Operations Management: Sustainability and Supply Chain Management, Twelfth Edition

Logistics Management

Procurement activities may be combined with various shipping, warehousing, and inventory activities to form a logistics system. The purpose of logistics management is to obtain efficiency of operations through the integration of all material acquisition, movement, and storage activities. When transportation and inventory costs are substantial on both the input and output sides of the production process, an emphasis on logistics may be appropriate. Many firms opt for outsourcing the logistics function, as logistics specialists can often bring expertise not available in-house. For instance, logistics companies often have tracking technology that reduces transportation losses and supports delivery schedules that adhere to precise ...