Logistics


Logistics is the management of the flow of commodities between the point of origin and the point of consumption in order to meet some requirements of the customers and/or corporations.

The resources to be managed in logistics include physical items, such as food, materials, equipment and liquids, as well as abstract items, such as time, information, particles, and energy.

The logistics of physical items usually involves the integration of information flow, material handling, production, packaging, inventory, transportation, warehousing, and often security.

The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The effective and efficient use of resources is the primary motivation in logistics.


Procurement

logistics

consists of activities such as market research, requirements planning, make-or-buy decisions, supplier management, ordering, and order controlling.

Production

logistics

connects procurement to distribution logistics. Its main function is to use available production capacities to produce the products needed in distribution logistics.

Distribution

logistics

has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differ with the time, place, and quantity of consumption.

Reverse

logistics

denotes all those operations related to the reuse of products and materials. The reverse logistics process includes the management and the sale of surpluses, as well as products being returned to vendors from buyers. More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. The opposite of reverse logistics is forward logistics

Green

logistics

describes all attempts to measure and minimize the ecological impact of logistics activities. This includes all activities of the forward and reverse flows. This can be achieved through intermodal freight transport, path optimization, vehicle saturation and city logistics.