Importance Of Business Logistics

Business logistics refers to a group of related activities all involved in the movement and storage of products and information, from the sources of raw materials through to final consumers and beyond to recycling and disposal. Business logistics is a new term and concept in modern business vocabulary.

For many people, it is often referred to as the "seven rights" provides a good working definition of logistics. Business logistics is also defined as getting the right item in the right quantity at the right time at the right place for the right price to the right customer. Logistics work target to manage the successful achievement of supply chains and resultant process efficiencies. Business logistics has evolved due to the increasing complication

Currently, production processes vary largely in their implementations with most manufacturers having a little of everything, from manual processes to mostly machine-automated processes, encompassing entrenched applications such as SAP and Oracle. If any of these process implementations were designed to offer the visibility needed to support a holistic vision of the whole production line. None were originally built to identify hidden causes of broken processes. While these causes remain hidden their associated processes remain broken, misapplied assets, failure to fulfill with industry policy and unhappy

Such as transportation might be under manufacturing, with completed goods inventory and warehousing under marketing and sales. Therefore management of the logistics system is uncoordinated, diseconomies will be established. For example, manufacturing may prefer to decrease transportation and manufacturing costs by producing and shipping in very large number of amount. Furthermore, in so doing deeply boost the costs of storage and the investment in stock well beyond the amount saved in transportation costs. Proper and well coordination, transportation, manufacturing, storage, and inventory, investment costs could be balanced which would minimized the firm's total cost. The early expansion of business logistics began in the 1950s with a perceptive of the potential for cost savings if the management of the logistical activities was