Is the process of planning implementing and controlling the flow of goods?
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Logistics is the process of planning and executing the efficient transportation and storage of goods from the point of origin to the point of consumption. The goal of logistics is to meet customer requirements in a timely, cost-effective manner. Show
Originally, logistics played the vital role of moving military personnel, equipment and goods. While logistics is as important as ever in the military, the term today is more commonly used in the context of moving commercial goods within the supply chain. Many companies specialize in logistics, providing the service to manufacturers, retailers and other industries with a large need to transport goods. Some own the full gamut of infrastructure, from jet planes to trucks, warehouses and software, while others specialize in one or two parts. FedEx, UPS and DHL are well-known logistics providers. Typically, large retailers or manufacturers own major parts of their logistics network. Most companies, however, outsource the function to third-party logistics providers (3PLs). This article is part of Guide to supply chain management
Download1 Download this entire guide for FREE now! Functions of logisticsTransportation and warehousing are the two major functions of logistics. Transportation management focuses on planning, optimizing and executing the use of vehicles to move goods between warehouses, retail locations and customers. The transportation is multimodal and can include ocean, air, rail and roads. Not surprisingly, transportation management is a complex process that involves planning and optimizing routes and shipment loads, order management, freight auditing and payment. It can also extend to yard management, a process which oversees the movement of vehicles through the yards outside manufacturing plants, warehouses and distribution facilities. Carrier management is an important aspect since the price, availability and capacity of transportation carriers can vary widely. Logistics companies typically use transportation management system (TMS) software to help meet the demands of transport-related logistics. There are also niche applications, such as yard management systems. Warehousing, or warehouse management, includes such functions as inventory management and order fulfillment. It also involves managing warehouse infrastructure and processes -- for example, in a fulfillment center, where orders for goods are received, processed and fulfilled (shipped to the customer). Most companies use warehouse management system (WMS) software to manage the flow and storage of goods and track inventory. Most vendors of enterprise resource planning (ERP) software offer TMS and WMS modules, as well as more specialized components for inventory management and other logistics functions. Customs management, or global trade management, is often considered part of logistics since the paperwork to show compliance with government regulations must often be processed where goods cross national boarders or enter shipping ports. Artificial intelligence (AI) and driverless vehicle technology will play important parts in how logistics operates in the future. Some logistics providers already use AI to better track packages and predict transport-related problems in the supply chain. Meanwhile, autonomous vehicles, such as driverless forklifts, delivery trucks and drones, are likely to become more commonplace in warehouses, in warehouse yards and on highways. Why logistics is importantWhile on-time delivery of intact packages has always been important throughout the supply chain, it has become even more mission-critical in recent years as omnichannel commerce, with its same-day home or retail delivery of customized products ordered from smartphones, becomes more common. Suppliers, manufacturers, distributors and retailers have had to improve their logistics processes to meet the demand for quicker, more convenient delivery of a wider variety of goods. They also have had to better integrate their processes and systems to improve supply chain visibility. The Council of Supply Chain Management Professionals definition of logistics: “The process of planning, implementing and controlling procedures for the efficient and effective transportation and storage of goods including services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. This definition includes inbound, outbound, internal, and external movements.” Transporting products to customers can be a rigorous process! The process sounds simple but the details and procedure behind it are so much more complicated. The topics are endless! We will go over some highlights of logistics, transportation, and warehousing in this post. Logistics  Image from MFC Cargo Each product is different. Logistics teams must work with various country’s import laws. The manner in which to transport them, who handles the delivery, insurance of the products, the procedures taken when an item is lost, tracking the items, and all the planning that goes along with it are all responsibilities of logistics. All of course being efficient and cost effective for the company. Logistics sets the path in which a finished product ends up in the customer’s hands. There is also the opposite, called inbound logistics focusing on incoming materials and services. Standardized containers you may have seen in a variety of modes of transportations from truck to train revolutionized supply chain. No longer were items shipped separately in boxes where the product could easily be lost or stolen. The standardized container shipped everything together and fit on trucks, boats, and trains allowing for easy loading and unloading. By this container alone, supply chain was able to reach new heights. Transportation Image from NOAA The logistics team must determine the most efficient mode of transportation for their goods. Time, safety, and quality are of the utmost importance. Many companies rely on logistics companies to send their product to their customers. Again, companies relying on other companies for a job well done. Supply chain coming full circle. From air to ground transportation to the fastest and efficient routes, logistics teams must fulfill their customers’ requirements and successfully get the product to the customers. Air, train, boat, or truck are all methods used to transport goods from the producer to the customer. Typically, product to travel by air are the ones with high value-to-weight ratios. Depending on customer Warehousing MISUMI USA Warehouse in Elk Grove Village, IL Location, location, location! Warehousing, where everything is delivered, stored, packed and shipped! Many companies require the location to be in an industrial park for security reasons and ease of access for large freight trucks or even close to airports. Warehousing contains inventory from shipping materials to shipping labels. Depending on the breadth of product offerings, warehouses are a variety of sizes. Some companies have found to not use warehousing but instead, use distribution centers. This is a way to control inventory from staying in the warehouse for more than 48 hours. The thinking behind this is to save cost by not storing unnecessary items. Product packaging is also done in the warehouse. Customers must be able to open the product easily and protect the items while in transit. Packaging not only has to be aesthetically pleasing but also easy to store and display for the various ways stores are set up. Although, Logistics and transportation are the last in supply chain management it is equally important as procurement, and manufacturing & operations. It is a full circle of dependence, without one the others cannot operate. This concludes our supply chain management series. We’ve covered just a tad of what goes on in the supply chain. It is complex and dynamic and it would be impossible to cover it all! What word means planning implementing and controlling the flow and storage of goods?Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses 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.
Is planning implementing and controlling the physical flow of a product?The planning, implementation, and controlling of the physical flow of material or product from one point to another to meet the customer requirements in the market is known as physical distribution.
What is logistics planning process?What is logistics planning? Logistics planning is a form of logistics management in which a business owner strategizes how to deliver the right product to the right customer at the right time, at the lowest possible cost.
What is the process of managing goods from the point of consumption to the point of origin?In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations.
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