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DEVESH KUMAR
2019533534
SUBMITTED TO – PRO. AMBIKA KHURANA
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Logistics refers to the overall process of managing how resources are acquired,
stored, and transported to their final destination. Logistics management involves
identifying prospective distributors and suppliers and determining their
effectiveness and accessibility. Logistics managers are referred to as logisticians.
Logistics management in business works across all industries. Its aim is to manage
the fruition of project life cycles, supply chains and resultant efficiencies. As
businesses grow more complex and expand into a global marketplace, business
logisticians have evolved into something called supply chain logisticians.
With logistics management in business the focus is twofold: inbound logistics for
internal functions and outbound logistics for the external flow from the point of
origin to the point of consumption. Logisticians focus on inventory management,
purchasing, transportation, warehousing, consultation and the organization and
mapping of these processes.
OBJECTIVE OF LOGISTIC MANAGEMENT-:
Inventory reduction
Freight economy
Freight is a major cost element in logistics cost. This can be reduced by adopting
measures such as freight consolidation, transport mode selection, route planning,
load unitizing and long distance shipments.
Product damages add to the logistics cost. The reason for product damages is
improper logistical packaging, frequent consignment handling the absence of load
unitizing, and so on.
Use of mechanised material handling equipment, load unitization, and proper
logistical packaging will reduce the product damage and fulfil the objectives of
logistics management.
Quick response
This is related to the capability of a firm to extend the service to the customer in
the shortest time frame.
Most manufacturing organizations need to monitor the inventory and order the
materials if the reorder level falls below a range. It is the duty of the person
handling operations planning to increase the capacity of the plant and maintain
cordial relationships with the clients. There might be several operational planning
methods employed by the company for monitoring of the products.
Functions –
Logistics is a process of movement of goods across the supply chain of a company.
However, this process consists of various functions that have to be properly
managed to bring effectiveness and efficiency to the supply chain of the
organization.
Order processing
The inventory is the greatest culprit in the overall supply chain of a firm because of
its huge carrying cost, which indirectly eats away the profits. It consists of the cost
of financing the inventory, insurance, storage, losses, damages, and pilferage.
Warehousing
Warehousing is the storing of finished goods until they are sold. It plays a vital role
in logistics operations of a firm. The effectiveness of an organization’s marketing
depends on the appropriate decision on warehousing.
Transportation
For movement of goods from the supplier to the buyer, transportation is the most
fundamental and important component of logistics.
When an order is placed, the transaction is not completed till the goods are
physically moved to the customer’s place. The physical movement of goods is
through various transportation modes.
In logistics costs, its share varies from 65 to 70 percent in the case of mass-
consumed, very low unit-priced products.
The speed of the inventory movement across the supply chain depends on the
material handling methods. An improper method of material handling will add to
the product damages and delays in deliveries and incidental overheads.
Other considerations for selection of a material handling system are the volumes to
be handled, the speed required for material movement and the level of service to be
offered to the customer.
The storage system is important for maximum space utilization (floor and cubic) in
the given size of a warehouse.
Logistical packaging