Network Design

1. This is one of the prime responsibilities in logistics management and this network is required to determine the number and location of manufacturing plants, warehouses, material handling equipment’s etc. on which logistical efficiency depends.

Order Processing

1. This includes activities for receiving, handling, filing and recording of orders as well as ensuring that order processing is accurate, reliable and fast.

2. It has to also minimize the time between receipt of orders and date of dispatch of the consignment to ensure speedy processing of the orders.


1. It is related to obtaining materials from outside suppliers and also includes supply sourcing, negotiation, order placement, inbound transportation, receiving and inspection, storage and handling.

2. Its main objective is to support manufacturing, by providing timely supplies of qualitative materials at the lowest possible cost.

Materials Handling

1. It involves the activities of handling raw-materials, parts, semi-finished and finished goods into and out of plant, warehouses and transportation terminals.

2. Management has to ensure that the raw-materials, parts, semi-finished and finished goods are handled properly to minimize losses due to breakage and spoilage.

Inventory Management

1. This is to minimize the amount of working capital blocked in inventories and at the same time to provide a continuous flow of materials to match production requirements and also to provide timely supplies of goods to meet customer’s demands.

2. Management has to maintain inventories of raw-materials, parts, Semi-finished goods and finished goods and also 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.

Packaging and Labeling

1. Packaging implies enclosing or encasing a product into suitable packets or containers, for easy and convenient handling of the product by both the seller and specially the buyer which also acts as a silent salesman thereby facilitating the sale of the product.

2. Labeling means putting identification marks on the package of the product which provides information about date of packing and expiry, weight or size of product, instructions for safe handling of the product, price payable by the buyer.


Storage or warehousing is that logistical activity which creates time utility by storing goods from the time of production till the time these are needed by ultimate consumer.


1. This is needed for Movement of raw-materials from suppliers to the manufacturing unit.

2. There is movement of work-in-progress within the plant and movement of finished goods from plant to the final consumers.