The Importance of Logistics Function in Organizations: An

Overview
Logis&cs approach is being recognizing as the protability poten&al form by an increasing
number of companies which are varies from well-established basic manufacturing rms to
consumer products companies to high-tech business to service companies. Now a days it has
become interes&ngly to hold the ow of problems moving eciently from the end of the
manufacturing line to the consumer. Moreover, business is now mostly centered about
distribu&on. However at the very beginning stage of distribu&on stage the warehousing of
stocks at dierent points to meet sales needs become more popular. However, issues of cost in
areas of logis&cs brought to the aEen&on of many rms and become concerned for decreasing
sure cost to have more eec&ve controls. Moreover, incorpora&on of quan&ta&ve analysis in the
logis&c area because of the emphasis upon cost and the computer enables people in the
logis&cs area to analyze problem,contribute to the emergence of logis&cs. However, logis&cs
organiza&on are evaluated with in three stages like primary integra&on, func&on integra&on and
total integra&on stage. Any way, it is recognized that, the logis&cs manager can control all the
costs associated with the logis&cs func&on that is the integra&on of materials management and
physical distribu&on. Moreover, materials management(MM) and Physical distribu&on(PD) are
conical as the element of logis&cs. Besides these the successful management of logis&cs in an
organiza&on requires the careful coordina&on and manipula&on of both movement and storage.
Companies may nd it convenient to view their logis&cs system from these two perspec&ve and
it is necessary to develop dierent management approaches for each may result. However,
frequent analysis and improved service is closely related with the logis&cs. Again the
movement of goods and stopped for storage is also essen&al in this regard. However, the
complexity of logis&c system is oOen a direct rela&onship to the variety of &me and distance
rela&onship between the nodes and the links and the degree of regularity and predictability as
well as the volume of the ow of goods entering, leaving and with in the system.
The source of compe&&ve advantages are the ability of the organiza&on to dierent itself to the
consumer from other compe&tors and opera&ng business at a lower east and hence at a grate
prot. Commercial success can be obtained either from a cost advantage or a value advantages.
However, the cast-eec&ve management of these fundamental ac&vi&es will provide
compe&&ve advantage over other.
Mee&ng customer needs and wants, achieving and anoin&ng long-term protability and
integra&ng marke&ng with the other func&ons in the company are considered as the necessary
condi&on for piling the marke&ng service may aected all areas with in a rm. Beside, the
aspects of customer service under the control of the rm logis&cs func&on is also important in
the context. The level of logis&cs service provided is a basic product quality similar to price and
other physical characteris&cs. Besides &me factor is usually viewed as order cycle &me.

However, product iden&ca&on must be simplied so the the chances for an order picker to
make an error are reduced. Besides, the formal feedback method usually involves some
mechanism, possibly a short ques&onnaire or a response card that obtains the desired
informa&on regarding &me, safety and order lling dependency. Besides, logis&cs manages will
be unable to provide the most eec&ve and economical service if customer contact is not
available. Logis&cs contributes to customer service by inuencing both inrm ac&vi&es and
economic ac&vi&es. Again customer include internal customer, intermediaries and ul&mate
users. However if the issue of eciency which is measured by by cost then an individual part of
the system may not be opera&ng at its lowest cost by not contribu&ng to the system. Beside,
the physical addi&on is extended by logis&cs to the economic value of goods or service by
moment from points of excess to points of demand are known as place u&lity.
Again, &me u&lity also important in this regard. The &me, when, good and service are available
at the point at the &me of its demand is called &me u&lity or the economic value added to a
good or service by having it at a demand point at the &me desired. Moreover logis&c
contributes to the volume and variety of goods available to consumers in areas for remove
where they are produced. It also contribute to lower prices for goods. To reduce produc&on cost
logis&c system enable rms to extend their market in &me and space. Resistance from exis&ng
departments and the dispute among the departments are considered as the main problem in
this regard. However, as now a days most of the third world countries experience economic
progress and industrializa&on, they have become increasingly aware of the importance of
managerial skills and compliance for their na&onal development programs. This issue has oOen
let to the local establishment of business school modeled on those in the USA and other
industrialized countries. Most of the third world countries economies reect a sellers market
environment and governments exercise strong controls over economical and business ac&vi&es.
Besides, customer service issues frequently present the most overwhelming problems for
logis&cs managements and consultant in the third world. Chronic shortage of foreign exchange,
ra&oning implies the replenishment rates, transport and network congura&on etc. are the
main problem in this world countries logis&cs system is not valid. However, the ex-tensive
government control of business ac&vi&es, including distribu&on and the prevalence of economic
scarily problems of credibility for the educa&on when text-materials do not correspond with the
third world countrys reality. In Bangladesh, a survey has been conducted of the country in this
regard through a structural ques&onnaire. Most of the countries deal with all logis&c ac&vi&es
regularly some companies do not recognized that logis&cs management needs to have a
separate areas like other func&onal area. Besides, the area of logis&cs management is not well
organized in Bangladesh. However, ecient management of logis&cs is not possible un&l and
unless it gets separate states. Eec&ve planning is necessary for func&onal integra&on of
business areas.