Introduction Of Logistics Management

1.1 Meaning Of Logistics Management

1. Logistics is concerned with getting the products and services where they are needed and when they are desired.
2. It is difficult to accomplish any marketing manufacturing without logistical support.
3. It involves the integration of information , transportation,inventory,warehousing,material handling,and packaging.
4. the operating responsibility of logistics is geographical repositioning of raw materials,work in process,and finished inventories where required at the lowest cost possible.
5. The formal definition  of the word 'logistics'as per the perception of council of logistics management is the process of planning,implementing and controlling the efficient, effective flow and storage of goods,services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.
6. Mission of logistics providing  a means by which customer satisfaction is achieved.
7. Without logistics support no activity can be performed to meet defined goal.
8. The current challenge is to perform logistics scientifically in order to optimize benefits to the organisation.
9. Logistics is a planning function of management.Logistics function is concerned with taking products and services where  they are needed and when they are needed.
10. Logistics ensures that the required inputs[what]to a value adding process are made available,where they are needed, when they are needed and in the quantities [how much]they are needed.
11. It also ensures that the outputs of the value adding process are made available where they are needed and in the quantities [how much?] they are needed.
12. Causes of Bad Logistics

• Infrastructure: Bad roads, inefficient railways, poor communication lines, and congestion in the ports.
• Taxation: e.g. Octroi
• Information: Inadequate information 
• Management: Poor management decision

1.2 LOGISTICS FUNCTIONS OR COMPONENTS OF LOGISTICS OR ELEMENTS OF LOGISTICS OR LOGISTICS MIX

1. INFORMATION MANAGEMENT

• Management is appreciating importance of information  as an element of logistics  oflate  now.
• The role of information is vital on order processing.
• Faster and quality information flow from customer to processor results into cost effective logistics.

2. INVENTORY CONTROL

• It is important 
• To maintain smooth supply chain.
• For adequate customer service.

3. TRANSPORTATION

• Transportation is the most visible of all elements of logistics and high contributor to logistics expenditure.
• Time and place utility play major role in transportation.
• one's own fleet :private carriage.

4. WAREHOUSING

• Warehousing is holding material before dispatch after it is produced.
• Warehouse ownership can be private,public or third party contract.
• Service benefits are spot sticking,assortment,mixing & production support.

5. MATERIAL HANDLING

• Material handling covers receiving ,moving,storing,dispatching activities.
• it has an impact on cost,quality and safety.
• One of the principles of material handling is minimum movement.

6. PACKAGING

• Packaging is done to make handling and transporting cost effective.
• Consumer packaging: There is no focus on logistics. importance is given to marketing appeal and packaging the finished product.
• Master cartons are grouped into units for handling .this concepts leads to unitization and  subsequently to containerzation.

1.3 SCOPE OF LOGISTICS

• Logistics function aims at taking products and services where they are needed and when they are needed.
• In order to achieve logistics competency the following areas are to be considered and managed appropriately.
• Thus scope of logistics is defined into three stages  

1.4 INTEGRATED LOGISTICS

• In conventional management environment,various activities of logistics work in isolation under different management functions.
• Purchasing trying to purchase at minimum price at the cost of what is needed by operations.
• Logistics function of management brings of all such functions under the umbrella pulling down inter departmental barriers.

Concepts Of Integration In Logistics Operations