Logistics is an extremely important process for many products driven businesses. Without this process, consumers would have a difficult time acquiring goods. As a matter of fact, the current market system which is available within society would collapse. Transporting goods from the producer to the consumer is an extremely complex and intricate venture. The following information will explain the general principles of supply chain logistics.
What is Logistics?
A simple definition for logistics is the planning of how goods are moved from point A to point B. Managing how products reach markets requires resources and the use of an efficient workforce which can carry out the process. Since the logistical process is a crucial element of selling goods; organizations and businesses must break down this field into manageable departments. Some of the main departments of logistics include procurement, distribution logistics, disposal logistics and supply chain logistics.
Distribution logistics is designed to deliver products to customers. This process involves ordering, warehousing and transportation. Distribution logistics is an extremely important element of logistics. Businesses have to time the movement of products with consumer consumption and expectations.
Disposal logistics is necessary for reducing the expenses associated with this type of operation. It focuses on enhancing services, and it is also used to reduce various forms of waste material and consumption, which take place along the logistics chain.
Reverse logistics focuses on recycling, and reusing materials used during the logistics process. Surplus and returned products are effectively managed with reverse logistic principles. It also deals with the planning, implementation and the control of raw materials and inventories. Reverse logistics serves returns, repairs and recalls.
Supply Chain Logistics
Supply chain logistics is your system of resources which are necessary in the movement of products and services from the supplier to the consumer.
Product supply chains are complex systems. They usually start with the raw resources needed to produce goods. Resources are then transported to production facilities where they are used as raw materials for making products. Once these products are created, they can be stored until it is time for them to be transported to their destinations.
A human workforce is necessary for the movement of products to the market. As raw materials and products are moved along a supply chain; each organization is responsible for this flow of goods must meet deadlines and ensure products remain in good condition. Supply chain operators also want to protect the goods which they move for maintaining or increasing their profits. It’s to a supplier’s advantage to ensure there are few problems along their part of the supply-chain process.
