Logistics operations are mainly confined to three broad categories. This includes collecting goods from the supplier, warehousing, and delivering to intended consumers.
However, that’s just a very vague definition of everything that goes on at the operational level in logistics.
To begin with, the desired resources are picked up from the supplier, and packaged for transportation. This can be via air, sea, or road. At the destination, the goods are cleared of customs and delivered to the warehouse where they are stored.
While at a storage facility, these goods are checked for quality and are grouped accordingly. Details of the inventory are checked for deficits if any.
In case there is a shortage of goods, replenishing is done. Goods are then sent to stores or wholesalers for distribution. Logistics also covers the returns process.
In short, logistics is responsible for procuring goods from suppliers, managing received goods, and facilitating delivery to end customers.
Supply chain management is driven towards achieving efficiency in its operations and maximizing productivity in an organization. Companies hope to satisfy the demands of people by delivering the right goods to them on time while profiting from doing so.
While streamlining the whole process, supply chain managers ensure that waste is minimized, and there is productive utilization of everyone’s time, allowing the organization to cut costs. All of these smaller goals lead to one ultimate goal, which is to achieve efficiency.