Logstics is a function or activity concerned with getting products and services where they are needed and when they are needed or desired.
Logistics management is that part of supply chain management that plans, implements, and controls the efficient and effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers requirements.
Logistics Managers are Responsible for Following Activities
The following are important duties and responsibilities of the logistics manager for these activities:
1. Traffic and Transportation
In a logistics system, the major focus is upon the physical movement or flow of goods or upon the network that moves the product.
This network is composed of transportation agencies.
The logistics manager selects the mode or modes of transportation used in moving the raw materials and finished goods.
2. Storage and Warehousing
It involves warehousing and inventory management which are closely related activities.
A direct relationship exists between transportation and the level of inventory and the number of warehouses required.
Storage and transportation have a trade-off relationship between them.
Firms that have slow means of transport need more warehousing space to keep higher inventory levels as compared to those using faster transport.
The type of transportation selected affects the packaging requirements both for moving a finished product to the market and for the inbound materials.
Industrial packaging should be such that it protects the goods from damage transportation especially through road, rail, or ocean shipping.
4. Material Handling
Material handling is crucial for an efficient warehouse operation.
Logistics managers are responsible for the movement of goods into a warehouse, storing them and moving the goods from storage to packaging and shipping areas and for onward transportation to customers.
5. Inventory Forecasting
Accurate forecasting of inventory requirements and materials and parts are essential for effective inventory control, especially in firms using an st in time (JIT) or, material requirement planning (MRP) approach to control inventory.
6. Production Planning
Ir is closely related to forecasting in terms of effective inventory control.
Once the forecast is developed and the current inventory on hand and usage rate is assessed, production planning managers can determine the units to be produced to meet market demand.
Production planning is integrated into logistics.
Puhasing or procurements is included in logistics because the transportation cost related directly to the location of the supplier sources.
In terms of transportation and inventory costs, the quantities purchased would also affect logistics cost.
8. Customer Service
Customer service levels in many ways glue together other logistics areas.
Decisions about inventory, transportation and warehousing relate to customer service requirements.
Logistics plays an extremely role in ensuring that the customer gets the right product at the right and at the right time.
Logistics decisions about product availability and inventory lead time are critical to customer service.
9. Site Location
A change in the location of a manufacturing plant or warehousing could alter time and place the relationship between plants and markets or between supply points and plants.
Such location changes will affect transportation cost and service, customer service, inventory requirements, etc.
Hence, transportation cost is frequently a very factor in deciding on the location of a plant or a warehouse.
10. Order Fulfillment
Order fulfillment consists of activities involved with completing customers’ orders.
Logistics ensures that the delivery lead time is reduced to the minimum in order to complete customer orders in time.
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