Logistics and
Material Handling
Logistics and Supply Chain services are
provided by a wide range of suppliers. Logistics is the science of managing
and controlling the flow of goods, energy, information and other resources
like products, services and people from the source of production to
the marketplace.
It is difficult or nearly impossible to accomplish any international
trading, global export/import processes, international repositioning
of raw materials/products and manufacturing without a professional logistical
support.
It involves the integration of information, transportation, inventory,
warehousing, material handling, and packaging. The operating responsibility
of logistics is the geographical repositioning of raw materials, work
in process and finished inventories where required at the lowest cost
possible.
Logistics is an idea considered
to have transformed from the military's need to supply themselves as
they moved from their base to a forward position. In ancient Greek,
Roman and Byzantine empires, there were military officers with the title
‘Logistikas’ who were responsible for financial and supply distribution
matters.
Logistician is the profession
in the logistics & transport sectors, including sea, air, land and rail
modes. Professional qualifications for the logisticians can carry post-nominal
letters.
In military logistics,
experts manage how and when to move resources to the places they are
needed. In military science, maintaining one's supply lines while disrupting
those of the enemy is a crucial—some would say the most crucial—element
of military strategy, since an armed force without food, fuel and ammunition
is defenseless.
Logistics management is
that part of the supply chain which 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. A professional
working in the field of logistics management is called a logistician.
The Chartered Institute
of Logistics & Transport (CILT) was established in the UK 1919 and was
granted the Royal Charter in 1926. The Chartered Institute is one of
professional bodies or institutions for the logistics & transport sectors,
that offers such professional qualification or degree in logistics management.
Logistics as a business concept evolved only in the 1950s. This was
mainly due to the increasing complexity of supplying one's business
with materials and shipping out products in an increasingly globalize
supply chain, calling for experts in the field who are called Supply
Chain Logisticians.
This can be defined as
having the right item in the right quantity at the right time at the
right place for the right price and is the science of process and incorporates
all industry sectors. The goal of logistics work is to manage the fruition
of project life cycles, supply chains and resultant efficiencies.
In business, logistics
may have either internal focus (inbound logistics), or external focus
(outbound logistics) covering the flow and storage of materials from
point of origin to point of consumption.
There are two fundamentally different forms of logistics. One optimizes
a steady flow of material through a network of transport links and storage
nodes. The other coordinates a sequence of resources to carry out some
project.
The term is used for describing
logistic processes within an industry. The purpose of production logistics
is to ensure that each machine and workstation is being fed with the
right product in the right quantity and quality at the right point in
time.
Manufacturing in an existing plant is a constantly changing process.
Machines are exchanged and new ones added, which gives the opportunity
to improve the production logistics system accordingly. Production logistics
provides the means to achieve customer response and capital efficiency.
Production logistics is
getting more and more important with the decreasing batch sizes. In
many industries (e.g. mobile phone) batch size one is the short term
aim.
This way even a single
customer demand can be fulfilled in an efficient way. Track and tracing,
which is an essential part of production logistics - due to product
safety and product reliability issues - is also gaining importance especially
in the automotive and the medical industry.
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