Logistics in the past
The first stage began in 1950 and ended in 1964 and was entitled "Origin and a new direction." In the postwar years, product proliferation and haphazard marketing, two basic market trends, forced managers to seek new ways that will help control distribution costs.
The first thing to keep in mind at this stage is the fact that logistics and distribution were not entirely new concepts, and that some trade decisions that are now widely accepted are far from being what could be called “contemporary ”.
In the early 1960s, Peter Drucker, the so-called management guru, identified the problem and focused his attention on the challenges and opportunities offered by the field of logistics and distribution; That is why it witnessed significant advancements and progress in the field of these concepts.
Logistics in the present
This era began in 1965 as "The Maturing Years of Material Handling and Physical Distribution." The emphasis placed on customer service during this period was the most important factor, in addition to the fact that physical distribution managers began to have a voice in inventory decision-making. Also in this period, the integration of materials handling occurred, the need to coordinate the movements of products and information both within its own limits and outside them was recognized, and the result was a more effective organizational structure with greater capacity for reply.
Likewise, if the generic term "meet requirements" is incorporated, the goal of any logistics effort can be conveyed accurately and successfully; and another important aspect of this stage was that the alternative roles of logistics within the company were identified and analyzed, in addition to identifying the need to integrate logistics systems, since the ability to be more effective in coordination and in the administration of a large number of logistics activities simultaneously, achieving greater efficiency in the administration of logistics activities and, as a result, it has had the ability to meet customer requirements at unit cost levels generally low.
Logistics in the future
There are several specific areas in which “logistics of the future” can be distinguished from logistics of the past and present:
The first can be differentiated by the application of the topic of "quality" and the importance that quality management has in global logistics efforts, such as "get it right the first time" or "zero defects".
The second is the advance in the ability to integrate the concepts of "time" and "space", since these concepts have been considered separately and not together.
The third point is related to the great opportunities that the international context will offer in this discipline, since progressive companies are looking for other ways to increase their strength through appropriate international business relationships.
Fourth is the change in emphasis that will be placed on the consideration of "logistics attributes" rather than on making direct reference to "specific logistics services." As a fifth point, the emergence of external entities, since in the logistics function there is now a growing interest in using third parties to take care of everything related to the distribution of the company.
Just as there are several ways in which the logistics function can help lower costs and differentiate a company from its competitors, there are also a wide range of opportunities to use logistics as a tool for other functional areas to work better. To the extent that this occurs. Internal credibility and interest in the logistics function will certainly accelerate.
DEFINITION
The official definition of the AFNOR standard (X50-600 standard), logistics is a function whose purpose is the satisfaction of expressed or latent needs, at the best economic conditions for the company and for a specific level of service.
Another definition of logistics, according to Martin Christopher, Professor of Logistics of Cranfield: it is the process of strategically managing the movement and storage of materials, parts and finished product from the supplier through the company to the customer.
Physical Distribution and Logistics
The terms "physical distribution" and "logistics" are often confused with each other. "Physical distribution" is a concept originated in marketing and introduced by the United States in the late 1960s. The concept refers to a unification of five subsystems (transport, storage, packaging, loading / unloading and distribution) and a support and information system.
On the other hand, logistics is linked to the procurement, production and sales area. Thus, logistics has no limits and must be managed from the point of view of a Business Manager.
Here we can see a big difference between physical distribution and logistics, logistics is strategy where physical distribution is the tactic; While physical distribution only deals with the commonalities between production and consumption, logistics overlaps with the supply chain.
DEVELOPING
GENERALITIES
Currently within a company, the needs can be internal (provision of goods and services to ensure the operation of the company), or external (customer satisfaction. Logistics uses various activities and know-how involved in the management and control of physical and information flows as well as media.
A logistics process could be represented defined and represented as shown in the following diagram:
Scheme 1. Supplies and Products in a Logistic Process. Model for the implementation of logistics in small businesses through control indexes.
OPERATION OF A GLOBAL LOGISTICS
The characteristics to successfully operate an organization based on the implementation of global logistics are: the strategic balance between supply and demand based on global objectives of the companies and, particularly, the fact that it is based on a systems approach that it favors speed in the transfer and accessibility of information through all functional barriers.
Success in solving such challenging problems for the international business depends on meeting three main needs:
- The objectives and the policies of the operation of a global logistics through the operating units. Manage services, capacity and inventories, which must be in balance; in the same way, the objectives and policies. The performance of control systems and procedures as an important function in the administration of global logistics.
The concepts of production, trade and transportation, within this new scheme, cannot be analyzed separately, one has no reason to exist without the others. A highly efficient production does not guarantee levels of competitiveness in the markets if there is not simultaneously a highly efficient and competitive transport. Competitiveness in production processes, in transport and in the transfer of goods is a requirement to improve our conditions of participation in international markets.
The price of our products in the international market is largely made up of the cost of transportation. For this reason, in order to improve competitive conditions in the international market, it is necessary, in addition to increasing productivity levels, to reduce the share of transport in its final price.
