Logistics Value Creation

Almost no day goes by without logistics. Logistics come in on social activities, business, military, events, relief efforts, etc. Logistics can be viewed from various perspectives. From these perspectives, the logistics term is defined as follows:

Logistic activity
What activities have the logistics done to help create the value added logistics through place utility, time utility, and quantity utility? Logistics include planning, execution, and control of activities: transportation, warehouse and storage, packing, materials handling, inventory management, inventory forecasting, planning, and scheduling production, procurement, customer service, selection of plant and distribution locations, return goods, reproduce and maintenance services.


Transport is generally the most important activity in logistics. Almost over 60% of the total logistical costs are transport costs. Transport integrates physically tissues and nodes in the supply chain through material transfers, parts, and finished goods. The core of transportation operations includes routing, departure and confirmation, and determination of transportation modes.


Storage is related to inventory management and warehousing. The increasing number of inventory is stored, requiring warehousing management activities, ranging from receiving, checking inventory, placing in storage locations, picking up according to orders, and loading of goods for transportation and distribution.

Material Handling.

Handling both technology and kinds of material becomes a consideration in the design and warehouse operation. All of these moving items from warehouse to transport require an handling material fitting to fit both the capacity and dimensions of all of them. Angling materials technologies are growing, from mechanical technologies, semi-automation, automation. Various types of material handling equipment such as conveyors, forklift trucks, overhead vehicles, and answers (automated storage and retrieval system).

Inventory Management

The primary aim in inventory management is to ensure sufficient stock outcomes and to ensure the accuracy of trade-fulfillment from factories or vendors to prevent running out of stock. Utilizing needed information technology for stock tracking status. Periodically stock hedges or physical rehabilitation calculations are performed and then compare to inventory data.

Inventory Forecasting

Demand forecasting becomes a critical activity in logistics. Accuracy in demand forecasting will be needed to determine how much and when goods are produced to meet the demand for sales. Demand forecasting techniques have been developed like a simple moving average, weighted moving average, and componential smoothing.