Logistics Defined

The word logistics traces its origin to the Greek word logistikos and the Latin word logisticus, mean­ing the science of computing and calculating. In ancient times, the term was frequently used in connection with the art of moving armies and supplies of food and armaments to the war front. The use of this word can be traced back to the seventeenth century in the French army. But during World War II, logistics gained importance in army operations as a term referencing the movement of supplies, men, and equipment across the border. The US army officially used the word “logistics” after World War II. Today logistics has acquired a wider meaning and is used in business to refer to the movement of raw materials from suppliers to the manufacturer and, finally, the movement of finished goods to the consumers.

Logistics is also referred to as a physical distribution. Philip Kotler defines logistics as “Plan­ning, implementing, and controlling the physical flows of materials and finished goods from point of origin to point of use to meet the customer’s need at a profit.”1 The American Council of Logis­tics Management defines logistics as “the process of planning, implementing and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customers’ requirements.”2

Logistics management is basically an integrative process which optimizes the flow of mate­rials and supplies through an organization and its operations to the customer. Martin Christo­pher says that “logistics is essentially a planning process and an information-based activity.”3 It is also described by Philip Scary as “the corporate traffic cop” directing flow of material from the source through production and distribution to the final customer. The ultimate objective of a logistics function is to support corporate goals by delivering products to the consumer at the time and place of his choice. However, this objective must be balanced against the cost of providing service.

Source: Sople V.V (2013), Logistics Management, Pearson Education India; Third edition.

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