In the article we will talk about the concept of logistics. We will consider this concept in detail, and also try to understand the intricacies of the logistics processes. In the modern world, this sphere occupies a rather significant place, but few people have enough idea about it.
The concept
Note that logistics is defined as the ability to correctly calculate. From an economic point of view, it is an activity in the field of practice and science, which is associated with the organization of the movement of various flows from one point to another. This implies the ability to properly manage, organize and optimize. It is very important that the goal of logistics is to ensure that the product is delivered to the final consumer.
At the beginning of the last century, a scientific work entitled “Transport Logistics” was published, which made it possible to organize the correct transportation of military forces, which gave some advantage in the course of hostilities. When the Second World War began, logistics was already actively used, and its methods were widely used to supply the army.
Talking about logistics without understanding the key points is very difficult. Let's consider some key terms. The first is the supply chain. It represents the various constituent elements of the transportation process that affect each other. They are ordered by certain signs, namely, material, informational and monetary.
Another important concept is the logistics network. It represents a large number of people and technical elements that are involved in ensuring the most efficient transportation.
It is also worth considering the concept of a logistics channel. It is a set of specific system changes that allow you to fully organize one full-fledged transportation process.
Tasks
The concepts of production logistics are reduced to some of the main tasks that we will consider below. So, they include:
- Formation of a clear system for regulating various flows.
- The ability to correctly predict the potential volumes of goods for transportation, production, storage.
- Determining the gap between the necessary and possible indicators.
- Determination of demand for certain goods, which is considered in the context of logistics.
- Providing full service.
These are common tasks that face this direction.
Narrow Tasks and Goal
Let's consider the narrower tasks that the concept of integrated logistics sets for itself:
- Reducing the time frame of transportation.
- Reducing the time frame for product storage.
- Drawing up the necessary minimum goods.
The key goal of logistics can be formulated in this way: a specific product of a specific quality in a specific quantity must be delivered to a specific place at a certain time so that the costs are minimal.
Development
The active period of development of logistics began in the 70s of the last century. Until then, this area of life has not been given enough attention, although there have been some works and developments. The peak of production just fell on this period. That is why entrepreneurs began to actively seek various ways to improve the efficiency of their production and possible competitive advantages. Businessmen quickly realized that sometimes a reasonable investment significantly increases the chances of success than a thoughtless investment.
Many people became interested in the idea of logistics, because it made it possible to fully monitor the movement of products or raw materials, as well as analyze possible costs and losses and optimize transportation in every way. At the same time, the correct application of the principles allowed to reduce the cost of goods, which turned out to be the main key factor.
That is why it became clear that logistics is very profitable from an economic point of view. After a while, they began to use it in almost all areas of business, and the great progress in this area was given by the active progress of science and technology. Thanks to the advent of computer technology and mobility, it has become quite easy to control all stages of transportation, monitor cash flows and manage them at any stage.
Key Features
The evolution of the concept of logistics has led to the fact that there are two main functions. These are coordination and operational functions. The latter is due to the fact that the management of material values in the field of production is provided. If we look at the topic of our article through the prism of production, then logistics is a tool that allows you to control the movement of products at all stages of production.
Coordination
As for the coordination function, it includes analysis, identification of problems, the search for material needs, forecasting the development of the situation in one direction or another, data processing. In other words, the essence of the function is to capture changes in supply and demand and act on this basis. Operational planning, in turn, allows you to create the correct order and schedule of movements, thereby significantly reducing costs.
Fundamental functions
The concept of logistics concept allows us to highlight several fundamental functions. Let's consider them in order:
- The backbone function is that logistics allows you to use effective tools and direct them to a reasonable management of resources.
- The integration function consists in the fact that logistics simultaneously solves issues of such processes as sales, transportation, delivery, intermediation, etc.
- The regulatory function is that it is possible to fully control and manage all flows.
- The resulting function allows you to determine the needs and requirements, limit time and place, maintain the desired quality and level of costs. Note that the effectiveness of logistic research depends on how much the resulting function is implemented.
Key logistics concepts
Scientists distinguish several periods of development of this sphere, which depended on the level of development of production. The period of absence of logistics principles, the period of traditional logistics and the period of new principles are distinguished. Each of them can be described with the help of a certain concept, which justifies certain provisions, evaluation criteria, basic principles of management.
Note that initially the transportation of goods and the logistics of production were considered separately from the production itself. That is, it was only an option that allowed organizing activities more correctly. Suppose a company was operating that was engaged in the production and transportation of products. So, people from the lowest management levels were responsible for logistics. This tells us that not enough attention was paid to this issue and few understood its real role.
However, the impetus for the development was the widespread use of cars, which drew attention to some logistics principles. After some time, the proper organization of goods transportation has become one of the key areas of the enterprise. The performance criterion was the price for moving the goods.
Initially, specialists who dealt with these issues developed only tariff rates and built a route, but then the list of their competencies expanded significantly. On their shoulders was already responsible for managing freight flows, choosing one or another type of transport service.
Traditional period
From this moment, deeper concepts of logistics management begin to develop and the traditional period of development begins. Over time, more and more requests appear, namely, it is necessary to monitor transportation, check all invoices, study packaging, measure weight. But all this makes the work very versatile and narrowly focused. The logistics specialist already needs to know much more and be able to analyze information in order to choose the most rational path. But all this served to the fact that this area began to develop very actively, not as an additional application in production, but as a separate and important industry. It gained rapid development because it was always interested in entrepreneurs, but there was not enough knowledge to use all its advantages.
New ideas
The logistics information concept begins to develop after all the basic principles and bases have already been stated. Innovation lies in the fact that the criterion of the effectiveness of any economic activity is the effectiveness of product distribution. Also, the new period is characterized by the fact that specialists begin to use combined methods in order to evaluate the efficiency of movement of various commodity values. At the same time, it was quickly discovered that traffic flow management and the coordination of all actions do not yet provide sufficient efficiency. It is very difficult to take into account the sequence, as well as to tie together different aspects of the activity.
Neologistics
This period began in the early 1980s, and it is characterized by the fact that logistics began to be introduced into various enterprises as an integral element of the production process. Despite the fact that it did not yet have the necessary resources for management, as well as the opportunities for this, it nevertheless allowed achieving certain results. Even working autonomously, it made it possible to quickly respond to changes in traffic. The quality of work largely depended on what kind of experience a specialist has and whether he uses the methods of efficient transportation in the complex.
Modern logistics
We examined the basic concepts of logistics, but we must understand that in its current form this area is very progressive. Modern experts are guided by integrated approaches and programs that allow you to combine different working methods, taking into account the necessary material and economic aspects, as well as connect the work with the needs of production and marketing. There is a union of all possible points of view and methods into a single whole. In other words, logistics no longer focuses on working autonomously. She begins to integrate to get better performance. An integrated logistics system is being created that allows organizing transportation as efficiently as possible. During this period, the establishment of economic interests with the needs of individual production also takes place.
Summing up the article, we note that the development of the logistics concept was rather unstable and superficial. Before due attention was paid to this issue, production efficiency was rather low. When the peak of the development of logistics systems came, a much larger number of entrepreneurs became interested in issues in this area. This allowed the introduction of logistics in most enterprises and industries, which brought it to a completely different level of development.
We examined the basic concepts of production logistics that existed earlier and harmoniously developed. At the moment, logistics is a comprehensive industry of knowledge that exists in conjunction with others. The concept of logistics requires an understanding of how much production depends on well-conducted operations that reduce overall costs.