The Total Logistics Concept

The total logistics concept (TLC) aims to treat the many different elements that come under the broad category of distribution and logistics as one single integrated system. It is a recognition that the interrelationship between different elements.

There are 4 different levels of trade-off have been identified.

1. Within Distribution Components
 Those trade-offs that occurs within  single functions among suppliers, manufacturers, distributors, and consumers (SMDC). The first of these providers better storage utilization but it is more difficult for picking. The second one is easier for picking but does not provide such good storage utilization.

2. Between Distribution Components
 Those trade-offs between the different elements in distributions. It started from the supplier that process a product then send to the manufacturer. The manufacturer will market the product by promoting it. Next, the distributor will distribute or deliver the product to the end users. Lastly, the consumer will buy and use the product to fulfill their demands and meet their satisfaction.

3. Between Company Functions
 There are a number of areas of interface between company functions where trade-offs can be made. Long production runs produce lower unit cost and more cost-effective production but mean that more products must be stored for a longer period which is less cost effective for warehousing. For instance, each departments of a company has their own functions. The company also must follow the level of management and its functions.

4. Between The Company and External Organizations
 Where a trade-offs may be beneficial for two companies that are associate with each other. The two companies have target one specific goals and work together but they do their own activities.