A REVIEW ON LOGISITCS SECTOR
A report for the partial fulfilment of SIP
Faculty Guide: Prof P.R.S Sarma
T.B.S. ANIL KRISHNA
Roll no - 1226112155
MBA (IB) - 2012-14
GITAM SCHOOL OF INTERNATIONAL BUSINESS
A REVIEW ON LOGISTICS INDUSTRY
The detailed coordination of a complex operation involving many people, facilities, or supplies and also the organization of moving, housing, and supplying troops and equipment. The term "logistics" originates from the ancient Greek "λόγος" ("logos"—"ratio, word, calculation, reason, speech, oration"). Logistics is considered to have originated in the military's need to supply themselves with arms, ammunition and rations as they moved from their base to a forward position. In ancient Greek, Roman and Byzantine empires, there were military officers with the title ‘Logistikas’ who were responsible for financial management and distribution of supplies. The Oxford English dictionary defines logistics as: “The branch of military science having to do with procuring, maintaining and transporting material, personnel and facilities.”The American Council of Logistics Management defines logistics as “the process of planning, implementing and controlling the efficient and effective flow, and storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.” SIGNIFICANCE OF LOGISTICS:
Logistics management is that part of the supply chain which plans, implements and controls the efficient, effective, forward and backward (reverse) flow and storage of goods, services and information between the point of origin and the point of consumption in order to meet customers' requirements rather to the customers delight. A professional working in the field of logistics management is called a logistician. Logistics, as a business concept, evolved only in the 1950s.This was mainly due to the increasing complexity of supplying one's business with materials, and shipping out products in an increasingly globalized supply chain, calling for experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time at the right place for the right price and to the right target customers (consumer); and it is the science of process having its presence in all sectors of the industry. The goal of logistics work is to manage the fruition of project life cycles, supply chains and resultant efficiencies. Logistics is concerned with getting (or transmitting) the products and services where they are needed or when they are desired. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible.
Objective of Logistics Management:
The primary objective of logistics management is to effectively and efficiently move the supply chain so as to extend the desired level of customer service at the least cost. Thus, logistics management starts with ascertaining customers’ needs till their fulfilment supplies. However, there are some definite objectives to be achieved through a proper logistics system. These can be described as follows: 1. Improving customer service:
An important objective of all marketing efforts, including the physical distribution activities, is to improve the customer service. An efficient management of physical distribution can help in improving the level of customer service by developing an effective system of warehousing, quick and economic transportation,...
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