Such a term as logistics operations can be heard quite often in the field of trade and distribution. And this is not surprising, because the tasks that logistics includes are extremely important for the full work of any company, regardless of its profile and scale. Without understanding these processes, organizing a profitable business will be extremely difficult.
What is logistics?
This definition is used to refer to the science of transportation planning, its management and control. This can also include warehousing and any types of intangible and material operations that are carried out until the moment when the goods or a specific resource will be delivered to the desired point.
As part of the aforementioned process, various logistic operations related to the management of warehousing, stocks, transport, personnel can be performed. This also includes the organization of commercial activities, information systems, etc.
In fact, logistics is needed in order to effectively manage various material flows.
The essence of logistics operations
Initially, it makes sense to pay attention to the common definition of these processes. The concept of a logistic operation is used to designate an independent part of the process within the framework of logistics, which is carried out using one technical device and / or at one workplace (sorting, unloading, unpacking, warehousing, packaging, packaging, etc.).
Another definition can be given. Operations of this kind - this is nothing more than a set of actions that are aimed at transforming the information or material flow.
In this area, the key concept can be called the material flow, which can be the result of storage, transportation or other actions with any resources, including products that can be defined as finished.
In order to manage such a process, it is necessary to quickly receive, process information and transmit it without delay.
Features of logistic operations
Despite its unified essence, operations of this profile are divided into several types, which are worth paying attention to.
The tasks in the field of logistics can be divided into two key types - elementary and complex.
In this case, the second option may have some subspecies. We are talking about basic, auxiliary and key operations. These areas should be discussed in more detail.
So, key logistics operations are directly related to procurement management, ordering procedures, stocks, physical distribution and production processes.
If we are talking about basic operations, then they should be understood as supply (purchase), production and, of course, sales.
Elementary logistic processes include unloading, loading, transportation, packing, storage, reception, stocking, labeling, sorting, etc.
The definition of auxiliary operations is used when you have to deal with packaging, shipping, warehousing, collection of returnable waste, the information and computer segment, the provision of return of goods and other after-sales services.
Physical Distribution
Considering the logistics operations and functions, the principle of separation of processes should be given attention without fail.
The following descriptions help you better understand the meaning of these categories:
1. Organization of procurement, as well as their management. This is a set of tasks, including planning the demand for resources, choosing suppliers of material resources, calculating optimal delivery times and actual procurement volumes. This category also includes the choice of type of transport for delivery, the form of delivery itself, the organization of contractual work, etc.
2. Maintain established customer service standards. Here we are talking about product quality control, after-sales service and the distribution of goods.
3. Pricing. The pricing strategy is most directly related to production logistics. The fact is that before determining the final cost of production, it is necessary to take into account all the logistics costs that the company will incur (including after the release of the goods).
4. Physical distribution. These logistic operations are complex and part of a process such as distribution. They include processes related to the storage and movement of finished products.
Transportation and Management
This is another group of categories that can be divided by physical attribute. She deserves special attention:
1. Management of the order process. The essence of this process is to determine the order of both receipt and processing of orders. This also includes planning the time for receiving orders by the end user, organizing the work of logistics intermediaries or the distribution network formed by the company itself.
2. Transportation. These logistic operations are focused on the efficient search and operation of vehicles to ensure material flow. This is not only about the transportation itself, it implies a whole range of transportation, forwarding, loading and unloading processes and more.
3. Inventory management of products that are already off the assembly lines, as well as material resources. In this case, we are talking about the process of creating, controlling and regulating the level of stocks in processes such as supply, production and marketing. Logistic operations within this category are focused primarily on the consideration of the time factor.
Without the efficient organization of the delivery of resources to production and finished products to the final consumer, it will be extremely difficult to be at the top of efficiency and profit. Proper management of the received resources also has a significant impact on the operation of the enterprise.
Operational management
This process, which is essentially the management of production procedures, is also important to touch on for a better understanding of the various facets of the topic.
In fact, we are talking about a key logistic function at the production stage, which is why special attention is paid to it. As part of logistics, operational management is needed to effectively manage work in progress and material flows in general. Attention is paid to the tasks of volumetric scheduling, reducing the duration of the production cycle, forecasting possible needs in the sector of material resources, etc.
It is with the help of operational management that one can competently reduce costs, including in the framework of logistics, as well as significantly improve the quality of products.
Key Varieties
When considering logistics operations and their types, one cannot ignore five key functional areas related to the various stages of the material flow:
1. Production logistics. The tasks in this area are related to the management of material flows during the production of goods.
2. Purchasing logistics. At this stage, the review and selection of specific suppliers, the adoption of relevant measures in case of violation of the terms of delivery, the conclusion of contracts and subsequent monitoring of the exact fulfillment of their conditions.
3. Transport operations. This is the process of providing the company with transport - both its own and public use - for the planned movement of material flow.
4. Distribution logistics. At this stage, a function such as marketing products is implemented. Moreover, in the framework of this type of operations, both micro- and macro-tasks can occur. An example is the organization of the competent distribution of food products in the region or the whole region.
5. Information logistics. We are talking about effective end-to-end management of material flow through the rapid processing and distribution of large amounts of information. This is especially true for large enterprises that have a large assortment, a significant coverage area and many clients. To accurately perform the tasks that are relevant at this stage, modern information technologies are used, for example, microprocessor technology.
Conclusion
Obviously, each task associated with any logistics operation is extremely important for the enterprise, since the level of the company's overall performance depends on its successful implementation.
Failure at any stage of the movement of material flow can lead to financial losses. Thus, we can safely say that logistics is one of the key elements of the effective work of any organization, especially if it is large.