What is Logistics?

Logistics is used more generally to refer to the process of organizing and transferring resources from one place to storage at the desired destination: people, goods, inventory, and equipment. The word logistics, referring to the transportation of equipment and supplies to troops in the field, originated in the military.

Understanding Management and Business logistics

The aim of logistics management is, in simple terms, to have the right amount of a resource or input at the right time, to get it in the right condition to the right spot, and to deliver it to the right internal or external customer.

The overall process of managing how resources are collected, processed, and transported to their final destination is logistics. In a business, poor logistics can affect its bottom line. Logistics is now commonly used to refer to how resources are managed and moved through the supply chain in the business sector, especially by companies in the manufacturing sector.

The management of pipelines, trucks, storage facilities, and distribution centers that handle oil as it is transformed along the supply chain requires logistics. In order to minimize costs and to sustain and improve production, an efficient supply chain and effective logistical procedures are necessary. Bad logistics contribute to untimely deliveries, inability to fulfill customer demands, and inevitably causes the company to struggle.

In the modern era, logistics management software and specialized logistics-focused companies have spawned the technology boom and the complexity of logistics processes that speed up the movement of resources along the supply chain. The overall creativity and reliability of their logistics along every link of the supply chain is one reason large online retailers like Amazon have come to dominate the retail landscape.


Logistics ” versus “ Supply chain management

Words that are often used interchangeably are logistics and supply chain management, but they specifically apply to two facets of the operation.

Logistics refers to what happens within one organization, including, for example, the procurement and distribution to manufacturers of raw materials, packaging, storage, and transportation of products. Although supply chain management refers to a larger network of outside businesses working together to supply products to customers, including producers, transport providers, call centers, warehouse suppliers, etc.

In business education, advanced training in supply chain management and logistics is mostly core or elective courses, or even separate programs of study. To begin an often well-paid career as a logistician, a business degree that emphasizes these skills, or in some instances, a technical degree in system analysis or database management, is typically required.

Components for Logistics 

Any or more of the following business roles may be involved in the management of logistics, including: 
  • Transportation inbound 
  • Transportation Outbound 
  • Management of the fleet 
  • Warehousing  
  • Handling Products 
  • fulfillment of order 
  • Control of inventories 
  • Planning for Production.

Why Logistics Needs?

While many small businesses concentrate on developing and producing their goods and services in order to better satisfy consumer needs, the company will fail if those products do not reach consumers. That’s the big role played by logistics.

Logistics, however, also affects other facets of the business.

The more raw materials can be bought, shipped, and processed efficiently until used, the more profitable the company can be. Coordinating resources to ensure the distribution and use of materials in a timely manner may make or break a company.

And on the consumer side, if goods can not be manufactured and distributed in a timely manner, customer satisfaction can decrease, also adversely affecting the profitability and long-term viability of a company.




More details about the Professional Diploma In Logistics And Shipping Management Click here

More details about the Diploma In Logistics And Supply Chain Management Click here

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