Let our team of experts brings value to your business. ALL RIGHTS RESERVED. Management has to maintain inventories of: Management has to balance the benefits of holding inventories against costs associated with holding inventories like storage space costs, insurance costs, risk of damage and spoilage in keeping stocks etc. Importance of Logistics Source: Christopher, M. (1998). Guide on Information Overload and How to overcome it? Logistics has a huge impact on the domestic and global economy. Issue 4 2018 22nd International Symposium in Logistics, 2017. Logistics management consists of the process of planning, implementing and controlling the efficient flow of raw-materials, work-in-progress and finished goods and related information-from point of origin to point of consumption; with a view to . The main goal of logistics management is to get the best and effective ways to transfer the resources and products from first place to destiny and the customer. Companies need to constantly innovate in order to survive in todays fast-paced market and cutthroat business environment. The operations . The above two decisions depend on the desired level of customer service and the distance between the supply source and final destination i.e. These vast interconnected streams of goods and materials are essentially the global economys circulatory system. A direct relationship exists between transportation and the level of inventory and the number of warehouses required. Volume 26. Packaging facilities the sale of a product. //