Logistics is an activity that involves planning, implementing and controlling the processes that enable goods and services to be delivered from the source point to the consumer or end user. Logistics ensures the flow of materials, resources, goods, information and finance throughout the supply chain by effectively managing them.
The logistics process plays a role at every stage of the supply chain and consists of the following basic elements:
Supply: Logistics involves the procurement of materials and services, management of supplier relationships and establishment of the supply network. The supply process requires cooperation with suppliers to ensure that materials are supplied in good quality, at affordable prices and on time.
Storage: Logistics involves the storage of materials, inventory management and stock control. The storage process ensures that goods are stored correctly, are easily accessible and ready for distribution when needed.
Distribution: Logistics ensures that materials and products are delivered to the right places and at the right time. The distribution process includes transportation management, routing, delivery tracking and customer delivery. Its aim is to meet customer demands and ensure customer satisfaction.
Information Management: The logistics process focuses on the collection, analysis, and management of logistics data. Logistics managers can make better decisions using inventory levels, demand forecasts, transportation processes, and other data.
Logistics provides a number of benefits to businesses. These include cost savings, time and resource management, inventory control, customer service, and increased supply chain efficiency. Effective logistics management helps businesses gain competitive advantage and meet customer expectations.
In general, logistics is an activity aimed at effectively managing materials and services and ensuring their flow throughout the supply chain.
