Logistics management is the governance of supply chain management functions that helps organizations plan, manage and implement processes to move and store goods.
Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory control, supply/demand planning and management of third-party logistics services providers.
Logistics Management Process
Logistics management generally consists of processes for inbound and outbound logistics traffic. Inbound logistics is the process of moving goods from suppliers into a warehouse, then into a production facility to make products. Inbound logistics can include raw materials, tools, component parts, office equipment and supplies. Outbound logistics is the process of moving finished products out of warehouse inventory and shipping them to customers.
Here are some examples: For a computer manufacturer, inbound logistics might involve electronics parts, computer chips, cables, connectors, molded casings and shipping cartons. Outbound logistics involves the finished computer and associated peripheral devices. Meanwhile, for a furniture manufacturer, inbound logistics could involve wood, glue, fabrics, screws, nails, paint and safety glasses, while outbound logistics would involve the finished furniture.
Logistics processes also include reverse logistics, or the management of all the functions used to return goods and materials. Reverse logistics takes goods from the customer or final destination and returns them to the originating organization, where they can be reused, repaired, re manufactured or recycled.
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