In the world, companies have become aware of the importance of logistics to achieve high levels of competitiveness. Logistics stopped being a novel subsystem to become a strategic element in achieving a position in the market.
Nowadays it is very common to find the terms provision and buy to describe similar functions but that mean different actions. The procurement function has a broader meaning, which in turn includes the functions of planning and purchasing management, warehousing, application of techniques and better conditions at the lowest possible cost, while purchasing management seeks to receive requests for the necessary materials., look for suppliers and carry out arrangements so that the purchased products reach the company's inventories.
Procurement management is considered a crucial activity in reducing costs within the value chain together with improving the quality of products or services offered to customers.
The success of an organization, the reduction of costs and the satisfaction of the needs of its clients, depends on a well-managed, integrated and flexible supply chain, controlled in real time and in which information flows efficiently.
The purpose of this article is to address theoretical aspects related to supply logistics.
1- Background and evolution of logistics
Castro and María mention that the first written reference to a major logistical problem appears in the Holy Scriptures, in Genesis or the first book of the Old Testament and is related to the famous legend of the dreams of a pharaoh. This biblical reference (Genesis 41.1-57), in which food is stored during fruitful years to be consumed in periods of scarcity, is one of the first, if not the first allusion, to a logistical problem of a national and international nature..
In ancient Greece, philosophers associated the concept of logistics with Logic (the logical) and called the art of calculating logistics. Later, when the supremacy of Athens created a state united with other Greek islands of the Aegean Sea, they called logistical the Athenian officials who calculated the needs of this state. In the Roman Empire, with the development of trade, storage and distribution methods were created. The ruins of a huge warehouse in Ostia, the main distribution and storage center of the entire Roman Empire, the Horreo Epagatiana, are preserved from this period. One of the places where Logistics or Supply Chain Administration began, according to different archaeological discoveries, was in agriculture practiced on the banks of the Nile River, in ancient Egypt. The early Egyptian,he had the need to save, once he became a farmer, since the grains of wheat had to be saved in such a way that they would last until the next harvest. In addition, it was necessary to provide a proportion for planting. This involved forecasting, control, distribution, some means of transportation and receptacles to store the wheat. It was in this way that the early Egyptian encountered the first practical logistical problem, in a still nascent supply chain.It was in this way that the early Egyptian encountered the first practical logistical problem, in a still nascent supply chain.It was in this way that the early Egyptian encountered the first practical logistical problem, in a still nascent supply chain.
The logistics associated with the supply - production - distribution cycle does not appear in the economic literature of the first centuries and arises in the history associated with military activities. In this area, it has gone from the feat of ancient Greek military logistics, described in the second act of the Iliad, to the current army of the United States of America, which has the largest logistics organization known, integrated by three levels of management: central, intermediate and operational or direct. Bethel, in his book Organization and Industrial Management, establishes an analogy between military logistics and technical material supply. In this book, published for the first time in 1945, military logistics begins to be related to industrial production.Business Logistics or Supply Chain Management, is a relatively new field within business management when compared to others such as finance, sales or production. However, for many years logistical activities (distribution, transport, storage) have been carried out. The novelty of this field focuses on the coordinated treatment of these activities since in practice they are closely related..The novelty of this field focuses on the coordinated treatment of these activities since in practice they are closely related..The novelty of this field focuses on the coordinated treatment of these activities since in practice they are closely related..
The main reason for logistics to become one of the most important functional areas of a company was the appearance of a new economic situation in 1970, characterized by an increase in international competition, the shortage of basic raw materials and due to a decrease in productivity.
Fusté, (1999), states that applying logistics is to avoid, as in the traditional company, that the different areas that comprise it (purchases, production, distribution, transportation, etc.) independently try to optimize economic results. On the contrary, all departments working in a coordinated way with an overall vision guarantee what is known by the term of logistics approach.
1.1- Definitions of Logistics according to some authors
By-product: Secondary or incidental product, generally useful and marketable derived from the production process (bran, breadcrumbs, rampujo of the grape to make pomace).
Waste: Waste from a production process with some use (sawdust, scrap metal trimmings).
Recovered materials: Materials obtained from the processing of certain waste (plastic from packaging, cardboard, etc.).
4.3.2- Objectives of the Inventory.
The objectives of maintaining inventory as established by Chase and Aquiliano, (2000) are the following:
- Maintain independence in operations. A supply of materials in a work center allows the center to have flexibility in operations. For example, since each new production project produces costs, inventory allows management to reduce the number of projects and adjust to the variation in demand for products. If the demand for the product is precisely known, it may be possible (though not necessarily economical) to produce the good to exactly meet the demand. However, the demand is usually not fully known and it is necessary to maintain a buffer or buffer reserve to absorb variations. Allow flexibility in production scheduling. An inventory supply relieves the production system of the pressure to remove goods.This results in longer lead times that allow for a more uniform flow when planning the production of larger batch sizes. The high costs of structuring favor the production of a greater number of units once it has been carried out. Provide a safeguard for the salvation in the delivery time of raw materials. When a vendor is asked to dispatch material, delays can occur for a number of reasons: a normal variation in dispatch time, a shortage of material at the vendor's plant causing backorders to pile up, a strike Unforeseen at the seller's plant or one of the delivery companies, a lost order, or an incorrect or defective material dispatch. Take advantage of the economical purchase order size. Placing an order has its costs:work, phone calls, typing and mail. Consequently, the larger the size of each order, the smaller the number of orders that must be written. Similarly, shipping costs favor large orders: the larger the shipment, the lower the cost per unit.
conclusion
Logistics is a necessary tool for competitiveness and efficiency, it must be taken into account by all entities in today's dynamic environment.
The efficient management of the procurement process is a source of competitive advantages for contemporary companies.
Procurement has become a key factor in achieving better levels of efficiency in companies, since this function is what provides the organization with what it needs to develop its activity efficiently and competitively.
The absence of clear and precise supply management policies can be a factor that affects the development of the same process, influencing the quality of the service that is being provided to both internal and external customers.
To achieve the effectiveness of the supply process, it is necessary to concentrate efforts on acquiring the materials with the highest possible quality, at the best price, at the right time, and most importantly, establish a commitment with the supplier that ensures the continuity of these good talks.
The success of an organization, the reduction of costs and the satisfaction of the needs of its clients, depends on a well-managed, integrated and flexible supply chain, controlled in real time and in which information flows efficiently.
Bibliographic references
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