LOGISTICSDefined Planning implementing and controlling the physical flow of material andfinished goods from point of origin to point of use to meet customer`s need at aprofit.It is essentially a planning process and an information activity.So A integrative process that optimizes the flow of material and supplies throughthe organization and its operations to the customer.
The word logistic has originated from Greek word ‘Logistikos’ and the Latin word‘Logisticus’ which means science of computing & calculatingIn ancient times it was used more in connection with moving armies, the suppliesof food & armaments to the war front.During World War II logistics gained importance in army operations covering themovement of supplies , men & equipment across the border.Today.It has acquired the wider meaning and is used in the business for the movementof material from suppliers to the manufacturer and finally the finished goods tothe consumers.
Scope of LogisticIt s of critical importance to the organization how it delivers products & servicesto the customer , whether the product is tangible or intangible.Effective & efficient Physical movement of the tangible product will speak ofintangible services associated with the product and the organization which isdelivering it.In Case of intangible product , the delivery of tangibles at the right place & righttime will speak about its quality.On the macro level infrastructure such as Various modes of transport ,transportation equip., storage facilities, connectivity & information processingare contributing to a larg3e extent in the physical movement of goods produced in manufacturing , mining & agriculture Sectors.
Logistic –A system approachLogistic recognizes that all the activities of material movement across thebusiness process are interdependent and needs close coordination and theseare to be maintained as a system and not the functional Silos.System is shown as logistic Mix including following functional AreasOrder ProcessingInformation FlowWarehousingInventory controlPackagingTransportation
Information FlowIt is basically information based activity of inventory movementacross the supply chain. Hence role of information system plays a vital role indelivering superior customer service.This function is required to facilitate the following information needs.Order Registration .Order checking & editing.Order processing.Coordination means to integrate the total supply chain of the company withinformational needs as to time ,quantity, value, Lead time, rate of consumption,delivery schedule & price of the material, Transportation time & cost etc.
WarehousingA storage place wherein finished goods are stored till they are sold. Effectivenessof an organization`s marketing strategy depends on making the right decisionregarding warehouse.Nowadays .Warehouse are treated as switching facilities rather than storage place.It is a major cost center, many customer problem are the direct result of improperwarehousing management.Major decision of ware house are as follows:-Location ,Size & Number of warehousing facilities.-Warehouse layout.-Design of building-Ownership of the warehouse
INTERRELATIONSHIPS BETWEEN TRANSPORTATION AND LOGISTICSWithout well developed transportation systems, logistics could not bring itsadvantages into full play. Besides, a good transport system in logistics activitiescould provide better logistics efficiency, reduce operation cost, and promoteservice quality.The improvement of transportation systems needs the effort from both public andprivate sectors.A well-operated logistics system could increase both the competitiveness of thegovernment and enterprises.
The Effects of Transportation on Logistics Activities Transportation plays a connective roleamong the several steps that result in the conversion of resources into useful goods in thename of the ultimate consumer.It is the planning of all these functions and sub-functions into a system of goods movementin order to minimize cost maximize service to the customers that constitutes the concept ofbusiness logistics.The system, once put in place, must be effectively managed.Traditionally these steps involved separate companies for production, storage,transportation, wholesaling, and retail sale, however basically, production/manufacturingplants, warehousing services, merchandising establishments are all about doingtransportation.
Production or manufacturing plants required the assembly of materials, components, andsupplies, with or without storage, processing and material handling within the plant andplant inventory.Warehousing services between plants and marketing outlets involved separate transport.Merchandising establishments completed the chain with delivery to the consumers.The manufacturers limited themselves to the production of goods, leaving marketing anddistribution to other firms. Warehousing and storage can be considered in terms of servicesfor the production process and for product distribution.There have been major changes in the number and location of facilities with the closure ofmany single-user warehouses and an expansion of consolidation facilities and distributioncentres.These developments reflect factors such as better transport services and pressures toimprove logistics performance.
TRANSPORT is responsible for the physical movement of materials betweenpoints in the supply chainAt the heart of logistics are transport vehicles moving goods between suppliers andcustomers