1. What is Logistic Management and its Objectives?
Logistics means having the right thing, at the right place, at the right time. In business, logistics is defined as a business planning framework for the management of material, service, information and capital flows. It includes the increasingly complex information, communication and control system required in today’s business environment. (Logistix Partners Oy, Helsinki, FI, 1996). Objectives of Logistics Management is to make available the right quantity of right quality products at the right place and time in right condition, to offer best service to consumers, to reduce the cost of operations and to maintain transparency in operations. It is the part of the supply chain process that plans implements and controls the efficient flow and storage of goods and services from point of origin to point of use or consumption. Logistic management is a process/science of planning, executing and controlling the efficient, effective, flow and storage of goods and services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirement.
2. Logistic Management is creating “value-adding networks” can you explain this? It is understood now that an organization’s competitive success could only come through either cost leadership or offering differentiated product and services. Logistic Management can provide both benefits simultaneously through its value chain activities which can be categorized into different types – the in-bound logistics operations and out-bound logistics, thus support the personnel (HR), finance, IT and management information system. Logistics is a channel of the supply chain which adds the value of time and place utility. Today the complexity of production logistics can be modeled, analyzed, visualized and optimized by plant simulation software. The advanced technology that surrounds the environment need to be maximized.
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