Comprehensive Overview of Logistics in
Supply Chain Management
Page 1: Introduction to Logistics
What is Logistics?
Logistics refers to the planning, implementation, and control of the movement and storage
of goods, services, and information within a supply chain — from the point of origin to the
final customer — in an efficient and cost-effective manner.
Importance of Logistics
- Enhances customer satisfaction through timely delivery
- Optimizes transportation and warehousing costs
- Increases overall supply chain efficiency
- Supports business expansion and global trade
Key Functions of Logistics
1. Transportation Management
2. Warehousing & Storage
3. Inventory Management
4. Order Fulfillment
5. Packaging and Material Handling
6. Information Flow
Page 2: Types and Components of Logistics
Types of Logistics
Inbound Logistics: Deals with receiving goods and materials from suppliers
Outbound Logistics: Focuses on delivering finished goods to customers
Reverse Logistics: Manages the return of goods from customers for recycling or disposal
Third-Party Logistics (3PL): Outsourcing logistics operations to external providers
Fourth-Party Logistics (4PL): Managing the complete supply chain using a single integrator
Key Components
1. Transportation: Mode selection, carrier contracts, routing
2. Warehousing: Centralized vs. decentralized, layout planning
3. Inventory: EOQ, JIT, demand forecasting
4. Information Systems: ERP, WMS, TMS
5. Customer Service: Fulfillment speed, order accuracy
Page 3: Logistics Processes and Strategies
Logistics Process Flow
1. Procurement and Receiving
2. Warehousing and Storage
3. Inventory Control
4. Order Picking and Packing
5. Shipping and Transportation
6. Last-Mile Delivery
Strategic Approaches
- Lean Logistics: Minimizing waste and improving flow
- Agile Logistics: Responding quickly to market demand
- Green Logistics: Eco-friendly practices and carbon reduction
- Global Logistics: Managing international movement and compliance
Technologies in Logistics
- Barcode & RFID Tracking
- Warehouse Management Systems (WMS)
- Transport Management Systems (TMS)
- Artificial Intelligence & IoT
- Drones and Autonomous Vehicles
Page 4: Logistics KPIs and Performance Metrics
Key Performance Indicators (KPIs)
On-Time Delivery Rate: % of orders delivered as scheduled (Target: > 95%)
Order Accuracy Rate: % of error-free deliveries (Target: > 99%)
Transportation Cost per Unit: Cost incurred per delivery (Lower is better)
Warehouse Utilization Rate: Percentage of storage space used (85–95%)
Inventory Turnover Ratio: Efficiency of inventory usage (Higher is better)
Challenges in Logistics
- Fuel price volatility
- Infrastructure bottlenecks
- Regulatory compliance
- Last-mile delivery issues
- Workforce shortage
Page 5: Case Studies & Future Outlook
Industry Example: Amazon Logistics
Amazon has built a robust logistics network that includes:
- Fulfillment centers across multiple geographies
- Use of AI for predictive inventory placement
- Drone and robotics for warehouse automation
- Dedicated delivery services (Amazon Flex, Prime Air)
Trends in Logistics
- E-commerce growth driving need for rapid delivery
- Automation and robotics improving warehouse efficiency
- Blockchain enhancing shipment transparency
- Sustainability initiatives reducing environmental impact
Conclusion
Logistics is a critical function of modern supply chains. By integrating advanced
technologies, optimizing resources, and adopting sustainable practices, businesses can
enhance logistics efficiency, reduce costs, and improve customer satisfaction.
