Contents

List of Contributors xv

Part I Introduction 1

1 Overview 3

Rezci Zanjirani Farahani, Shabnam Rezapour, and Laleh Kardar

1.1 History 3

1.2 Definition of Logistics 3 1.2.1 Why Is Logistics Important? 4

1.3 Evolution of Logistics Over Time 4

1.4 Other Logistical Books 5

1.5 The Focus of This Book 5

1.6 Organization 6

1.7 Audiences 8

2 Physical Flows 11

Hannan Sadjady

2.1 The Transportation System 13

2.1.1 Transport Modes and Their Characteristics 13

2.1.2 Other Transport Options 21

2.2 Physical Nature of the Product 24

2.2.1 Volume-to-Weight Ratio 24

2.2.2 Value-to-Weight Ratio 24

2.3 Channels of Distribution 26

2.3.1 Distribution Channels and Their Types 26

2.3.2 Physical Distribution Channel 27

2.4 Warehousing and Storage 30

2.4.1 Warehousing Functions 31

2.4.2 Packaging and Unit Loads 33

2.4.3 Storage and Handling Systems 34

Part II Strategic Issues 41

3 Logistics Strategic Decisions 43

Maryam SteadieSeifi

3.1 Strategy 43

3.2 Strategic Planning 44

3.3 Logistics 45 3.3.1 Logistics Differences to Supply Chain 45

3.4 Logistics Decisions 46

3.4.1 Operational Decisions 46

3.4.2 Tactical Decisions 46

3.4.3 Strategic Decisions 47

3.5 Logistics Planning 47

3.6 Logistics Strategic Decisions 48

3.6.1 Customer Service 48

3.6.2 Logistics Network Design 49

3.6.3 Outsourcing versus Vertical Integration 50

3.7 Tools of Strategic Decision Making 51

3.8 Logistics Strategic Flexibility 52

3.9 Summary 52

4 Logistics Philosophies 55

Zahra Rouhollahi

4.1 Lean Logistics 55

4.1.1 Japanese Philosophy 55

4.1.2 Just-in-Time Philosophy 56

4.1.3 Lean Principles 58

4.1.4 Lean Warehousing: Cross Docking 59

4.2 Agile Logistics 62

4.2.1 Agile versus Lean 63

4.2.2 Quick Response 64

4.2.3 Vendor-Managed Inventory 66

5 Logistics Parties 71

Seyed-Alireza Seyed-Alagheband

5.1 Third-Party Logistics: An Overview 72

5.1.1 Why 3PLs? 72

5.1.2 Definition 73

5.1.3 Emergence of 3PLs 74

5.1.4 Activities of 3PLs 74

5.1.5 Advantages and Disadvantages of 3PL 75

5.1.6 Types of 3PLs 76

5.1.7 2009 3PLs: Results and Findings of the Fourteenth

Annual Study 77

5.2 New Generations of Logistics Parties 78

5.2.1 Fourth-Party Logistics 78

5.2.2 Fifth-Party Logistics 80

5.2.3 Future Trends 81

5.2.4 Logistics Vendors 81

5.3 3PLs: Theories and Conceptualizations 83 5.3.1 Outsourcing Decision 83

5.3.2 Selecting the Right 3PL 84

5.3.3 Purchasing 3PL Services 85

5.3.4 Strategic Behavior of 3PLs 86

5.3.5 Theoretical Models 87

5.3.6 A Framework for the Development of an Effective 3PL 88 5.4 Concluding Remarks 90

6 Logistics Future Trends 93