Simple mistakes in logistical operations can make or break a business. Business cannot function without the support of logistics. Business logistics consists of conveyance, inventory, storing, information, material handling, and packaging. Logistics is more people oriented than machine oriented. It involves the geographical movement of resources. The concept was invented in the 1950s due to the difficulties in the transportation of supplies globally. The experts in the field are constantly revamping the structure to suit modern business. Logistics could be internal or external depending on the nature of the business. The role of logistics manager is to procure, warehouse, transport and implement the process. The importance of each of these operations has to be coordinated to realize the organizational goals.
There are two types of logistics, first is fixed course of the subject through a preset transport and warehouse facilities and second is coordinating with performing assets to promote a venture. A business can be placed in a competitive position by having their logistics management in place. The focus is on the relationships that are reinforced through the supply chain to realize the inbuilt potential. Business logistics can be put to practice in any organization irrespective of size. The principles are same for the public sector, private sector, local, domestic, international or manufacturing. During the 1960-70s terms like inbound flow or materials and outbound flow of goods were common. Physical distribution was in practice. Outbound flow is from the manufacturer to the consumer, and the inbound flow is referred as the physical supply of materials to the production end.
All units that produce goods and services need business logistics in place. Transporting finished goods or reaching out services can be realized through business logistics. Logistics can flow in both directions, internally or externally. The role of logistician is to ensure that inputs related to material and information is ready for delivery. It is important to design a logistic system that is better than the competitor to provide customer satisfaction. Providing faster and accurate delivery than the competitor can help your company stay ahead in the market. Superior logistics is a weapon to combat competition and gain customer loyalty.