The Importance of Logistics Function in Organizations: An Overview

Fatema Begum
Journal of Business Research, vol. 3, 2001

Since industrial revolution to about 1930, main focus of companies was on their manufacturing techniques. During this era, manufacturers could afford to focus on production only because demand was assured. The period from approximately 1930 to 1950, focus of the companies was on promoting and distributing their
products. The period from the 1950s till today, companies formed marketing departments,started to implement the marketing concept as they needed to pay attention to customer wants and needs.Customer service has become one of the most important non price competitive factors. According to author logistics decisions have a vital role to play in this regard through having control over storing and distribution of goods and services. Components of business logistic are physical distribution and materials management. Both theoretically and practically the area of logistics has been so far neglected specially in third world countries. The objective of this paper is to highlight the importance of logistics management in a business organization in relation to customer satisfaction through to cost minimization and quality service delivery. The context of Bangladesh has been taken as an empirical study. In addition to literature review relevant information have been collected from various business organizations of Dhaka City, Bangladesh.
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