Logistics management is the science of controlling the efficient cost-effective
flow and storage of raw materials, inventory and finished goods -- right from
the point of origin to the customer.
Professor Patrick Barry is part of the logistics and transportation department
at Northeastern University. He has another definition: "Logistics is the movement
and storage of goods," he says.
"It's the ultimate cross-functional discipline. It puts together finance
and accounting, as well as transportation and the physical distribution of
the goods."
From huge manufacturing companies to small retail firms, everyone has logistics
needs that must be effectively managed if they want to be competitive.
A manager makes critical decisions about inventory policies, warehousing
needs and the location of facilities.
"Logistics encompasses the whole area now. It used to be broken down into
schedulers, purchasers, people in inventory, transportation, warehouse --
which it still is. But now it's all under an umbrella word called logistics
management," says Marilyn Ryder, an expert on production and inventory control.
Companies may employ their own manager or hire a company that specializes
in logistics services.
"We give advice to federal government officials on acquisition and logistics,"
says Dave Goodwin of the Logistics Management Institute. "Our main client
for over 35 years has been the Department of Defense. To them, logistics is
big business."
The Department of Defense also participates in humanitarian efforts --
the purchase and transportation of medical supplies, pharmaceuticals and equipment
to foreign countries experiencing financial difficulties.
Logistics managers should be analytical, detail-oriented, flexible and
decisive. The ability to coordinate several activities at once and to quickly
analyze and resolve specific problems is important. They work under stress
and must continually cope with deadlines.