Logistics

Logistics is refer to a physical flow of materials and finished goods from points of origin to points of use to meet the customer requirements to gain profit by adopting proper planning, implementing and controlling.

Importance

A company choosing the markets in which it wants to operate

Inventory management including costs and service levels

Customer service policies

Extent of distribution network

Location and management of storage facilities

Choice of mode of transport, selection and management of carriers.

Any packaging decisions that directly impact storage and transportation.

Functions

Procurement

Procurement refers to the steps that are used in the acquisition of goods and services. The recognition that there is a need or wants for a particular goods and services.

Transportation

Transportation means physical movement of goods from the place of origin to the place where they needed.

Warehousing

Warehousing means providing storage space serves as a buffer between production and use, warehousing may be used to enhance service and to lower transportation.

Material handling

Material handling is a system or combination of methods, facilities, labour and equipment for moving, packing and storing the materials to meet specific objectives.

Order picking

Order picking is the process of wrapping the products ordered in convenient containers to facilitate easy dispatch and unloading.

Recycling and return

Recycling involves the collection of used and discarded materials processing these materials and making them into new products. Return goods means a problem with the product or the customer the goods might may be returned when out dated of stock

Waste disposal

Waste disposal refers to realization of commercial value by selling off surplus items, scrap, and obsolete items.

Customer service 

Logistics is only required to provide the time and place utility. It has to ensure that the product or service being offered by the company is available to the final consumer or end user.

Inventory control

The trade of between the level of inventory to be maintained and the expected service levels to be provided to the customers.

Packaging

Primary purpose is that it is a form of advertising and marketing support logistics is concerned with providing protection for the product in transit and storage logistics.