Logistics is the process of effectively and efficiently managing the flow of goods or services from the point of production to the point of consumption. Logistics is a crucial component of supply chain management.
Logistics encompasses the following areas:
Materials management: The storage, inventory control, and distribution of raw materials, semi-finished, and finished products.
Production logistics: The planning and management of the movement of parts and components within a factory.
Distribution logistics: The timely and efficient delivery of products to end-users or retailers.
Reverse logistics: The collection, recycling, or disposal of products.
Transportation management: The coordination of different modes of transport, such as road, rail, sea, and air.
Warehousing and handling: The effective storage and handling of products.
Logistics plays a critical role at every stage of the supply chain. Efficient logistics management can provide crucial outcomes such as cost savings, speed, flexibility, and customer satisfaction.
