As noted previously, the outline Logistics is the management of the flow from one place to another place. More detail, Logistics is the management of the flow of resources between the point of origin and end point/destination to meet requirements, such as the needs of the customer or the company. Managed resource can be either in the form of physical goods, such as food, appliances, office supplies or human too. Besides these resources can also be something intangible such as information and time.
After that of course we will look what the main parts in Logistics. I read from several sources and based on experience, I think the explanation from Wikipedia about the main parts in Logistics is the most simple and quick to understand. Below are the explanation from Wikipedia :
- Procurement logistics consists of activities such as market research, requirements planning, make-or-buy decisions, supplier management, ordering, and order controlling. The targets in procurement logistics might be contradictory: maximizing efficiency by concentrating on core competences, outsourcing while maintaining the autonomy of the company, or minimizing procurement costs while maximizing security within the supply process.
- Production logistics connects procurement to distribution logistics. Its main function is to use available production capacities to produce the products needed in distribution logistics. Production logistics activities are related to organizational concepts, layout planning, production planning, and control.
- Distribution logistics has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differs with the time, place, and quantity of consumption.
- Disposal logistics has as its main function to reduce logistics cost(s) and enhance service(s) related to the disposal of waste produced during the operation of a business.
- Reverse logistics denotes all those operations related to the reuse of products and materials. The reverse logistics process includes the management and the sale of surpluses, as well as products being returned to vendors from buyers. Reverse logistics stands for all operations related to the reuse of products and materials. It is “the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal.
- Green Logistics describes all attempts to measure and minimize the ecological impact of logistics activities. This includes all activities of the forward and reverse flows.
- Global Logistics.
- Domestics Logistics.
- Concierge Services Scalable services designed to offer different levels of assistance throughout the import or export process.
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