Multimodal Transport 1 is establishing itself in the world as the most appropriate form of contracting the international transport of goods in a highly competitive environment. Multimodalism allows economies of scale to be applied to the freight transport process, taking advantage of the advantages of each mode of transport, in order to obtain greater precision in delivery times. This allows entrepreneurs to advance a strategic planning of their production and distribution processes.
1 Combination of two or more of the different types of transport used, such as: motor vehicles, railways, waterways, airlines or others.
International trade today is characterized by a process of constant struggle to obtain higher levels of competitiveness, as the only way to conquer or maintain markets. The impact of transport costs on the competitiveness of products in foreign markets is becoming more and more evident. Multimodal Transportation allows substantial savings to be obtained in the distribution processes of import and export goods, thus enabling entrepreneurs to improve the competitiveness of their products in foreign markets.
At the international level, users of transport services have found in Multimodal Transport a useful and flexible tool to manage the physical distribution of their products in an agile, safe, efficient way and at competitive costs.
Multimodal Transport has made it possible to turn the obstacles of the combination of modes into advantages, through the development of modern transport planning and operations technologies, applying concepts of reengineering, process rationalization and business logistics.
In a proven successful model for the application of global logistics, three discrete levels of administrative control are used:
- Strategic Tactical Operational
In global logistics, horizontally integrated information systems and flows require:
- Management of data capture and flow across the boundaries between functional areas without delay and distortion Connection systems for purchasing, production and inventory control, distribution, order entry, and service Information sharing and high degree of visibility across all functions of plans, allocations, inventories and customers.
There is no doubt that this holistic approach to global logistics places additional workloads at the upper levels of management; it requires the incorporation of a logistics approach into strategic business decisions, and involves the use of a systems control approach that modifies traditional functional divisions.
Neither challenge is easy, but the competitive environment offers high payoffs for those who overcome it.
STRATEGIC ACTIVITIES OF GLOBAL LOGISTICS:
- Forecast.
| Sales forecast: | The first stage of GLOBAL logistics is to determine the amount of sales that the product will obtain, in order to plan the entire production process. |
- Planning:
| Of materials | Of production | Of distribution |
| It consists of determining the total amount of inputs (including labor that will be needed in the production process | It consists of determining the process, forms and stages to develop in the production part (schedule and goals) | Determine the distribution channels and needs that the product will have (form of transport, conservation needs, etc.) |
- Initial logistics management:
| Orders | Inventories | Reception | Entry |
| It consists of ordering production, effective demand and order merchandise flows | It consists of properly managing all the stock of materials and goods in the factory or in the warehouse | It is the logistics part that is responsible for receiving purchase orders and sending them to the corresponding place | It consists of verifying the entry of goods to the plant |
- Packing.
| It consists of protecting, preserving and strengthening the product through a protection system. | Packing |
| Some of the logistics resources are:
· DISTRIBUTION CHANNELS · COMPETITIVENESS · OUTSOURCING & BENCHMARKING · INTRODUCTION TO STRATEGIC MANAGEMENT |
- Storage.
| Storage | Gather or keep inputs or finished products, either for custody or sale. |
- Merchandise transports.
| Take the goods to the points of sale, to the warehouses, to distributors or consumers directly. | Transport |
- Distribution centers and service strategy.
| Distribution | Service |
| It is to apply the merchandise delivery channels, taking into account the forms of payment, costs and facilities, in order to adequately reach customers. | It is to have a sufficient structure that can serve customers in all their concerns, doubts or complaints.
It includes: Sales, direct service, technical assistance, warranty management etc. |
Elements of Global Logistics systems
Information system
Packaging and material handling
Storage facilities
Transport
System approach applied to Global Logistics
- Marketing is a total system of commercial action rather than a series of operations. The sales department wants to have a wide variety of products in places close to the public. The finance department wants a minimum investment in inventory.
Advantages of Global Logistics
Expansion of the area of competence.
Further specialization is possible.
Immediate availability of the products.
CASE
TRENDS
- 1 . Margins are under greater pressure from: a) more informed and less loyal consumers b) concentration of sales channels in fewer players c) greater competition Only increases in productivity allow to preserve margins in a low inflation environment Distribution channels are fragmented (new formats, new players) and are concentrated within each channel (eg Wal Mart) 4. Presence at the point of sale is the “entry ticket” to compete
- Opportunity value (what, when, how)
- This can only be achieved with efficient logistics
Your Logistics
WIDE DISTRIBUTION NETWORK
Grupo Bimbo has one of the largest distribution systems in America.
Kilometers traveled daily = 26 times around the Earth
SUPPLY CHAIN
Management Levels
| Strategic |
National Offices |
|
| Tactic |
Regional Managements |
|
| Operational | Transportation and Dispatch |
| Strategic |
National Offices |
Where they optimize the logistics network
|
| Tactic |
Regional Managements |
Logistics Consolidation
| By Plant | |
| By Region | |
| For country |
| Operational | Transportation and Dispatch |
- Reception and distribution of the sales order Plan and coordinate Manufacturing Transportation Scheduling Personnel Administration Road Safety Monitoring of Operation indicators
WHERE YOUR LOGISTICS APPROACH GOES
- Increase the use of double articulation Continue with the Consolidation of Inbound and Outbound Transportation Optimize primary and secondary Logistics Network (Plants, Lines, Trucks, etc.)
