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Functions of Logistics

What are the functions of Logistics as concerned with the movement of materials?

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Functions of Logistics:

Logistics is concerned with movement of materials from source of supply to the place of production and movement of finished product from factory to consumers. The functions of logistics are:

• The main function of logistics is reducing the production costs by streamlining the supply chain. This is done by improving the efficiency of manufacturing with the appropriate shipment dimension, packaging and inventory levels.

• Logistics help in taking better advantage of various locations by expanding the markets and lowering the distribution costs.

• It is the function of logistics to provide timely goods and services along the supply chain with better management of inventory, location of goods and services and transportation.

• Logistics performs the controlling function from production to distribution. This enables much better marketing and demand response, therefore anticipating flows and allocates distribution resources accordingly.

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