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WEEK 1ntroduction To Logistics AVIASL PDF
WEEK 1ntroduction To Logistics AVIASL PDF
April, 2023
WEEK 1
INTRODUCTION
TO LOGISTICS
COMPETENCES:
To talk about Logistics.
To know about Logistics importance
To learn Logistics roles and types
To learn verbs used at Logistics field
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What is logistics
Logistics is the process of planning and executing the efficient
transportation and storage of goods from the point of origin to the point
of consumption. The goal of logistics is to meet customer requirements
in a timely, cost-effective manner.
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management/#:~:text=There%20are%20four%20main%20types,aspect%
20of%20the%20supply%20process.
The term “logistics” was originally used by the military to describe how it
obtained, stored and moved its equipment and supplies. The term as we
know it remains the same but with the rise of consumerism and
subsequent growth of more complex supply chains, it has evolved. It
refers to the process of coordinating and moving resources such as
equipment, food, inventory, materials and even people from one location
to another
Functions of logistics
Transportation and warehousing are the two major functions of logistics.
Sometimes, the terms inbound and outbound logistics are used to denote
logistics for goods arriving at or leaving a facility, respectively. One important
category is reverse logistics, the logistics processes needed to return a product
for servicing, refurbishing or decommissioning and recycling.
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7018
Types of Logistics
Supply
Supply management involves the planning and coordination of materials of
products that are needed at a certain place and time to support the
receiving company’s production of activity.
Distíibution
Distribution manages how a supplied and stoked material is distributed to
required recipient. It involves the loading, unloading and transportation of
material, the tacking of stock and accountability of use, which is the decoding
of how the material is used and by whom.
Production
Influent says that production logistics manages the stages of combining
distributed supplies into a product. This can involve the coordination
required in a manufacturing or assembling process.
Reverse logistics
Lastly, reverse logistics involves the return of material and supplies from
a production process. It plans for the removal of excess material and its
re-absorption into a stock supply. For example, if there are bricks left
over on a building site, it will be removed and returned to the supplier and
reclaimed as stock.
It helps to create value. Providing value extends further than the quality of a
product, it also refers to its availability. Effective logistics management
ensures the continued availability of products and materials to consumers,
thereby creating and increasing the value a business offers.
In short, logistics is about providing the right goods to the right recipient in
the right quantity at the right place at the right time. In an article by NHFS, a
shortage of skilled workers is cited as one of the challenges in the South
African freight industry along with climate change and regional connectivity.
Logistics Fields.
Procurement Logistics: Procuring Raw Materials and Parts.
Production Logistics: Materials Management, Distribution in
Factories, Product Management, Shipping.
Sales Logistics: Delivery from Warehouse to Wholesalers,
Retailers, and Consumers.
Logistics Fields
Logistics can be split into five types by field: procurement logistics,
production logistics, sales logistics, recovery logistics, and recycling
logistics. Each of these is explained in detail, but first we should learn
about logistics fields and types. For recovery logistics and recycling
logistics, both types are the same up to the recovery of goods from
consumers, but recycling logistics is the type that recycles the goods that
are collected
Procurement logistics is the flow of goods when the raw materials and
parts necessary for manufacturing are procured from suppliers. This field
did not attract much attention before, but now that small-lot production of
a variety of models is the main type of production, many firms are
actively pursuing production by procuring the necessary materials in only
the necessary amounts at the necessary times (the shift to just-in-time
production) because it is directly connected to reducing inventory costs.
Logistics typically refers to sales logistics. In the past this was mainly
delivery from delivery centers and logistics warehouses to distribution
points such as wholesalers and retailers. But now direct delivery also
makes up a large amount of this volume due to online shopping and e-
commerce. Whether delivery through delivery centers and logistics
warehouses or direct delivery from production sites, higher efficiency in
transportation and delivery and shrinking inventory are indispensable for
delivering the necessary goods to the necessary people in the necessary
quantities at the necessary time. This also contributes to improving
customer satisfaction.