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 .