ABSTRACT
This chapter illustrates the practical orientation of logistics. Initially, the discipline was focused only on the physical flow of products. Logistics is often identified most closely with trade and transport. The chapter examines the subsystems of modern logistics, including purchasing, production, distribution and reverse logistics. Subsystems are parts of a system that can be considered separate in themselves without losing sight of the whole. Finetuning the flow of goods is a function shared among the logistic subsystems. The chapter demonstrates the practical relevance of logistics with a number of examples. It deals with logistics in the context of production. Four subsystems of purchasing logistics, production logistics, distribution logistics and reverse logistics are the building blocks that form the foundation of the logistics organization. The four subsystems of material management occur in both the processing industry (Unilever and Shell) and the assembly industry.
