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Logistics it is defined as the art and science of obtaining producing and distributing material and product in the proper place and improper quantities logistics management it is the parts of supply chain management that plans implements and controls the efficient effective forward and reverse flow and storage of goods services and related information between the points of origin and the points of consumption in order to meet customers requirements difference between supply chain and logistics transforming a raw material into products and getting it to customers is supply chain whereas movement of materials in the supply chain is logistics the seven hours of logistics the most popular concepts of logistics management is the concept of the seven ARS it is concerned with getting the right product in the right quantity in the right condition at the right place at the right time to the right customer and at the right price Logistics functions following the areas of logistics management contribute to an integrated approach to logistics within supply chain management transportation many modes of transportation play a role in the movement of goods through supply chains via air rail road water or pipeline selecting the most efficient combination improves the value created for customers warehousing when inventory is not on the move between locations it may have to spend some time in a warehouse warehousing is the activities related to receiving storing and shipping materials to and from production or distribution locations third and fourth party logistics third party logistics providers actually perform or manage one or more logistics services fourth party providers are logistics specialists and play the role of general contractor by taking over the entire logistics function for an organization reverse logistics it is a way to handle the return reuse recycling or disposal of products that make the reverse journey from the customer to the supplier Logistics value proposition managers must be able to balance logistics costs against the appropriate level of customer service logistics are usually managed as an integrated effort to achieve customer satisfaction at the lowest total cost therefore service and cost minimization are two key elements in logistics value proposition logistics goals and strategies logistics shares the goal of supply chain management to meet customer requirements there are a number of logistics goals the most experts agree on respond rapidly to changes in the market or customer orders minimize variances in logistics service minimize inventory to reduce costs consolidate product movement by grouping shipments maintain high quality and engage in continuous improvement and support the entire product lifecycle and the reverse logistics supply chain an effective logistics strategy depends on the following tactics coordinating functions that is transportation management integrating the supply chain substituting information for inventory reducing supply chain partners to an effective minimum number and pooling risks substituting information for inventory it is one of the tactics used to design effective logistics strategy it requires taking a series of steps to construct the logistics network step 1 locates.