Logistics engineering is a field of engineering dedicated to the scientific organization of the

purchase Purchasing is the procurement process a business or organization uses to acquire goods or services to accomplish its goals. Although there are several organizations that attempt to set standards in the purchasing process, processes can vary g ...

transport Transport (in British English) or transportation (in American English) is the intentional Motion, movement of humans, animals, and cargo, goods from one location to another. Mode of transport, Modes of transport include aviation, air, land tr ...

, storage,

distribution Distribution may refer to: Mathematics *Distribution (mathematics), generalized functions used to formulate solutions of partial differential equations *Probability distribution, the probability of a particular value or value range of a varia ...

, and

warehousing A warehouse is a building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parks on the rural–urban fringe, out ...

of materials and finished goods. Logistics engineering is a complex science that considers trade-offs in component/system design, repair capability, training, spares inventory, demand history, storage and distribution points, transportation methods, etc., to ensure the "thing" is where it's needed, when it's needed, and operating the way it's needed all at an acceptable cost.

Overview

Logistics Logistics is the part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the Consumption (economics), point of consumption according to the ...

is generally concerned with cost centre service activities, but provides value via improved

efficiency Efficiency is the often measurable ability to avoid making mistakes or wasting materials, energy, efforts, money, and time while performing a task. In a more general sense, it is the ability to do things well, successfully, and without waste. ...

and customer satisfaction. It can quickly lose that value if the customer becomes dissatisfied. The end customer can include another process or work center inside of the manufacturing facility, a

warehouse A warehouse is a building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parks on the rural–urban fringe, out ...

where items are stocked or the final customer who will use the product. Another approach which has appeared in recent years is the

supply chain management In commerce, supply chain management (SCM) deals with a system of procurement (purchasing raw materials/components), operations management, logistics and marketing channels, through which raw materials can be developed into finished produc ...

. The supply chain also looks at an efficient chaining of the supply / purchase and distribution sides of an

organization An organization or organisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences) is an legal entity, entity—such as ...

. While logistics looks at single echelons with the immediate supply and distribution linked up, supply chain looks at multiple echelons/stages, right from

procurement Procurement is the process of locating and agreeing to terms and purchasing goods, services, or other works from an external source, often with the use of a tendering or competitive bidding process. The term may also refer to a contractual ...

of the

raw material A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished goods, energy, or intermediate materials/Intermediate goods that are feedstock for future finished ...

s to the final distribution of finished goods up to the customer. It is based on the basic premise that the supply and distribution activities if integrated with the manufacturing / logistic activities, can result in better profitability for the organization. The

local minimum In mathematical analysis, the maximum and minimum of a function are, respectively, the greatest and least value taken by the function. Known generically as extremum, they may be defined either within a given range (the ''local'' or ''relative ...

of total cost of the manufacturing operation is getting replaced by the

global minimum In mathematical analysis, the maximum and minimum of a function are, respectively, the greatest and least value taken by the function. Known generically as extremum, they may be defined either within a given range (the ''local'' or ''relative' ...

of total cost of the whole chain, resulting in better profitability for the chain members and hence lower costs for the products. Logistics engineering as a discipline is a very important aspect of

systems engineering Systems engineering is an interdisciplinary field of engineering and engineering management that focuses on how to design, integrate, and manage complex systems over their Enterprise life cycle, life cycles. At its core, systems engineering uti ...

that also includes

reliability engineering Reliability engineering is a sub-discipline of systems engineering that emphasizes the ability of equipment to function without failure. Reliability is defined as the probability that a product, system, or service will perform its intended functi ...

. It is the science and process whereby

reliability Reliability, reliable, or unreliable may refer to: Science, technology, and mathematics Computing * Data reliability (disambiguation), a property of some disk arrays in computer storage * Reliability (computer networking), a category used to des ...

maintainability Maintainability is the ease of maintaining or providing maintenance for a functioning product or service. Depending on the field, it can have slightly different meanings. Usage in different fields Engineering In engineering, maintainability ...

, and

availability In reliability engineering, the term availability has the following meanings: * The degree to which a system, subsystem or equipment is in a specified operable and committable state at the start of a mission, when the mission is called for at ...

are designed into products or systems. It includes the supply and physical distribution considerations above as well as more fundamental engineering considerations. Logistics engineers work with complex mathematical models that consider elements such as mean time between failures (MTBF), mean time to failure (MTTF),

mean time to repair Mean time to repair (MTTR) is a basic measure of the maintainability of repairable items. It represents the average time required to repair a failed component or device. Expressed mathematically, it is the total corrective maintenance time for ...

(MTTR),

failure mode and effects analysis Failure is the social concept of not meeting a desirable or intended Goal, objective, and is usually viewed as the opposite of success. The criteria for failure depends on context, and may be relative to a particular observer or belief system ...

(FMEA),

statistical distribution In statistics, an empirical distribution function ( an empirical cumulative distribution function, eCDF) is the distribution function associated with the empirical measure of a sample. This cumulative distribution function is a step functio ...

queueing theory Queueing theory is the mathematical study of waiting lines, or queues. A queueing model is constructed so that queue lengths and waiting time can be predicted. Queueing theory is generally considered a branch of operations research because th ...

