What is Logistics? Pt 2 of 3

What is Logistics? Pt 2 of 3

9/6/2014 Umut Türker 2749 Times Read

People involved in this combine a professional knowledge of inventory management, purchasing, transportation, warehousing, consultation, and the organizing and planning of these activities. In many ways, business logistics can be thought of as being distribution logistics (see below, and the focus of this post) but on a smaller or more-localized scale.


There are many fields of logistics. I do not want to mention all of them, nor go into detail in the following, but some that are worth knowing are:

Procurement logistics: "Activities such as market research, requirements planning, make-or-buy decisions, supplier management, ordering, and order controlling". Logistics (defined above) is the management of the flow of not only goods, but also non-physical things such as time, information, particles and energy. Procurement logistics is primarily of information.

Green logistics: "Describes all attempts to measure and minimize the ecological impact of logistics activities". If you wanted to use 5,000 old, not fuel-efficient trucks, each spewing noxious chemicals from their exhaust pipes then that certainly would not minimize the ecological impact of the activity.

RAM logistics: "combines both business logistics and military logistics since it is concerned with highly complicated technological systems for which Reliability, Availability and Maintainability [RAM] are essential".

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Distribution logistics: which “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". In other words, getting something from Point A to Point B is not instantaneous. There are no Star Trek computers (yet) that can instantly materialize a piping-hot glass of Earl Grey tea by giving a command to it.

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Production logistics, which connects Procurement logistics to Distribution logistics. Its activities "are related to organizational concepts, layout planning, production planning, and control".