Logistics is the activities of a product or service that are between a company or organization and customers
In other words, it is the activities of delivering the product or service from the production line to the customers
The companies are divided into two parts
Either commercial buy and sell
Or an industrial company that buys raw materials to convert them into products to sell
And there is a consumer and a supplier
For example
Suppliers supply raw materials and equipment to factories, companies and institutions
Which you use to produce consumer products and sell them to consumers
Through distribution points, then to market stores, and then to retail stores
Logistics activities
Logistics activities, as we said, are the activities between the institution or company and customers
Meaning the activities related to delivering the product from the factory to customers
Or raw materials from suppliers to the factory
And these activities
Warehousing and inventory management
Transport and distribution operations
– Purchasing and negotiation processes to determine the best suppliers in case of requesting materials
– Quality and cost checks and controls
Logistics history
Logistics appeared during the World War where the armies
Need to plan and organize the supply of supplies, food and medical supplies
And military equipment to arrive in the best way and at the lowest cost and in good and sound condition
The concept of logistics was launched on these operations
Logistics became famous after that, as it invaded the field of industry and services
Where any product or service reaches the consumer and therefore there
A lot of activities that are done to reach the product or service to the consumer
Logistics and transportation
Transport is the movement of products from one place to another by means
Transport such as planes, trucks and ships
The transfer process is not an easy process
Transportation needs time control, as delay may lead to many problems
There are also many means of transportation, and the best and least expensive means must be chosen
Before the process of moving the products, the transport company b
Completion of transportation transactions such as visas, customs and others
Checking the products and that they conform to the required specifications
Determine movement and arrival times and control that
Choosing appropriate and less costly means of transportation to ensure the arrival of materials at the required time
Logistics and coordination
As we said, logistics is a network of activities between the company or institution and customers. These activities are linked to several departments and departments.
Logistics operations must be coordinated by supply chain management
P logistics operations must be coordinated with
– Managing stores, materials and purchases
Where it is known what materials to purchase
And what materials are stacked and what materials are required to be supplied
-financial management
To determine costs and authorize financial transactions
-production management
To know its need and requirements of materials
the quality
To know the correct specifications and standards and to check the materials
Inventory management, handling and logistics
Inventory is part of logistics
The inventory must be managed and controlled ideally
Inventory is the materials you need
Store them in appropriate and sound conditions
– Control over its availability or accumulation
Inventory is a large part of your capital
And losing it through damage to stores or accumulation without selling
It leads to huge losses for the company and the loss of a lot of money
So the term production on demand appeared
or production on time
This term appeared in the Japanese company Toyota, where the meaning of the term
Production should be carried out according to customer demand and in the quantity predicted for demand
So that we do not accumulate raw materials or ready-made products in warehouses
time, quality and cost by logistics
Logistics means getting materials with the right quality
At the right cost and at the right time
Companies and institutions want to provide an appropriate product or service
To customers without delay, high costs, or poor quality
Poor quality causes product failure and bad company reputation
Hence the loss of clients
The delay in delivering the product causes annoyance and dissatisfaction to customers
And their feeling of dissatisfaction and inconvenience
As for the costs, they are important, as the high costs of raw materials reduce profits
And raising product costs causes customers to reluctant to buy
