Logistics is associated with transport – right, but this is only a part of what logistics is involved to. So what is logistics? It is a hole range of tasks and activities form planning, implementation and control. Over that it also controls inventories, supply processes, customer service, information flow, packaging og goods. transport, handling returns and complaints. Moreover it controls waste management.
So what is logistics management? Logistic Management is a part of supply chain management and one of the areas of funcional management. It deals with the creations of plans, their implementation and control, a s well as the effective and efficient flow of goods, services and information between the place of manufacture and the point of use – in order to meet the requirements of the consumer.
There is a lot of things tha logistics management includes, for example:
- delivery management – which means a field that includes procurement management and subcontractors. It deals with methods and processes related to the purchase of goods and raw materials;
- production logistics management – which is all included in production of goods;
- distribution management – it is managing of processes realted to providing buyers with a product with the expected features and quality, in the best place and time, in a convenient and in the best conditions for making a purchase;
- recovery management – it is about returns of goods, waste and secondary raw materials;
- inventory management – it is related to materials management at all levels of processess management;
- transport management – it deals with planning and optimizing the movement of loads – forwarding and storage of products.
The hole process of transportation is looking almost always the same and it is:
- accepting forwarding orders
- choice of means of transports
- preparation of the parcel and shipping documentation
- sending a parcel with shipping documentation
- receipt of a shipment with this documentation
- custom clearance