Logistics is optimizing material delivery to a prescribed destination without compromising on customer satisfaction. The activities listed out under logistics include warehousing, inventory, packaging, integration, transportation, security, information and material handling. Based on the performance value logistics can divided into various fields like production, procurement, pots sales, distribution, and disposal. Production logistics bridges the stages between procurement and distribution. Procurement deals with manufacturing or buying decisions, dealing with suppliers and other management that includes market research. Distribution is related to delivering finished good to the end users. This also deals with processing, storage, and transportation.
Technology has given a new dimension to the logistics industry. There are various issues that can hinder the progress of logistics management. Technology can help visualize the problems through analysis using software. The need for software arises due to the complexities in the field. Supply and demand problem can be solved using the effective software. The issues are not restricted to product delivery it can also start at the production stage. The operational and maintenance cost is another challenge. The efficiency of logistics demands on sustainability and reliability. Poor logistic methods can lead to poor performance resulting in heavy losses.
The major challenge that logistics company face includes procuring and distributing raw materials and finished products. This includes transportation, shipping, and warehousing. The complexities in delivery have made logistics business challenging. Logistics is important to the modern society as it is related to the transportation services. Raw materials and finished goods have to be transported between production centers to distributions centers. In between it has to connect to transportation terminals. Moving waste to dumpsites is also part of logistics management. Any movement of goods from one location to another is termed as logistics. It is part of the supply chain and is a value added service. Time is a major constraint when it comes to logistics.