Before the introduction of Americanism into the speech of a simple Russian person, the word "logistics" meant only the branch of mathematical logic and everything related to it. Current logistics: what is it? In the world of modern business, this word denotes a whole area that provides the urgent needs of any functioning enterprise.
Logistics Tasks
The main responsibility of logistics is to provide all the needs of consumers by maintaining the normal operation of production, marketing and other sectors of the enterprise. In other words, logistics provides us with fresh bread in the store, fresh newspapers and strawberries in the market. And as an auxiliary moment, it provides the flow of flour to the bakery, fertilizers and seedlings to farmland. Logistics: what is it, what are its main characteristics? Speed, availability of goods, uninterrupted supply, as well as process flexibility are the main tasks of this area of development of any business.
Functional Areas
Before the term “supply chain” appeared, logistics made it possible to minimize costs using functional areas. Changing the parameters in any such area of the enterprise can affect its work as a whole.
Logistic infrastructure is a complex of interconnected facilities that have different characteristics and have a certain geographical location. For example, a plant may be located near sources of raw materials, and a warehouse (there may be several) can be located in a completely different place. All objects of this infrastructure are interconnected in a certain way.
- Transportation - the implementation of communication between individual infrastructure objects. Mass transportation is carried out by road and rail. In the case of long distances, water, air and pipeline (for the transport of oil and gas) are used.
- Cargo handling and storage. The first process involves loading and unloading, moving products and materials across the warehouse. Warehouses can be tied to production or independent.
- Order management - the correct calculation of the required quantity of stocks at each point of the infrastructure, depending on the needs of the entire chain.
- Logistics: what is it? Information support is the most important part of its entire working system. Information technology has transformed individual functional areas into a single integrated system that minimizes the overall costs of the entire supply chain. They provide the main development of logistics.
The most promising way to organize logistics is to attract specialized logistics companies. They have a complete understanding and knowledge of what logistics is, what it is in the business world, and what role it plays today. Companies will help to competently organize the entire supply chain for the client. Good luck in your business!