business

Logistics and supply chain

The fundamental concept of logistics is related to supply chain management. The business vision of those who participate in this chain is a faster and more responsive flow, costing less, in the producer and merchant journey, both wholesale and retail.
A chain without interruptions, in which the information, in addition to being fundamental in this entire process, flows quickly and in a timely manner to all the parties involved via the final consumer. Logistics, as supply chain management, leads us to the right product, at the right time, in the right place, with the quality required and at the lowest possible cost.
 
The starting point is motivated by consumer purchases, this starts the movement of products and inventories. A well-designed supply chain achieves reduction in costs manufacturing thanks to a better and more efficient production, and the most efficient purchase of raw materials, among others. The costs Marketing and administrative costs are also significantly reduced as a result of faster movement of goods, improving turnover and better utilization of available working capital.
 
Supply chains rely on fast and timely information on turnover in the same chain, information on consumer behavior, product categorization, market segmentation, databases, bar readers at cash registers, purchase orders assisted by the computer.
The creation of supply chains implies a profound change in the usual marketing systems, breaking the patterns in the way and culture of doing business; it implies a management with open minds and willing to innovation and application of new methodology to achieve better results.
 
The main functions logistics are those related to: transportation, storage, purchases and demand forecasts, inventories, production planning, management personnel, packaging and packaging and the customer service. Logistics must achieve the interaction of operational areas of the supply chain system, an excellent coordination of the administration of materials, inventory movements and physical distribution and all this coordinated and integrated with the other divisions, areas and departments of the company and of the companies that at a given moment have synchronized, with ours, a supply chain from the raw material to the final consumer.
As we can see, logistics is key in three definitive factors in competitiveness of companies: customer service, reduction of costs direct, the improvement in capital turnover and in technology and information systems.
 
The handling o administration Materials has to do from sources of supply with transportation, inventory planning and control, order processing, demand and purchase planning, storage, material handling, packaging and packaging, and information and communication systems. Physical distribution has to do with the market and there we find: transportation, planning and inventory control, order processing, production planning and control, warehousing, material handling, packaging and packaging, and information and communication systems.
 
It is very important to highlight in this of logistics what refers to inventories: the function of inventories in a company was to decouple the different operations: production, inventory in plant, inventory in distributors, etc. And that it allowed each one of these to fulfill its mission for a certain period without needing the previous operation. However, if we store too much it costs us and if we run out of the product it also costs us.
In the first situation we may be presented obsolete, breakdowns, aging and in general overcrowding. In the second case, with the exhausted, costs caused by the stock shortage. But the most serious are the costs Hidden generated by the loss of customers, next time they buy where they found it, and those generated by failing to win. When to buy? How much to buy? For how long? They are necessary and optimized answers that we must know for proper management of these.
 
Where inventories participate in this of logistics and marketing; If the profitability of a company, generating profits, is the product of the margin for the rotation, it is in the second factor, rotation, where inventories directly intervene.
The higher the turnover, even with a constant margin, the higher profitability. According to this, the principle to apply is: the inventory of a product should be the minimum possible in the entire channel, but keeping the service level goals. In other words, you have to have a little, but you can never lack.
 
Computer technology It allows us to have projected future demand today and with less uncertainty than in the past. Therefore we might even think that in the future of today, each product that enters the production line has a defined destinationIn other words, what is already sold is produced.
 
This possibility of reducing inventories to a minimum while maintaining the service level, is one of the key factors in today's competitiveness since the profit margin charged to the product can be kept constant or with slight increases and maintaining the profitability of the product for the company.
 
Yes to inventories, but not to excessesOnly the amount necessary to guarantee that the product acquires its value vis-à-vis the customer by being at the point of purchase at the time the consumer decided to purchase it. In other words, without exhaustion, without excess, without aging, without overcrowding.
 
Article published by: Ignacio Gómez Escobar Igomeze@yahoo.com
I am a dreamer and in my dreams I believe that a better world is possible, that no one knows more than anyone, we all learn from everyone. I love gastronomy, numbers, teaching and sharing all the little I know, because by sharing I also learn. "Let's all go together from foundation to success"
logistics
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