“Logistic is the process of planning, implementing and controlling the efficient, effective flow of goods storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements”
Logistics exists to satisfy customer requirements by facilitating relevant manufacturing and marketing operation. The main responsibility of logistic is the geographical positioning of raw materials, work in process and finished inventories at the lowest possible cost.
Creating logistics value is costly. Logistics accounts for one of the highest costs of doing business. Logistics expenditure normally ranges from 5% to 35% of sales depending on the type of business. Thus logistics even though very important for any business success is expensive.
VARIOUS DEFINITIONS OF LOGISTICS MANAGEMENT
Logistic management encompasses all materials flows management, from the inflow of purchased materials into works (i.e. materials planning of raw materials components and other products, transport of materials from suppliers to works, receiving and inspection and storage of materials) materials flow through manufacturing processes (i.e. materials issues and materials handling) and material (flow to customers (physical distribution (Refer fig.1 for these relationships)
Materials Logistics physical distribution
Those activities can be divided into two categories: primary and secondary activities. Primary activities are inbound logistics, operations, sales and marketing, customer service, and outbound logistics. Inbound logistics include receiving and storing materials or distribution to production, operations transform inputs intro finished products, outbound logistics includes storing, and distributing finished products, sales and marketing deal with promoting and selling the firm’s products. Secondary activates consist of administration, human resources, technology, and procurement. Supply chain management systems coordinate the flow of resources into the firm, and make the primary activities
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Reverse logistics has become an increasing concern for many companies over the last decade. It is the process of the movement of goods, moving in the opposite direction, such as from the customer to the business. Some important processes involved are the physical movement of goods, customer support, warehousing and repair. Reverse logistics handles the issue of handling resources effectively. Rogers and Tibben-Lembke (1999) defines reverse logistics as the ‘process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal’. This definition is seen to...
How ever industry is developing at a quick pace and if India can cut down its logistics cost from 14% to 9% of GDP ,sparing to the tune of USD 50 billion will be acknowledged at the present GDP level, making Indian Goods more aggressive in worldwide business sector. Also, development in the logistics segment would suggest enhanced administration conveyance and clients' fulfillment prompting development of fare of Indian products and potential for formation of openings for work.
There are drivers promoting importance of reverse logistics. Regarding to this, Literature could be grouped as three parts: unavoidable returns, environmental and economic aspects. First of all, There are a few reasons for unavoidable returns of mate...
According to Mentzer (2001), several organizations have made supply chain management a key competency, particularly inbound logistics to support company operations. This is because its impact on services and products delivery to end consumer. Through supply chain management companies coordinate inter organizational operations for mutual efficiency. According to Brar and Saini (2001) to achieve supply chain efficiency organizations must be keen on their inbound logistics operations. This is because inbound logistics is the starting point of all supply activities in a firm and has an impact on subsequent supply chain activities. A disruption on inbound logistics flow may bring a company to a halt if production lines lack materials to run. This may lead to losses to an organization due to lost opportunities. Companies must therefore integrate inbound logistics in their supply chain plans for material sourcing and final product
Logistics forms an important part of the supply chain and involves the planning, implementation, and effective forward and reverse flow of goods, services, and related information from origin to recipient.
Logistics is the process of effectively and efficiently managing the movement and storage of information, products, and services between supply chain players with the aim of meeting the needs and requirements of customers. Logistics is important in private companies because it allows companies to meet the requirements of customers and in turn gain profits, and stay competitive. Logistics is important to public companies because it allows them to successfully meet its social objectives and even during successfully conduct international trade.
In logistic industry, they have been through lots of challenge in worldwide market. As the containerization of the global economy scopes, a phase of development and explanation, ports find themselves inserted in ever changing commercial environment where logistics is the forefront. Thus, this industry reaches a phase of maturity and rationalization due to the process of logistic on land.
The logistical issues faced by both that of Big W and Oz Hut are that of the inadequate supply chain systems that are being used to service these two business customers. These logistical issue ranges from transportation, third party logistics, the handling of goods, forecasting of delivery times and customer service of these clients. Showing that the cost of the logistics system may be affected from various factors such as that of competition in the market, spatial relationship of nodes and the product characteristics (JOHN J. COYLE, 2009)With these consumers left wondering when where and how long it would be until they received their purchased product leaving the seller to receiving bad feedback and not gaining return sale of customers due to not meeting the needs and wants of the customer in a timely manner. Exploring the productivity commissions report in to the retail sector, had found that in Australia there are about 140000 retail businesses with a gross Domestic Product of 4.1 per cent and making up 10.7 per cent of employment. (Commission, 2011)
Logistics involve the integration of information, transportation, inventory, warehousing, material-handling & packaging. In terms of value, global logistics industry has been estimated to be more than USD 235 billion & make up significant part of the GDP with regard to
Preceding from this understanding and being a logistics staff officer, my carrier is full of logistics proble...
Logistics costs are the costs that involved in logistics activities such as transportation, inventory management, warehousing, packaging and so on. Inbound transportation costs including train travel, trucks, air travel and sea transport, inventory carrying costs as part of total logistics costs, customer service costs and others. Companies need to manage their logistics with a balance between cost and performance, since the lowest-cost transportation path is not necessarily the fastest. Additional logistics costs include packaging, warehousing, security, materials handling, fuel, taxes and duties.