Logistics is the overall process of managing how resources and acquired, stored, and

Transported to their final destination. Logistics Management involves identifying

prospective distributors and suppliers and determining their effectiveness and
accessibility. Logistics Managers are referred to as logisticians.
Logistics’’ Was initially a Military -based term used in reference to how military
personnel obtained, stored and moved equipment and supplies. The term is now used
widely in the business sector, particularly by companies in the manufacturing sectors,
to refer to how resources are handled and moved along the supply chain.
The following are the importance of Logistics in Business
It leads to ultimate consummation of the sales contract. The buyer is not interested in
the promises of the seller that he can supply goods at competitive price but that he
actually does so. Delivery according to the contract is essential to fulfilling the
commercial and legal requirements. In the event of failure to comply with the
stipulated supply of period the seller may not only get his sale amount back, but may
also be legally penalized, if the sales contract so specifies. There is no doubt that
delivery schedule is a good promotional strategy when buyers are reluctant to invest
in warehousing and keeping higher level of inventories. Similarly,better and / or
timely delivery helps in getting repeat orders through creation of goodwill for the
supplier.
It creates time and place utilities in the products and there by helps in
maximizing the value satisfaction to customers. By ensuring quick deliveries in
minimum time and cost, it relieves the customers of carrying inventory, material
handling, transportation and other related activities of distribution.

Inflows
You need supplies, raw materials and information flowing into your business so you can use them to
create or deliver your products or services. If a delivery comes late or a computer goes down when
you are expecting vital information, your logisitics are not working. You either need to become a
logistics expert or hire one to make sure you get what you need on time. If you provide an office
cleaning service, for example, and your cleaning supplies don’t arrive on time, you can’t clean
offices that depend on you.
Internal Flow
Supplies, materials and information flow through your company once they arrive. They must arrive
on time at various workstations, desks and offices so your employees can use them. For example,
the financial background check you perform on a company cannot be delayed if the officer
approving credit for the company has to meet a deadline.

Storage and Retrieval

Some items come into your company and must be stored until needed. Physical products and
supplies must be stored, and information must be filed electronically or physically. When you need
these items, you must have a system for identifying and retrieving them. If a customer places a
special order for a product and the warehouse supervisor stores it until you receive payment, you
must be able to count on the supervisor to find the item when you are ready for it.

Outlfow
You make a living delivering your product or service to your customers. That’s what they pay for.
Whether you ship, deliver, transmit or physically go to a customer’s home or business to perform a
service, you cannot afford any glitches in this function. If a vital machine part for the repair of a
customer’s air conditioning arrives, you must see that it gets delivered to the customer’s site and
that an installer is there at the same time to install it.