Overview

Dictionary definitions of the term logistics includes 'transport' and 'organization of a project'. The actual definition of the application of logistics varies, but essentially it refers to the management of supply chains and incorporates the movement and storage of goods and their associated information flows, from source to customer.

Logistics is a strand running through all the traditional functional aspects of the supply chain from raw material supply, purchasing and manufacturing, to delivery to the customer. The current concept of logistics flows is the integration of time and space the time materials take to move and the quantity of any material to be moved.

The time and space concept is integrated into the manufacturing environment. Switching to a JIT strategy increases the frequency of deliveries and reduces the amount of material per delivery. AJIT environment is a change in the manufacturing process and material supply, both internally and externally, altering communication flows and the standards of transport service that are required.

The concepts of time and space are key aspects of the logistics system. Current integrated logistics concepts must be responsive to ever increasing market turbulence. The integration of logistics emphasizes the need for companies to remove, or at least alleviate, functional barriers and to focus on streamlined processes designed to meet ever increasing customer and marketplace comparative advantage demands.

Company structures have been developed and are continually being developed to optimize logistics flows, further negating the consequences of fragmentation. Many organizations have appointed logistics directors to realize...