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The term logistics is used to describe the planning, management, and control of both tangible and intangible commodities movements. These are transferred between corporations, inside companies, or between suppliers and end users. Thus, logistics include not only the flow of products and information, but also the flow of people. Furthermore, logistics is an interdisciplinary discipline as well as a branch of industry and an operational role.
Certain criteria have evolved during the course of logistics' historical evolution that describe the duties or aims of logistics. They are known as the 6 Rs of logistics because they simplify the definition of the term. As a result, logistics is all about getting the appropriate inventory to the right location at the right time, in the correct number (quantity) and quality (condition) at the right price (cost).
As a result, logistics is concerned with making products available. The 6 Rs illustrate which parts of a logistics activity must flow smoothly in order for it to be completed effectively. These criteria demonstrate the evolution of a logistical definition: While the 4 Rs, or the right product in the right quality at the right time in the right place, were the focus for many years, new goals have subsequently been added to match the decreased depth of production, such as in just-in-time manufacturing. Quantity and cost are two of the other criteria, which the 6 R defined as essential aspects of logistics.
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This evolution, however, is not yet complete, since there is also talk of 7 R or 7 R+, as the control and relevance of logistical operations grows in both industrial industry and society as a whole. The right information, the right packaging, and the right customer are examples of extra R's. If storage amounts are to be reduced, a matching flow of information must be ensured, for example via ERP systems, in order to constantly know where and how much of each product is stored, as well as where it is on its current transport route.
Packaging that ensures product quality, saves space, and is ecologically friendly has become an equally essential component in logistics. The appropriate consumer requires a shift in how we think about things throughout the whole service and supply chain. This includes not only the correct client at the end of the supply chain, but also every step downstream from that. Every point becomes a supplier and a customer at the same time as a result of this type of (internal)customer-centricity.
The contemporary supply chain is a process-oriented, networked materials management system. The whole supply chain is covered, from demand to manufacturing to ultimate delivery. This involves proper data management as well as the technological solutions that are increasingly being employed in all sectors. Business, organizational, and societal factors are progressively determining what logistics must achieve and which services must be enhanced. This can lead to, among other things, the following domains of action: Shortening delivery times, increasing delivery capability, increasing delivery flexibility, improving delivery quality, increasing delivery transparency, and increasing supply security.