Importance Of Logistics

The word logistic has originated from Greek word ‘Logistikos’ and the Latin word ‘Logisticus’ which means science of computing & calculating In ancient times it was used more in connection with moving armies, the supplies of food & armaments to the war front. During World War II logistics gained importance in army operations covering the movement of supplies, men & equipment across the border Today It has acquired the wider meaning and is used in the business for the movement of material from suppliers to the manufacturer and finally the finished goods to the consumers.

Logistics involves the integration of the production and delivery of a product or service in order to ensure efficient and effective management. Originally, logistics was

• Consolidate product movement by grouping shipments.

• Maintain high quality and engage in continuous improvement.

• Support the entire product life cycle and the reverse logistics supply chain.

An effective logistics management strategy depends upon the following tactics:

• Coordinating functions (transportation management, warehousing, packaging, etc.) to create maximum value for the customer.

• Integrating the supply chain.

• Substituting information for inventory.

• Reducing supply chain partners to an effective minimum number.

• Pooling risks.

The Council of Supply Chain Management Professionals (CSCMP) defines logistics as “…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 main fields within logistics include:

• Procurement Logistics is the entire process used to select suppliers and negotiate contracts for delivery of goods or services. It consists of activities such as market research, requirements planning, make or buy decisions, supplier management, ordering, and order

If you are involved in logistics, you may know that this business is growing and that the career paths available within this industry can range from clerks and order fillers to CEOs who manage multinational business supply chains.

Logistics is one of the main functions within a company, and the supply chain is a complex and sometime fragile global endeavor dependent on a network of independent, yet interconnected, moving parts. It requires professional management. Supply chain professionals order the product, build it, move it, ship it, distribute it, and drive the coordination processes with marketing, sales, engineering, manufacturing, finance, and information technology. In short, they make any business effort seem effortless.

Integrating the supply chain requires taking a series of steps when constructing the logistics network. In a dynamic system, steps may be taken out of order and retaken continuously in pursuit of quality improvements; the following list puts the steps in logical order. LOCATE IN THE RIGHT