Logistic – is a vital
activity that opens up opportunities for the use of human and material
resources affecting the national economy. Logistics management greatly affects
the state of the financial economic and legal support in conditions of market
economy. First of all, it should be attributed to the organization and function
of storage facilities , development of transport services in intermediary
organizations and enterprises.
Logistics is part of the process of the
supply chain , where effective planning , implementation and control over its
main phases, include storage and movement of goods and related services and
information flows from point of delivery to the end user to meet the
requirements of the client. The logistics can be viewed from different sides;
Logistics as operational activities transport
, warehouses , equipment , marketing , accounting and information sharing
Logistics as the activities associated with
the management of the enterprise
provides all the capabilities for effective joint management and ensures
flexibility in the face of competition .
Logistics as a way of thinking, gives the
opportunity to consider the various logistical processes in the aggregate ,
have a reciprocal causal relationship.
Logistics as a field of science exploring
various methods using operation of logistics processes and related phenomena.
Logistics is a primarily strategic character,
which you can use to improve the strategic position of the company and enhance
its competitiveness. Logistics acts as a way of thinking that includes all
spheres of activity and levels of the enterprise and also course of action,
which supports independent units. When the company’s Department, which carried
out all activities associated with logistics, then the Department should be
seen as involving the coordination of actions related to logistics. With each
passing day become more and more popular logistics services, which in turn
increases the efficiency of functioning of the enterprise. Logistics helps to
reduce the time and expenses between the purchase of raw materials and delivery
of final product to the consumer. The main purpose of production logistics is
to create and ensure effective functioning of system of management of material
flows. Logistics the company has an optimizing character.
functions the global distribution and flow of information and materials makes
new, higher demands on logistics managers and their professional level. For
example, the strategy of the organization, the logistics and storage of
products in warehouses requires knowledge of legislative bases, tax systems,
peculiarities of government regulation. The strategy of inventory management is
associated with specific requirements for packaging and labeling, and must take
account of language differences. The efficiency of the service of the customer
is determined by efficiency of preparation and processing of complex documents,
as well as the results of actions on elimination of customs barriers. In
addition, the Manager for logistics should possess good skills in the field of
information technology, to be able to apply in its activities the
telecommunications capabilities of the new time. There is an increasing need to
attract other firms to participate in the logistics process, distributed
science covers almost all the activities of the enterprise: cost control,
planning, storage and sales. To logistic activities in the company include:
Transportation, inventory management, maintenance, information distribution.
The goal of logistics ; deliver the product in
a certain place at a certain time , in the right amount, while maintaining its
quality. This designation targets the most common, but the logistics is not
simply moving goods., it often solves many other tasks, such as taking into account the calculation of location ,
distance location and even removal no recycling.
Transport is the most important factor
logistic, no business can operate without the delivery of finished products to
customers. Action logistic inventory management, ensuring greater flexibility
of the enterprise and the time for reorganization or production system in
accordance with the circumstances. Modern experts in the field of logistics
noted a significant role of inventory in modern organization of product
distribution and takes inventory management to the factors, allowing to raise
the quality of logistics services of participants of commercial relations. Due
to a number of factors that affect the efficiency of distribution, there is a
need in the performance of the stocks of the following logistics functions:
geographical specialization, consolidation of resources, balancing supply and
demand; protection against uncertainties The final logistics operation in the
enterprise is the processing of orders.
The use of concepts of logistics enterprise
is an effective way of reducing the costs of transport and storage and ensures
high competitiveness of the enterprise. Principles of logistics are widely used
in American and European businesses. As for the domestic market, in connection
with the competition, including international, acceleration and increasing
complexity of economic processes, there is an urgent need for detailed analysis
and review of the concepts and principles of the enterprise. The actual
solution to this problem can be application of the logistics concept at the
The practice of such firms and companies as
Johnson & Johnson, Philip Morris, IBM, Coca-Cola, General Motors, Ford
Motors, Toyota Motors shows that the use of the concept of logistics, ensuring
high competitiveness of production and services. Efficiency of functioning of
the enterprise using logistics, achieved through: reducing the cost of goods;
improve the reliability and quality of supply.
Proper organization of logistics brings to
the enterprise the following benefits: increasing production efficiency; reduction
of lost work time; decrease labor costs; increasing profitability of the
enterprise. The consequences of poor logistics in the enterprise include: poor
quality of service to customers, loss of customers and market share; increase
in operating costs of equipment; ineffective organization of material flows.
The introduction of logistic process the enterprise principle of
Just-In-Time, actively used in lean manufacturing allows to achieve:
– elimination of losses of overproduction,
creating excess inventory, wait time;
– significant cost reduction and production
– improve the quality of logistics service.
Introduction to the process of logistics
enterprise management principle of “just in time”, which is actively
used in lean manufacturing will achieve, first, the elimination of losses at
the production stage, a surplus of stock and waiting time, second will
significantly reduce costs and the cost of goods, and, thirdly, to improve the
service quality of logistics enterprises.
At present, enterprises have passed the
organization of the production cycle in accordance with the logistic principles
can rationally arrange the production cycle of the enterprise, to make the
purchase of materials and raw materials, select vendors, and to independently
organize the production process.