2. INTRODUCTION
logistics is the management of the flow of things between the point of
origin and the point of consumption in order to meet requirements of
customers or corporations.
The resources managed in logistics can include physical items such as
food, materials, animals, equipment, and liquids; as well as intangible
items, such as time and information.
The logistics of physical items usually involves the integration of
information flow, materials
handling, production, packaging, inventory, transportation
and warehousing.
3. DEFINITION
According to Council of logistics management:
“Logistics is the process of planning, implementing and controlling the
efficient, effective flow and storage of goods, service and related
information from point of origin to point of consumption for the purpose
of conforming the customer requirement”.
4. TWO MAIN PHASES OF LOGISTICS
Inbound Logistics
Outbound Logistics
5. INBOUND LOGISTICS
Inbound logistics is one of the primary processes of logistics concentrating
on purchasing and arranging the inbound movement of materials, parts, or
unfinished inventory from suppliers to manufacturing or assembly plants,
warehouses, or retail stores.
Material management describes the movements of material &
components within a firm.
6. OUTBOUND LOGISTICS
Outbound logistics is the process related to the storage and movement of
the final product and the related information flows from the end of the
production line to the end user.
7. PRIMARY ACTIVITIES
Inbound logistics: materials handling, warehousing, inventory control,
transportation;
Operations: machine operating, assembly, packaging, testing and
maintenance;
Outbound logistics: order processing, warehousing, transportation and
distribution;
Marketing and sales: advertising, promotion, selling, pricing, channel
management;
Service: installation, servicing, spare part management.
8. SUPPORT ACTIVITIES
Firm infrastructure: general management, planning, finance, legal, investor
relations;
Human resource management: recruitment, education, promotion, reward
systems;
Technology development: research & development, IT, product and
process development;
Procurement: purchasing raw materials, lease properties, supplier contract
negotiations.
9. ELEMENTS OF LOGISTIC SYSTEM
Transportation
Warehousing
Inventory Management
Packing & Utilization &
Information & Communication