Logistics and the Logistics System (Logistics Network)

Logistics and the Logistics System (Logistics Network)

1. Logistics system

   • are the set of resources, actions and means that allow products to reach consumers from the place of production.
     • Features
       • They seek to solve the logistical problems of an organization.
       • They strategically order all the logistical elements to meet the objectives of the companies
       • It seeks to maximize the performance of its operations and at the same time reduce execution costs
       • All subsystems of the logistics system are interrelated, if a procedure fails, the entire system is affected.
       • It is an open system that relates to the environment (economic, social, political and technological factors).
     • Subsystems
       • Input subsystem
         • It is a subsystem comprising the entry of goods into the logistics system. These goods can be processed products, semi-finished products or raw materials.
           • Activities
             • Activities of provisioning
               • It is the procurement of supplies, whose provisions are acquired according to the needs of the system, which are controlled through inventory management.
             • Warehousing activities
               • It consists of the storage of goods and products, and contemplates two types of storage:
                 • Storage of goods: These are the materials that are stored before passing to the production subsystem.
                 • Finished product storage: It is the merchandise ready to be distributed to the final consumer, so its next subsystem is the output subsystem.
       • Production subsystem
         • These are the elements and processes used to transform raw materials or intermediate goods into finished products.
           • Activities
             • Maintenance activities:
               • These are the maintenance tasks performed by personnel trained in the processing of goods. They are supported by tools and technologies to perform these tasks correctly.
             • Activities of packing:
               • These activities are aimed at those products that require special packaging, since conventional packaging is done in the production phase.
             • Palletizing activities:
               • It consists of arranging the goods in a unified and standardized scheme, taking into account the appropriate proportions to handle them quickly and safely.
       • Output subsystem
         • Consists of products leaving the logistics system. The origin of the products can be directly from the production phase or coming from a warehouse from the input subsystem, in which case it would be a finished product.
           • Activities
             • Enlistment activities:
               • This activity includes picking and packing actions.
                 • Picking: Search and extract the desired unit from the warehouse.
                 • Packing: It is the process of temporarily wrapping products so that they can be handled, transported and stored safely and easily.
             • Loading activities:
               • Includes the tasks of reviewing and loading the merchandise to the means of transport.
             • Dispatch activities
               • These are the formalities, procedures and logistical processes to take the products from the warehouse to their destination. Includes all stationery protocols (invoices, referrals, guides, etc.).
             • Distribution activities:
               • These are the tasks to distribute the merchandise from the factory to the final customers.
     • Benefits
       • Agility Control Efficiency Synergy Security Competitiveness Expansion Environmental Quality Satisfaction

2. Logistics

   • are all the operations carried out to make it possible for a product to reach the consumer from the place where the raw materials are obtained, passing through the place of its production.
     • objectives
       • Timely and economical movement of material resources between production stages and workplaces.
       • Reducing various expenses.
       • Increase product quality during the transformation of material resources.
     • characteristics
       • Management of procurement
       • Transporte
       • Price fixing
       • Gestion of reservs
       • Maintaining the quality of customer service
       • Management of order procedures
       • Management of production procedures
       • Physical distribution
     • Functions
       • Order processing: Everything related to purchase orders.
       • Material handling: Includes all the material means to move products both in the warehouses and between warehouses and points of sale (belts, conveyors, forklifts, etc.).
       • Packaging: Systems used for the protection and conservation of products.
       • Transport of goods: Determines the material means to transport the product (truck, train, ship, etc.) and the planning of routes that provide the lowest possible cost.
       • Storage: Location of the product, dimension and characteristics of the warehouse.
       • Stock control: Determining the stock of the product that the seller must have available for sale.
       • Customer service: Includes the services and means necessary for the customer to purchase the product.
     • Advantage
       • Increased production efficiency.
       • Significant reduction in labor time losses
       • Reduction of labor costs
       • Increased company profitability
     • Disadvantages
       • Reduced quality of service
       • Loss of customers
       • Increased cost of operating equipment
       • Inefficient organization of material flows

3. Logistics Network

   • It is the set of facilities and activities that allow the manufactured product to get from the point of production to the final customer.
     • How important is it for companies?
       • It is essential for the product to reach the consumer. with great importance in the production or manufacture of a good, since it is the most visual and tangible part of the process of satisfying consumer demand.
         • Factors that determine the logistics network
           • Warehouse work:
             • The warehouse is the physical space where the products are kept from the moment they are manufactured until the moment the customer demands their acquisition.
           • Inventory work:
             • This is the activity related to the management and control of products, which allows their access quickly and effectively, which in turn allows immediate response to the purchase demand by the customer.
           • Packaging work
             • It refers to the preparation of the product once the purchase has been confirmed. Before it is transported to the customer, it needs to be properly protected, which ensures safe transportation and effective distribution from the time it leaves the warehouse until it reaches the consumer.
           • Transport and distribution:
             • This is one of the most visible elements of any logistics network. It refers to the set of actions that allow the product to physically move from the warehouse to the final consumer. Here elements such as the means of transport, route planning, last mile delivery, etc. intervene.

4. Jose Gabriel Amara