The term “logistics” in history is mentioned quite often, and in different historical periods it had different meanings. In the twentieth century, logistics has become a scientific discipline, which is studied in higher educational institutions and is actively used in practice. Today it is difficult to imagine the work of any transport company without this science. Its introduction into business and everyday life gave new jobs and allowed to bring to a higher level the activities of companies related to trade and transportation of goods. The history of the emergence of logistics, as well as the stages of its development, are quite interesting information. However, it is often found in disparate sources, which are difficult for readers to put together. Today you can learn about the history of the emergence and development of logistics, its goals and objectives, as well as the main concept.
Get to know the terminology
There were many moments in the history of logistics when this term changed its meaning. Therefore, before talking about the history of its transformation into a serious and popular science, it is necessary to understand in more detail the terminology and its changes at different stages of development.
If we talk about the present day of logistics, then specialists use about five different formulations that reveal the essence of the concept. First of all, you need to consider the term from a scientific point of view. At the economic faculty of any university, students will be explained that logistics is the management of flows of a different nature: human, material, informational and others, with the goal of optimizing them. Optimization is to reduce financial costs. Specialists in this field are developing a methodology that allows making the management of these flows more efficient and rational.
Considering the term from the angle of practical understanding, we can say that it denotes a tool. When using it, the organization of streaming processes is as efficient as possible, and the amount of labor and financial costs is reduced several times.
The practical application of logistics is quite interesting, because it represents the choice of optimal options for providing the necessary goods to people who need them. At the same time, the product and the whole process can be characterized as the ability to be at the right time in the right place.
In the history of the development of logistics, our days are considered the most favorable, since it is very actively used by managers in their work. Managers view this discipline as a true management strategy used in procurement. In this sense, logistics is responsible for all processes from “A” to “Z”: ordering goods, purchasing, storing, shipping, escorting goods, organizing sales, and the like. The management of human, financial and information flows is built in the same way. Optimization methods work equally effectively with respect to a group of people, one person, or the whole enterprise.
If we consider the term in terms of history, logistics will have two interpretations. The first came from England, where the definition was used in a military environment. Therefore, in the literal translation, the term will mean “rear” or “supply”.
The Greeks also actively used this word in their lives, but they gave it a completely different meaning from the English. Translated from Greek, logistics is the ability to calculate or reason rationally.
It seems surprising to many that such dissimilar meanings eventually transformed into one scientific concept. To understand this, you need to look at the history of logistics. What we will do in the next section of the article.
Brief historical background
In the history of the emergence of logistics and its transformation into an independent scientific discipline, it is almost impossible to find dark spots. The earliest references to this term date back to the oldest times. In the fourth century BC, it was actively used by the Greeks and Romans. In this period of time, this term meant a very specific art of counting. The ancient Greeks, who were in the position of state controllers, were often called logisticians and had to monitor primarily the movement of financial flows. The Romans used logisticians to distribute food. This process was subject to certain rules that were formed as a result of accurate and complex calculations.
In ancient history, the concept of logistics was also used by the Byzantines. However, during this period they gave it a slightly different meaning and began to apply it in the context of military art. For the first time in written sources, the term was mentioned around the ninth century AD. In the treatise of the Byzantine emperor, the concept of logistics was described, according to which the ration of the military was formed and the ration was distributed.
In the history of Russia, logistics as a term is also often found. However, the determination came to our lands with the light hand of the French military specialist Jomini only in the nineteenth century. Naturally, in Russia the history of logistics was closely connected with army everyday life. This science was completely engaged in all movements of troops: on its territory, behind enemy lines. In addition, it provided the army with products, tools, necessary equipment, and similar items. If we talk about the history of logistics briefly, it should be noted that in our country this term was used until the 1917 revolution. At the beginning of the twentieth century, it began to be used less and less and completely went out of use by the twenties of the last century. However, as such, logistics has not disappeared. Soviet specialists involved in providing the army began to be called procurers.
