| In essence, logistics management is the overall | | | | get its paper supplies from one source, its pencils |
| administration of all available resources to meet the | | | | from another one, and its ink from another company. |
| demands of the public or the targeted consumers of | | | | One organization does not source its tools from one |
| each company. This requires the involvement of | | | | company alone. The main goal of logistics in terms of |
| several key areas of the organization to ensure the | | | | resources is to find the cheapest yet durable or ideal |
| smooth flow of business, not only in terms of sales | | | | material from different sources and put these |
| and finances, but also service delivery to its market. | | | | materials together to come up with a product. A |
| In general, this is the amalgamation of all resources | | | | canned good factory gets its sodium glutamate from |
| and departments to join forces in solving any existing | | | | one company and its processed meat from another. |
| issues and achieving an organizational goal. | | | | In the end, the final output is the canned good. |
| The business approach of today incorporates every | | | | Add to this the several key functional areas that play |
| personnel and every machine that contributes to the | | | | critical roles in the output or the product. Plus, even if |
| overall success of the company. Approaches may | | | | the product is good to go, there has to be people |
| involve Six Sigma-a known analytical tool of which | | | | who will take care of its marketing and advertising. |
| the proponent is Motorola-to identify the defects and | | | | There is no point in coming up with the most delicious |
| its sources and to come up with correct action plans | | | | food in the market if no one will know about it. To |
| that will reduce the occurrence of these defects. The | | | | address this, a company employs marketing |
| Six Sigma principle indicates that there should only be | | | | strategies that streamlines public awareness of the |
| six defects for every million output. | | | | products existence. This involves trucking, advertising, |
| Once defects are analyzed and its sources are | | | | and so on. |
| figured out, the organization will know where to put | | | | Other than that, the goods should be kept fresh and |
| its energy instead of blindly creating new approaches | | | | of high quality to meet the standards of the |
| to every problem that will occur. The main goal is to | | | | consumers. This means that every person and every |
| prevent the occurrence of the problem by eliminating | | | | machine should have a controlled output in relation to |
| the defects from the actual source. Sometimes, this | | | | the demand of the people. There should never be |
| may involve man, machine, method, and process. | | | | overproduction, as this will eventually lead to lost |
| There may be extraneous variables, such as | | | | revenue. A good product that cannot be consumed is |
| environmental factors and personal behaviors that | | | | of no value to anyone. All of these things-manpower, |
| may not be easily addressed. In this case, a long | | | | production, raw materials and resources, marketing, |
| term action plan is necessary. | | | | and service delivery-should be centralized before a |
| Logistics management not only involves personnel but | | | | company can say that it has an efficient and |
| also resources. For example, a business office may | | | | effective logistics management strategy. |