Major reasons why some companies collapse are due to inadequate storage facilities and inadequate supply to meet customers’ needs. Engaging a logistics firm is a vital solution to end these problems.
Logistics is an important aspect that keeps organization going. It helps the organization to store the materials required for production and supply it afterwards, when needed for production process. It also, provides storage facilities for the organization to store its products. More also, it may help the organization to supply its finished goods to their various customers. Nevertheless, it keeps a detailed list of all the items in stock for the organization.
It may also, provides inventory control service to the organization by supervising the supply and storage and ensuring accessibility of items in order to insure an adequate supply without excessive supply. It also, gives a detail report of inventory to the organization for decision making
Logistics is concerned with the management of the movement (i.e. transportation) and storage of organization materials and finished goods or inventory.
According to the council of supply chain management professionals (CSCMP) defined logistics management as that part of supply 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 requirements.
In a simple language, logistics means having the right thing at the right place and at the right time.
An objective of a logistics firm is to deliver finished inventory and materials assortments, in a correct quantity and in a usable condition when required to the right location where they are needed and more importantly, at the lowest total cost.
However, according to Coyle, Bardi and Lanley they classified logistics into four (4) subdivisions which are:
- Business logistics.
- Military logistics.
- Event logistics and
- Service logistics.
Business logistics: This is well defined in the definition given by the council of supply chain management professionals (CSCMP). However, it can also, be defined as a business planning framework for the management of materials service, information, communication and capital flow. It includes the increase complex information and control system required in today’s business environment. (Logistics Partners Linki; Pl 1996).
Military logistics: This refers to all that is necessary to support the operational capability of military forces and their equipment in order to ensure the readiness, reliability and efficiency.
Event logistics: Management of all involved activities, facilities and personnel by organizing, scheduling and deploying the resources necessary to ensure the occurrence of an event and efficient withdrawal afterwards. Event logistics ensure that a program is well planned and enjoy by all participants.
Service logistics: Acquisition, scheduling and management of facilities personnel and materials needed to support and sustain a service operation.