Classification of Logistics Applications


While examining and evaluating alternatives in Logistics Management , classifying the application on various dimensions would help clarity the issue and focus attention . As indicated earlier , logistics application can be classified in terms of issues and actors . Other imported classifications based on various dimensions are :- 

a)  ---  Inbound Logistics and Outbound Logistics :  Most organization have to manage their outbound logistics  (i.e. physical distribution of their products to the customers from the factory) where as inbound logistics concerns itself with the purchasing function . The logistics of purchased product is generally managed by suppliers .  An obvious advantage of managing both inbound and outbound logistics is the possible cost saving when the two movements are coordinated  .

b)  ---  Private vs Public Sector :  The nature of ownership of the organization influences the objectives of organization and hence management of logistics . The choice of modes , transport contracting , response to socially oriented regulations , location choices , etc . would be on different conditions .

c)  ---   Single vs Multiple Plans :  Certain decisions like allocation decisions , coordination in production planning across plants , product wise specialization of plants etc . would be issues of significance in the multi - plant  situation .

d)  ---   Nature of the Product :  There could be various sub - dimensions here like bulk vs packaged products , perishable vs non - perishable products , durable vs non durable products , single vs multiple products and industrial vs consumer products .  handling of bulk products is quite different from handling packaged products . An organization making multiple products has more problems in coordinating its production planning , inventories and transportation then an organization making a single product .

e)  ---   Mode to Stoke vs Mode to Order :  The inventory , transportation and distribution network related decisions are more significant for an organization in which the products are made to stoke rather then made to order .


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