Logistics is everywhere

In fact, every day, we come in contact with logist

ics, either directly, e.g., when the parcel carrier ri

ngs the doorbell and delivers merchandise we or

dered the day before, or indirectly, e.g., when we

 see the word “logistics,” on a truck traveling 

down the highway. However, logistics is much

more than parcel delivery or freight forwarding. 

What is logistics?

In Chinese Logistics Terms, logistics means the

physical movement of goods from the supplier point

to the receive point. Based on practical need,

integrated organically the variety of the basic

functional activities including transportation,

storage, loading and unloading, handling, package,

distribution and information management, etc.

The Council of Logistics Management has ad

opted this definition of logistics ： Logistics i

s that part of the supply chain process that pl

ans, implements, and controls the efficient, e

ffective flow and storage of goods, services,

and related information from the point of orig

in to the point of consumption in order to me

et customers’ requirement.

The importance of logistics

Since the beginning of human civilization, there has

been the “move” of the goods, so we should say, “lo

gistics is anything but a newborn baby.” However, w

hen it comes to modern logistics, most professional

s in the business consider it one of the most compet

itive and exciting jobs, invisible as it is. “Logistics is

a unique global pipeline that operates 24 hours a day,

seven days a week and 52 weeks a year, planning a

nd coordinating the transport and delivery of produc

ts and service to customers the world over.”

• Six “Rights” of Logistics 

• The purpose of logistics is to get the right product in the right quantity, in the right condition to the right place at right time for the right price. 

01

Procurement Logistics

Logistics Fields

It consists of activities such markets research, requirements planning, make or buy decisions, supplier management, ordering, and order controlling.

02

Production Logistics

Logistics Fields

It connects procurement to distribution logistics. The main function of production logistics is to use the available production capacities to produce the products needed in distribution logistics.

03

Distribution Logistics

main tasks: the delivery of the finished products to the customers. It consists of order processing warehousing, and transportation.

04

05

After-sales Logistics

Disposal Logistics

Logistics Fields

Its services cover support for products sold to customers, the refurbishment of returned items, and disposal of end-of-life goods.

Its main function is to reduce logistics cost(s), enhance service(s), related to the disposal of waste produced during the operation of a business.

05

Reverse Logistics

Logistics Fields

It stands for all operations related to the reuse of products and materials. The reverse logistics process includes the management and the sale of surplus as well as returned items of products.

Scope of Logistics Management

Logistics management covers every stage of the physical distribution process, from raw materials and component parts being ordered and delivered to the factory, materials handling and storage, stock control, sales forecasting from which the forecasts of individual component parts, transport and storage requirement are derived. Other functions include order processing, the purchasing and replenishment of stock, packing, delivery, achievement of set service levels, warehouse location, fleet management and scheduling and the management and operation of a logistics infor

mation system which acts as a recording system, aids forecasting, scheduling, model building and produces the myriad of documentation needed for the efficient management of the system. This total concept is sometimes referred to as “total business logistics management” or“total physical distribution managemen

t”.

Here's a direct image of logistics system

Purchasing

• Purchasing is the formal process of buying goods and services. The purchasing process can vary from one organization to another, but there are some common key elements.

• The process usually starts with a demand or requirements – this could be for a physical part (inventory) or a service.[1] A requisition is generated, which details the requirements (in some cases providing a requirements speciation) which actions the procurement department. A request for proposal (RFP) or request for quotation (RFQ) is then raised. Suppliers send their quotations in response to the RFQ, and a review is undertaken where the best offer (typically based on price, availability and quality) is given the purchase order.

Order Processing

Order processing is a key element of Order fulfillment. Order processing operations or facilities are commonly called "distribution centers". "Order processing" is the term generally used to describe the process or the work flow associated with the picking, packing and delivery of the packed item(s) to a shipping carrier. The specific "order fulfillment process" or the operational procedures of distribution centers are determined by many factors. Each distribution center has its own unique requirements or priorities. There is no "one size fits all" process that universally provides the most efficient operation.

Inventory Management

• Inventory management is primarily about specifying the size and placement of stocked goods. Inventory management is required at different locations within a facility or within multiple locations of a supply network to protect the regular and planned course of production against the random disturbance of running out of materials or goods.

The scope of inventory management also concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management, replenishment, returns and defective goods and demand forecasting and also by replenishment Or can be defined as the left out stock of any item used in an organization.

Customer service

• Customer service is the provision of service to customers before, during and after a purchase. According to Turban et al. "Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation."customer service plays an important role in an organization's ability to generate income and revenue. From that perspective, customer service should be included as part of an overall approach to systematic improvement. A customer service experience can change the entire perception a customer has of the organization.

Third-party

• A third-party logistics provider is a firm that provides outsourced or "third party" logistics services to companies for part, or sometimes all of their supply chain management function. Third party logistics providers typically specialize in integrated warehousing and transportation services that can be scaled and customized to customer’s needs.

Forth-party

• The fourth party logistics refers to a supply chain integrator who have different resources,ability,technology integration and management to the company internal and complementary service providers.It provides a whole set of supply chain solution and is known as "General contractor" or "Leading logistics service providers".

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