While physical goods move through the supply chain, information moves parallel to them. Order processing is the trigger for the logistics system.
Historically viewed as a cost center, logistics is now recognized as a value-adding activity that provides a competitive advantage. The primary objective of logistics management is to achieve a defined level of customer service at the lowest possible total cost. This paper aims to draft a structured overview of the primary activities that constitute logistics management, analyzing how they function individually and synergistically.
In an increasingly globalized market, the ability to move goods efficiently from point of origin to point of consumption is a critical determinant of business success. Logistics management is defined as the part of supply chain management that 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.
Before focusing on the "post" phase, logistics management typically covers:
This is the most significant post-delivery activity. It involves moving goods from their final destination back to the seller or manufacturer.