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At its heart, logistics deals with satisfying the customers. This implies that management must first understand what those requirements are before a logistics strategy can be developed and implemented to meet them. Customers service is the most important output of an organization’s logistics systems.

In a more practical sense, logistics refers to the systematic management of the various activities required to move benefits from their point of production to the customer. reebok zigtech womens running shoes Often these benefits are in the form of a tangible product that must be manufactured and moved to the user, sometimes these benefits are intangible and are known as services. They too must be produced and made available to the final customer. But logistics encompasses much more than just the transport of the gods. The concept of benefits is a multifaceted one that goes beyond the product ordervice itself to include issues regarding timing, quantity, supporting services, location and cost. reebok zigtech So a basic definition of logistics is the continuous process of meeting customer needs by ensuring the availability of the right benefits for the right customer, in the quantity and condition desired by that customer, at the time and place the customer wants then, all for a price the buyer is willing to pay. These concepts apply equally well to for profit industries and non-profit organizations.

However, logistics can mean different things to different organizations. Some firms are more concerned with producing the benefits: their management focus is on the flow of raw materials in to the production process rather than on delivering the final goods to the user. Some companies are much more concerned with the flow of finished goods from the end of the production line to the customers. womens reebok zigtech Logistics in this situation is sometimes referred to as physical distribution Finally, some firms view logistics as embracing both material management and physical distribution. This broader view of logistics integrates materials management and physical distribution tasks into a single supply chain that links the customers with all aspects of the firm, sometimes it is referred to as supply chain management.