In a few words, briefly defined, logistics is the science of supply.
Logistics is the flow of people, materials (see raw materials, semi-finished and finished products), energy, and information within and between systems so that the total cost and customer service are optimal.
Logistics is a management approach that includes planning (routes, methods), regulation, and implementation. This includes the delivery of the product from the source to the point of use, but the flow of information that is part of the process is also implemented under the umbrella of logistics.
The task of logistics
There is a so-called 7M principle, according to which the goal of logistics is to…
- make the right thing
- in the right quantity
- in the right quality
- at the right time
- in the right place
- with the right information
- at the right price.
(Here we mention that the 9M principle has also become widespread and outlined, here the following elements are listed under the appropriate quality clause: information, material, energy, people, quantity, quality, time, place and cost.)
Logistics supply chain
The logistics system or chain is defined by 4 processes:
- planning,
- procurement,
- production,
- and delivery.
Logistics integrates the following main activities: strategy includes, among others, the planning process for procurement, inventory and sales; logistics processes include logistics work related to procurement, sales, production and recycling; and performance accounting and communication includes cost-related activities, analytics and work focusing on logistics service levels.
A little history of logistics – when did it become of paramount importance?
At the beginning of the 20th century, mass production began, and consumer demands also increased. Production logistics developed, efficient selection among suppliers became important, and management of demand markets became necessary.
The economic significance and special importance of logistics were recognized in the 1950s, when it became strategically important. The first country where logistics became more valuable was the United States, followed by Western Europe, Eastern Asia, and Central and Eastern Europe.
1980 was a milestone in the history of logistics, when the integrated logistics approach was developed, meaning that logistics activities were now managed together.
Slowly, it was recognized everywhere that the economic competitiveness of a company could be significantly determined by the efficiency of logistics operations. The dramatic increase in the level of logistics can be linked to the development of information technology, cybernetics, and electronics.
Our logistics services
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Transportation, distribution
Industrial logistics
Event logistics
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