How is logistics defined?
The logistics is defined as the process of planning, helping and controlling the flow and storage of raw materials, half-finished or finished products and handling the information related to this process, from the place of origin up to the place of consumption with the intention of satisfying in suitable form the requirements of the clients.
The scope of the Logistics includes the whole organization, from the management of raw materials up to the delivery of the finished product. The mission of logistic management is to plan and coordinate all the necessary activities to obtain the wished levels of service and quality to the minor possible cost.
Stages of logistics?
1. Supply: it is the stage of supply of raw materials and necessary elements in order that the company develops his product or service. In this stage one finds the creation of relacionships with the suppliers, the market researches to identify the demand, the forecast of the production and the management of the inventory.
2. Production: it is the transformation of the raw materials in a final product that will be sold to the clients. In the production the competitive advantages of the product are defined and it is sought to answer satisfactorily to the needs of the market.
3. Storage: the company organizes and classifies his products at the time that it regulates the rotation of the same ones. In this stage the maximum utilization of the space is looked to the minor cost. To avoid this expense the company can implement the Cross-docking or direct distribution, which does without the storage.
4. Transport and distribution: it is the delivery of the product to the client or consumer in the established times and with the best performance related to the costs of operation. In this stage it is fundamental to choose the way of transport most adapted for the mobilization and distribution of the merchandise, as well as to delimit the area of coverage.
5. Service to the client: the logistics does not limit itself to the opportune delivery of the product in his place of destination. The logistic management also includes to answer to the requirements of the market by using strategies that should offer a differentiated value and that should help to the loyalty of the clients
Which are the aims of the logistics?
The principal aim is to answer to the demand, obtaining an ideal level of service to the minor possible cost. Inside this great aim, we can indicate the following ones:
To supply the necessary products, at the right moment, in the needed quantities, with the demanded quality and to the minimal cost.
· Making priority the needs of the client.
· With the necessary flexibility to cover the needs of the changeable market.
· Reacting rapidly to the orders of the client.