At the most basic level, logistics is important because it is a core process that deals with the movement and management of both the people and resources required to keep products flowing from manufacturers to end customers. In order for supply chain organizations to effectively balance supply and demand, manage inventories and ensure customer satisfaction, they need strong logistical processes that have been defined, tested and optimized for maximum efficiency. This involves ensuring that products are delivered on time, that the correct products are being sent, that businesses are able to boast increased value for their customers and that costs for all parties can be reduced.
Inbound logistics
The process of moving raw materials or components from suppliers to manufacturers is called inbound logistics. Often, inbound logistics management will involve automated ordering and fulfillment so that manufacturers always have the materials required to produce new goods. The lists of raw materials and components are vast, but the purpose is the same: supply manufacturers, distributors and retailers with the goods they need to keep products moving through the supply chain to customers and end users.