Notes on Logistics

Definition of Logistics

• Logistics is the collection of processes involved in moving raw materials and finished goods throughout the supply chain.
• It encompasses both internal movements and movements from seller to buyer.

Key Steps in Logistics

1. Receiving
2. Warehousing
3. Inventory Management
4. Demand Planning
5. Picking
6. Packing
7. Shipping
8. Transportation Management
9. Order Fulfillment

Importance of Logistics

• Inadequate logistics can cripple a business:

  • Causes delays in production
  • Affects delivery times
  • Impacts customer experience
  • Ultimately affects sales

• A successful logistics strategy can:

  • Add efficiencies
  • Cut costs
  • Help businesses gain control across the supply chain
  • Ensure timely delivery of products to the right location to meet delivery deadlines and customer expectations.