Integrated Logistics


Logistics is viewed as the competency that links an enterprise with its customers and suppliers. Information from and about customers flows through the enterprise in the form of sales activity, forecasts and orders. As products and materials are procured, a value added inventory flow is initiated that ultimately results in ownership transfer of finished products to customers. Thus the process is viewed in terms of two inter-related efforts, inventory flow and information flow.


Inventory Flow


The management of logistics is concerned with the movement and storage of materials and finished products. Logistical operations start with the initial shipment of a material or component part from a supplier and are finalized when a manufactured or processed product is delivered to a customer.


From the initial purchase of a material or component, the logistical process adds value

By moving inventory when and where needed. Thus the material gains value at each step.


For a large manufacturer, logistical operations may consist of thousands of movements, which ultimately culminate in the delivery of the product to an industrial user, wholesaler, dealer or customer.


Similarly for a retailer, logistical operations may commence with the procurement of products for resale and may terminate with consumer pickup or delivery.

The significant point is that regardless of the size or type of the enterprise, logistics is useful and requires continuous management attention.


In order to understand logistics it is useful to divide it into three areas.


Physical distribution


The area of physical distribution concerns movement of a finished product to the customers. In physical distribution the customer is the final destination of the marketing channel.


Unless the products are delivered where and when needed, a great deal of marketing effort can be wasted.


All physical distribution systems have one feature in common: they link manufacturers, wholesalers and retailers and ensure that the product is available.


Manufacturing support


The area of manufacturing support concentrates on managing W.I.P inventory as it flows between the stages of manufacturing.

A Master Production Schedule is prepared and arrangements are made for timely availability of materials, components, parts etc.

Manufacturing support has one significant difference when compared with physical distribution.

Physical distribution attempts to satisfy the needs of the customers while manufacturing support involves movement requirements that are under he control of the manufacturing enterprise.




Procurement is concerned with purchasing and arranging in-bound movement of materials, parts and /or finished inventory from suppliers to manufacturing or assembly plants, warehouses or retail stores.

Procurement is also known as purchasing and buying and in some cases inbound logistics. Procurement s concerned with availability of the desired material assortments where and when needed.


Within a typical enterprise, the three areas of logistics overlap. The prime concern of an integrated logistical process is to coordinate overall value-added inventory movement. The three areas combine to provide integrated management of materials.


Information flow


Information flow identifies specific locations within a logistical system that have requirements. Information also integrates the three operating areas. The primary objective of developing and specifying requirements is to plan and execute integrated logistical operations. Within individual logistics areas, different movement requirements exist with respect to size of order, availability of inventory, and urgency of movement.  The primary objective of information sharing is to reconcile these differences.

The following two tabs change content below.
We, at, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to

Like it? Share with your friends!

BMS Team

We, at, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to


Ask Us On WhatsApp
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Voting to make decisions or determine opinions
Formatted Text with Embeds and Visuals
The Classic Internet Listicles
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Upload your own images to make custom memes
Youtube, Vimeo or Vine Embeds
Soundcloud or Mixcloud Embeds
Photo or GIF
GIF format