There are 5 elements are undertaken to determine the role of logistic functions are: 

(i) The role of storage material handling and warehouses in logistics: It is to enable a stable stream of products to be supplied by manufacturers. Manufacturers need to operate at highest efficiency, but customers tend not to demand goods at the same rate as a manufacturer supplies them. There tends to be an imbalance between supply, which is steady, and demand, which can be unpredictable. The answer is to store the surplus goods produced by a manufacturer until they are demanded by consumers. To attain this, warehouse buildings are required. These require specialist storage equipment such as racks or shelving and material handling equipment to move them around the warehouse and to unload and load delivery vehicles.

(ii) The Role of Packaging and Unitisation: Packaging is a crucial part. Unitisation is important as this assists transportation and storage. The simplest product to store and move is a cube, so packaging and unitisation attempts to take all different shapes and sizes of product and pack them as near as possible into a cuboid shape.

(iii) The Role of Inventory: Inventory is a logistics element that is related closely to storage and warehousing. It is connected with what stock to hold, where the stock is located and how much stock to hold. In effect, inventory is controlling the flows of goods going into and out of a warehouse. This is achieved by looking at sales data of past orders and using several mathematical and statistical tools to try to predict how much goods will be demanded by customers. Inventory management is not an exact science, but depending on how variable demand can be, it is a useful tool to help manage the flows of goods through the supply chain.

(iv) The Role of Transport: A most important element of logistics that most will recognize is transport. This comprises all modes of transport including freight trains, road vehicles, air transport and cargo shipping. Without transport, goods would be unable to move from one stage to another within a supply chain. Few goods with short supply chains, such as foodstuffs, do not travel far. Other more complex products consist of several components that can be transported from all over the world.

(v) The Role of Information and Control: The element of information and control is required by all the elements to act as triggers to several operational procedures. Information and control’s role is to assist design information systems that can control operational procedures.

Yes, I agree that logistic functions play a pivotal role in the process of supply chain management.

Supply chain management (SCM) involves the coordination of various activities, including procurement, production, inventory management, transportation, and distribution, to ensure that products are delivered to customers efficiently and effectively.