Describing the history of the development of logistics briefly, it can be noted that from ancient times to the present day two main interpretations of the term have been preserved. The first is quite specific and is used in mathematical calculations. It was introduced into use by a well-known German mathematician, implying a certain logic under it.
The second interpretation is firmly entwined with the military industry. Indeed, in the history of the development of logistics in Russia and other countries, it has been used to a greater extent precisely as an applied science of command and control of the army and active forces in wartime (the range of issues that are in the field of logistics is difficult to describe briefly).
In the history of logistics (we will discuss the emergence of this scientific discipline a little later), the years of World War II are considered the “golden” period. It was then that, according to the principles of logistics, the supply of American troops located in European countries was built. All principles were perfectly worked out and later became as actively used in business as possible.
Logistics development stages
The history of the development of logistics is full of various events. Specialists are especially interested in the formation of a scientific discipline and its transformation into a modern form. The history of logistics as a science began in the middle of the last century. This process was launched in the United States and was directly dependent on business development. It lasted until the beginning of the twenty-first century and was divided by specialists into several stages.
The first includes the period from the twenties to the fifties of the last century. Certain fragments, which were successfully integrated into the activity, were singled out from the general concept of logistics as necessary. But the business did not seek to take advantage of all the opportunities that logistics could give him. Experts attribute this to the low level of technology development and the lack of the need to use a wide apparatus of managers. The economy in the specified time interval was in transition. She gradually turned in the direction of the buyer and moved away from the manufacturer. As a result, a competition factor arose that played an important role in the history of logistics (we already told readers about the term and its meaning). However, during the same period, military specialists actively applied the ideas of logistics to establish the supply of the army.
The second stage in the formation of logistics is the interval from the fifties to seventies of the last century. This was facilitated by the formation and finalization of the concept of total costs. In transport logistics (its history is only part of the general historical canvas), it is universally used by managers and business leaders. Briefly, it can be expressed as the ability to group financial costs in such a way as to reduce them along the route of the cargo. For example, it looks like this:
- goods from producer to consumer are delivered by road;
- financial costs for delivery are small, but you have to create storage warehouses along the route;
- each warehouse requires its own staff, and therefore new material costs;
- when switching to the use of air transport, for example, from the list it will be possible to exclude all costs associated with the storage and management of cargo along the route.
At the same time, computer technology began to actively develop in America and Europe in the seventies. They contributed to the emergence of new types of warehouse equipment, packaging methods, standardization of containers and the like technical innovations that completely changed the idea of transport and storage strategy.
The eighties and nineties became a time of development and the widespread development of logistics. But this process was going on mainly in the capitalist powers. Logistics has firmly entered the business with next-generation electronic communications systems. Now the departure could be tracked at any distance extremely accurately. Experts note the fact that many factors have favored the development of logistics. For example, this category includes market globalization, the formation of partnership ideas and the creation of a philosophy of product quality.
These days are considered the fifth stage in the development of logistics. Today, experts are developing tools with which it will be possible in any situation to deliver goods on time. In this case, all modern technological achievements are applied, which are gradually transformed into a single mechanism.
Specialists see the future of logistics in creating a single scheme that combines all the possibilities of integrated logistics.
Conceptual provisions
We have already mentioned that the head of logistics is rationalization and optimization. Since this is a fairly clear and definite science that does not tolerate vague formulations, it is based on a number of concepts. They were formed during the entire time the logistics existed, but nevertheless, to a greater extent, the formalization of the provisions in a single group took place in the twentieth century:
- Systems approach. You can implement the principles of logistics almost anywhere, they will be appropriate and effective both in a small company and in large-scale production. However, the maximum effect is possible only with the implementation of a systematic approach. It consists in combining all stages of production into a harmoniously working mechanism. That is, the whole path is put under unified control, from the purchase of raw materials to the receipt of the finished product by the consumer at the final point.
