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what is logistics all about

Dec 10, 2015

Logistics is everywhere in our daily life. However, what exactly does that actually mean? What is logistics all about? For companies, the easiest definition of logistics is the stream between consumer and source of funds, goods, and data. But logistics isn't complex. It does. And it wants logistics to run effortlessly. It’s standard definition is:


The planning, execution, and control of the movement / placement of goods and / or people, and the related supporting activities, all within a system designed to achieve specific objectives.

A fundamental distinction in the type of logistics tasks is between outbound and inbound logistics.

Inbound logistics is among the main processes of logistics, concentrating on organizing and buying the inbound movement of materials, components, as well as /or completed stock from suppliers to retail stores, warehouses, or production or assembly plants.

Outbound logistics is the procedure associated with movement and the storage of the ultimate product as well as the associated information flows to the end user in the end of the production line.

Other logistics activity or fields includes:

Procurement logistics includes actions like requirements planning, market research, make-or-buy decisions, provider management, ordering, and order commanding. The objectives in procurement logistics may be contradictory: optimizing efficiency by minimizing procurement costs while optimizing security within the supply procedure, while preserving the autonomy of the organization, outsourcing, or concentrating on core competences.

Distribution logistics has, to the consumer as primary jobs, the delivery of the finished products. It contains transport, warehousing, and order processing. Supply logistics is necessary as the time, location and the time, location, and volume of consumption, and quantity of creation differ.

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