Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers. Logistics involve the integration of information, transportation, inventory, warehousing, material-handling, and packaging..
Table of contents
Table of contents
Inbound Logistics Conversion and Operations Outbound Logistics Conclusion
Integrated logistics refers to a complete system which aims to provide a smooth and efficient flow of a firm’s production from its raw materials, through various operations and finally to the consumer. Such a flow can be disrupted by various changes in factors such as the demand of the product, the availability of raw materials to produce the product, as well as the dynamic operations required to manufacture the product within the firm. Integrated logistic serves to find the best method to achieve the smoothest flow of products in the supply chain, subject to these variations, and as such, needs to take into account various factors involved in the production line. The measure of how well integrated logistics performs for each production firm can be judged by the satisfaction of the consumer of these goods. To achieve integrated logistics which meet the needs of consumers, the various component parts which make up integrated logistics must be studied in detail, not only individually, but also collectively as a whole. The three main component parts of integrated logistics are inbound logistics, conversion and operations, and outbound logistics. We will now examine the important parts of each of these components, how they inter-relate with each other and how they all work hand in hand to provide integrated logistics.
The first component is inbound logistics, which refers to the management of all the supplies from the suppliers of a production firm. Depending on the type of goods produced by the firm, these supplies can range from anything between raw materials or produced goods. For example, a firm which produces electronic goods such as mobile phones would require a supplier of electrical components such as resistors which are used in its goods. On the other hand, a firm which supplies petroleum might require raw materials such as crude oil from another supplier. Regardless of the type of supplies, inbound logistics must deal with purchasing, storing and processing these goods. As such, aspects such as transportation and inventory management are necessary considerations for the firm. For smooth flow associated with integrated logistics, such a firm must analyze the various methods of transporting these goods from the supplier, storing their goods in a warehouse, which should ideally be chosen at the most convenient location. On top of that, the costs associated with the transport of such supplies must be kept as low as possible, without compromising the time taken to bring these goods from the supplier to the firm. Various other considerations include the availability of the supplies from the supplier and choosing the supplier which can provide goods at a reasonable cost that does not result in a poor quality of the supplies. The aim of the firm with regards to inbound logistics is to optimize the process of obtaining of these supplies, bearing in mind all these factors. Once an optimal procedure has been found, inbound logistics can be carried out smoothly.
Conversion and Operations