The Concepts Of Logistics In Real

Everywhere in this world people talk about the product, raw material, semi-finished goods, finances, budgets, marketing and promotions but there is a very important aspect of the business which is known as logistics (which means movement of products from one place to another). Literally logistics can be defined as the mechanism and art of obtaining, producing and providing the material and products in proper form to the client or in proper place. In layman language logistics can be defined as transporting the product from one place to another in proper quantity to proper client or on proper destination.

In general logistics is the part of supply chain management which means logistics management is all about planning, implementing and controlling of the front and reverse flow of the products, services and related things efficiently between the point of production to the point of consumption in order to meet the customer’s need. Although there are some misconceptions and misunderstanding between the two concepts, most of the people misinterpret the supply chain and logistics term. As mentioned above freight companies in Tullamarine is a part of supply chain but, separately the two terms can be easily identified and defined as “supply chain management” is something includes transformation of the raw material to the finished product and provide it to the end consumer, on the other hand “logistics” can be explained as the movement of things during supply chain management. While avoiding being so technical, the concept of logistics cannot be defined without thoroughly discussing the famous 7 R’s of the logistics which are: right product, right quantity, right condition, right place, right time, right customer, and right price.

Functions of logistics include transportation, warehousing, PL logistics and reverse logistics. These areas of logistics management play a vital role in actual logistics during supply chain management, many modes of transportation are there to solve the purpose such as: by air, by train, by road, by sea. Presently the combination of rail, roads and air are providing more than 100% reception to the customers. Warehousing is something really important when products are not moving it has to wait in the warehouse for the timely turn to move in short, warehousing is the place involves activities like receiving, storing and shipping. Among these functions third party and fourth party logistics play an important role to which means, third party provides two or more logistics services for money and fourth party logistics provides specialists and contractors last but not the least function of logistics is Reverse logistic, for those who are unaware totally reverse logistics involves returns, reuse, recycling and disposal. All in all logistics are important and no business entity can survive in the market without taking good care of the logistics so, fellows! Logistics are as important as marketing.