The term "logistics" originates from the ancient Greek "λόγος" ("logos"—"ratio, word,calculation, reason, speech, oration"). Logistics is considered to have originated in the military'sneed to supply themselves with arms, ammunition and rations as they moved from their base to aforward position. In ancient Greek, Roman and Byzantine empires, there were military officerswith the title ‘Logistikas’ who were responsible for financial management and distribution of supplies. The Oxford English dictionary
defines logistics as: “The branch of military sciencehaving to do with procuring, maintaining and transporting material, personnel and facilities.”The American Council of Logistics Management
defines logistics as “the process of planning,implementing and controlling the efficient and effective flow, and storage of goods, services andrelated information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.”
Objective of Logistics Management:
The primary objective of logistics management is to effectively and efficiently move the supplychain so as to extend the desired level of customer service at the least cost. Thus, logisticsmanagement starts with ascertaining customers’ needs till their fulfillment supplies. However,there are some definite objectives to be achieved through a proper logistics system. These can bedescribed as follows:
1. Improving customer service:
An important objective of all marketing efforts, including the physical distribution activities, isto improve the customer service. An efficient management of physical distribution can help inimproving the level of customer service by developing an effective system of warehousing, quick and economic transportation, and maintaining optimum level of inventory.
2. Rapid Response:
Rapid response is concerned with a firm's ability to satisfy customer service requirements in atimely manner. Information technology has increased the capability to postpone logisticaloperations to the latest possible time and then accomplish rapid delivery of required inventory.
3. Reduce total distribution costs: