What is logistics?
logistics is in its most basic definition of an effective flow and storage of goods from its origin to consumption. It is part of the process of the supplier chain that plans, implements and controls the flow of goods. This can also be considered to manage stocks, at rest or in motion. The word logistics was first used in military service to describe the process of supplying war zone with units, supplies and equipment. This term is now used more often in business.
A recent American study has found that logistics costs are almost 10% of gross domestic product. The process itself covers a diverse number of functional areas. They are involved in the logistics in transport and operation, as well as transport and reception. It also includes storage and import/export operations.
The concept of logistics can be used for specific areas of business. For example, acquisition logistics includes everything that is concerned with Logistics, supports equipment and staff for a new weapon system for the military. This includes identificationIft, designing, defining, development, production, delivery and installation of a new weapon system.
Another area is integrated logistics support (ILS). This is a management function that provides financing, planning and control to ensure that the system meets the expected requirements. It is also expected that ILS ensures that the price of the goods is reasonable and the product is required.
Many businesses dealing with the supply of goods or services have its own logistics department. For example, a photo -footing company around the world will have a logistics team. The manager will supervise or delegate this process from the point of origin. The team will deal with the acquisition of paper from the paper supplier to the customer who Requests The Paper. Supplier and buyers can be placed in different countries.
It is a logistics team that must make sure the products can be obtained for reasonableou price. Then it must be assured that the product is sent on time and arrives when expected. The logistics team must also deal with contractual and export contracts and possibly with the customs department. The process may sometimes be lengthy, but as soon as it should be smoothly in place.