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Logistics activities

Logistical activities can be divided into three main areas: order processing, inventory management, and freight transportation. Traditionally, order processing was a time-consuming activity that could take up to 70% of the order-cycle time. However, with new technologies such as bar code scanning, computers, and network connection, customer orders can quickly reach the seller in no time, and the availability of stocks can be checked in real time. The purpose of having an inventory is to reduce the overall logistical cost while improving service to customers. Having a stockpile of finished goods beforehand can reduce the frequency of transportation to and from the customers and cope with the randomness of customer demands. However, maintaining an inventory requires capital investment in finished goods and maintaining a warehouse. Storage and order picking occupy most of the warehouse maintenance cost. Freight transportation forms a vital part of logistics and allows access to broad markets as goods can be transported to hundreds or thousands of kilometers away. Freight transportation accounts for two-thirds of logistical costs and significantly impacts customer service. Transportation policies and warehouse management are closely intertwined.

The rise of commercial transactions through the internet gives rise to the need for "e-logistics". Compared to traditional logistics, e-logistics handles parcels valued at less than a hundred US dollars to customers scattered at various destinations worldwide. In e-logistics, customers' demands come in waves when compared to traditional logistics, where the demand is consistent.

Inbound logistics is one of the primary logistics processes 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. 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 market research, requirements planning, make-or-buy decisions, supplier management, ordering, and order control. The targets in procurement logistics might be contradictory: maximizing efficiency by concentrating on core competencies, outsourcing while maintaining the company's autonomy, or minimizing procurement costs while maximizing security within the supply process.

Advance logistics consists of the activities required to set up or establish a plan for logistics activities to occur.

Global logistics is technically the process of managing the "flow" of goods through a supply chain from its place of production to other parts of the world. This often requires an intermodal transport system via ocean, air, rail, and truck. The effectiveness of global logistics is measured in the Logistics Performance Index.

Distribution logistics has, as its main task, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because production time, place, and quantity differ with the time, place, and quantity of consumption.

Disposal logistics has the main function of reducing logistics cost(s) and enhancing service(s) related to the disposal of waste produced during a business's operation.

Reverse logistics denotes all those reusing products and materials operations. The reverse logistics process includes the management and the sale of surpluses, as well as products being returned to vendors from buyers. 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 to recapture value or proper disposal." More precisely, reverse logistics moves goods from their typical final destination to capture 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, including 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 concerns highly complicated technological systems for which reliability, availability and maintainability are essential, e.g., weapon system and military supercomputers.

Asset control logistics: companies in the retail channels, both organized retailers and suppliers, often deploy assets required for the display, preservation, and promotion of their products. Some examples are refrigerators, stands, display monitors, seasonal equipment, poster stands & frames.

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 rapidly in the event of an emergency. The reason for enlisting emergency logistics services could be a production delay or anticipated production delay, or an urgent need for specialized equipment to prevent events such as aircraft being grounded (also known as " aircraft on ground "—AOG), ships being delayed, or telecommunications failure. 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, a factory or a mine). Production logistics aims to ensure that each machine and workstation receives the right product in the correct 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. Since manufacturing in an existing plant is a constantly changing process, machines are exchanged and new ones added, which allows for improving the production logistics system accordingly. Production logistics provides the means to achieve customer response and capital efficiency. Production logistics becomes more important with decreasing batch sizes. In many industries (e.g. mobile phones), the short-term goal is a batch size of one, allowing even a single customer's demand to be fulfilled efficiently. 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 has been employed by civilizations for thousands of years as the various human civilizations tried to build the best possible works of construction for living and protection. Now, construction logistics has emerged as a vital part of construction. In the past few years, construction logistics has emerged as a different field of knowledge and study within supply chain management and logistics.