- Through optimization software and coordination with operations
COMPETITIVENESS IN LOGISTICS
HOW LOGISTICS GENERATES VALUE
Delivery
|
Production
|
Logistics
|
Commercial
|
ASPECTS THAT GENERATE ADDED VALUE TO YOUR LOGISTICS
Better Service Level
Less number of missing
Reduction in logistics, administration and operation costs.
Inventory Reduction
Lower recovery cycles
Defer investments
Divestment of equipment, plants, agencies, etc.
The effectiveness of BIMBO's Logistics depends to a large extent on external elements that support it to achieve its success:
- A modern infrastructure according to the needs of the country Laws, regulations and norms that support productivity Authorities that promote Equal opportunities in both private and public transport Strong associations that represent the interests of the sector
CONCLUSIONS
The application of a Global Logistics is a very good tool, which can produce good competitive advantages, among which we can mention, first of all, the optimization in the production of a product or article, as well as obtaining good quality products, reducing costs in all processes, which results in being able to offer them at competitive prices.
What global logistics seeks is to overcome segmentation to deal with things within a globality. Today the technical possibilities have increased, specifically that of computer tools to process information in a more agile way. It represents a potential for significant progress, to better dominate the value chain, even beyond value boundaries.
It is also worth mentioning that global logistics is closely related to Information Technology (IT), since it has similar origins based on information systems that facilitate the wide knowledge of all data at any time, as well as the best use and use of that information, which is looking for the best result that results in high competitiveness.
In all companies or any economic or service unit, the impact of competition is being felt on a greater or lesser scale, on the one hand, the need to respond effectively to the technological challenge. There is therefore a challenge in managing the global supply chain from the supplier of the supplier to the customer of the customer.
Due to the above, programs such as the Logistics Management of Materials have been developed, since it starts precisely from an open-minded vision, both in the theoretical order, and in the practice of the new operating models of the organizations, demanded for the global economy; and seeks to contribute to increasing competitiveness and improving their profitability.
The main advantages and applications of global logistics are:
- Understand the spatial and temporal dimension of the processes involved in satisfying the needs of end consumers in a given market Manage efficiently and effectively the human, material and information resources that are mobilized and assigned through them, delimiting Partial spheres of action in the planning and direction of their interrelations Understand and develop applications in the field of administration and strategic management of logistics in relation to the physical elements of the company and the use of systems. strategically the location of centers for the supply, storage and distribution of goods and services with efficiency criteria.Manage and control its operation in real time ensuring the achievement of expected standards. Evaluate technical and organizational advances that offer opportunities to improve the efficiency and effectiveness of existing channels, comparing benefits and costs.
It is common to speak of competitiveness in marketing, and generally this concept is linked only to the quality of the product and the acceptance of the intermediary of all the customer's demands in terms of price, requested quantities and delivery date.
However, when these conditions are not adequately analyzed by the company, there are non-compliances or the effort to comply at any cost.
Global logistics has been extended to the international field, generating the concept of a system that integrates the functions of production, commercialization and physical distribution, for the strategic management of the supply, movement and storage of products, with the flow of information required in an operation of trade, with the aim of satisfying the customer just in time and with total quality. Then, we could say that the ultimate objective of the construction of the company's logistics procedure is the satisfaction of demand and it is this objective that directly or indirectly sets the rhythm of the supply, production and distribution processes, and that this concept has evolved over time, achieving efficiency and strengthening to achieve the objectives of its application.
This requires creating a logistics environment in the company that allows complete coordination of the four flows: money, people, information and materials. This search allows to conceive a logistics integrated in the company, which is nothing more than establishing a process to direct all the activities necessary to move and strategically store materials and goods, from suppliers, through production, to final consumers.
BIBLIOGRAPHY CONSULTED
- LOGISTICS AND PROCUREMENT. AUT: CHRISTOPHER, MARTIN. FOLIO S.ADISTRIBUCION COMMERCIAL. AUT: DIEZ DE CASTRO ENRIQUE. 2nd. EDITION. MC GRAW HILL. MANAGEMENT IN A TIME OF BIG OF BIG CHANGE. AUT: DRUCKER, PETER F. SOUTH AMERICANCHANNELS OF COMMERCIALIZATION. AUT: STERN, LOUIS W / EL-ANSARY, ADEL I. / CRUZ, IGNACIO. 5th. EDITION. PRENTICE
INTERNET:
ARTICLES:
- http://www.eurodecision.com, (Accessed May 25, 2004). What is logistics? " University Association of Logistics, 2004.http: //www.antp.org.mx/3erforo/con1.html
