Logistics Goals and Operations
Logistics aims at the fulfillment of four basic requirements:
All operations related to logistics aim at insuring that a demand
is satisfied (fulfilling goals), let it be a part made available to a manufacturer or a
good be present on a store's shelf. There are three major categories
of logistics operations:
- Order fulfillment: Implies that the transaction between
the supplier and the customer is being satisfied with the specified
product provided in the agreed quantity.
- Delivery fulfillment: The order must also be delivered
at the right location and at the right time. Both involve the scheduling
of transportation and freight distribution activities.
- Quality fulfillment: The order must be provided intact
(in good condition), implying that any form of damage must be avoided
during transport and delivery. This is particularly important for
products that are fragile, perishable or sensitive to temperature
- Cost fulfillment: The final costs of the order, including
manufacturing and distribution costs, must be competitive. Otherwise,
other options will be considered.
- Purchase orders processing. Operations related to the
transactional procurement of goods.
- Stock management. Operations related to the physical
procurement of goods.
- Transportation. Operations related to the physical distribution