How does a logistics system work
Logistics is essential to the economy. But what is actually behind this term? We explain the sub-areas of logistics to you, have selected examples of professions in the logistics industry and give you a clear definition.
This definition sums up a very complex process. Logistics consists of the sub-areas of procurement logistics, production logistics, distribution logistics and disposal logistics. Each of these areas connects to the other, so that a long chain is created. This ranges from the procurement of raw materials to the production of goods to marketing and shipping. And in every step of the value chain there is waste or leftovers that are ecologically disposed of or recycled through disposal logistics.
A company makes toasters. This requires the technical parts, paints and raw materials for production. Logisticians monitor the quality of the raw materials, compliance with delivery dates and select the suppliers. In production, logisticians ensure that the various individual parts arrive quickly and efficiently at the factory where they are assembled into a toaster. The finished toasters are now stored. The longer the storage, the higher the costs, so logisticians take care of keeping the storage times as short as possible. Finally, they monitor the shipment. The leftovers and waste are then transported on or destroyed.
Tip: Isn't supply chain management the same? - That's not true. We'll explain the difference between logistics and supply chain management.
There are four major sub-areas in logistics. All of them together form the entire value chain of a company and have different tasks and requirements for employees. We have made the effort for you to structure and explain all areas of logistics in a simple manner.
Procurement logistics is on Beginning of the value chain. It deals with the ordering of materials and raw materials and the selection of suppliers. Quality testing of the raw materials is also part of this. Since in the economy many goods have to arrive on precise dates so that there are few storage costs, a procurement logistician also keeps an eye on the punctuality of service providers and suppliers.
There are many different tasks involved in production. The main tasks in production logistics are Control and optimization of production and transport routes. This also includes lowering manufacturing costs. In order to reduce storage costs and have space for new raw materials and goods, logisticians in production pay attention to reducing stocks and calculate the variety of goods on offer.
Distribution logistics or sales logistics mainly includes the Brokerage and dispatch of goods or information. Distribution logisticians ensure that the goods arrive at the customer on time and undamaged. In addition, they reduce the amount of packaging required and optimize the delivery service.
Disposal must be guaranteed over the entire value chain. Therefore, the disposal logistics should not be underestimated. Again and again, packaging materials and other waste arise that have to be disposed of properly. The disposal logistics includes in addition to Transportation of the waste also reducing costs and emissions. The focus is also on protecting the environment
Overview of the sub-areas of logistics
Do you find logistics exciting and want to find out more about studying logistics or supply chain management? We also have information about other courses in the logistics industry, such as transport logistics or maritime management.
And if you can't wait, you can find suitable logistics courses in our database with one click.
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