What is the logistics?
In short, logistics management is getting the right quantity of a resource or input at the right time, deliver them to the appropriate location in a suitable condition, and deliver it to the appropriate internal or external customer.
Logistics is a term used by many companies to describe the overall process of how to manage (plan and implement) the flow of various resources such as energy, goods or even human services from the point of origin until it reaches the consumer, including purchase of raw materials and their delivery, packaging, shipping, inventory, warehousing, transportation of goods to distributors and meeting customer requirements in a timely and cost-effective manner, in addition to finding potential distributors and suppliers and knowing how efficient and easy to reach them, it is difficult to carry out any global trade and commercial activity of transporting goods and various resources without professional logistical support. Logistics services play a major role in promoting and supporting economic growth within the country. , as improving the performance of logistics services contributes to improving commercial activity, whether in terms of exports or imports, and then the trade balance and economic performance of the country.
“Logistics” was initially a military-based term used in reference to how military personnel obtained, stored, and moved equipment and supplies, as well as the transportation of personnel.
In the modern era, the technological prosperity and the complexity of logistics operations have led to the emergence of logistics management programs and specialized companies focused on logistics that accelerate the movement of resources along the supply chain. Artificial intelligence and self-driving vehicle technology are expected to have a significant impact on logistics services in the future. Some logistics companies are already using AI to improve package tracking and predict problems based on their own algorithms. With modern algorithms, it has become possible to predict future problems and solve it in advance, and large online stores such as Amazon have grown to dominate the retail market in part because their supply chain logistics are generally new and functioning well.
Customs management, also called global trade management, is often considered part of logistics because of the paperwork that needs to be done at international borders and shipping ports and ensuring that government rules and decisions are followed where the business is.
Why is logistics important?
Although on-time delivery of intact packages has always been important throughout the supply chain,it has become more important in carrying out tasks in recent years and with the advent of global companies, this has happened as multi-channel commerce has become more prevalent, allowing customers to order products from their mobile device and same-day delivery to their home or store.
Suppliers, manufacturers, distributors and retailers have had to constantly enhance and improve their logistics procedures to beat the competition and meet the demands of the fast-paced logistics world. They also had to streamline their processes and systems and choose the best ways to prevent any bottlenecks or delays in securing production resources.
In addition, the more efficient the procurement, transportation and storage of raw materials until use, the more profitable the business can be.
Logistics components:
The management of logistics can involve some or all of the following business functions, including:
- Inbound transportation and shipment
- Outbound transportation and shipment
- Fleet management
- Storage
- Manage warehouse infrastructure and operations
- Materials handling
- Fulfilling requests
- Inventory management
- Obtaining raw materials
- Demand planning
What is a logistic job and what is a logistician’s work?
Logistics managers must be professional and experienced. Logisticians manage the whole life cycle of a product, starting from where it is acquired to its final delivery. They analyze and coordinate their company’s supply chain and ensure it runs well and efficiently and achieves business objectives. They are responsible for overseeing the flow of goods and resources through the supply chain and ensure that items and resources get to where they are needed by organizing the distribution of goods, their storage and control of their distribution, and that customers get the required products in the best way
Usually, logisticians do the following:
- Foster business relationships with both suppliers and customers.
- Care to determine what customers’ needs are, understand them, and how to make sure they are met.
- Determine where materials, supplies and finished products go.
- Find the cheapest and fastest way to transport goods.
- Evaluate each logistical function, and try to improve those identified as needing improvement.
- Provide plans, assessments and performance data to management.
- Provide suggestions and proposals to management and customers regarding improvements.
- Follow the latest advances in logistics technology and incorporate new technologies into current procedures.
Logistics goals:
Logistics services aim to achieve a set of goals, the most important of which are:
- Create a clearer picture of the well-known goods in a country.
- Help organizations to control various problems.
- Securing the transportation of goods to the agreed delivery area in the best way
- Control the process of transporting goods and addressing problems that arise during the process of transport and delivery
- Providing a distinctive logistical service that would create a competitive advantage for companies providing transportation services
- Contribute to improving the quality of after-sales services, which in turn contributes to enhancing customer satisfaction
- Achieving the largest possible profit from investments
- Improve material flow processes.
- Respect the delivery time