What is Logistics Management & Why Logistics Solutions Are Important to Your Business

What is Logistics Management & Why Logistics Solutions Are Important to Your Business
The phrase “logistics,” and its activities began with the armed forces. In military terms, logistics involved to the system of providing equipment and supplies to military personnel. Logistics Management as a business principle developed in the 1950s with the growing sophistication of supplying organisations with resources and transporting products in an progressively global supply chain. These days, the business industry employs this term to illustrate the effective movement and storage of merchandise from source to destination. The supply chain is an essential aspect of this procedure, incorporating transport, shipment, goods receiving, warehousing and overall control. 

Commercial Logistics Management Meanings:

In short, the management of inventory, at rest or in motion. The principal areas of logistics management include:
Procurement Logistics
This is the whole process applied to identify vendors and negotiate agreements for shipment of goods and service. It is made up of tasks including market research, requisites planning, build or purchase decisions, vendor management and purchasing.
Production Logistics
This has to do with optimising and managing the movement through the supply chain from start to finish. Production logistics tasks are associated with organisational principles, planning, development planning and control.
Distribution Logistics
This involves the transport of finished goods to the buyer. It is comprised of order processing, storage and transport. Principal sub-sectors of the sector involve air freight, rail freight, sea freight and road freight, plus; storage and vehicle repair.
As the business world grew, this definition of logistics called for management, leading to the development of experts called supply chain logisticians. This type of leadership encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Importantly, it also includes coordination and collaboration with channel partners which can be suppliers, intermediaries, third-party service providers, and customers.
Check back next week to read part 2 "Why Logistics Solutions Are Important to Your Business"

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