Logistics management tries to have the right product,

in the right quantity, at the right place, at the right

time, with the right cost
Logistics = Supply + Materials management +
Distribution

COMPONENTS OF LOGISTICS
Logistics' components are the foll:1. Procurement
2.Manufacturing
3.Distribution
4.Storage and warehousing
5.Information systems and management
6.Customer service

Procurement
Procurement logisticsconsists of activities such
asmarket research, requirements planning, make-orbuy decisions, supplier management, ordering, and
order controlling.
The targets in procurement logistics:maximizing
efficiency by concentrating on core competences,
outsourcing while maintaining the autonomy of the
company, or minimizing procurement costs while
maximizing security within the supply process.

Inventory
Inventory managementis primarily about specifying the
size and placement of stocked goods
Systems and processes that identify inventory
requirements, set targets, provide replenishment
techniques and report actual and projected inventory
status

Inventory
Inventory management is animportant because inventories are
usually the largest expense incurred from business operations
Most companies will use an inventory management system that will
track and maintain the inventory required to meet customer demand.
A truly effective inventory management system will minimize the
complexities involved in planning, executing and controlling a supply
chain network which is critical tobusiness success.

Transportation
Logistics in this case details out the mode of
transportation from the vendor, the consignment
planning, process for order trigger, consolidation of
shipments, detailing transportation modes and vendors,
defines transit times, documentation process and
implements the plan, controls and monitors the flow of
goods from point of origin up to the point of delivery to
the plant for production.

Transportation
Key modes
1. Air
2. Land
3. Sea
4. Rail

Warehousing
Space determination,
stock layout,
configuration,
stock placement)

Value Added Logistics