How Does Logistics Differ From Distribution?

Business Logistics - The science of planning, design, and support of business operations of procurement, purchasing, inventory, warehousing, distribution, transportation, customer support, financial and human resources.

Whereas a third-party logistics 3PL service provider targets a single function, a 4PL targets management of the entire process.


Distribution logistics includes a wide range of activities. These all focus on achieving efficient distribution and movement of finished products. This takes goods from the end of a production line to reach consumers. Aside from that, it provides a wide set of optimization methodologies and tools.
Distribution logistics has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differs with the time, place, and quantity of consumption.
Business Logistics - The science of planning, design, and support of business operations of procurement, purchasing, inventory, warehousing, distribution, transportation, customer support, financial and human resources.
Business Logistics - The science of planning, design, and support of business operations of procurement, purchasing, inventory, warehousing, distribution, transportation, customer support, financial and human resources.
Logistics Basics

What are 'Logistics'


Inbound logistics is one of the primary processes of logistics concentrating on purchasing and arranging the inbound movement of materials, parts, or unfinished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores.

Outbound logistics is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user. Given the services performed by logisticians, the main fields of logistics can be broken down as follows:. Procurement logistics consists of activities such as market research , requirements planning, make-or-buy decisions, supplier management, ordering, and order controlling.

The targets in procurement logistics might be contradictory: Advance Logistics consists of the activities required to set up or establish a plan for logistics activities to occur. Distribution logistics has, as main tasks, the delivery of the finished products to the customer.

It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differs with the time, place, and quantity of consumption. Disposal logistics has as its main function to reduce logistics cost s and enhance service s related to the disposal of waste produced during the operation of a business.

Reverse logistics denotes all those operations related to the reuse of products and materials. The reverse logistics process includes the management and the sale of surpluses, as well as products being returned to vendors from buyers.

Reverse logistics stands for all operations related to the reuse of products and materials. It is "the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.

More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal.

The opposite of reverse logistics is forward logistics. Green Logistics describes all attempts to measure and minimize the ecological impact of logistics activities. This includes all activities of the forward and reverse flows. This can be achieved through intermodal freight transport , path optimization, vehicle saturation and city logistics. RAM Logistics see also Logistic engineering combines both business logistics and military logistics since it is concerned with highly complicated technological systems for which Reliability , Availability and Maintainability are essential, ex: Emergency logistics or Humanitarian Logistics is a term used by the logistics, supply chain, and manufacturing industries to denote specific time-critical modes of transport used to move goods or objects rapidly in the event of an emergency.

Humanitarian logistics involves governments, the military, aid agencies , donors, non-governmental organizations and emergency logistics services are typically sourced from a specialist provider. The term production logistics describes logistic processes within a value adding system ex: Production logistics aims to ensure that each machine and workstation receives the right product in the right quantity and quality at the right time.

The concern is with production, testing, transportation, storage and supply. Production logistics can operate in existing as well as new plants: Production logistics becomes more important with decreasing batch sizes.

In many industries e. Track and tracing , which is an essential part of production logistics due to product safety and reliability issues, is also gaining importance, especially in the automotive and medical industries.

Construction Logistics is known to mankind since ancient times. As the various human civilizations tried to build the best possible works of construction for living and protection. Now the construction logistics emerged as vital part of construction. In the past few years construction logistics has emerged as a different field of knowledge and study within the subject of supply chain management and logistics.

Digital logistics is driven by a new generation of web-based, enterprise logistics applications that enable collaboration and optimization, leveraging a central logistics information backbone that provides visibility across the enterprise and extended supply chain. In military science, maintaining one's supply lines while disrupting those of the enemy is a crucial—some would say the most crucial—element of military strategy , since an armed force without resources and transportation is defenseless.

The historical leaders Hannibal , Alexander the Great , and the Duke of Wellington are considered to have been logistical geniuses: Alexander's expedition, the longest military campaign ever undertaken, benefited consiberably from his meticulous attention to the provisioning of his army, [10] Hannibal is credited to have "taught logistics" to the Romans during the Punic Wars [11] and the success of the Anglo-Portuguese army in the Peninsula War was the due to the effectiveness of Wellington's supply system, despite the numerical disadvantage.

Militaries have a significant need for logistics solutions and so have developed advanced implementations. Integrated Logistics Support ILS is a discipline used in military industries to ensure an easily supportable system with a robust customer service logistic concept at the lowest cost and in line with often high reliability, availability, maintainability, and other requirements, as defined for the project.

In military logistics , logistics officers manage how and when to move resources to the places they are needed. Supply chain management in military logistics often deals with a number of variables in predicting cost, deterioration, consumption , and future demand. The United States Armed Forces ' categorical supply classification was developed in such a way that categories of supply with similar consumption variables are grouped together for planning purposes.

