How can you understand logistics?

According to ghiani, logistics can be defined as the planning and controlling of

products and information in an organization, it aims at delivering materials to a

given destination for anything trying to optimize a particular measure and

ensuring satisfaction of a given set on constraints. These definitions can be

simplified to manage the management of the flow of goods as well as services

from the point of consumption activities that take place under logistics

information integration, warehousing, packaging, inventory, security,

transportation, as well as handling of materials. Logistics compliments supply

chain by add value to place, as well as time utility.

Logistics are identified in different fields due to performance value. These fields

include procurement, after sales, production, disposal, as well as distribution

fields. This paper will identify the areas where organizations involve logistics as

well as the essence of an effective logistics to a firm or on organization. These

fields of logistics determine specific activities. Procurement logistics involve

make/ buy decisions supplier and management of other things as well as market

research. Production logistics' key principle is to connect procurement to

distribution logistics. This field of logistics determines the capacities of production

under available resources in response to distribution logistics. Distribution

logistics deal with delivering of finished goods to the consumer or rather

customers. Its components include processing, warehousing, as well as

transportation. This logistics is most essential since the time, place as well as

quantity of production vary from the time, place, and quantity of consumption.

Nowadays logistics have been simplified through l advancements which are

mostly technological, plenty of complex things which hinder effective logistics

management can now be visualized, modeled, observed and optimized as well

through software’s. Using these software’s has become a necessity, businesses

that are successful are using this software to case the work of logistics analysis

and hence providing effective strategies of managing supply and demand.

Problems in logistics majorly occur in organizations that engage in product

delivery but they can also occur in firms producing services (Ghiai, 2004).

Examples of this include garbage collection, after sales services, as well as mail

delivery, among others. Maintenance and operational cost of logistics is another

hindrance of its use. Research conducted in the United Stated in 1997 proved that

organizations used 862 billion dollars as the total logistics expenditure. It is hence

essential for organizations to understand how to minimize the cost of logistics.