WHAT IS LOGISTICS?

Dr.Rachanaa Datey
(Founder Director –QUEST EDUSTATION )
 WHAT IS LOGISTICS?
• Logistics is used more broadly to refer to the process of
coordinating and moving resources – people, materials,
inventory, and equipment – from one location to
storage at the desired destination.
• The term logistics originated in the military, referring to
the movement of equipment and supplies to troops in
the field.
• Logistics is the process of planning and executing the
efficient transportation and storage of goods from the
point of origin to the point of consumption.
• The goal of logistics is to meet customer requirements
in a timely, cost-effective manner.
 DIFFERENT TYPES OF LOGISTICS
MANAGEMENT
• Supply
• Distribution
• Production
• Reverse
 Supply

➢ Supply management deals with the planning and

coordination of materials needed in a specific
location at a specific time in order to provide
support to production or activity.
➢ Supply logistics must have transportation of the
materials and storage along with plans in place
for evaluating the level of supply during different
stages of the process; making sure that the flow
of materials aligns with the need.
 Distribution

➢Distribution is about managing how a supplied

and stored material is then sent out to the
locations where it is needed.
➢The process includes issuing of material
movement (loading, unloading and
transportation), tracking of stock, and
accountability of use (noting down how the
supply is used and by whom).
 Production

➢ This type of logistics management oversees the

stages of combining distributed supplies into a
product.
➢ This can entail coordination of a manufacturing
or assembling process and in the case of
applications such as military production, the
logistics of coordinating space and areas for
production to take place.
➢ In construction, production logistics will include
the staging of material to coordinate with the
phase of building taking place.
 Reverse
➢Reverse logistics management handles the
recalling of material and supplies from a
production of assembly process.
➢ In the logistics management of a construction
project for example, reverse logistics plans for
the removal of excess material and re-
absorption of the material into a stock supply.
 1PL - First-Party Logistics

• 1PL - First-Party Logistics

• An enterprise that sends goods or products
from one location to another is a 1PL. For
example, a local farm that transports eggs
directly to a grocery store for sale is a 1PL.
 2PL - Second-Party Logistics

• An enterprise that owns assets such as

vehicles or planes to transport products from
one location to another is a 2PL. That same
local farm might hire a 2PL to transport their
eggs from the farm to the grocery store.
 3PL - Third-Party Logistics

• In a 3PL model, an enterprise maintains

management oversight, but outsources
operations of transportation and logistics to a
provider who may subcontract out some or all of
the execution. Additional services may be
performed such as crating, boxing and packaging
to add value to the supply chain. In our farm-to-
grocery store example, a 3PL may be responsible
for packing the eggs in cartons in addition to
moving the eggs from the farm to the grocery
store.
 4PL - Fourth-Party Logistics

• In a 4PL model, an enterprise outsources

management of logistics activities as well as the
execution across the supply chain. The 4PL
provider typically offers more strategic insight
and management over the enterprise's supply
chain. A manufacturer will use a 4PL to essentially
outsource its entire logistics operations. In this
case, the 4PL may manage the communication
with the farmer to produce more eggs as the
grocery store's inventory decreases.
 5PL - Fifth-Party Logistics

• A 5PL provider supplies innovative logistics

solutions and develops an optimum supply
chain network. 5PL providers seek to gain
efficiencies and increased value from the
beginning of the supply chain to the end
through the use of technology like blockchain,
robotics, automation, Bluetooth beacons and
Radio Frequency Identification (RFID) devices.
QUESTIONS?

THANK YOU