General Information About The Various Kinds Of Logistics Management

Posted by Jerald

Logistics management refers to the collection of tools and methods that enable a business or service to operate smoothly. In addition, its main objective is to place the product or materials available in the right place and time. Trying to make the storage process, the distribution of products, and their delivery as efficient and profitable as possible

In recent years, the logistics activity has undergone important changes and restructuring compared to e-commerce. This has led to increasingly rapid logistics flows, shorter delivery times. An increase in the number of references to be managed, and more intense order preparation for the unit.

Currently, one of the main changes that occur in e-commerce logistics occurs in the storage part. Because smaller units must be prepared and shipped. Although we often talk about logistics as a whole, different types of logistics should be distinguished depending on the stage at which the products are located. Logistics must therefore be defined as all the phases involved in the manufacture of a product. Until its consumption by the end customer.

inter logistics

It is first necessary to differentiate the operations carried out within the warehouse (storage, supply, etc.). Which are called internal logistics or intralogistics, and the operations which take place outside the warehouse ( transport, delivery of the order, etc.), external logistics.

Supply Logistics

Procurement logistics management can have a decisive influence on the operation and success or failure of a company. The main objective of supply logistics is the control of supplies, to meet the needs of the company’s operational processes.

But beyond this initial division, we can also differentiate four basic types of logistics that are part of the Supply Chain. Purchasing, production, distribution, and everything related to after-sales service. Each of them is detailed in this article.

Purchasing Logistics 

The logistics of procurement is the management of supplies necessary for the sale and manufacture of finished products, semi-finished products, and raw materials.

There are three methods of supply management in a business:   

  • Just-in-time

The required goods are delivered when they are needed to complete the production process, not before. This way you avoid having to store it.

  • Synchronous with production

Supply is planned in order to anticipate production needs. In this way, we know in advance when and how many goods will be received and whether their storage will be temporary.

  • Safety stock

This corresponds to the level of additional stock held by a warehouse to cope with the vagaries of changes in demand or delays in delivery from suppliers. 

To have efficient purchasing logistics, it is essential to take into account a series of variables, among which the following stand out. The selection of suppliers, the precise quantities of stock and the frequency of supply, the stock management model used, as well as the unit or units of load that will be used for the storage, transport, and handling of the goods.

Production Logistics MANAGEMENT

The production and industrial logistics covers and optimizes all logistics management processes that take place in the purchase of raw materials to manufacture the product.

Here are the two most common manufacturing systems: 

  • Manufacturing for stock or push system

products are manufactured in advance, then stored in the warehouse. The sales department only sells the available stock.

  • Made-to-order or pull system

The product is manufactured once the customer’s order is validated.  

The main function of production logistics is to reduce the production lead time, that is to say, the time spent between the generation of an order and the obtaining of the finished product.

Distribution LogisticS MANAGEMENT

Distribution logistics, also known as transport logistics designed to ensure the fast and effective delivery of a product or property to the customer. There is no point in having a product that is attractive, functional and at a good price if it does not reach the recipient in the agreed time, form, and quantities. 

Distribution logistics can be:

  • Direct

The manufacturer is responsible for distributing the product directly to end consumers.

  • Indirect

The product does not go to the final customer but to wholesalers or retailers (who take care of the sale to the final consumer).

Distribution logistics take place just after the product is produced. So it requires planning for transport, storage, order preparation, and delivery to the customer.

Reverse Logistics MANAGEMENT

Reverse logistics means all measures and processes for the management of refunds and returns of products. In reverse logistics we distinguish:

  • Return logistics

This is the most common and the one that has made the most progress thanks to e-commerce. In particular, it makes it possible to process orders returned to distribution centers. 

  • Waste logistics

It concerns the recycling, treatment, or recovery of waste in order to benefit from it or to eliminate it to avoid harming the environment.

Successful reverse logistics requires the same activities as those found in any logistics operation. The main difference, however, is that it requires proper planning to prevent reverse logistics from interfering with other operations. 

For Efficient Logistics

Knowing well the different types of logistics and logistics strategies will help us adapt to new trends resulting from social changes and technological progress. 

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