Documente Academic
Documente Profesional
Documente Cultură
LOGISTICS
DEFINITION : A system of handling the physical movements of goods and services from the place of origin to the destination as fast as possible at a low cost and with safety and security.
CUSTOMERS
RETAILERS
WHOLE SELLERS
Meaning of logistics
Logistics involves 3 broad interrelated areas of function. Logistics = S + M + D S - Supply M - Materials Management D - Distribution
IMPORTANCE OF LOGISTICS
Cost of logistics main factor in fixing the final price of a product. (specially in bulk cargoes like grains, iron ores, crude) Its the management of cost n time positioning of resources at the R(right) time, in the R place, at the R cost, in the R quality. ( whether a turnkey or supply of medicines) It contributes to a certain % of GDP. (10 15 % in north American, European & Asia pacific economies)
Nature of product
Nature of product determines
The mode of transportation Type of packing Material handling system
For example:
For Diamonds air transport Grains, fertilizers sea transport Perishables careful packing & refrigerated containers Liquids, volatiles, highly inflammables special containers are devised
Hence location of plant in relation to port is an important element of logistics system. It can be close to source of raw material, backward regions, close to ports/air ports, free trade zones or special export zones.
Availability of infrastructure
Infrastructure is the backbone of industry in any country. It includes ;
Good roads Air transport system Inland Waterways system Efficient telecommunication system Modern ports( with capabilities to handle all types of containerized and break-bulk commodities Suitable material handling system
Government Policies
Govt. s export import policies of both exporting and importing countries. Like sales tax, excise duty,MODVAT, octroi, etc. example due to regulations of octroi and motor vehicle act , companies prefer to have warehouses outside city limits. Eg GSP ie exporter can avail of 0% duty on imports, if his products have already reached the host country, and kept in customs bonded warehouses he can take the benefit, it will be cleared without delay. Speed is imp here coz such preferences r given on first come first basis