Logistics is a key component of supply chain management that involves the planning, execution, and control of the movement and placement of goods, services, and information. It encompasses various activities, including:
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Transportation: The physical movement of goods from one location to another, ensuring that products reach customers or distribution centers in a timely manner.
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Warehousing: The storage of goods and inventory management to ensure that products are available when needed for production or shipment.
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Order Fulfillment: The process of receiving, processing, and delivering orders to customers, including picking items from inventory and preparing them for shipment.
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Inventory Management: Monitoring and controlling stock levels to balance supply and demand efficiently, minimizing costs while ensuring product availability.
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Distribution: The overall system of moving products from manufacturers to end-users, which includes various methods such as direct shipping, retail, and e-commerce.
Overall, logistics plays a critical role in ensuring that the flow of goods is efficient, cost-effective, and meets customer requirements.