Logistics: what is it and what are its tasks?

Before the introduction of Americanisms into the speech of a simple Russian man, the word "logistics" meant only the branch of mathematical logic and everything connected with it. Current logistics: what is it? In the world of modern business this word denotes a whole area that provides the immediate needs of any functioning enterprise.

Tasks of logistics

The main duty of logistics is to ensure all the needs of consumers by maintaining the normal operation of production, marketing and other industries of the enterprise. In other words, logistics provides us with fresh bread in the store, fresh newspapers and strawberries on the market. And as an auxiliary moment, it provides flour to the bakery, fertilizers and planting to farmers' farms. Logistics: what is it, what are its main characteristics? Speed, availability of goods, uninterrupted delivery, as well as flexibility of processes are the main tasks of this area of development of any business.

Functional Areas

Before the term "supply chain" appeared, logistics made it possible to minimize costs using functional areas. Changing the parameters in any such area of the enterprise can affect its operation as a whole.

Logistic infrastructure is a complex of interrelated objects with different characteristics and having a certain geographical location. For example, a plant may be located near sources of raw materials, and a warehouse (there may be several of them) can be located in a completely different place. All objects of this infrastructure are interconnected in a certain way.

1. Transportation - communication between individual infrastructure objects. Mass transportation is carried out by road and rail. In the case of long distances, water, air and pipeline (for oil and gas transportation) are used.
2. Cargo handling and warehousing. The first process involves loading and unloading, moving products and materials around the warehouse. Warehouses can be tied to production or stand-alone.
3. Order management - the correct calculation of the required number of stocks at each point of the infrastructure, depending on the needs of the entire chain.
4. Logistics: what is it? Information support is the most important part of its entire working system. Information technology has transformed individual functional areas into a single integrated system that minimizes the total costs of the entire supply chain. They provide the basic development of logistics.

The most promising way to organize logistics is to attract specialized logistics companies. They have a full understanding and knowledge of what logistics represents, what it is in the business world and what role it plays today. The companies will help to organize the entire logistics chain competently for the client. Good luck in your business!