Business logistics is a set of activities involved in the flow of materials and products through an organization and a supply chain to the market. Therefore it is vital to the economy and the individual firm and other firms in a supply chain network. The management functions include materials management (The raw materials into and through the firm) and the physical distribution (The channels of supply form the firm) to the ultimate customer. Logistics activities absorb a substantial portion of operating costs and are a key factor in supporting regional and global trade. Efficient management of the logistics functions is essential for a firm to attain and maintain a competitive advantage.
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