shortsea shipping and intermodality. It is part of the ESN (European Shortsea Network), which aims to promote the shortsea shipping market.
http://www.shortsea.fr/
Established in 1963 in the USA, the National Council of Physical Distribution Management (NCPDM) became known as the Council of Logistics Management (CLM) in 1985, and then as the Council of Supply Chain Management Professionals (CSCMP) in 2004. It is an international association with more than 8,500 members from industry, government and research sectors in 67 countries. It offers CSCMP’s SCPro™ certification for the recognition of industrial supply chain expertise.
https://cscmp.org/
ELA is a European logistics association that provides an open link and forum for all logistics companies. Thusly, it proposes logistic standards to be used internationally. It is a federation of 30 associations covering Western and Central European countries (Austria: BVL Austria, Belgium: VIB and ABCAL, Croatia: HRLA, Cyprus: CLA, Czech Republic: CLA, Finland: Logy, France: ASLOG, Germany: BVL and BME, Greece: HILME, Hungary: HALPIM, Republic of Ireland: CILT, Italy: AILOG, Lithuania: LLA, Morocco: AMDL, the Netherlands: VLM, Norway: NIMA, Poland: PSML and PTL, Portugal: APLOG, Romania: ARILOG, Russia: NLA, Slovenia: SLA, Spain: CEL, Sweden: SILF, Switzerland: GS1 Switzerland, Ukraine: ULA, and the United Kingdom: CILT; http://www.elalog.eu/members).
http://www.elalog.eu/
Formerly Gencod, GS1 is a world organization created in 1973 under Belgian law. Its business is to create common standards for the identification of products, such as barcodes.
http://www.institutionnel.gs1.fr/Accueil
The GTF, created in 1987, is a French association created under the law of 1901. It brings together transport companies of Grouping-Messaging. It has developed messages of information exchange under the INOVERT® brand (International Overland Transport) and has also defined recommendations on the use of barcodes in the field of traceability. The GTF is a partner of GS1 (formerly Gencod), which is an organization founded under Belgian law, created in 1973.
http://www.institutionnel.gs1.fr/Partenaires-institutionnels/GTF
Created in 2005, the Nov@log cluster of competitiveness aims to develop the services and logistics systems of the future. Members are divided into three associations: business, research and teaching, and government agencies. The cluster’s topics of commitment are traceability, intermodality, the industrial logistics process and flows, the maritime and land interface, urban and logistical movements, the environment and security.
http://novalog.eu/
AFITL is an association created in 1989, whose statutes were amended in 1998 in order to add logistics to its name. According to Article 1 of the statutes, the purpose of AFITL is to:
Since 1994, AFITL has published the scientific journal Cahiers Scientifiques du Transport. Since 1995, it has also organized the Eric Tabourin doctoral days and awarded a prize for the best professional dissertations from Bac+4 to Bac+6.
http://afitl.ish-lyon.cnrs.fr/index.php/accueil.html
AIRL was created in 2002. Its objective is “to increase the visibility and dissemination of French-speaking research conducted in these fields [logistics management and Supply Chain Management]”. Every two years, it organizes the Rencontres Internationales de Recherche en Logistique (International Research Meetings in Logistics). It is supported by the scientific journals Logistique et Management and Supply Chain Forum: an International Journal.
http://www.airl-scm.com/
Created in 1973 as CRET (Centre de Recherche d’Economie des Transports), this became CRET-LOG in 1992. It focuses mainly on three areas of research: (1) logistics and Supply Chain Management, (2) distribution channel management and (3) management of cross-organizational strategies.
https://cret-log.univ-amu.fr/
Created in 1979, the LET (Laboratoire d’Economie des Transports) is a research laboratory which specializes in transport economics and land development. The LET is attached to the CNRS, the University of Lyon 2 and the Ecole Nationale des Travaux Publics de l’Etat (Ecole d’ingénieurs ENTPE). The LET’s work is in the fields of relations between transport (people and goods), territories and society. On December 10, 2015, the LET changed its name to LAET, short for Laboratoire Aménagement Economie Transports.
http://www.laet.science/
Created in 2011 from the merging of INRETS (Institut National de Recherche sur les Transports et leur Sécurité) and LCPC (Laboratoire Central des Ponts et Chaussées), IFSTTAR is a public scientific institution under the supervision of the French Ministry of Ecology, Sustainable Development and Energy and the French Ministry of Higher Education and Research. “IFSTTAR conducts finalized research and expertise in the fields of transport, infrastructure, natural hazards and the city, in order to improve the living conditions of our citizens and, more generally, to promote the sustainable development of our societies”. The SPLOTT laboratory (Systèmes Productifs, Logistique, Organisation des Transports, et Travail), founded in 2005, is attached to IFSTTAR.
http://www.ifsttar.fr/