Logistics and Operations

Logistics and Operations

Introduction

Today, companies must decide the best way to store their products and items in their own warehouse. The proper inventory system and moving of the products and services to the customers at the right time must be done. In order to satisfy this condition, the company must give preference to the time, place, amount and other things as well. In this sense, some companies consider logistics and inventory management very useful. The mode of transportation must be utilized in a proper manner to maintain a good delivery system. Most of the companies are making best use of their logistics system. Today, there are many different definitions of logistics in many parts of the world.

Logistics was a term defined by the Royal Spanish Academy which was a part of the military organization that served the movement and maintenance of troops in the field. They developed proper methods for the distribution system to be carried out by the organizations in their logistics. The term “Logistics” has lot of importance and significance in the business world. The likely reason is that it is often used as a generic term covering many different components of the operations and influencing variety of aspects of the company. In general, integrated logistics is an extensive system of managing the entire supply chain, from raw materials to distribution of manufactured consumer goods. It is the best direction in the logistics system to distribute goods to the end consumer. In a broad concept, it applies to all phases of product distribution, including all links in the chain, required to bring the product to the customer.

Discussion

Key components of Logistics Management

The key components of Logistics management can be widely dived in to three major categories which are as follows

Packaging

Warehousing

Transportation

The logistics does not only address the problem of distribution of output (bringing products from manufacturer to consumer) but also the problem of input distribution (taking the materials from suppliers to the factory). Its function is to optimize freight, make sure the products are transported in a good way to calculate time-outs and unloading, storage management and control. The ultimate goal of logistics is to reduce inventory levels and optimize the performance of the entire supply chain. Recently, in some of the countries, companies have discovered the importance of logistics. It is not only employed as a competitive strategy to reduce costs but most importantly, it is used to give excellent customer service at reasonable costs. It is important that companies must consider the area of logistics as an integral part of their plans due to issues such as:

Customer service and satisfaction, as this aspect should be the cornerstone of the marketing strategies.

Cost reduction done due to the need to coordinate adequately the levels of inventory, transportation, locations of plants and retail outlets.

The explosion in the variety of products has taken place in many organizations because current managers no longer carry inventory control of its products on a piece of paper. However, due to the large number of ...