Lecture 1 Logistics MGT

Logistics describes
the process of coordinating and moving resources from

one location to storage at the desired destination.
Resources
1. People
2. Materials
3. Inventory
4. Equipment
The term logistics originated in the military, referring to the movement of

equipment and supplies to troops in the field.
Logistics management refers to the acquisition, storage and transportation

of inventory from its origin to its destination.
Scope of logistics
1. Physical supply (or materials management)
- refers to the movement of raw materials to the plant
2. Physical distribution
- refers to the flow of finished goods from the plant to customers after they are
manufactured.
Producers and merchant middlemen are responsible for physical distribution

tasks such as storage (warehousing), transformation, and inventory control.
Physical distribution activities can be divided into two categories:
(1) Primary Functions:
a) Transportation refers to the movement of goods from one place to the

other.
b) Warehousing the process of storing physical inventory for sale or

distribution.
c) Order fulfillment the process of receiving, packing, and shipping orders.
d) Keeping track of inventory the process of a business continuously

monitoring all of the inventory that it owns or
(2) Extracurricular Activities:
a) Packaging of goods. The wrapping material around a consumer item that

serves to contain, identify, describe, protect, display, promote and otherwise
make the product marketable and keep it clean.
b) Handling of the product the movement, protection, storage and control of

materials and products throughout manufacturing,
c) Purchasing the organized acquisition of goods and services on behalf of
the buying entity. To ensure that needed items are obtained in a timely
manner and at a reasonable cost.
d) Product planning involves all of the internally focused decisions, steps,

and tasks necessary to develop a successful product.
e) Management of data is the practice of collecting, organizing, protecting,

and storing an organization's data so it can be analyzed for business
decisions.Data provides resources to facilitate the establishment and adoption
of best practices across data management disciplines.
Types of Logistics Management
1. Procurement Logistics:
Procurement logistics is concerned with the procurement of raw materials and
equipment needed for carrying out production activities.
It is one which formulate plans, acquires, and coordinates various materials
that are needed at a particular time and particular place for the production of
goods.
Procurement logistics include the storage of materials and moving them to the
place where ever they are needed. It also examines the supply level at distinct
stages of the production process to ensure that consumer needs are met
timely.
2. Production Logistics:
Production logistics involves combining the various distributed supplies to
form a product.It coordinates all activities together to create what is needed.
This involves management of various operations like procuring parts,
distributions within the organization, management of product, its
packaging and dispatch to warehouse.
It aims at optimizing the whole manufacturing process by proper coordination
of all stages involved in production of goods. All materials are timely made
available at place of work for creation of products.
3. Sales Logistics:
Sales logistics manages the operation related to movement of products
from warehouse to wholesalers, retailer and consumer.
It encompasses all those activities that ensure that goods reach the users at
right time and at right place. Customer satisfaction is given due importance
and attention is paid on delivering good in right form at low expenses.
4. Recovery Logistics:
Recovery logistics involves movement of goods in reverse order that is from
end consumer back to the producer.
It manages all activities related to movement of unused products that are not
needed by customer or do not meet its requirements.
Recovery logistics focuses on cost-efficient transportation of goods from
consumption point to origin point for the motive of recovering value and
proper disposal. Value is recapture through reuse, scrap recycling, rework
and refurbishment.
5. Recycling Logistics:
Recycling logistics is concerned with recovering of recyclable products from
customers for reusing them.
It collects items such as empty cans, containers, used papers, empty plastic
bottles, old computers, packing and ink cartridges.
The role of recycling logistics is to conserve environment by avoiding wastage
via re-utilizing materials.
Importance of Logistics Management
1. Provide better service:

Efficient logistic management enables in enhancing overall satisfaction level
of customers. Logisticians formulate effective strategies and implement them
to ensure that quality products are delivered timely by organization.
Right management of logistics will enable company in fulfilling their customer
requirements by providing them what they want.
2. Ensure seamless Delivery:

Process of logistic management has an efficient role in on-time delivery of
products.
It monitors all inbound and outbound movement of goods by selecting a team
of professional members. Products are safely and rapidly shipped to deliver
them at a right time, at right place and in right manner.
3. Cost efficiency:
Logistician supervise each ongoing operation to ensure that all activities are
going as per framed polices. Any deviations if there is identified and corrective
measures are taken to reach optimum results. It is evaluated whether all
resources are efficiently utilized and overhead costs are minimized which
bring down the overall expenses.
4. Order management:
Logistic management facilitates speedy processing of consumer orders. It
implements various technologies for information processing that led to
accomplishment of project in adequate manner. Every order is properly
managed form point of purchase up to final delivery point for improving the
customer experience.
5. Increase supply chain transparency:

Logistics is an important tool of supply chain management which improve its
overall transparency. It helps in easy tracking of every stage of supply chain
ranging from production, warehousing, shipment to final delivery to user.
Managers can easily get insight into what is going on or to what stage an
order has processed. A reliable logistic system improves the image of
business and boost its overall market value.

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Logistics describes

the process of coordinating and moving resources from

The term logistics originated in the military, referring to the movement of

Logistics management refers to the acquisition, storage and transportation

Producers and merchant middlemen are responsible for physical distribution

Physical distribution activities can be divided into two categories:

(1) Primary Functions:

a) Transportation refers to the movement of goods from one place to the

b) Warehousing the process of storing physical inventory for sale or

c) Order fulfillment the process of receiving, packing, and shipping orders.

d) Keeping track of inventory the process of a business continuously

(2) Extracurricular Activities:

a) Packaging of goods. The wrapping material around a consumer item that

b) Handling of the product the movement, protection, storage and control of

d) Product planning involves all of the internally focused decisions, steps,

e) Management of data is the practice of collecting, organizing, protecting,

Types of Logistics Management

Importance of Logistics Management

1. Provide better service:

2. Ensure seamless Delivery:

5. Increase supply chain transparency:

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