The term 'Logistics' derived from the ancient Greek word 'λόγoς'
('logos'—meaning 'ratio, word, calculation, reason, speech, oration'),
is considered to have originated for the military's need. Although quite
an old concept, the term 'Logistics' started to be used widely in the
business world since the early 1990s when globalization, coupled with
liberalisation, triggered intense business competition and forced both
private and public firms to commit themselves to meet the challenges of
the market.
Logistics management also known as Supply Chain Management (SCM) is
all the activities that take place to get a product in your hands –
from the time of raw materials extraction to the minute you pay money
or use your credit card to buy the final product. SCM focuses on planning
and forecasting, purchasing, assembling the product, moving, storing and
keeping track of a product as it flows toward you and other consumers.
In other words, Logistics management is that part of the supply chain
which plans, implements and controls the efficient, effective forward
and reverse flow of goods & services, its storage and related information
between the point of origin and the point of consumption in order to meet
customer and legal requirements. Logistics is a channel of the supply
chain which adds the value of time and place utility. In an increasingly
globalized supply chain, it has become necessary for businesses to provide
their customers 'the right item in the right quantity at the right time
at the right place at the lowest cost'. Importantly, it also includes
coordination and collaboration with channel partners, which can be suppliers,
intermediaries, third party service providers, and customers.
A logistic manager is responsible for collaborating with the other officers
of the company such as purchasing officers, transport and warehouse managers,
to ensure that the goods produced by the company are received in the company's
depot on time. A logistic manager is also responsible for making sure
that the goods are stored in a proper and safe manner in addition to looking
after their timely dispatch to outlets. In essence, supply chain management
integrates supply and demand management within and across companies. A
professional working in the field of logistics management is called a
Logistician.
