Logistics is the process of planning, implementing and
controlling the efficient, effective flow and storage of goods,
services and related information from point of origin to
point of consumption for the purpose of conforming to
customers requirements.
Development of logistics
•Logistics is a thousand years old- recent wars
•Deregulation-service providers more creative, customer
oriented and competitive
•Competitive pressures-globalisation- cost management
•Information technology development-impact
•Customer service- logistics as a strategic weapon
•Distribution channel power- the shifting of power from
manufacturers to players in the distribution channel
•Continuous change- New approaches & strategic
changes-adaptation to global market
Logistics in the economy
•Plays a influential role in the economy.
•Logistics is one of the major investments in both the
domestic and international business environment
•Supports the economic transactions in the sales and
services.
•Logistics provides the 7 rights in the business transaction
product/materials/services origin to consumption
Logistics and the 7 Rs
•Logistics activities should ensure the:
•Right product
•Right price
•Right place
•Right time
•Right condition
•Right amount
Customer service
Demand forecasting/planning
Inventory management
Logistics communications
Materials handling
Order processing
Packaging
Parts and service support
Plant and warehouse selection/location
Procurement
Returns goods handling
Reverse logistics
Traffic and transportation
Warehouse and storage management
Peter S Arokia
