Logistics is the management of the flow of goods between the point of origin and the point of destination in order

to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and often security. Today the complexity of production logistics can be modeled, analyzed, visualized and optimized by plant simulation software, but is constantly changing. This can involve anything from consumer goods such as food, to IT materials, to aerospace and defense equipment.

Main logistics targets

Logistics is one of the main functions within a company. The main targets of logistics can be divided into performance related and cost related. They are high due date reliability, short delivery times, low inventory level and high capacity utilization. But when decisions need to be made, there is always a trade-off between these targets. This is what makes being a logistician challenging and interesting.

Logistics viewpoints
Inbound logistics is one of the primary processes and it concentrates on purchasing and arranging inbound movement of materials, parts and/or finished inventory from suppliers to manufacturing or assembly plants, warehouses or retail stores. Outbound logistics is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user.

Logistics Fields
Given the services performed by logistics, one can distinguish the main fields of it as it follows: Procurement Logistics Production Logistics Distribution Logistics After sales Logistics Disposal Logistics

Procurement Logistics consists of activities such as market research, requirements planning, make or buy decisions, supplier management, ordering, and order controlling. The targets in procurement logistics might be contradictory - maximize the efficiency by concentrating on core competences, outsourcing while maintaining the autonomy of the company, and minimization of procurement costs while maximizing the security within the supply process. Production Logistics connects procurement to distribution logistics. The main function of production logistics is to use the available production capacities to produce the products needed in distribution logistics. Production logistics activities are related to organizational concepts, layout planning, production planning, and control. 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 differs with the time, place, and quantity of consumption.

Disposal Logistics' main function is to reduce logistics cost(s), enhance service(s), and save natural resources.

Business logistics

A logistics provider's warehouse of goods being stacked on pallets with a forklift.

Logistics as a business concept evolved in the 1950s due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for experts called supply chain logisticians. Business logistics can be defined as "having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer", 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 (see supply chain management). The main functions of a qualified logistician include inventory management, purchasing,transportation, warehousing, consultation and the organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions to coordinate resources in an organization. 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.

Logistics management
Logistics 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 customer and legal requirements. A professional working in the field of logistics management is called a logistician. Logistics management is known by many names, the most common are as follows: Materials Management Channel Management Distribution (or Physical Distribution) Business or Logistics Management or Supply Chain Management

The Chartered Institute of Logistics & Transport (CILT) was established in the United Kingdom in 1919 and was granted a Royal Charter in 1926. The Chartered Institute is one of the professional bodiesor institutions, for the logistics and transport sectors, that offers professional qualifications or degrees in logistics management.

Trade logistics
Definition. The management of international flows of goods, and related documentation and payments, with a focus on reducing direct and indirect logistical costs through the simplification/harmonization of procedures and documentation. Overview. The availability of high quality and price competitive trade logistics services (transport, warehousing, distribution, information management) is strongly correlated with country competitiveness. Limited availability of such services lead to reduced trade and in turn to even more limited logistics services. Economy of scale in trade logistics can be substantial. The facilitation of trade and transport by government agencies directly impacts the availability of such services. Regaining trade market share entails a systematic analysis of TTF impediments, using tools such as trade facilitation audits, the measurement of performance enabling cross-country orhistorical comparisons, and the gathering of those statistics and tools used for cargo and vehicle tracking. Developing countries need active strategies to attract trade logistics services that will allow them to expand, particularly when considering the implications of increased security requirements. Systematically addressing existing bottlenecks stemming from lack of harmonization, complex and non transparent requirement, market access failure will facilitate the access of local companies to global supply chains.