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Transport and Logistics - Case Study Example

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Transport and Logistics

Basically the Greeks defined logistics as "the science of Correct reasoning by means of mathematics". The first modern use of the term was in military to identify the process of planning and coordinating the movement of army and weapon support systems. Good logistics brings out the ability to move faster and accurately to the battlefront. If one applies to the same to the business organization, it is one's ability to reach the product to the consumer at the right time, right place, and right quantity and at lowest cost.
With the increasing competition in the market place, managements starts focusing on customer services in the early 1950's in the developed markets such as Europe and the U.S. In the late 1960's some of the logistics concepts were tested. Following oil crises is 1976 and the concepts of Just-in-time (JIT) in manufacturing. Customer servicing standards were given more importance and new integrated logistics models and solutions were born. The emergence of organized distribution system by departmental stores and super fast courier services, organizations gave a boost to logistics concepts and strategies. Today all businesses are looking for seamless transaction systems to coordinate their information and material requirements along with the value chain.
Michel Porter in his famous book "Competitive advantage" has spoken of the value chain approach and emphasized logistics as one of the most important tools for competitive advantage. The various process and elements that are part of logistics as a discipline are:
1. Inbound logistics: Purchasing, inbound transportation, inventory management.
2. Manufacturing: Production, planning systems, Machine scheduling system
3. Outbound logistics: Order booking processes, Distribution management, outbound Transportation and warehousing management systems.
Logistics is key to success in new millennium and going through visible changes nowadays. Various new concepts and applications are taking place in all parts of the world and tried by various organizations.
Almost everyone agrees that companies must functions in a global market place, there is far less agreement on how this context translate when it comes to managing the supply chain. Although companies may think globally in scope, when it comes down to actual tactical operations there's a lot of local blending going on. There are certain elements that are required to manage any supply chain regardless of whether it's domestic or global. Things like visibility, technology and flexibility are basic ingredients that need to be incorporated seamlessly in order for the efficient supply chain Management.
Now here we compare and contrast between North America and India because India is a growing market and becoming one of the fastest growing economics .The concept of logistics in North America is one of the well known concept by any standard. North American trade market in one of the largest blocks in the world. India's logistics market is approximately around $15 billion, which is less than 0.5% of the total North America logistics markets. The volume of logistics market itself shows that North America logistics market is approaching towards higher side whereas Indian logistics market ...Show more
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Summary

Ans. Logistics is one of the oldest and also the newest activities of business management. It involves combining diverse functions and services providers who may be culturally or objectively different. Logistics is about moving materials, information and funds from one business to another or from a business to the consumer…
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