The definition of logistics
Logistics can be defined from different perspectives, and internationally, the most commonly used definition is the Council of Logistics Management in the United States:
"Logistics is the process of planning, implementing, and controlling the efficient and efficient flow and storage of goods, services, and related information from the origin to the consumption location to meet consumers' needs."
Logistics includes both efficiency and effectiveness, and the ultimate goal of logistics management is to meet the needs of customers and the goals of the enterprise.
From the definition of logistics, it can be seen that logistics management includes a series of activities, including transportation, warehousing, packaging, material handling, inventory control, order processing, demand forecasting, production planning, procurement, customer service, factory and warehouse location selection, item recycling, component and service support, and waste disposal. Enterprises may also not fully include some of the activities listed above in the logistics department, such as those that emphasize the production of finished goods logistics, and may not include procurement in the logistics department. Overall, with the increasing emphasis on logistics, the scope of logistics management is also constantly increasing.
The seven "appropriate" (7R) are the colloquial expressions of logistics concepts
In the West, logistics originally referred to military logistics. After World War II, the concept of logistics was applied in the economic field. Simply put, logistics is about obtaining the required items at a designated location when needed, or can be represented by 7 appropriate (7Rs): Right Product, Right Quantity, Right Condition, Right Place, Right Time, Right Customer, and Right Cost
Seven appropriately pointed out the basic activities of logistics, emphasizing the importance of space and time, as well as the importance of cost and service. When there are changes in the logistics system, logistics managers should continuously evaluate the suitability of costs and service levels.