Logistics Management
Logistics Management
Logistics Management
customer demands through the planning, control and implementation of the effective
movement and storage of related information, goods and services from origin to
destination. Logistics management helps companies reduce expenses and enhance
customer service.
The logistics management process begins with raw material accumulation to the final
stage of delivering goods to the destination.
By adhering to customer needs and industry standards, logistics management facilitates
process strategy, planning and implementation.
The four types of logistics are supply, distribution, production and reverse logistics.
Supply Management and Logistics Supply management involves the planning and coordination
of materials that are needed in a certain location at a specific time to support production or
activity (as in the case with military supply).
Supply logistics must include transportation of the materials and storage as well as a means for
evaluating the level of supply at different stages of the process to make sure the flow of
materials matches need. This can involve getting all of the construction materials to a
construction site or parts that are needed in a manufacturing plant.
Distribution and Material Movement Distribution involves managing how a supplied and stored
material is then dispersed to the locations it is needed. This involves issues of material
movement (loading, unloading and transportation), tracking of stock and accountability of use
(recording how the supply is used and by whom). This can involve moving supplies from a
central warehouse to the shelves of a retail store.
Production Logistics and Management Production logistics manages the stages of combining
distributed supplies into a product. This can involve the coordination required in a
manufacturing or assembling process and in the case of applications such as military
production, the logistics of coordinating space and areas for production to occur. In
construction as well, production logistics will include the staging of material at the right time to
coordinate with the phase of building taking place.
Reverse Logistics and Product Return Reverse logistics involves the reclamation of material and
supplies from a production or assembly process. For instance, in the logistics management of a
construction project, reverse logistics plans for the removal of excess material and re-
absorption of the material into a stock supply.