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Shubham Talwar
e- commerce and service sector Expert
Asked a question 10 months ago

What are the types of Logistics?

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Shubham Talwar
e- commerce and service sector Expert

Return Logistics (Reverse Logistics):

In order to increase the sales as well as the market share, many companies advertise that their goods will perform well over a period of time. The customer is, therefore, led to believe that in case he buys the product of that company, he is assured of satisfactory performance of the product. But at the same time, it is very much obvious that the company cannot assure the satisfactory performance of each and every of its product which is sold in the market. Few of the products sold may not perform as advertised over the specific period of time.

 

Such products need to be brought back by the company to confirm good customer service. Multination Companies (MNCs) to protect their market image and to stall its competitors from grabbing its customers, recall immediately the defective or substandard product from the market.

Product recall is a critical competency resulting from

increasingly rigid quality standards

product expiration dating

responsibility for hazardous consequences

The company has, therefore, to take into account the defective goods that would be returned while framing the total logistical system network and calculating the total cost of such a system of network. Incorporating the goods returned in the total logistical systems network and cost is called as Return Logistics. Return Logistics requirement’ also result from the increasing number of laws prohibiting random scrapping and disposal on one hand, while encouraging recycling of waste such as beverage containers, packaging materials, etc. The most significant aspect of return logistical operation is the need for maximum control when a potential health liability exists. E.g.: a contaminated drug in the market is extremely dangerous and the company has to recall all the stock of contaminated drug.

 

Military Logistics

Military logistics is the art and science of planning and carrying out the movement and maintenance of military forces. In its most comprehensive sense, it is those aspects or military operations that deal with:

Design, development, acquisition, storage, distribution, maintenance, evacuation, and disposition of material,

evacuation, and hospitalization of personnel,

acquisition or construction, maintenance, operation, and disposition of facilities.

 

Origins of military logistics

The word “logistics” is derived from the Greek adjective logistikos meaning “skilled in
calculating.” The first administrative use of the word was in Roman and Byzantine times when there was a military administrative official with the title Logista.

 

Third Party Logistics (3PL)

3PL, Third Party Logistics describes businesses that provide one or many of a variety of logistics related services. Types of services would include public warehousing, contract warehousing, transportation management, distribution management, freight consolidation. A 3PL provider may take over all receiving, storage, value added, shipping, and transportation responsibilities for a client and conduct them in the 3PL’s warehouse using the 3PLs equipment and employees or may manage one or all of these functions in the clients facility using the clients equipment, or anything combination of the above. 3PL can be defined as the “Business of proposing physical distribution6 reforms to a client and undertaking comprehensive physical distribution services.”

 

Supply

Supply management involves the planning and coordination of materials that are needed in a certain location at a specific time to support production or activity (as in the case with military supply). Supply logistics must include transportation of the materials and storage as well as a means for evaluating the level of supply at different stages of the process to make sure the flow of materials matches need.

Distribution

Distribution involves managing how a supplied and stored material is then dispersed to the locations it is needed. This involves issues of material movement (loading, unloading and transportation), tracking of stock and accountability of use (recording how the supply is used and by whom).

Production

Production logistics manages the stages of combining distributed supplies into a product. This can involve coordination of a manufacturing or assembling process and in the case of applications such as military production, the logistics of coordinating space and areas for production to occur. In construction as well, production logistics will include the staging of material to coordinate with the phase of building taking place.

Reverse

Reverse logistics involves the reclamation of material and supplies from a production or assembly process. For instance, in the logistic management of a construction project, reverse logistics plans for the removal of excess material and re-absorption of the material into a stock supply. In military applications, it is commonly used for exit strategy planning and coordinating the transfer of materiel and equipment back to a storage base from an area where military exercises were performed.