
Logistics • 11
1.4 LOGISTICS—A SYSTEM CONCEPT
In a manufacturing enterprise, the business process starts with the fl ow of material from the sup-
pliers to the manufacturing plant and then to the customer through the distribution channel.
Traditionally, in the functional organization, the business process consists of discrete activities
such as procurement, manufacturing, and distribution under the control of the respective depart-
ments. The departments may excel in their respective functions, but as an organization, their
performance may be dismal. This might happen because of three reasons: (1) a lack of coordina-
tion in their activities, ...