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Essay On Importance Of Logistics

1862 Words8 Pages

1. Importance of logistic and supply chain management. Logistics is the goods from the supplier to receive the entity flow process, according to the actual need, transportation, storage, procurement, handling, packaging, circulation processing, distribution, information processing, and other functions for the purpose of conforming customer requirements.
Why are they so important? Logistics can reduce the enterprise cost, enhance the competitiveness of enterprises. Supply Chain Management (SCM) is the management of the flow of goods and services. It includes the moving and storing of raw materials, work-in-process inventory, and products from point of origin to point of consumption.
The Supply Chain Management can cost up to operating costs …show more content…

Importance of inventory management.
Inventory management involves trading off the level of inventory hold to achieve high customer service levels with the cost of holding inventory. Inventory management is very important point of view, it makes the two important problems that is keep sufficient inventory of the company production and sales activities smoothly and minimize inventory investment to improve the profitability of the company. Inventory management can help business be more profitable their cost of goods sold and by increasing sales.
Should not excessive or insufficient investment in inventory. It should be the best. The main purpose of inventory management is maintaining the best level of inventory. In inventory result, the excessive investment will affect the cost of more money, thereby reducing profits and stock can be abused, loss, damage and holding costs of large space and others. At the same time, the inventory stock of underinvestment problem, interrupt the production and sales business. Therefore, the company may lose customers to competitors. The financial manager, he needs in inventory management, should as far as possible the excessive inventory and inadequate investment. The importance and significance of inventory management can be specified as

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