Operations and logistics are what create a company’s product or service and brin

Question

Operations and logistics are what create a company’s product or service and bring it to market. The processes within each get raw materials into the company and finished products out. In the case of a services organization, the processes bring knowledge into the organization and transfer it into a service that is performed for the customer. Some think the terms, “Operations” and “Logistics” are interchangeable. Some confuse the two. Why do you think this is? Describe an operations or logistical process within your own company and put it in the correct category.

Explanation / Answer

Operation and logistic is a multidisciplinary field which comprises of activities right from procurement of raw materials, product development, quality management, logistics, warehousing, transportation, information system and human resource management. Therefore, operation is the primary stage where a product is manufactured whereas, logistic starts after operations where a product is manufactured and is delivered to the end customers. These two terms are often coined as a one or are interchangeable as the main purpose of a company is to manufacture and deliver products to end customers. Therefore, these entire activities are grouped as a single process.

The process of operation or logistic is as shown below:

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