logistics

(noun)

The process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from their point of origin to point of consumption for the purpose of satisfying customer requirements.

Related Terms

Examples of logistics in the following topics:

  • Logistics

    • Logistics plans, implements, and controls the forward and reverse flow and storage of goods between the point of origin and consumption.
    • The goal of logistics work is to manage the fruition of project life cycles, supply chains, and resultant efficiencies.
    • Starting in the 1990s, several companies chose to outsource the logistics aspect of supply chain management by partnering with a 3PL, third-party logistics provider.
    • In business, logistics may have either an internal focus (inbound logistics) or external focus (outbound logistics).
    • Inbound logistics is one of the primary processes of logistics, concentrating on purchasing and arranging the inbound movement of materials, parts, and/or finished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores.

  • Distribution and logistics

    • Logistics, or physical distribution management, is concerned with the planning, implementing, and control of physical flows of materials and final goods from points of origin to points of use to meet customer needs at a profit.
    • Finally, the third link is the channel structure (logistics) within countries, which distributes the products from their point of entry to the final consumer.

  • Supply Chain Management

    • Another definition is provided by the APICS Dictionary, when it defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally. "
    • Trade-offs in logistical activities: The above activities must be well coordinated in order to achieve the lowest total logistics cost.
    • If, however, a full truckload of a product is ordered to reduce transportation costs, there will be an increase in inventory holding costs, which may increase total logistics costs.
    • It is, therefore, imperative to take a systems approach when planning logistical activities.
    • These trade offs are key to developing the most efficient and effective Logistics and SCM strategy.

  • Warehousing

    • Pallets and products move on a system of automated conveyors, cranes, and automated storage and retrieval systems coordinated by programmable logic controllers and computers running logistics automation software.
    • A set of computerized procedures handle the receipt of stock and returns into a warehouse facility, model and manage the logical representation of the physical storage facilities (e.g., racking), manage the stock within the facility, and enable a seamless link to order processing and logistics management in order to pick, pack and ship product out of the facility.
    • Inside Green Logistics Co., Kotka, Finland.

  • Outsourcing

    • This movement has been particularly evident in logistics, where the provision of transport, warehousing, and inventory control is increasingly subcontracted to specialists or logistics partners.
    • Hence, strategic decisions need to be taken centrally, with the monitoring and control of supplier performance and day-to-day liaison with logistics partners being best managed at a local level.

  • Routing

    • Sometimes transport is subcontracted to specialists or logistics partners.

  • Getting started in remanufacturing

    • Equally as important is that the company must have the means to locate, recover and transport its used products and have the resources and ability to disassemble, clean, sort, and inspect them for remanufacturing (a.k.a. reverse logistics).

  • Specialization by Skillset

    • Activities can be grouped according to function (work being done) to pursue economies of scale by placing employees with shared skills and knowledge into departments, such as human resources, IT, accounting, manufacturing, logistics, and engineering.

  • Selling to Businesses

    • Third, online processing improves inventory management and logistics.

  • Operations: the logistical rim on the wheel