Logistics

Content

• Introduction to Logistics
• Tasks and Functions of Logistics
• Principles of Logistics
• Logistical Concepts
• Types of Logistics
• Digitalization in Logistics

Introduction to Logistics

Logistics is a field of science that studies the processes of supply, delivery, and transportation of goods, services, and information. It plays a crucial role in forecasting, controlling, and optimizing the movement of goods between producers, suppliers, and end consumers. This area encompasses not only procurement and transportation but also sales, storage of goods, and management of accompanying flows of finance and information. The main goal of logistics is to find optimal solutions for the effective delivery of goods from the supplier to the consumer.

Tasks and Functions of Logistics

The key task of logistics is to optimize costs associated with storage, transportation, and sales of products. Logistics science teaches proper resource and load distribution, which, in turn, contributes to increasing company profits by reducing transportation and warehousing expenses. The main functions of logistics can be highlighted as follows:

• Choosing the means of transport for cargo;
• Determining the optimal route;
• Distributing goods for safe transportation;
• Customs clearance of imported goods;
• Labeling and preparing documentation for products;
• Transporting and delivering cargo;
• Optimizing the placement of goods in warehouses;
• Managing inventory.

Principles of Logistics

Logistics is based on six key principles:

• Goods — deliver the right product;
• Quality — ensure the required quality;
• Quantity — in the required amount;
• Time — exactly on time;
• Place — to the right place;
• Costs — with minimal costs.

Proper organization of logistics processes can significantly improve a company's economy, optimize business processes, and reduce costs for storage and delivery of goods. It is important to adhere to these principles at every stage — from procurement of materials to delivery of the final product.

Logistical Concepts

For effective management of logistics processes, companies set priorities and determine factors to be considered in planning. Planning principles form logistical concepts, following which companies organize their operations. There are several basic logistics concepts:

• Just In Time: a concept developed in the 1950s by the Japanese company "Toyota," aimed at planning deliveries within strictly established deadlines.
• Requirements / resource planning: systems such as MRP I / MRP II for material and resource requirement planning, as well as DRP I / DRP II for product distribution.
• Lean production: the idea of minimizing inventory and reducing batch sizes with a focus on high quality.
• Quick response: presumes a rapid response to changes in demand through coordination between retailers and wholesalers.

Types of Logistics

Logistics finds application in various fields, each with its own characteristics. The main types of logistics are presented below:

• Transport logistics: focuses on the delivery of goods with minimal costs and without damage to the products.
• Procurement logistics: responsible for ensuring the business has the necessary materials in a timely manner.
• Information logistics: includes systems for information transfer between all participants in the process, ensuring timely data exchange.
• Production logistics: optimizes the movement of materials and finished products within the production cycle.
• Distribution logistics: focuses on the distribution of goods between suppliers and end consumers.
• Warehouse logistics: responsible for effective storage and management of finished product inventories.
• Customs logistics: ensures compliance with legal norms during international transportation.

Digitalization in Logistics

Digitalization is an important trend in logistics, simplifying and speeding up processes. It allows for a significant improvement in the quality of logistics tasks execution. With various programs and services, many processes can be automated, such as:

• Creation and modification of applications;
• Document flow between transaction participants;
• Determining optimal routes;
• Calculating the profitability of cargo transportation;
• Analyzing operational activities;
• Managing settlements;
• Forecasting transportation maintenance.

The more companies implement digital technologies in their logistics, the higher their chances of taking leading positions in the market. If complete technology implementation is difficult, partial outsourcing of logistics tasks may be possible, allowing for the most efficient resolution of transportation and storage issues.