W Hy Logistics ? History of Logistics:: Type of Logistics: How To Improve Your Logistics Network Flow

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Summary 

INTRODUCTION
WHAT IS LOGISTICS ?
WHY LOGISTICS ?
HISTORY OF LOGISTICS :
TYPE OF LOGISTICS :
How to improve your Logistics Network flow
LOGISTICS ARE A PART OF THE SUPPLY CHAIN MANAGEMENT :
WHAT IS SUPPLY CHAIN MANAGEMENT ?
LOGISTICS IN DIFFERENT AREAS:
TRANSPORTATION :
INFORMATION TECHNOLOGY IN A SUPPLY CHAIN :
LOGISTICS IN SUPPLY CHAIN MANAGEMENT :
Why logistics are fundamental to supply chain succes :
THE FUNCTIONS OF LOGISTICS WITHIN SUPPLY CHAIN
MANAGEMENT
The logistician
CONCLUSION :
INTRODUCTION
Efficient logistics is a key factor in ensuring the success of an organization from
ensuring that the organization has all that it requires to produce results to ensuring
that custumors are satisfied.
The following article has been prepared to give the reader an overview of logistics
management from the very meaning of logistics to the phases in logistics
management.
WHAT IS LOGISTICS ?
-Logistics is the management of the flow of resources between the point of origin and
the point of destination in order to meet some requirements
- Planning implementing and controlling the physical flow of material and finished
goods from point of origin to point of use to meet customer's need at a profit
-It is an interface between two companies which will fulfill the requirements
-Logistics can include physical items such as food, materials, equipment, liquids etc...

WHY LOGISTICS ?
- It allows for a smoother flow of company processes and procedures increase
performance
- Brings profits to company
- Increases efficiency
The aim of logistics is to ensure supply to the costumer the : right product, right cost,
right quantity, right quality, right place and in the right time.

HISTORY OF LOGISTICS :
-The word logistic has originated from Greek word 'Logistikos' and the Latin word
'Logisticus' which means science of computing & calculating
-During World War II logistics gained importance in army operations covering the
movement of supplies , men & equipment across the border today
-It has acquired the wider meaning and is used in the business for the movement of
material from suppliers to the manufacturer and finally the finished goods to the
consumers
TYPE OF LOGISTICS :
Three main directions correspond with the three logistical processes which we
are going to focus on today. These are inbound logistics, outbound logistics,
and reverse logistics.

1. Inbound Logistics: Explained


When talking about inbound logistics, we refer to the movement, storage, and
transportation of various products and information from the suppliers, through the
warehouse, and further through production facilities of manufacturers for processing
and production. 
The types of goods or items that are transported through this logistics flow are raw
materials. Some could be tools for manufacturing or consumable products needed for
processes such as fuels, or various spare parts and components for production inputs.
Better Inbound Logistics management makes the cycle more efficient and integrative.
An excellent way to manage inbound logistics is to use automatic ordering or order-
fulfillment systems. With this, you can be sure that it will directly impact the
organization’s success. 
2. Outbound Logistics: Explained
Outbound logistics is the movement of finished products or any other items and
information moving from production facilities to the next supply chain link. These
goods move through warehouses, further to the point of consumption (in the hands of
end-users). This is often referred to as the order fulfillment process. 
Using the same example above, after the manufactured car parts made their way
through the inbound logistics flow to a retailer, they will then be sold and distributed
to the end-user, thus moving through the outbound logistics flow to reach the desired
final destination. 
All of the products are intended for the end-users to move through this outbound
logistics flow. In a nutshell, the outbound logistics movement refers to businesses
ship and deliver their products from the warehouse to the customer (whereas inbound
refers to the change between companies and their suppliers). 

3. Reverse Logistics: Explained


As you may have already guessed, reverse logistics refers to the movement of items
or goods from the end-users, back through the supply chain to the appropriate party
concerned. This occurs in the event of returns, or with products that may need
servicing or repairs, refurbishing, resale, recycling, recovering, or for proper disposal
(in the fact a product cannot be recycled due to certain elements and must be broken
down safely and appropriately). 
So, this flow encompasses all of the activities carried out after the point of sale or the
end product life cycle. This process is most common in the automobile and
electronics industry. 

