Explain how inbound logistics, conversion operations and outbound Essay

Explain how inbound logistics, conversion operations and outbound logistics converge to provide intergrated logistics - Essay Example rations involves several essential elements of a business such as production management, information flows, transportation of goods, warehousing, inventory control etc. Handling such activities with precision has become inevitable for the companies to gain competitive advantage over their competitors and strengthen its market positioning. It covers several operational aspects of a business, such as order processing, distribution of goods, as well as packaging which are essential for the timely receipt of raw materials as well as delivery of the finished products to the end users. Logistics can be defined as â€Å"The process of planning, implementing, and controlling procedures for the efficient and effective storage of goods, services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. This definition includes inbound, outbound, internal, and external movements1.† While the business dictionary defines logistics as â€Å"planning, execution, and control of the procurement, movement, and stationing of personnel, material, and other resources to achieve the objectives of a campaign, plan, project, or strategy. It may also be defined as the management of inventory in motion and at rest.2† Michael Porter’s Value Chain Model3, is an essential tool that helps in analyzing the various activities through which, the firms across the industry, seek to create competitive advantage. This model involves a series of support activities which are shown in the following diagram: The basic idea behind this model is to depict the various activities that create value to the organization which should be far greater than the cost involved in providing the product or service, hence creating a substantial profit margin in the process. These activities are explained through the case study of the â€Å"Bombay Dabbawalas† (Lunch box carriers from a city in India), a six sigma operation, recognized as a