All companies do logistics, the difference between successful and unsuccessful is that the former know that they are doing it and take it as an indispensable tool to become more competitive
In a broad sense, " the term logistics to the body of knowledge, actions and means designed to anticipate and provide the necessary resources to enable performing a major activity in time, form and at the most opportune cost within a framework of quality and productivity ' (1).
In a more concentrated sense in the business field, we have that «logistics is the process of strategically managing the movement and storage of raw materials, parts and finished products, from suppliers through the company to the end user« (2).
Logistics as a business activity is old and it could be said that it is what was previously known as distribution. It has its origins in military activity, which developed this tool to supply troops with the necessary resources and supplies to face long hours and camps in war. It reached the business field about four decades ago and it has been in this where it has found its greatest field of development.
Logistics, from a managerial point of view, is a necessary strategy to comprehensively manage the supply chain, so that it achieves the optimal balance between the needs of the client and the available resources of the company and its performance must be measured at through end customer service.
From about ten years ago, the business logistics function has gained strength as markets have become more demanding, integration and globalization are a fact, firms have to compete with companies from all over the world and must attend to the In a better way to each and every one of the clients, in addition, the appearance of new information technologies has resulted in shorter transaction times and costs, this has forced companies to take logistics management more seriously if they want to. remain competitive.
The litmus test for logistics was the appearance of online sales, which promised to achieve a clean trade and with shorter transaction times than traditional ones, and although erratic cases have occurred, it can be said that e-commerce has been a driving force for the development of logistics worldwide
The logistics chain is made up of five basic elements on which any such strategy is worked:
- Customer service Inventories Supplies Transportation and distribution Storage
Logistics management is the main component of the value chain that incorporates the product.
Logistics ensures the optimization and maintenance of the resources of this chain through information systems shared by all those involved in it and through the application of performance indicators that allow knowing inventory levels, processing times, product rotation in supermarkets, etc.
Basically 3 indicators are considered to measure logistics management throughout the chain:
The first one about the cycle speed / logistics flow, from the moment the sales order is generated until the product is placed in the customer, this helps to control the famous bottlenecks; the second indicator has to do with the costs that are added to a product or service during the logistics flow and the third is useful when you want to measure the degree of customer satisfaction, not for delivery on time or not, but for quality same of the logistics service.
Although the above are the basic indices, each link in the logistics chain develops its own. For example, the customer service component must establish an indicator that allows calculating the total cost of customer service, also in the transport link, a useful indicator can be the percentage of fleet utilization, etc.
Structural requirements: * Development of sufficient and adequate infrastructure in networks and roads * Bring production centers closer to ports * Decrease in costs in information and communication systems
At a strategic level, logistics involves all areas of the company to design, from the stages of identifying the need and conception of products and / or services, a process that includes all the necessary means to obtain the best results, in economic and consumer satisfaction terms.
Logistics thus understood has a multifunctional character: achieving the final objective in the most efficient way possible does not only depend on a function or responsibility of the company, but is the result of combining the efforts of the entire organization. Hence the need to view the entire logistics process from the strategic perspective of the company's senior management.
References:
1. Alfonso Antonio Gambino, «LA LOGISTICA TODAY», 2. Pedro Rincón Ramos, «DEFINITION OF LOGISTICS»
