Logistics y Transport

2. LOGISTICS
Defined Planning implementing and controlling the physical flow of material and
finished goods from point of origin to point of use to meet customer`s need at a
profit.
It is essentially a planning process and an information activity.
So A integrative process that optimizes the flow of material and supplies through
the organization and its operations to the customer.

3. The word logistic has originated from Greek word ‘Logistikos’ and the Latin word
‘Logisticus’ which means science of computing & calculating
In ancient times it was used more in connection with moving armies, the supplies
of food & armaments to the war front.
During World War II logistics gained importance in army operations covering the
movement of supplies , men & equipment across the border.
Today.
It has acquired the wider meaning and is used in the business for the movement
of material from suppliers to the manufacturer and finally the finished goods to
the consumers.

4. Scope of Logistic
It s of critical importance to the organization how it delivers products & services
to the customer , whether the product is tangible or intangible.
Effective & efficient Physical movement of the tangible product will speak of
intangible services associated with the product and the organization which is
delivering it.
In Case of intangible product , the delivery of tangibles at the right place & right
time will speak about its quality.
On the macro level infrastructure such as Various modes of transport ,
transportation equip., storage facilities, connectivity & information processing
are contributing to a larg3e extent in the physical movement of goods produced
in manufacturing , mining & agriculture Sectors.

5. Logistic –A system approach
Logistic recognizes that all the activities of material movement across the
business process are interdependent and needs close coordination and these
are to be maintained as a system and not the functional Silos.
System is shown as logistic Mix including following functional Areas
Order Processing
Information Flow
Warehousing
Inventory control
Packaging
Transportation

6. Information FlowIt is basically information based activity of inventory movement
across the supply chain. Hence role of information system plays a vital role in
delivering superior customer service.
This function is required to facilitate the following information needs.
Order Registration .
Order checking & editing.
Order processing.
Coordination means to integrate the total supply chain of the company with
informational needs as to time ,quantity, value, Lead time, rate of consumption,
delivery schedule & price of the material, Transportation time & cost etc.

7. Warehousing
A storage place wherein finished goods are stored till they are sold. Effectiveness
of an organization`s marketing strategy depends on making the right decision
regarding warehouse.
Nowadays .
Warehouse are treated as switching facilities rather than storage place.
It is a major cost center, many customer problem are the direct result of improper
warehousing management.
Major decision of ware house are as follows:
-Location ,Size & Number of warehousing facilities.
-Warehouse layout.
-Design of building
-Ownership of the warehouse

9. INTERRELATIONSHIPS BETWEEN TRANSPORTATION AND LOGISTICS
Without well developed transportation systems, logistics could not bring its
advantages into full play. Besides, a good transport system in logistics activities
could provide better logistics efficiency, reduce operation cost, and promote
service quality.
The improvement of transportation systems needs the effort from both public and
private sectors.
A well-operated logistics system could increase both the competitiveness of the
government and enterprises.

11. The Effects of Transportation on Logistics Activities Transportation plays a connective role
among the several steps that result in the conversion of resources into useful goods in the
name of the ultimate consumer.
It is the planning of all these functions and sub-functions into a system of goods movement
in order to minimize cost maximize service to the customers that constitutes the concept of
business logistics.
The system, once put in place, must be effectively managed.
Traditionally these steps involved separate companies for production, storage,
transportation, wholesaling, and retail sale, however basically, production/manufacturing
plants, warehousing services, merchandising establishments are all about doing
transportation.

13. Production or manufacturing plants required the assembly of materials, components, and
supplies, with or without storage, processing and material handling within the plant and
plant inventory.
Warehousing services between plants and marketing outlets involved separate transport.
Merchandising establishments completed the chain with delivery to the consumers.
The manufacturers limited themselves to the production of goods, leaving marketing and
distribution to other firms. Warehousing and storage can be considered in terms of services
for the production process and for product distribution.
There have been major changes in the number and location of facilities with the closure of
many single-user warehouses and an expansion of consolidation facilities and distribution
centres.
These developments reflect factors such as better transport services and pressures to
improve logistics performance.

14. TRANSPORT is responsible for the physical movement of materials between
points in the supply chain
At the heart of logistics are transport vehicles moving goods between suppliers and
customers