The concept of the logistic system and technology of logistics have made substantial advances in decades since World War II. Today, logistics is a word that sounds scientific; however, there is still some area where much of the population prefers to live close to the production area in order to obtain their requirements. A business firm is essentially an open system. It receives input from external sources, uses and processes this input, and finally produces an output that to some extent changes the environment. A logistic system--as a sub system of the business enterprise-handles the flow of input toward the process and the flow of output toward the customer, according to plan and with minimal cost. This study
introduces perspectives of the business logistics system. It describes the concept of logistics and identifies the fundamental logistics considerations and its elements. This study proposes a conceptual logistic system that can present logistics structures, functions, and responsibilities. Hopefully, it can provide a way of thinking that will eventually help the reader recognize the scope of the logistics organizations and its important roles. There are several basic elements in the logistics system of a business firm. Business logistics as a system operates according to some basic elements. However, these elements have been defined differently by different authors. The intent here was to indicate those actual factors that comprise a logistics system. These factors, which have been high lighted by other authors as well, are composed of: forecasting to eventually determine the firm's overall requirements, procurement, storage, transportation, material handling, packaging, and customer service.