LOGISTICS
Logistics is a key piece in a supply or production chain in every company. Through logistics, companies can make available their products and services to the clients in the right momento and place.
What is logistics?
Business logistics is in charge of the execution, planification and control of every activity related with the elaboration, storage and transport of materials (this includes from thee raw materials which are needed in the firt parts of the production process to the finished products that goes directly to the client).
Main goals of Business Logistics:
- To give an excellent service to the clients.
- To do the work as affordable as possible.
To reach this goals, the companies can not act in an spontaneous way. Actually is the other way around. It is necessary to make a previous study and planification to design a control system of all logistical activity of the company itself, making it more efficient.
Business logistics has a certain order in the processes that involve the productivity and marketing of the merchandise.
Functions of Business Logistics
This kind of logistics includes a lot of elements and processes that have to be managed the right way, if this do not happen, the Company could end going in bankruptcy.
The good organization and planification of business logistics allow companies to optimise processes and cut costs.
Some of the more important functions of Business Logistics:
- Customer service: thanks to logistics the sales department can manage the products and services depending on the client needs. In addition, the answers to the customers will be faster and in a better quality.
- Designing and planning more appropiate transport routes to have a better way to deliver the products.
- Inventory management: storage of raw materials, half- finished products and finished ones. The amount and kind of products that are going to be on the storage depends on how requested are the items. Not every Company has the same storage system, it depends on the kind of products, the place, it’s size, and more.
- Order processing: the right management and planification of the stock make possible a faster processing of products, this is convenient in order to satisfy the clients in an effective way.
- Data management: knowing the products our company
- and it’s storage system will help to get more information about the orders and also to detect mistakes or to know when a computer/machine is failing.
7 rights of Business Logistics
In order to optimize logistics in a Company it is necessary to work in the 7 rights of logistics, each one of them is a key element that will make the organization more efficient.
- RIGHT PRODUCT: It is important that our suppliers provide us with raw materials with the ideal characteristics for the elaboration of the products or for the provision of services.
- RIGHT QUANTITY: Maintaining inventories with the correct quantities ensures a better use of resources and minimizes the loss of materials, raw materials and products.
- RIGHT CONDITION: Care must be taken with transportation and storage.
- RIGHT PLACE:Every thing must be in place, with this maximization of efficiency is achieved.
- RIGHT TIME: Time is a resource too valuable to waste, so we must make things just in time in the place they should be.
- RIGHT CUSTOMER: It is vital that our business model aims at the «ideal» customer segment and organize our processes in such a way that we can put our product in the hands of the customer at the right time and place.
- RIGHT PRICE: Cost efficiency is a determining factor. We must choose those solutions that offer greater advantages in costs but without sacrificing the quality and optimum conditions of the product.
Blibliography: http://www.empredepyme.net/la-logistica-empresarial.html#bloque-2
Alumno: Pablo Cufre
materia: Ingles 1
Profesora: Rose Colmenares