Logistics World: Logistics is comparatively a new term, but not the operation. It has existed since the beginning of civilisation. Logistic is the science of planning, organising and managing activities that provide goods or services. It is the use of the resources necessary to sustain the operation of a system. Logistics can be defined in multiple field with various definitions as business, military, integrated, classical and management. I asked a friend of mine who has been several years in logistical management. “Logistics is the word,” he said. “The future belongs to Logistics.” That is right and we will see why, but first thing first. It involves* Facility location* Planning* Forecasting and order management* Transportation: the mode and the route* Inventory management: all inventories* Warehousing Importance of logistics is the one important function in business today. No marketing, manufacturing or project execution can succeed without logistics support. For companies, 10 per cent to 35 per cent of gross sales are logistics cost, depending on business, geography and weight/value ratio. Another factor has come into play recently. Since the early 1990’s, the business scene has changed. The globalisation, the free market and the competition has required that the customer gets the right material, at the right time, at the right point and in the right condition at the lowest cost. Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements The planning, execution, and control of the movement / placement of goods and / or people, and the related, supporting activities, all within a system designed to achieve specific objectives.
Logistics is the management of the flow of resources, not only goods, between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and often security. Today the complexity of production logistics can be modelled, analysed, visualized and optimized by plant simulation software, but is constantly changing. This can involve anything from consumer goods such as food, to IT materials, to aerospace and defence equipment.
The services performed by logisticians, the main fields of logistics can be broken down as follows:
* Procurement Logistics
* Production Logistics
* Distribution Logistics
* After sales Logistics
* Disposal Logistics
Inbound logistics is one of the primary processes and it concentrates on purchasing and arranging inbound movement of materials, parts and/or finished inventory from suppliers to manufacturing or assembly plants, warehouses or retail stores.
Outbound logistics is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user.
Logistics is one of the main functions within a company. The main targets of logistics can be divided into performance related and cost related. They are high due date reliability, short delivery times, low inventory level and high capacity utilization. But when decisions need to be made, there is always a trade-off between these targets.