Logistics and inventory control

There is a strong inter-dependence

between inventory control and
logistics management.
• Inventory control is a part and parcel of logistics
management.
• Inventory control is concerned with using information to
implement the logistics plan as specified.
• The work of inventory control is to ensure that the overall
logistical systems have appropriate resources like vehicles,
human resource, information technology to perform as
planned.
• Transportation and shipping which are the parts of logistics
directs the movement of inventory. It makes sure that the
required transportation equipment is available when needed.
• Inventory holding period is radically reduced if
logistics is used as an efficient tool. In case of CEAT
the tyre maker managed to halve its inventory of
finished goods from 50 days to 25 in three years.
• In case of home delivery services, the more speedily
the logistics department delivers the finished
products ,the lower will be the inventories.
• Installation of automated systems is highly cost-
effective in the long run because inventory often
accounts for 25% of total logistics.