The design and implementation of logistics processes has the objective of getting the right goods, to the right place, at the right time at minimum cost. Traditional production engineering design has focused almost exclusively on the value-add production process. Logistics engineering is part of the far wider scope of manufacturing engineering that seeks to create the most competitive manufacturing process throughout the total supply chain. Competitive logistics processes have as their foundation a commitment to total quality, elimination of waste and total involvement of the workforce.

This chapter presents the implementation of an integrated approach to logistics. The need of this implementation normally arise from studies of competitiveness, and the realisation that good performance from the logistics processes can provide a competitive edge. Fundamental changes to the logistics processes cannot be made in isolation from all the other processes in a manufacturing enterprise. There is a high level of interdependency, and mistakes from uninformed radical change are expensive. Clarity of objective, quantification of risk and a phased approach are essential for successful implementation of any proposed changes. The development of a coherent strategy for change is a critical success factor. A focused, cross-functional team operating within a structured framework and receiving firm guidance from senior management is the favoured management system.

An efficient and effective logistics process plays a central role in sustaining a competitive manufacturing enterprise. The Japanese know this, as evidenced by KanBan, JIT etc. Logistics processes in Western maunfacturing tend to have a lot of production information systems and little engineering. In contrast, our Japanese competitors seem to have processes with a lot of production engineering and only a few systems. In the future, it will be the appropriate mix of production engineering skills and production technology that will create competitive advantage. Maybe the West can win this race, but will it, if its production engineers continue to believe that production is all about the 10% of product cost spent on the factory floor?