| > | | | | become a source of headache for the manufacturers |
| Logistics refers to the management of flow of | | | | with rising cost of transportation with each passing |
| resources and commodities from their manufacturing | | | | day. For this a proper market assessment of the |
| depots to their point of consumption, keeping in mind | | | | products in the local markets must be made. Besides |
| the demand of local markets. The idea originally | | | | this, the analysis of the set up and design of the |
| cropped up from the military sector where the need | | | | logistic centre is also of paramount importance. There |
| was to keep the armed troops constantly supplied | | | | should also be an accommodation for re-slotting of |
| with ration, arms and ammunition... The management | | | | distribution centres complying with the changing |
| of flow of materials and commodities of their | | | | market statistics. A logistic planner deals with almost |
| manufacturing units to point of consumption with the | | | | all these to come up with solution for business |
| trend of market demand is collectively called logistics. | | | | houses, keeping a fair balance between cost and |
| The concept originally popped up from the military | | | | accessibility to space, access to transportation in the |
| sector where the need was to keep the armed | | | | desired area and labour costs. A study of transport |
| troops constantly supplied with ration, arms and | | | | logistics is all that is required to get the best available |
| ammunitions, when they moved forth from other | | | | strategy to the manufacturers in this respect. |
| base point. It is because an army without a proper | | | | The last century saw a decline in importance of the |
| logistic solution of when and how to transfer | | | | standard methods of transport with the emergence |
| resources to its units is actually defenceless. | | | | of modern systems like JIT, or Just In Time system, |
| In the present times the logistics solutions are applied | | | | which absolutely takes away the intermediaries like |
| to other sectors also such as exports, imports, | | | | warehouses and involves timely deliveries to the |
| customs, manufacturing, wholesaling and mainly in | | | | customer from the manufacturers. This obviously |
| transport business. The increasing complexities of | | | | reduces the time and cost linked to transportation |
| maintaining a smooth supply chain in the global market | | | | and the process of security is also done away with. |
| projected the need of logistics and its emergence as | | | | But in instances where off shoring is required, |
| a booming business. It primarily includes devising and | | | | warehousing is a necessity. For this reason any |
| implementing a plan for the transport of goods for | | | | logistics planner has to note all the factors before he |
| business houses to match demand and supply. | | | | can come up with the best possible location for the |
| Especially, providing the best possible transportation | | | | warehouses. A recent concept where retailing has |
| solution is the top consideration of a logistic process. | | | | been done from the warehouse itself is now very |
| A warehouse management system forms the central | | | | well liked. The idea of using a warehouse for retail |
| kiosk of such a supply chain, governing the receipt, | | | | purposes is quite appealing to the manufacturers as it |
| storage and movement of materials within a | | | | considerably reduces the cost to the consumer and |
| warehouse and involving processes like transactions, | | | | as well raises the production sales ratio. |
| shipping, receiving, picking, loading, unloading, etc. | | | | The impact of internet and e-commerce is also |
| Today inventory planning, cost management and | | | | undeniable. Selling over the web requires a good |
| communication technology also make up a part of | | | | network of delivery system and the cost of opening |
| logistics solution for transportation businesses. | | | | a prevalent chain of retail outlets can also be saved |
| Reaching to the customer with maximum | | | | with the warehouses becoming storage depots only. |
| effectiveness with the least effort and cost has | | | | |