Logistics Network

Logistics Network

1. Planning, organization and control of the set of movement and storage activities that facilitate the flow of materials and products from source to consumption, to satisfy demand at the lowest cost, including information and control flows

2. Logistics and Customer Service

   • Customer service and logistics are closely related. Customer service is the set of logistical actions that must be carried out in order to offer a product or service to the customer in a given place and time.
     • Procurement and inventory management: In this phase is when the logistics company is in charge of obtaining the necessary stock to be able to satisfy the demand for the orders that are made. That is to say, stable the one that guarantees that it will be able to face the demands of the clients.
     • Storage: Once the provisioning and inventory management has been carried out, the existing stock is stored until demand for it arises.
     • Execution of the purchase: It is the phase in which the demand by the client (generally executed by Internet), which starts the transport process that is will be in charge of sending you, from the warehouses, the product that the customer has purchased.
     • Transportation: This is the phase that includes all customer service and logistics from when the product leaves the warehouses until it reaches the end customer. In this phase it is essential that the product is located at all times and that, in addition, it can be established continuously
     • Reception and after-sales service: In this last phase is when the product has finally reached the customer's hands and the logistics process is considered to be finalized.

3. Transport and Distribution Strategy

   • In this sense, transportation and distribution logistics is no longer just about moving products from one place to another, but about a strategic process that seeks to reduce logistics costs for the company and increase satisfaction for buyers.
     • La mayor importancia de la logística de transporte está en el hecho de que se trata de un proceso que determina la eficiencia de la empresa. Esto se debe a que el transporte logístico es el que asegura que la mercancía llegue al consumidor en el lugar y momento correctos.
     • In general terms, the functions of transport logistics in a company are: Mobilize merchandise throughout the supply chain. Get the product to the end customer. Protect the state of the merchandise during its transfer. Comply with delivery times. Promote consumer satisfaction and confidence through an optimal logistics transport service.
     • Air transport logistics: it is the most expensive, since it is the fastest and most efficient logistics transport for long distances
     • Maritime transport logistics: it is the most economical when it comes to long distances, since it is not the most efficient means, since transport times are delayed.
     • Land transport logistics: this type of distribution logistics includes rail transport and road transport.
     • Rail transport logistics: this means of land transport depends on others to comply with the logistics distribution chain, since it has very strict and unchangeable transit routes.

4. Inventory and Warehouse Strategy.

   • Properly locate inventory Failure to place products in the right place can lead to a backlog of obsolete items, slowing down operations and increasing costs
     • Manage spaces correctly Regardless of how much space you have, the important thing is how optimized it is. To maximize space, you need to improve storage systems and pallet and rack patterns, create predetermined pick paths, and ensure you have the space you need to quickly perform operations
     • Implement effective communication Effective communication increases productivity. When all participants in the supply chain, especially the production, purchasing and logistics departments, have the same information,
     • Optimize processes It consists of eliminating, simplifying and automating logistics procedures, especially in the order preparation stage.
     • Properly locate inventory Failure to place products in the right place can lead to a backlog of obsolete items, slowing down operations and increasing costs.
     • First in, first out (FIFO): defines the first items that will enter the warehouse so that they are the first to go on sale or into production, which prevents perishables from expiring.
     • EOQ or Economic Order Quantity: determines the order amount that can reduce inventory costs the most based on demand, frequency of use, and time out of products.

5. Procurement Strategy

   • The acquisition strategy serves as a guide for project management and establishes the technical and business management infrastructure for the planning, execution and control of activities for the acquisition and operation of products and services.
     • Improve the performance of the target company Improving the performance of the target company is one of the most common value-creating acquisition strategies. Simply put, you buy a business and slash costs to improve margins and cash flows.
     • Consolidate to eliminate excess industry capacity As industries mature, they generally develop excess capacity. The combination of increased production from existing capacity and new capacity from new entrants often generates more supply than demand
     • Accelerate market access for the target's (or buyer's) products Relatively small companies with innovative products often find it difficult to reach the full potential market for their products.
     • Obtain skills or technologies faster or at a lower cost than what can be built Many technology-based companies buy other companies that have the technologies they need to improve their own products.

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