, and a host of other considerations. For example, if we want to produce a system that is 95% reliable (or improve a system to achieve 95% reliability), a logistics engineer understands that total system reliability can be no greater than the least reliable subsystem or component. Therefore, our logistics engineer must consider the reliability of all subcomponents or subsystems and modify system design accordingly. If a subsystem is only 50% reliable, one can concentrate on improving the reliability of that subsystem, design in multiple subsystems in parallel (5 in this case would achieve approximately 97% reliability of that subsystem), purchase and store spare subsystems for rapid change out, establish repair capability that would get a failed subsystem back in operation in the required amount of time, and/or choose any combination of those approaches to achieve the optimal cost vs. reliability solution. Then the engineer moves onto the next subsystem.

Terminology

There are few differences between the terms business logistics and logistics engineering. Logistics engineering is more focused on the mathematical or scientific application of logistics.

Fields and topics

The various fields and topics that logistics engineers are involved with include: *

Customer service Customer service is the assistance and advice provided by a company to those who buy or use its products or services, either in person or remotely. Customer service is often practiced in a way that reflects the strategies and values of a firm, and ...

: provision of services to customers before, during and after a purchase *

Purchasing Purchasing is the procurement process a business or organization uses to acquire goods or services to accomplish its goals. Although there are several organizations that attempt to set standards in the purchasing process, processes can vary gr ...

: acquiring goods or services to accomplish its goals * Sourcing: procurement practices, aimed at finding, evaluating and engaging suppliers for acquiring goods and services *

Demand forecasting Demand forecasting, also known as ''demand planning and sales forecasting'' (DP&SF), involves the prediction of the quantity of goods and services that will be demanded by consumers or business customers at a future point in time. More specifical ...

: the art and science of forecasting customer demand to drive holistic execution of such demand by corporate supply chain and business management * Facility location: the optimal placement of facilities to minimize transportation costs while considering factors like avoiding placing hazardous materials near housing, and competitors' facilities *Layout Design *

Inventory control Inventory control or stock control is the process of managing stock held within a warehouse, store or other storage location, including auditing actions concerned with "checking a shop's stock". These processes ensure that the right amount of suppl ...

: the activity of checking a shop's stock *

Material handling Material handling involves short-distance movement within the confines of a building or between a building and a transportation vehicle. It uses a wide range of manual, semi-automated, and automated equipment and includes consideration of the pro ...

: short-distance movement within the confines of a building or between a building and a transportation vehicle *

Warehousing A warehouse is a building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parks on the rural–urban fringe, out ...

*Distribution system design *

Reliability engineering Reliability engineering is a sub-discipline of systems engineering that emphasizes the ability of equipment to function without failure. Reliability is defined as the probability that a product, system, or service will perform its intended functi ...

: sub-discipline of systems engineering that emphasizes dependability in the lifecycle management of a product *

Reverse logistics Reverse logistics encompasses all operations related to the upstream movement of products and materials. It is "''the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Remanufact ...

: the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal * Green logistics: attempts to measure and minimize the ecological impact of logistics activities *

Intermodal transport Intermodal transport (or intermodal transportation) involves the use of more than one mode of transport for a journey. It may refer to: * Intermodal passenger transport * Intermodal freight transport Intermodal freight transport involves the t ...

*Supportability analysis

Performance metrics

Different

performance metric A performance indicator or key performance indicator (KPI) is a type of performance measurement. KPIs evaluate the success of an organization or of a particular activity (such as projects, programs, products and other initiatives) in which it e ...

s (measures of performance) are used to examine the efficiency of an organization's logistics. The most popular and widely used performance metric is the landed cost. The landed cost is the total cost of purchasing, transporting, warehousing and distributing raw materials, semi-finished and finished goods. Another performance metric equally important is the end customer fill rate. It is the percentage of customer demand which is satisfied immediately off-the-shelf (from on-site inventory). An alternative to fill rate, is system

. In recent years, the

United States Department of Defense The United States Department of Defense (DoD, USDOD, or DOD) is an United States federal executive departments, executive department of the federal government of the United States, U.S. federal government charged with coordinating and superv ...

(DoD) has advocated the use of

performance-based logistics Performance-based logistics (PBL), also known as performance-based life-cycle product support,Ilias Solutions, N.V.Performance Based Logistics accessed 24 December 2022 is a defense acquisition strategy for cost-effective weapon system support wh ...

(PBL) contracts to manage costs for support of weapon systems.

Education

Many top universities offer Logistics engineering programs at undergraduate and graduate levels. These programs generally combine strategy, operations, facility design, technology and management. The following institutions provide Logistics engineering programs around the world: *

Budapest University of Technology and Economics The Budapest University of Technology and Economics ( or in short ), official abbreviation BME, is a public research university located in Budapest, Hungary. It is the most significant university of technology in the country and is considered ...

- Bachelor,Master and Ph.D. Programs in Logistics Engineering * Technical University of Sofia - Bachelor,Master and Ph.D. Programs in Logistics Engineering *

Florida International University Florida International University (FIU) is a public research university with its main campus in Westchester, Florida, United States. Founded in 1965 by the Florida Legislature, the school opened to students in 1972. FIU is the third-largest univ ...