For instance, peacetime consumption of ammunition and fuel will be considerably lower than wartime consumption of these items, whereas other classes of supply such as subsistence and clothing have a relatively consistent consumption rate regardless of war or peace. Some classes of supply have a linear demand relationship: Other classes of supply must consider a third variable besides usage and quantity: As equipment ages, more and more repair parts are needed over time, even when usage and quantity stays consistent.

By recording and analyzing these trends over time and applying them to future scenarios, the US Armed Forces can accurately supply troops with the items necessary at the precise moment they are needed. The lack thereof can lead to a clunky, slow, and ill-equipped force with too much or too little supply. One definition of business logistics speaks of "having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer".

The term " business logistics" has evolved since the s [16] due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for professionals called "supply chain logisticians". In business, logistics may have either an internal focus inbound logistics or an external focus outbound logistics , covering the flow and storage of materials from point of origin to point of consumption see supply-chain management.

The main functions of a qualified logistician include inventory management , purchasing , transportation , warehousing , consultation, and the organizing and planning of these activities.

Logisticians combine a professional knowledge of each of these functions to coordinate resources in an organization. There are two fundamentally different forms of logistics: There may be some intermediaries operating for representative matters between nodes such as sales agents or brokers.

A logistic family is a set of products which share a common characteristic: The following metrics may be used by the company to organize its products in different families: Other metrics may present themselves in both physical or monetary form, such as the standard Inventory turnover. Unit loads are combinations of individual items which are moved by handling systems, usually employing a pallet of normed dimensions. Order processing is a sequential process involving: Picking can be both manual or automated.

Manual picking can be both man to goods, i. Automatic picking is done either with dispensers or depalletizing robots. Sorting can be done manually through carts or conveyor belts, or automatically through sorters. Unit loads are usually assembled into higher standardized units such as: ISO containers , swap bodies or semi-trailers.

Especially for very long distances, product transportation will likely benefit from using different transportation means: When moving cargo, typical constraints are maximum weight and volume. Operators involved in transportation include: Merchandise being transported internationally is usually subject to the Incoterms standards issued by the International Chamber of Commerce.

Similarly to production systems, logistic systems need to be properly configured and managed. Actually a number of methodologies have been directly borrowed from operations management such as using Economic Order Quantity models for managing inventory in the nodes of the network. Traditionally in logistics configuration may be at the level of the warehouse node or at level of the distribution system network. Regarding a single warehouse, besides the issue of designing and building the warehouse, configuration means solving a number of interrelated technical-economic problems: Some important constraints have to be satisfied: Although picking is more of a tactical planning decision than a configuration problem, it is important to take it into account when deciding the racks layout inside the warehouse and buying tools such as handlers and motorized carts since once those decisions are taken they will work as constraints when managing the warehouse, same reasoning for sorting when designing the conveyor system or installing automatic dispensers.

Configuration at the level of the distribution system concerns primarily the problem of location of the nodes in a geographic space and distribution of capacity among the nodes. The first may be referred to as facility location with the special case of site selection while the latter to as capacity allocation.

The problem of outsourcing typically arises at this level: Distribution networks can be characterized by numbers of levels, namely the number of intermediary nodes between supplier and consumer:.

This distinction is more useful for modeling purposes, but it relates also to a tactical decision regarding safety stocks: Although configuring a distribution network from zero is possible, logisticians usually have to deal with restructuring existing networks due to presence of an array of factors: Once a logistic system is configured, management , meaning tactical decisions, takes place, once again, at the level of the warehouse and of the distribution network.

Decisions have to be made under a set of constraints: At the warehouse level, the logistician must decide how to distribute merchandise over the racks. Three basic situations are traditionally considered: Picking efficiency varies greatly depending on the situation.

Logistics - military definition The science of planning and carrying out the movement and maintenance of forces Logistics - The procurement, maintenance, distribution, and replacement of personnel and materiel. The branch of military operations that deals with the procurement, distribution, maintenance, and replacement of materiel and personnel. The management of the details of an operation. Council of Logistics Management, http: Logistics - The process of planning, implementing, and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of meeting customer requirements.

Canadian Association of Logistics Management, http: Logistics - The science of planning, organizing and managing activities that provide goods or services. Logistics - Logistics is the science of planning and implementing the acquisition and use of the resources necessary to sustain the operation of a system. Logist - To perform logistics functions or processes.

The act of planning, organizing and managing activities that provide goods or services. The verb "to logist. She logisted the last operation. I will logist the next operation. I am logisting the current operation. We logist the operations.

Use 'logistics' in a Sentence

Logistics involves the planning, design, coordination, management and improvement of the processes of moving goods and resources. In some cases, logistics involves more internal systems, while in others it involves collaboration with distribution partners. This is a difference, because distribution inherently includes more than one channel partner. Distribution logistics has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differs with the time, place, and quantity of consumption. Distribution logistics includes a wide range of activities. These all focus on achieving efficient distribution and movement of finished products. This takes goods from the end of a production line to reach consumers. Aside from that, it provides a wide set of optimization methodologies and tools.