2 - Physical Flows

Abstract

The entire process of logistics, which deals with the moving of materials into, through, and out of a firm, can be divided into three parts. First is inbound logistics, which represents the movement and storage of materials received from suppliers; second is materials management, which covers the storage and flows of materials within a firm; and outbound logistics or physical distribution, which describes the movement and storage of products from the final production point to the customer. The objective of logistics process is to get the right quantity and quality of materials or services to the right place at the right time, for the right client, and at the right price. As customers, many people tend to neglect the direct or indirect effects of logistics on almost every sphere of their lives until one of these “rights” goes wrong. The logistics concept was introduced as a response to the increasing necessity of an integrated system, which plans and coordinates the materials flow from the source of supply to the point of consumption instead of managing theses flows as series of independent tasks.