Logistics Activity and Concept

1.0 Introduction

1.1 What is Logistics?

Logistics is the process in which responsible for the movement and storage of the material and the finished goods. Thus, it is also a part of supply chain process that plans, executes, and manages the forward and reverse flow and storage of goods, services and related information efficiently and effectively from the point of origin to the point of consumption in order to achieve customers’ contentment. (Logistic and Supply Chain, 2013) Supply chain management is an important part of this process, it responsible on shipping, transportation, receiving, storage and management of all these areas. On the others hand, logistics can be applied to information, transportation, warehousing, inventory, material handling, packaging and security. (The Role of Transportation in Logistics Chain, n.d)

1.2 Importance of Logistics

Logistics is very important for a company as good logistics management bring a lot of advantage. It will maintain organization’s competitive advantage. For instance, competitive advantage over others organizations will be provided by useful business logistic because it provides a process and system to fulfilled customer more efficient and effective than their competitor in the aspect of needs and satisfaction by ensure the inventory be produced, traced, delivered and stored in a way that accommodates an organization’s entire department. As a result, it helps organization to build a good customer relationship which gained competitive advantage over competitor as maintaining a good and loyal customer relationship enable organization to ensure constant business and profit from loyal customer in the future. Also, loyal customers will spread positive words of mouth when the organization fulfilled customer’s needs and satisfaction which eventually helps in growth and advertisement of business in long term. Therefore, delivery of merchandise to customer should be fast, consistent and accurate compare to...