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ChapterILogisticsSystemOutline-1Outline-2PartIIntroductiontoLogisticsSystemThislackofrecognitionpartlycomesfromthelowlevelofunderstandingofthebenefitsofintegratedlogistics.Ithastakenafurther70yearsorsoforthebasicdefinitionoflogisticsandthebasicprinciplesoflogisticsmanagementtobeclearlydefined.TheDefinitionofLogisticsManagementComponentofaLogisticsSystemInventorymanagement:Inventorymanagementinvolvesthebalanceofthelevelofinventoryheldtoachievehighcustomerservicelevelswiththecostofholdinginventory.Logisticsinformation:Informationlinksallareasofthelogisticssystemtogether.Informationprocessingisbecomingincreasinglyautomated,complex,andrapid.Itiskeytotheefficientfunctioningofsystem.Materialhandling:Materialhandlingisabroadareaconcerningallmovementsofrawmaterials,workinprocess,orfinishedgoodswithinafactoryorwarehouse.Orderprocessing:Orderprocessingisthesystemafirmhasforgettingordersfromcustomers,checkingonthestatusofordersandcommunicatingtocustomersaboutthem,andactuallyfillingtheorderandmakingitavailabletothecustomer.Packaging:Packagingcanconveyimportantinformationtoinformthecustomerandprovideprotectionduringstorageandtransport.Pleasingpackagingalsocanattractthecustomer’sattention.Procurement:Procurementisthepurchaseofmaterialsandservicesfromoutsidetosupportthefirm’soperationsfromproductiontomarketing,sales,andlogistics.Returngoodshandling:Returnsmaytakeplacebecauseofaproblemwiththeperformanceoftheitemorsimplybecausethecustomerchangedmind.Returngoodshandlingiscomplexandcostly.Reverselogistics:Reverselogisticsisinvolvedinremovalanddisposalofwastematerialsleftoverfromtheproduction,distribution,orpackagingprocesses.Transportation:Transportationinvolvesselectionofthemode,theroutingoftheshipment,compliancewithregulationsintheregionofthecountry,andselectionofthecarriers.Warehousing:warehousingandstorageactivitiesrelatetowarehouselayout,design,ownership,automation,trainingofemployees,andrelatedissues.NewWordsandPhrasesPartIISupplyChainManagementOverviewofSupplyChainCon