How to improve your Logistics Network flow

If you are in charge of the inbound logistics process, you should secure a reduced


carrier rate to ensure accuracy on inventory management. Every amount invested
wisely on the improvement of logistics will help with the company’s ROI in the long
run. 
If you are in charge of the outbound logistics process, you should establish different
metrics to give your company insights on operational performance and strategies,
such as the outbound logistics strategy. By merely evaluating the company’s return
on various operations, you can recognize which the business should give services or
procedure emphasis. 
If you are in charge of the reverse logistics process, companies should plan and
execute strategies to manage products beyond the final sale, such as repair, warranty
recovery,

redistribution, value recovery, and end-of-life recycling. As a proactive approach,


companies may establish a separate reverse supply chain to address product retrieval
concerns. 

LOGISTICS ARE A PART OF THE SUPPLY CHAIN


MANAGEMENT :
WHAT IS SUPPLY CHAIN MANAGEMENT ?
- Supply chain management (SCM) is the management of a network of
interconnected businesses involved in the provision of product and service
packages required by the end customers in a supply chain
- Logistics is part of this SCM which plays an important role of capturing
information from start of a process to end of the process

LOGISTICS IN DIFFERENT AREAS:


- Logistic recognizes that all the activities of material movement across the business
process are interdependent and needs close coordination and these are to be
maintained as a system and not the functional Silos.
- System is shown as logistic Mix including following functional Areas : Order
Processing , Information Flow , Warehousing , Inventory control , Packaging
,Transportation .

TRANSPORTATION :
Movement of goods from supplier to buyer
- Transportation is the most fundamental and important component of logistic •l
- It involves mainly in...
A. Mode of transportation
B. Own fleet or Outsourcing
C. Route Planning
D. Vehicle scheduling
INFORMATION TECHNOLOGY IN A SUPPLY CHAIN :

LOGISTICS IN SUPPLY CHAIN MANAGEMENT :


Why logistics are fundamental to supply chain succes :
Logistics within supply chain management is constantly changing to meet
consumer demands. Consumers frequently order products using iPods, iPhones,
Smartphones, and Tablets expecting to receive their product within 24-48 hours.
To meet these expectations, companies have to improve the logistics of their
supply chain to expedite order fulfillment and quickly ship the item via the most
reliable, yet cost-effective and timely means. When companies create a blueprint
that outlines the logistics of the supply chain, each component within that
logistics model stays focused, reduces costs and moves quickly and efficiently
resulting in higher customer satisfaction. Logistics helps companies understand
the key metrics, core processes and long-term goals of their supply chain so they
can get the right item to the right place at the right time.
THE FUNCTIONS OF LOGISTICS WITHIN SUPPLY CHAIN
MANAGEMENT
If we systematize all areas of logistics that need to be developed for the rational
management of production resources, we can single out the following functions:
 Warehouse design and management. This role of logistics in supply chain
management covers several tasks at once: from the design of storage
facilities to the requirements for storage of products and ending with the
introduction of various automation solutions (for example, for machinery
intended for transporting goods within warehouses);
 The formation of packages. Packaging, tracking and accounting - all of
these tasks allow for end-to-end control of goods on the way to the
customer/distributor;
 Transportation of products. This includes work with cargo carriers and
vehicles listed in the company's fleet: planning their routes, calculating fuel
costs, etc.;
 Working with customs. When an enterprise plans international delivery of
goods, it is very important that during their transportation the goods fully
comply with customs requirements and contain all the necessary
documentation;
 Working with intermediaries. Intermediaries in logistics are all third-party,
non-company resources that are directly involved in the implementation of
supply chains. In turn, finding intermediaries with the most acceptable
ratio of quality to cost of services, as well as establishing long-term,
reliable relations with them are also included in the list of tasks for efficient
logistics management;
 Working with written off and returned goods. There is also such a thing as
“reverse logistics”, which establishes the rules and routes for transporting
the returned/discarded goods, as well as ways to dispose of them.
The logistician
It’s the expert of logistics. He coordinate the organization supply chain.
He has so many rules :
 Find the cheapest and fastest way to transport goods.
 Make suggestions to customers regarding improvements.
 Keep informed on the latest advancements in logistic technology
 Strive to determine what customers needs are and ensure that they must
meet them.
 Asses logistics functions and work to improve them.

CONCLUSION :
Logistics and supply chain management are two inseparable concepts that help not
only reduce the company's overall costs for the production of goods and/or services
but also improve the overall impression of the level of service for your target
audience. The choice of the right software also plays a significant role in optimizing
logistic tasks. After all, automation today is at the head of the progress for industrial
enterprises.

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