Basically, the concept of logistics is associated with the storage and delivery of goods to the consumer. But one of the main parts of this system is production logistics. It includes planning the production process, control over the consumption and replenishment of materials and raw materials. Therefore, this part of the logistics system can be called one of the main in the general flow.
Production logistics is the regulation of the entire production process, aimed at ensuring that all contracts and agreements are fulfilled and at the same time costs are reduced. It allows you to make the work of production and its units coherent and consistent.
This is mainly the management of materials and raw materials. Their path from the start of production to the release of finished products is controlled by production logistics.
The tasks of production logistics are to control material flows. This implies their storage, distribution, packaging and other operations. Logistics also performs the function of transporting materials within the enterprise. If you use your own transport, then these tasks are performed by the logistics of production processes. If you hire public transport, then these functions are performed by transport logistics.
Separate logistics systems are used inside production . This may be a department of wholesale trade, warehouses, a cargo station or a seaport, as well as the production itself.
Production logistics can be considered at the micro or macro level. Larger systems are part of the entire system. But the entire logistics process depends on the ability of small production logistics systems to respond to market changes. They must quickly change the range and quality of products and goods.
The excellent work of the logistics systems inside the production is ensured by personnel who must be able to quickly set up equipment.
Production logistics includes units whose work should be interconnected and unified. They must ensure the constant passage of materials through the production process. Production logistics performs several functions.
During the production process, no excess stocks of raw materials should be formed. The logistics system ensures the uninterrupted supply of the production process with the required amount of materials. This is its main function.
The next function is to carry out work on the shipment and storage of materials in the shortest possible time at minimal cost.
The exclusion from the assortment of products that are not in demand is also included in the tasks of logistics. This is a quick response to changes in market relations, as well as to fluctuations in supply and demand.
Efficient use of equipment is another important feature. The production process must be continuous.
Another function is to eliminate the marriage urgently so that there are no unnecessary costs.
The use of transport with the highest profitability is one of the main tasks of logistics.
Establishing fruitful and long-term relationships with suppliers of materials and raw materials is also a direct responsibility of the logistics system.
Production logistics is an integral part of any production. It allows you to properly plan and distribute the material resources that are necessary in the production process. As a result of this work, production costs are reduced, and the quality and range of products is improved in accordance with market requirements.