LOGISTICS

Defined
Planning implementing and controlling
the physical flow of material and
finished goods from point of origin to
point of use to meet customer`s need at
a profit
By Philip Kotler
It is essentially a planning process and
an information activity
So A integrative process that optimizes
the flow of material and supplies

The word logistic has originated from Greek word

Logistikos and the Latin word Logisticus which means
science of computing & calculating
In ancient times it was used more in connection with
moving armies, the supplies of food & armaments to the
war front.
During World War II logistics gained importance in
army operations covering the movement of supplies , men
& equipment across the border
Today It has acquired the wider meaning and is used in
the business for the movement of material from suppliers
to the manufacturer and finally the finished goods to the
consumers

Relating marketing channels, logistics

management, and supply chain management

Logistic A system approach

Logistic recognizes that all the activities of material movement
across the business process are interdependent and needs
close coordination and these are to be maintained as a system
and not the functional Silos.
System is shown as logistic Mix including following functional
Areas
Order Processing/Customer Service
Transportation
Information Flow
Warehousing
Inventory control
Packaging

Supply chain managers balance total logistics cost

factors against customer service factors

Advantages and disadvantages of five modes of

transportation