LOGISTICSDefined Planning implementing and controlling the physical flow of material and finished goods from point of origin to point of use to meet customer`s need at a profit.It is essentially a planning process and an information activity.So A integrative process that optimizes the flow of material and supplies through the organization and its operations to the customer.

The word logistic has originated from Greek word ‘Logistikos’ and the Latin word ‘Logisticus’ which means science of computing & calculatingIn ancient times it was used more in connection with moving armies, the supplies of food & armaments to the war front.During World War II logistics gained importance in army operations covering the movement of supplies , men & equipment across the border.Today. It has acquired the wider meaning and is used in the business for the movement of material from suppliers to the manufacturer and finally the finished goods to the consumers.

Scope of LogisticIt s of critical importance to the organization how it delivers products & services to the customer , whether the product is tangible or intangible. Effective & efficient Physical movement of the tangible product will speak of intangible services associated with the product and the organization which is delivering it. In Case of intangible product , the delivery of tangibles at the right place & right time will speak about its quality.On the macro level infrastructure such as Various modes of transport , transportation equip., storage facilities, connectivity & information processing are contributing to a larg3e extent in the physical movement of goods produced in manufacturing , mining & agriculture Sectors.

Logistic –A system approachLogistic recognizes that all the activities of material movement across the business process are interdependent and needs close coordination and these are to be maintained as a system and not the functional Silos.System is shown as logistic Mix including following functional AreasOrder Processing Information Flow Warehousing Inventory controlPackagingTransportation

Information FlowIt is basically information based activity of inventory movement across the supply chain. Hence role of information system plays a vital role in delivering superior customer service.This function is required to facilitate the following information needs.Order Registration .Order checking & editing. Order processing. Coordination means to integrate the total supply chain of the company with informational needs as to time ,quantity, value, Lead time, rate of consumption, delivery schedule & price of the material, Transportation time & cost etc.

WarehousingA storage place wherein finished goods are stored till they are sold. Effectiveness of an organization`s marketing strategy depends on making the right decision regarding warehouse.Nowadays .Warehouse are treated as switching facilities rather than storage place.It is a major cost center, many customer problem are the direct result of improper warehousing management. Major decision of ware house are as follows:-Location ,Size & Number of warehousing facilities.-Warehouse layout.-Design of building-Ownership of the warehouse

INTERRELATIONSHIPS BETWEEN TRANSPORTATION AND LOGISTICS Without well developed transportation systems, logistics could not bring its advantages into full play. Besides, a good transport system in logistics activities could provide better logistics efficiency, reduce operation cost, and promote service quality. The improvement of transportation systems needs the effort from both public and private sectors. A well-operated logistics system could increase both the competitiveness of the government and enterprises.

The Effects of Transportation on Logistics Activities Transportation plays a connective role among the several steps that result in the conversion of resources into useful goods in the name of the ultimate consumer. It is the planning of all these functions and sub-functions into a system of goods movement in order to minimize cost maximize service to the customers that constitutes the concept of business logistics. The system, once put in place, must be effectively managed. Traditionally these steps involved separate companies for production, storage, transportation, wholesaling, and retail sale, however basically, production/manufacturing plants, warehousing services, merchandising establishments are all about doing transportation.

Production or manufacturing plants required the assembly of materials, components, and supplies, with or without storage, processing and material handling within the plant and plant inventory. Warehousing services between plants and marketing outlets involved separate transport. Merchandising establishments completed the chain with delivery to the consumers. The manufacturers limited themselves to the production of goods, leaving marketing and distribution to other firms. Warehousing and storage can be considered in terms of services for the production process and for product distribution. There have been major changes in the number and location of facilities with the closure of many single-user warehouses and an expansion of consolidation facilities and distribution centres. These developments reflect factors such as better transport services and pressures to improve logistics performance.

TRANSPORT is responsible for the physical movement of materials between points in the supply chainAt the heart of logistics are transport vehicles moving goods between suppliers and customers