What Is Logistics

What Is Logistics
What Is Logistics

Video: What Is Logistics

Video: What Is Logistics
Video: What is Logistics Management? Definition & Importance in Supply Chain | AIMS UK 2024, April
Anonim

The word "logistics", which was originally a mathematical term, has taken on a new meaning in modern society and is used to define the process of rational organization of the delivery of goods and services. Until recently, in this sense, it was used only in economic theory, but today it has become very widespread and even fashionable.

What is logistics
What is logistics

Logistics is a part of economics and a business area that helps to optimize the process of circulation of products, services and goods between producers and consumers. With supply exceeding demand in many areas, the only way to stay on the market is to optimize storage and transport costs, streamline the process of production, sales and service of enterprises. This is what logistics does. The main purpose of logistics described above is divided into many tasks: in the process of optimization, the type of vehicle is selected; routes are defined; transportation, packing of goods, marking are organized; inventory management is performed; group orders are formed and so on. Logistics also includes the management of customs services. Such a vast field of activity made it possible to divide this theory into several types. The concept of "logistics" includes the following areas: transport, information, supply and stock logistics, warehousing and sales. Each is engaged in cost optimization in the respective area. So, the logistics of stocks involves accounting for products in warehouses and monitoring the status of stocks. Transport brings the process of cargo delivery to perfection by choosing the best route, suitable transport, and a professional driver. Supply logistics ensures optimal storage and delivery of raw materials, information logistics effectively distributes information flows. Different companies choose different logistics systems for themselves, depending on the specifics of their activities. For some, it is enough to work with databases in order to optimize costs, while other enterprises use systems aimed at warehouse or procurement activities. It is important that each system ensures the fulfillment of the main tasks and includes all the types of logistics necessary for the successful operation of the company.

Recommended: