We have never had a better understanding of the significance of logistics than we have now. In 2021, the world was experiencing a worldwide shipping crisis, which is disrupting supply chains worldwide. In the wake of the Covid-19 epidemic, widespread supply chain delays have affected everything from holiday shopping to the menus of homes and businesses.
Management of the flow of products from supplier to consumer is a critical function concerned with the planning, coordinating, and executing of an efficient and cost-effective movement of commodities. The role of logistics management in supply chain management is crucial to the success of any firm when it comes to product fulfillment, service quality, and cost-saving opportunities.
What is logistic?
In most cases, logistics refers to the precise planning, organization, and execution of a complicated operation. In general marketing prudence, logistics is the management of the progression of goods between the place of origin and the point of consumption to suit the needs of customers or business partnerships, according to the definition.
The resources handled by logistics businesses may include physical objects such as materials, hardware, supplies, and consumable items such as food and other consumable items, among other things.
Types of logistic:
There are many different types of logistics. Since you now understand the concept and definition of logistics, you should also know the many logistics forms. Listed below are the most common forms of logistics:
· Inbound Logistics
· Outbound Logistic
· Logistics Provided by a Third Party (3PL)
There are several more varieties in addition to these, but these five are the most often seen.
Inbound logistics
As the name implies, inbound logistics is concerned with the operations associated with the incoming flow of resources required to manufacture a product or provide a service. Within inbound logistics procedures, you may be responsible for overseeing suppliers, prices, inventory, and transportation to guarantee that the correct components or subassemblies arrive at your facility on schedule. Inbound logistics is often more complicated than outgoing logistics since hundreds of pieces are brought in to make a single finished product; as a result, it is more sophisticated than outbound flow.
Outbound Logistics
Outbound logistics is the process of delivering a product to a client on schedule and in the manner that was agreed upon. Customer satisfaction is the primary goal here, and the logisticians make certain that the product is delivered securely and at the lowest possible cost.
For example, if your firm deals in footwear, the outbound logistics function in your organization will be responsible for the shipment of the finished product, such as shoes, sandals, slippers, and other similar items, to your clients.
Reverse logistics
Reverse logistics is the process of transporting things from their final destination back to their point of origin to recover value or dispose of them properly. The value of items recovered from consumers is recouped via rework, refurbishment, reuse, scrap recycling, or government incentives for recyclable products, among other recovery methods.
Third party logistics
Third-party logistics might be difficult to understand for businesses. The third type of logistics is transportation. Logistics refers to all aspects of the supply chain involved in the planning, execution, and management of the movement of products and services to satisfy customers’ demands. A third-party logistics provider is a firm contracted to provide logistical services on a third-party basis.
These services may include any administrative activities and the different methods through which an organization transfers resources from one site to another one. It includes tasks such as transportation, storage, and manufacturing.
Distribution Logistics
Distribution logistics, the fifth category of logistics, includes the scheduling of errands, control, and all activities connected to the movement of products and information between manufacturing organizations and their customers. Distribution logistics is the link or interaction that exists between the market and the manufacturing process (also known as transport logistics or sale logistics).
The zone encompasses all of the operations associated with product distribution, from manufacturing to the point of consumption. It guarantees that finished products and services reach their destinations safely and on schedule when it comes to manufacturing. Customers interested include final consumers, wholesalers, distributors, and processors.
