Friday, 1 August 2014

What are the Aims and Purpose of Logistics?

Logistics or supply chain management is necessary to please the customer. It’s the movement and time related positioning of materials and resources and the management of the supply chain.

The purpose of the supply chain is to overcome the gaps that are found between the suppliers and the customers. It is thanks to logistics that best operations that are performed far distances away from the customers or suppliers can be used. Overcoming the physical differences makes things possible, it saves money, ensures the best product and benefits economies.  Here are other purposes of the supply chain:
  • Logistics work towards ensuring customer’s satisfaction. Organisations are able to provide a high level of customer service while balancing the costs involved.
  • Space gaps are filled when the customers is far away from the suppliers
  • The supply chain covers gaps in time between goods being produced and when customers require the goods.
  • The gaps in quantity are covered when goods are mass produced but customers only buy them one at a time.
  • The variety gap - When customers want a good variety of products that cannot be found from a single supplier.
  • The supply chain overcomes the gaps in information that inform customers of products or manufacturers of customers and demand.
This is the aim of logistics, getting the right materials to the right place at the right time at the right cost and from the right source in the right quantities.

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