Term logistics:

Coming to the proper definition, the term logistics could be utilized to cover all aspects of movement, storage of material and to deliver the material to the user. For manager the definition would mean by including movement of goods both at the inbound and outbound sides. He is responsible for both supplying and distribution of goods to the next member of the supply chain & to the end consumer. In almost all of cases, the logisticians design and manage the company's distribution system, which contains warehouses, distribution points and transport systems. Logistics may play a vital role in shaping and determining the nature of the overall corporate response to exploit market opportunities .Marketing forecasts precede exploration of market opportunities, since, overall potential of the market customer profiles, price/volume combinations and resellers profile is to be recognized before the best suitable infrastructure is utilized to maximize the opportunities available. A logistic activity enables a broader view that has to be undertaken on how the available chance may at best be approached. This would further enable the management to review the number of production options available whether this is manufacturing of components, assembly operations or combination approach. The important characteristics of this decision process concern the relationship among fixed & variable cost and also through the product life cycle. This shall require a view of the markets, the response of the product competitors and an assessment of market risk.