- Master of Science in Logistics Engineering *

Aston University Aston University (abbreviated as ''Aston'' for post-nominals) is a public university situated in the city centre of Birmingham, England. Aston began as the Birmingham Municipal Technical School in 1895, evolving into the UK's first College of a ...

– BSc Logistics with Supply Chain Management * Breda University of Applied Sciences – Bachelor of Science in International Logistics Engineering *

Beijing Jiaotong University Beijing Jiaotong University (BJTU; ; previously Northern Jiaotong University) is a public university in Haidian, Beijing, China. It is affiliated with the Ministry of Education, and co-funded by the Ministry of Education, the Ministry of Transpo ...

– Bachelor of Engineering in Logistic Engineering *

Ohio State University The Ohio State University (Ohio State or OSU) is a public university, public Land-grant university, land-grant research university in Columbus, Ohio, United States. A member of the University System of Ohio, it was founded in 1870. It is one ...

– Master of Business Logistics Engineering *

University of Hong Kong The University of Hong Kong (HKU) is a public research university in Pokfulam, Hong Kong. It was founded in 1887 as the Hong Kong College of Medicine for Chinese by the London Missionary Society and formally established as the University of ...

– Bachelor of Engineering in Logistics Engineering and Supply Chain Management *

Hong Kong Polytechnic University The Hong Kong Polytechnic University (PolyU or HKPU) is a public research university in Hung Hom, Kowloon, Hong Kong. The university is one of the eight government-funded degree-granting tertiary institutions in Hong Kong. Founded in 1937 a ...

– Bachelor of Science in Logistics Engineering and Management * University of Science and Technology Beijing – Bachelors, Masters and Ph.D. Programs in Logistics Engineering * Dalian Maritime University – Masters Program in Logistics Engineering & Management * Shanghai Maritime University – Bachelors & Doctoral Programs in Logistics Engineering *

South China University of Technology The South China University of Technology (SCUT) is a public university in Guangzhou, Guangdong, China. It is affiliated with the Ministry of Education (China), Ministry of Education and co-sponsored with the Guangdong Provincial People's Governme ...

– Masters and Ph.D. Programs in Logistics Engineering and Management *

Hong Kong University of Science and Technology The Hong Kong University of Science and Technology (HKUST) is a public research university in Sai Kung District, New Territories, Hong Kong. Founded in 1991, it was the territory's third institution to be granted university status, and the firs ...

– Bachelor of Engineering in Logistics Management and Engineering * Korea Aerospace University - Bachelor of Science, Masters & Ph.D. programs in Logistics * Széchenyi István University – Masters and Ph.D. Programs in Logistics Engineering and Management *

JAMK University of Applied Sciences Jamk University of Applied Sciences () is a Ammattikorkeakoulu, university of applied sciences (a Institute of technology, polytechnic) in Finland, in the Regions of Finland, region of Central Finland. Jamk offers a wide variety of degree prog ...

– Bachelor of Engineering in Logistics EngineeringLogistics Engineering – JAMK
/ref> *

Taiyuan University of Science and Technology Taiyuan University of Science and Technology () is a university in Shanxi, People's Republic of China under the authority of the provincial government. It is located in the capital city of Shanxi Province, Taiyuan Taiyuan; Mandarin pron ...

– Bachelor of Engineering in Logistics Engineering * University of East Sarajevo – Faculty of Transport and Traffic Engineering

Doboj Doboj ( sr-Cyrl, Добој, ) is a city in Republika Srpska, Bosnia and Herzegovina. It is situated on the banks of the Bosna (river), Bosna river, in the northern region of Republika Srpska. As of 2013, it has a population of 71,441 inhabita ...

- Bachelor of Engineering in Transport and Traffic - 240 ECTS -

* Columbus State Community College – Associates in Logistics Engineering Technology * Universitas Internasional Semen Indonesia - Bachelor of Logistics Engineering * Universidad de las Américas Puebla – Offers Logistics Engineering * Pertamina University – Faculty of Industrial Technology - Logistics Engineering *

University of Duisburg-Essen The University of Duisburg-Essen () is a public research university in North Rhine-Westphalia, Germany. In the 2019 ''Times Higher Education World University Rankings'', the university was awarded 194th place in the world. It was originally ...

– Master of Science in Logistics Engineering * University of Belgrade-Faculty of Transport and Traffic Engineering-Logistics Engineering *

Telkom University Telkom University ( Indonesian: ''Universitas Telkom'', abbreviated as Tel-U) is a private university located in Bandung. Tel-U has several times ranked as the top private university in Indonesia and has been ranked to be one of The Best Univer ...

– Faculty of Industrial and Systems Engineering - Logistics Engineering * Kalimantan Institute of Technology - Faculty of Engineering and Industrial Technology - Logistics Engineering

References

{{Reflist

External links

The Council of Logistics Engineering ProfessionalsSOLE
– The International Society of Logistics
Definition of Landed Cost by 3CE
Engineering disciplines Logistics