Logistics refers to the all-inclusive process of extensive planning, incorporating as well as controlling procedures for effective storage and transportation of goods which includes services and related information from an origin point to a consumption point. The ultimate objective of logistics is successfully meeting the requirements of customer. This definition comprises of outbound, inbound, external as well as the internal movements.
The process of planning of logistics begins from supplier and considers the overall chain of logistics and end tills the final product handover to customer. Both the flow of material and information flow are logistically planned. This comprises of the functions of upstream logistics like the management of distribution centre, container yards, warehouse on wheels, consignment stores, trailer yards, hubs, transhipment points, material flow stages, consolidation centers from planning of warehouse, picking, sequencing to the transportation of intra company, packaging, supply of production as well as shipping.
Logistical processes helps in the relationship between product movement and production. Specifically the processes of logistics must be able to address the production aspects like costs, time as well as quality. When a company is able to successfully coordinate the processes of logistics, the company will be able to monitor the processes via production, storage, consumption as well as disposal. A functional process depends on proper location of all various assets within a company.
The objective of logistics management is having accurate resource at a accurate time to get to proper location or condition and having it delivered to the right external or internal customer. A proper logistics makes sure of fulfilling every customer order, ensuring the resources move quickly as well as effectively from one specific supply chain section to another.
The various functions of logistics can be listed as below:
- Generation of purchase orders: During this phase, the purchase orders are generated as per customer demand
- Terms and Conditions: The terms and conditions for the products are specified
- Follow up with suppliers and expediting parts and assemblies: To order the products, the suppliers are contacted to get the raw materials and parts for product development
- Managing transportation of deliveries: The product parts and raw materials are transported during this phase
- Prepare shortage list & manage shortages: If there is any deficit of materials, it is listed and managed by ordering them again or by using some alternatives.
- Ensure 100% material availability: It is made sure that the raw materials are finally available whole
- Review on time delivery with suppliers: an On-Time review of the materials is done after the supplier, supplies them
- Expedite and manage supplier rejections: Any raw material is found in a defective state is rejected and managed
- Review of purchase forecast with suppliers: The number of products to be ordered to discussed with the suppliers and accordingly the raw materials are put in place.
- Manage planning and procurement of sub-contracting process: For product development, a planning is made by sub-contracting with the manufacturing place
- Manage vendor payables: After the raw materials are supplied, the vendors are paid.
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