Components of Logistics

Before starting the discussion about components of Logistics and their roles, let’s once again recap what does logistics means in its essence.

No doubt there already are lots of definitions and literature around it. Today it goes as a separate discipline and is studied at colleges or even universities. We know exactly when logistics appeared and how it developed. However, based on our challenges and experience of years, we would like to dare and share our vision, thus adding into the long list of interpretations one more – those of Logistics Solutions.

 

So, for us: "Logistics is a systematically ordered chain of actions and operations following post-production of a merch until its final sale, where solidity and steadiness of each chain link are equally important."

 

In today’s blog, we will try to list in detail all these links, or components if you will, and explain Logistics as we see it.

 

After being manufactured, each product needs to be delivered to the customer. But as simple it sounds as complicated this process might be. The product might be destined either for the internal market, for export, or both. In the case of the internal market, the production is followed by distribution. But if the export is the case, we need transportation, which means a long-distance delivery of a large amount of product abroad or overseas.

 

To elaborate maximum depths, let’s discuss export. First, we must define the most optimal route and transportation means for it. After being transported to the destination, the product should be kept in proper condition. Here we assume a specially dedicated warehousing/deposit/storages, where the safety, security, and other preferable conditions are guaranteed. As the following step, we might deal (but not always) with packing/repacking/labeling/grouping/sorting. Afterward, it is time to deliver or distribute the product to the very customer or markets. There can be no priority between these phases - all of them are equally important. Finally, we must consider the utmost importance of time management and information support during the whole process described above.

 

We should never confuse cargo transportation and distribution. These two are different types of delivery. Fast and timely delivery of the product also differs from each other. We will discuss all details and practical sides of them in the following blogs. It is worth mentioning, that all stages are comprised of sub-stages that also are topics for upcoming analytics.

 

We should not forget that succession of phases can be the same for the production as well. For instance, we could have the raw material, Inventory, or feedstock that on their behalf are needed to produce another output. The logistical chain would be the same as mentioned in that process.

 

To sum up, let’s link our chain at the end of this blog. In general, we see post-production logistics as followed: -> “Transportation-warehousing-packing-distribution-time management and informational support of the process”.