Logistics manages the flow of resources from the point of production to the point of consumption to satisfy the needs of the customers. Some of the major logistics functions include production, procurement, distribution, disposal, and after-sales logistics. In short, logistics manages or facilitates the movement of goods from each stage of creation to shipment.
Logistics is essential to provide excellent customer service. This is because a happy customer will spread the word about the company and bring in more business. Whether the product is damaged during manufacturing, or company forgot to ship/deliver it to the customer, the most important thing for the customer is to receive it in good condition. In order to provide this level of service, the company must prepare their orders quickly, efficiently, and accurately. When it comes to the types of logistics, two main categories stand out are transportation and delivery. Transportation is a function that sends large quantities of goods from the producer to consumer, while delivery is an efficient way to transport small lots of goods.
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The purpose of logistics is to make sure business is prepared for whatever the future brings. The key to a successful logistics program is to constantly improve the process and stay up to date with the latest developments in the market. Logistics has three types; inbound, outbound, and reverse logistics. Inbound logistics is the way materials and other goods are brought into a company. Outbound logistics focuses on the demand side of the supply-demand equation. The process involves storing and moving goods to the customer or end user. Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers; all operations related to the reuse of products and materials.