Logistics deals with the flows of goods, money and information between both the supplier and the customer, as well as within individual companies, including various systems of inventory storage. The purpose of the industry is to optimize these flows so that they represent for the enterprise the least cost.
In the 19th century, the economy was closed and the exchange of goods between enterprises limited, but the material shifts were in the military a necessity. Therefore, it can be said that logistics was founded in the army.
Logistics currently represents the management of transport and storage activities of the organization, and includes the management of material, information and financial flows in order to satisfy customer requirements.
The aim of logistics is to ensure that the right customer at the right time receives at the right time and right place the right goods or services at the right quality and right quantity. All this, at a reasonable cost.
Related terms and methods:
- DBR (Drum Buffer Rope)
- FEFO (First Expired First Out)
- FIFO (First In First Out)
- HIFO (Highest In First Out)
- JIT (Just-in-time)
- LIFO (Last In First Out)
- SCOR Model
- TOC (Theory of Constraints)
Related management field: