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Logistics describes the process of acquiring, storing, and delivering resources to their intended location. It involves choosing suppliers and distributors, evaluating their efficiency, and managing the transportation of supplies across the supply chain. Effective logistics is crucial for businesses to cut costs and gain competitive advantages. Logistics has expanded due to e-commerce and the development of logistics management software to optimize the delivery of items to consumers. There are different types of logistics depending on the supply chain phase, such as procurement, production, distribution, and disposal logistics. While supply chain management refers to the wider international network, logistics operates within this network and describes the specific process businesses use to deliver products to customers.

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52 views2 pages

Opmatqm

Logistics describes the process of acquiring, storing, and delivering resources to their intended location. It involves choosing suppliers and distributors, evaluating their efficiency, and managing the transportation of supplies across the supply chain. Effective logistics is crucial for businesses to cut costs and gain competitive advantages. Logistics has expanded due to e-commerce and the development of logistics management software to optimize the delivery of items to consumers. There are different types of logistics depending on the supply chain phase, such as procurement, production, distribution, and disposal logistics. While supply chain management refers to the wider international network, logistics operates within this network and describes the specific process businesses use to deliver products to customers.

Uploaded by

Peachy Cam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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LOGISTICS

"Logistics" describes the total process of controlling the acquisition, storage, and
delivery of resources to their intended location. Choosing potential distributors and
suppliers and evaluating their efficiency and accessibility are all part of logistics
management. Logistics is now widely used in business and trade particularly by
companies in the manufacturing industries.
Due to the prominence of e-commerce companies, like Amazon, Shopee, and
Lazada logistics embodies more than the actual movement of products from one
place to another.
The cash flow of a corporation depends on logistics. It makes it possible for the
transportation of supplies or goods, the fulfillment of contracts, and the provision
of services. A competitive advantage can be gained by using effective logistics
management, which guarantees efficient movement across the supply chain. In
order for the business to cut expenses and boost productivity, having an efficient
logistical process is crucial.
When a business improves its logistics, it increases efficiency throughout the
whole supply chain. A corporation can differentiate itself by knowing how to
deliver the right resource to the right location at the right time, adding value for the
customer while also reducing costs and improving the bottom line.
The actions accomplished to maximize customer satisfaction are a crucial
component of logistics. This comprises activities including inventory management,
order fulfillment, demand planning, and customer service operations.
The logistics industry's scope and methods for delivering items to consumers have
both expanded due to the development of logistics management software.
Different types of logistics
There are several phases within a typical supply chain, from sourcing raw
materials, to creating or manufacturing the products, to delivering them to end
users or businesses. Each phase can use a different type of logistics. Inbound,
outbound, and reverse logistics are among these types, but there are others, such as
the following:
Procurement logistics. This encompasses finding and contacting the needed
suppliers for raw materials and anything else needed to begin the production phase.
It's important to choose the correct number of materials and have them delivered in
a timely manner.
Production or manufacturing logistics. Multiple processes are encompassed
here. These include the creation, in-house transport, and storage of a new product,
as well as any efforts to optimize these processes and reduce the time and cost
required to meet a consumer's product order.
Distribution logistics. The timely delivery of a product to a consumer can take
place either directly, where a manufacturer is tasked with delivery to end users, or
indirectly, where a retailer or wholesaler is tasked with selling and delivering to
end users. Distribution logistics is also focused on optimization of packaging and
shipping methods.
Disposal logistics. This type of logistics spans the entirety of the supply chain
because every phase is prone to waste. It's similar to reverse logistics, yet different
in that it encompasses disposal processes as well. Residual materials can be
recycled or recovered to maximize efficiency; any material deemed unusable can
be disposed of.

Supply Chain Management vs. Logistics


Although supply chain management and logistics are sometimes confused, the
phrases actually describe two different aspects of resource movement.
The wider network that links international suppliers, shipping businesses,
distributors, and warehouses is known as the supply chain. The logistics industry
operates within the context of this network.
The procedure businesses use to deliver products to customers is known as
logistics. This procedure entails the acquisition and delivery of supplies, the
packing and shipment of items, as well as the delivery of those products to
distributors.

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