What is logistics?
Logistics, which is written as Logistics in Latin and means preparation in Farsi, is a process of efficient planning and implementation of transportation and storage of any type of goods from the point of origin to the point of consumption. The goal of logistics is to meet customer needs in a timely and cost-effective manner. Basically, the task of logistics is the movement of goods, equipment and military personnel. While logistics is as important as ever in the military, today the term is more commonly used in the movement of commercial goods in the supply chain.
Logistics areas
Commercial logistics are divided into four categories. which we have given you in the following section:
- Production logistics
- Distribution logistics
- Supply logistics
- Disposal and recovery logistics
Supply logistics is at the beginning of a value chain that deals with the ordering of raw materials and the selection of suppliers. In production logistics, internal storage, handling and transportation processes are planned, controlled and monitored. One of the important aspects of production logistics is to reduce or keep production costs low. One of the types of logistics is distribution logistics, which is known as sales logistics and primarily includes the distribution and delivery of goods, which can be information or inventory. Another task of distribution logistics is to optimize, package and improve delivery services.
While the three subsystems described above are coupled one after the other in the supply chain, they are all permeated by disposal logistics, which ensures that waste, obsolete goods and other residues are disposed of throughout the entire value creation process or reused.
Due to its very broad and specific application, disposal logistics can be defined in various narrow terms, which is why it is also called reverse logistics or reverse logistics, depending on the context.
The difference between logistics and transportation
The two terms logistics and transportation have different scopes, but they are often used interchangeably. The transportation industry is a small and important part of the logistics complex. In other words, transportation is a piece of the puzzle that creates logistics. Most of the transportation industry focuses on the movement of products through sea transportation, land transportation, and air transportation, and this industry needs a communication channel to communicate between the supplier and the customer.
This is where logistics companies (forwarders) cooperate with transport companies (carriers) to place goods. Logistics and logistics companies cover more of the activity scope and include product movement management in the supply chain as well as transportation management.
Interrelationship of logistics and transportation
The relationship between transportation and logistics is direct. In this way, if the transportation systems are not suitable, logistics cannot fully show its benefits. In addition, the existence of a good transportation system leads to improving the efficiency of the logistics system. The role of transportation in the logistics system is much more complicated than transporting goods for owners. Using a good transportation system, goods can be sent to the right place at the right time to meet the needs of customers and create a bridge between producers and consumers.
Logistics activities
- Inspection
- inventory
- Ordering
- Demand forecast
- Order management
- Transport management
- Layout and packaging
- Handling and transportation
- Customs clearance matters
- Matters related to risk reduction
- Goods distribution activities
- Integration and storage
- Managing relationships with customers and sellers
Processes in logistics
There are various processes in logistics, whereby each of them can reach very high degrees of complexity on its own. In all steps or sub-processes, information is also transferred and exchanged, which is necessary for the smooth execution of the entire process chain.
The complexity of the processes varies according to the industry and the company, while there are other processes that are always challenging to plan and execute, such as the rush order. What is a rush order? A rush order is an order that has a high priority (external assignment). During the processing of an order, urgent orders have a higher priority than other orders that have a lower priority.
One of the important points in a logistics company is the warehouse and its related processes.
Conclusion
In this article, we talk about “What is logistics?” “We brought you some explanations. Logistics is a process of efficient planning and implementation of transportation and storage of any kind of goods. We also talked about logistics areas, logistics activities, etc. Click to see other articles in the field of transportation.
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