IGNOU BOOK | Logistics Management[BPAS-184] English medium

Product Overview & Details

BPAS-184: Logistics Management deals with the planning, movement, storage and control of goods, services and information from the point of origin to the final customer. Its main purpose is to ensure that the right product reaches the right place, at the right time, in the right condition and at an appropriate cost.

1. Meaning of Logistics Management

Logistics Management is the process of managing the flow of goods and related information from the supplier to the final consumer.

A simple flow is:

Supplier → Procurement → Transportation → Warehouse → Distribution → Customer

2. Objectives of Logistics Management

The major objectives are:

• Timely delivery of goods
• Reduction of transportation and storage costs
• Proper utilisation of resources
• Maintaining adequate stock
• Improving customer service
• Ensuring smooth flow of goods and information

3. Transportation Management

Transportation involves moving goods from one place to another.

Major modes include:

• Roadways
• Railways
• Airways
• Waterways
• Pipelines

The choice of transportation depends on cost, distance, time, quantity and nature of goods.

4. Warehousing

Warehousing means storing goods safely until they are required.

Main functions:

• Receiving goods
• Storing goods
• Protecting goods
• Maintaining records
• Dispatching goods when required

5. Inventory Management

Inventory means the stock of materials, components, work-in-progress and finished goods held by an organisation.

Inventory Management aims to maintain an appropriate level of stock so that:

• Excessive inventory is avoided.
• Shortages are prevented.
• Production and sales continue smoothly.
• Storage costs are controlled.

6. Materials Management

Materials Management deals with the planning, purchasing, storage, handling and control of materials required by an organisation.

Its purpose is to make materials available in the required quantity, quality and time.