- The principles of two "K" and two "H". The modern logistics concept implies the introduction of comprehensiveness, expressed in the form of creating an infrastructure that allows for a centralized flow. The principle of concreteness is implemented in accurate calculations and evaluations, which are mandatory at the starting point of the process. It is also impossible to imagine a logistic concept without scientific and reliability principles. The latter is responsible for the continuity of the flow of cargo and its safety.
- HR potential. The fundamental concept of logistics is to attract staff with high potential. This fact requires the creation of special working conditions conducive to the development of the industry.
- Cost accounting. Since the essence of logistics is to minimize financial costs, costs should be calculated with maximum accuracy along the entire path of cargo movement.
- Increase competitiveness. The realities of a market economy are such that only those who are capable of competition can survive and succeed. Logistics takes this rule into account, and therefore encourages the manufacturer to continuously improve the quality of the services provided.
- Adaptability. Our realities are constantly changing, and if the created systems can work effectively in any conditions, then we can talk about their adaptability.
Goal achievement
Any system has an ultimate goal that can be achieved in a certain way. Logistics involves the fulfillment of six very specific conditions. Only if the system performs all of them can we talk about its effectiveness. We will describe these conditions briefly:
- cargo means only the desired product;
- its quality must meet the needs of the consumer;
- the cargo is delivered in the quantity necessary for the buyer;
- delivery should occur at the specified time;
- place of shipment strictly corresponds to the description of the consumer;
- costs are minimized, regardless of the complexity of the path and the possibility of force majeure.
The success of the manufacturer depends on how he organizes the work to fulfill all the conditions given.
Task classification
The very foundation of logistics is based on the principle of multitasking. The system must simultaneously solve a large number of tasks, but to facilitate the process, they are divided into three groups:
- Global. The main task of this group is to achieve effectiveness with minimal financial costs, while the surrounding situation may be unstable or have a spasmodic characteristic. This also includes the formation of logistics systems, and their successful implementation in the work, subject to safety and reliability.
- Are common.
- Private This group has a narrow focus. In short, all the tasks are subordinate to the general, but set more specifically. For example, the creation of stocks in warehouses in the form in which they will be the maximum minimum necessary for successful operations. The group also includes measures to reduce the time interval for storing goods in warehouses and optimizing the delivery route.
The general tasks are quite broad, so we will talk about them in a little more detail.
List of Common Tasks
It is impossible to list them all, so we will only note the most important ones that give a complete picture of the logistics systems. First of all, the list of these tasks includes the development of systems for regulating all production flows. Close to them is the control over the movement of financial flows. Quite often, specialists solve these problems at the same time.
Equally important are standardization issues. Where it is a matter of combining all processes into a single mechanism, standardization is a prerequisite. In this case, it is necessary to develop a system for controlling the movement of goods at all stages.
The general tasks of logistics include forecasting losses, costs, costs and profits. Separately, there is the issue of vehicles, this task should be solved at the highest level in order to ensure uninterrupted movement of goods from producer to consumer.
Interconnection of tasks and logistics functions
According to the scientific concept, the functions of logistics can be considered from two points of view. The first involves the definition of functionality relative to the tasks. They are divided into operational and coordination.
The first are related to direct participation in several processes:
- Supply (tracking the number of purchases and movement of raw materials, material assets, technical equipment of production, inventory levels and their expenditure).
- Production (control of all stages of production processes up to sales).
- Distribution (finding ways to move goods to the consumer, directing these flows and determining their fullness).
Coordination functions are expressed in the analysis, forecasting and processing of information.
Logistic functions in conjunction with business
Regarding business, logistics also performs its functions. . :
- . , : , , .
- Key. :
3. Supportive. They are the nuances without which it is difficult to imagine production: the organization of returns, the purchase of spare parts and so on.
Conclusion
As you can see, logistics is an important part of industrial-commodity relations in the modern world. Therefore, the application of its concepts and tasks, as well as awareness of the functions, makes any business effective and independent of external conditions.