Logistic

Logistics: Activities, Concept and Technology

Logistics Defined

Logistics activities have always been vital for an organization as it represents the synthesis of many core activities such as marketing, production, accounting, purchasing, and transportation. In modern trends, the terms of logistics and supply chain has been used interchangeably as both terms are interrelated to each other.

The term “logistics” has its origin from military. It defines the process of supplying a theater of war with sufficient troops, equipment and supplies (Stroh, 2007). Nowadays, in business we borrowed this term and coined it as “business logistics”. Business logistics has been defined as

“that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements” (CSCMP, 1991).

Additionally, Tilanus (1997) explained that logistics can be separated into four key terms, which are inbound logistics, materials management, physical distribution and supply chain management. Each of the key terms has its own meaning.

* Inbound logistics involves the movement of materials from suppliers.

* Materials management refers to the movement of materials and component within an organization.

* Physical distribution which is associate with the distribution of the end product to the customers.

* Supply chain management which directly communicate the needs of customers to the the organization’s staffs.

Based on the definition which were provided from the sources, we can deduce that logistics is the process of handling materials from the beginning till the end of production, in order to satisfy customer’s needs and to add value to the organization in order to increase the business entity’s competitiveness.

In a more simple term, logistics is the management of customer-oriented...