Logistics is the management of the flow of goods between the point of origin and the point of destination in order

to meet the requirements of customers or corporations Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and often security.

The term logistics comes from the Greek logos (), meaning "speech, reason, ratio, rationality, language, phrase", Logistics is considered to have originated in the military's need to supply themselves with arms, ammunition and rations as they moved from their base to a forward position. According to the Council of Logistics Management, logistics contains the integrated planning, control, realization and monitoring of all internal and network-wide material-,part- and product flow including the necessary information flow in industrial and trading companies along the complete value-added chain (and product life cycle) for the purpose of conforming to customer requirements.

Business logistics

A logistics provider's warehouse of goods being stacked on pallets with a forklift. Logistics as a business concept evolved in the 1950s due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for experts called supply chain logisticians. Business logistics can be defined as "having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer", and is the science of process and incorporates all industry sectors. The goal of logistics work is to manage the fruition of project life cycles, supply chains and resultant efficiencies. In business, logistics may have either internal focus (inbound logistics), or external focus (outbound logistics) covering the flow and storage of materials from point of origin to point of consumption (see supply chain management). The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation and the organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions to coordinate resources in an organization. There are two fundamentally different forms of logistics: one optimizes a steady flow of material through a network of

transport links and storage nodes; the other coordinates a sequence of resources to carry out some project.
Logistics mgmt. is that part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customer and legal requirements FORMS OF L MGMT A First-party logistics provider (abbreviated 1PL) is a firm or an individual that needs to have cargo, freight, goods, produce or merchandise transported from a point A to a point B. The term first-party logistics provider stands both for the cargo sender and for the cargo receiver.

Sender = Consignor = Shipper Receiver = Consignee

A Second-party logistics provider (abbreviated 2PL) is an asset-based carrier, which actually owns the means of transportation.

Type of 2PL
Second-party logistics providers are:

shipping lines, which own, lease, or charter their ships, airlines, which own, lease, or charter their planes, truck companies, which own, or lease their trucks, barge companies, which own, lease, or charter their barge, rail companies, which own their trains, warehouse owners.

1PL, which are the shipper or the consignee, 3PL, which are one stop shops for the 1PL, such as freight forwarders or courier companies, 4PL, which are consulting firms such as CPCS, SCMO, BMT, Deloitte, and Accenture.
2PL, which are actual carriers,

A third-party logistics provider (abbreviated 3PL, or sometimes TPL) is a firm that provides service to its customers of outsourced (or "third party") logistics services for part, or all of their supply chain management functions.

Third-party logistics providers include freight forwarders, courier companies, as well as other companies integrating & offering subcontracted logistics and transportation services

The term 4PL is generally considered to have been introduced by Audric Adger, which registered it as a trademark in 1996. Accenture described the 4PL as an "integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design, supply chain solutions".[1] A fourth-party logistics provider is an independent, singularly accountable, non-asset based integrator of a client's supply and demand chains.[3] The best examples of fourth-part logistics providers are "non-asset based" consulting firms exclusively specialized in logistics, transportation, and supply chain management such as SCMO,[5] BMT Limited,[6] MVA Consulting, TTR, Intermodality, CPCS, and 3t-Europe, which offer complete ranges of services, from strategy to implementation.

Importance of Customer Service in Logistics

A customer service system is a combination of people, procedures and technology that efficiently and effectively serves customer needs while achieving the profitability objectives of a company. Implementing an effective customer service system or improving an existing one is difficult when stakeholders are not convinced of its importance. An optimized system is implemented when everyone understands and buys into its use.

1. Higher Costs
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Poor customer service can lead to higher costs for the shipper. If the transportation company does not communicate with the shipper and the receiver, the cost for the transportation of the load will increase. For example, if the transportation company does not advise the receiver when the truck will arrive, the truck company may incur overtime costs, which will cut into the profit on the load.

Lost Business
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The receiver is a customer of the shipper, and the truck company's customer is the shipper. If there is not adequate communication between the truck company and the shipper or receiver, the truck company may not win this business again. A representative from the truck company must periodically call the shipper or receiver to inform them of the driver's progress.

Lost Product
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Trucks have a maximum capacity. If the commodity is too heavy or too large to fit on one truck, the truck company may have to assign another truck to carry the overage. If the commodity is highly perishable, the time needed to get another truck may cause the commodity to spoil. In this example, customer service must keep all parties aware of what is needed and work toward getting the proper trucks needed to transport the load.

Change

Change happens more frequently than in the past, according to Valdosta State University. An organization must be able to quickly adapt to changing customer needs to continue to be responsive. An adaptable customer service system can adapt to customer changes.

Complaint Resolution

Customer complaints can be resolved more quickly with a customer service system.