What is Logistics ?
To manage supply chain activities, a company employs a technique known as logistics or logistical planning. As an example, controlling how raw materials or inputs are purchased and delivered to the company, inventory and input storage at company facilities, and inventory transportation both inside the company and outside, are all part of supply chain management.
This component of supply chain management is utilised to fulfil customer needs by planning, controlling and implementing efficient transportation and storage of relevant information, products, and services from the point of origin to the point of destination.. Management of logistics aids businesses in lowering costs while also enhancing customer service.
Managing logistics starts with the collection of raw materials and ends with the delivery of products to their ultimate destination.
What is Logistics Inbound ?
Inbound logistics refers to the internal logistical tasks and operations that companies need to perform in order to function. Inbound logistics typically refers to the logistical activities of businesses that operate substantially upstream (B2B).
In context of the supply chain, it includes the connection between parties that operate farther upstream than the provided company. Depending on the company, the parties who operate upstream may differ significantly in their separate activities.
For example, imagine becoming a car manufacturing. The manufacturer’s inbound logistics would include the procurement of raw material inputs (sheet metal, glass, wire, plastics, etc.), how to keep the materials in preparation for and throughout the assembly process, and how to control the flow of finished cars that leave the plant.
From the viewpoint of an upstream player, for example, the metal foundry that manufactures the sheet metal, the incoming logistics would differ. The incoming activities would involve obtaining raw materials including such metal ores, storing and utilising the resources in manufacturing, and controlling the flow of finished goods.
What is Logistics Outbound ?
Outbound logistics refers to the duties and activities associated with transporting a product to its final destination. Such logistical responsibilities often fall on players operating somewhat downstream, who are typically the last party in the supply chain. The responsibilities include storing produced inventory, transporting manufactured items to the point of sale, and, on occasion, shipping and handling to deliver specific products to the end user.
Returning to the car manufacturing example, the wholesalers and dealers would be the parties responsible for the supply chain’s outbound logistics. Factory operations would be responsible for ensuring that the appropriate quantity of requested goods gets to the dealer on time.
The dealer, in turn, would be responsible for organising the storage and maintenance of cars on its lots, as well as the shipment and processing of vehicles purchased by clients who reside in remote regions.
What is Logistics What is Logistics
What is the function of the logistician?
The term “logistician” refers to a logistics expert. They evaluate and manage the supply chain of a company or organisation – the mechanism that connects suppliers and consumers.
Logisticians oversee a product’s whole life cycle, beginning with its acquisition, and continuing with its distribution, allocation, and delivery. They are found in almost every sector of the economy.
Logisticians often perform the following functions:
– Strengthen business ties with suppliers and consumers alike.
– Make an effort to ascertain the customer’s requirements, to comprehend them, and to devise a strategy for meeting them.
– Assign resources, supplies, and completed goods to the appropriate locations.
— Determine the most economical and time-efficient method of transporting products.
– Evaluate each logistical function and make improvements where necessary.
– Communicate to management goals, evaluations, and performance statistics.
– Make improved ideas and recommendations to management and consumers.
– Stay updated on logistics technology advancements and integrate new technologies into existing processes.
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