What is Logistics?

Logistics is used more broadly to refer to the process of coordinating and moving resources – people, materials, inventory, and equipment – from one location to storage at the desired destination. The term logistics originated in the military, referring to the movement of equipment and supplies to troops in the field. What is logistics in supply chain?

Logistics refers to the movement, storage, and flow of goods, services and information inside and outside the organization. The main focus of supply chain is a competitive advantage, while the main focus of logistics is meeting customer requirements. … Logistics is an activity within the supply chain.

What is the process of logistics?

It is “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.

What are some examples of logistics?

  • Inbound transportation.
  • Outbound transportation.
  • Materials handling.
  • Inventory management.
  • Demand planning.

Why Logistics is Important

Although many small businesses focus on the design and production of their products and services to best meet customer needs, if those products cannot reach customers, the business will fail. That’s the major role that logistics plays.

But logistics also impacts other aspects of the business, too.

The more efficiently raw materials can be purchased, transported, and stored until used, the more profitable the business can be. Coordinating resources to allow for timely delivery and use of materials can make or break a company.

And on the customer side, if products cannot be produced and shipped in a timely manner, customer satisfaction can decline, also negatively impacting a company’s profitability and long-term viability.

What is successful logistics?

Logistics Leadership: Secrets to Success. … Because logistics represents a large investment for most companies, a strong leader must develop innovative solutions, and optimize logistics and supply chain strategy and operations to gain competitive advantage