Logisticsisthemanagementoftheflowofgoods,informationandotherresources,includingenergyandpeople,betweenthepointoforiginandthepointofconsumptioninordertomeettherequirementsofconsumers(frequently,andoriginally,militaryorganizations).Logisticsinvolvetheintegrationofinformation,transportation,inventory,warehousing,material-handling,andpackaging.
Originsanddefinition:
Theterm"logistics"originatesfromtheancientGreek"λόγος"("logos"—"ratio,word,calculation,reason,speech,oration").
Logisticsisconsideredtohaveoriginatedinthemilitary'sneedtosupplythemselveswitharms,ammunitionandrationsastheymovedfromtheirbasetoaforwardposition.InancientGreek,RomanandByzantineempires,thereweremilitaryofficerswiththetitle‘Logistikas’whowereresponsibleforfinancialandsupplydistributionmatters.
TheOxfordEnglishdictionarydefineslogisticsas:“Thebranchofmilitarysciencehavingtodowithprocuring,maintainingandtransportingmaterial,personnelandfacilities.”Anotherdictionarydefinitionis:"Thetimerelatedpositioningofresources."Assuch,logisticsiscommonlyseenasabranchofengineeringwhichcreates"peoplesystems"ratherthan"machinesystems".
Logisticsmanagement:
Logisticsmanagementisthatpartofthesupplychainwhichplans,implementsandcontrolstheefficient,effectiveforwardandreverseflowandstorageofgoods,servicesandrelatedinformationbetweenthepointoforiginandthepointofconsumptioninordertomeetcustomers'requirements.Aprofessionalworkinginthefieldoflogisticsmanagementiscalledalogistician.
TheCharteredInstituteofLogistics&Transport(CILT)wasestablishedintheUnitedKingdomin1919andwasgrantedtheRoyalCharterin1926.TheCharteredInstituteisoneofprofessionalbodiesorinstitutionsforthelogistics&transportsectors,thatofferssuchprofessionalqualificationordegreeinlogisticsmanagement.
Businesslogistics:
Logisticsasabusinessconceptevolvedonlyinthe1950s.Thiswasmainlyduetotheincreasingcomplexityofsupplyingone'sbusinesswithmaterialsandshippingoutproductsinanincreasinglyglobalizedsupplychain,callingforexpertsinthefieldwhoarecalledSupplyChainLogisticians.Thiscanbedefinedashavingtherightitemintherightquantityattherighttimeattherightplacefortherightpriceandisthescienceofprocessandincorporatesallindustrysectors.Thegoaloflogisticsworkistomanagethefruitionofprojectlifecycles,supplychainsandresultantefficiencies.
Inbusiness,logisticsmayhaveeitherinternalfocus(inboundlogistics),orexternalfocus(outboundlogistics)coveringtheflowandstorageofmaterialsfrompointoforigintopointofconsumption(seesupplychainmanagement).Themainfunctionsofaqualifiedlogisticianincludeinventorymanagement,purchasing,transportation,warehousing,consultationandtheorganizingandplanningoftheseactivities.Logisticianscombineaprofessionalknowledgeofeachofthesefunctionssothatthereisacoordinationofresourcesinanorganization.Therearetwofundamentallydifferentformsoflogistics.Oneoptimizesasteadyflowofmaterialthroughanetworkoftransportlinksandstoragenodes.Theothercoordinatesasequenceof