What is business logistics?
Business Logistics is the process of planning, organization and control of the movement of offer, stock and information within the company. In general, it is the tide of goods and information from the purchase of raw materials to transport goods at different stages of production, to the distribution of goods to the end user. Through efficient business logistics, the company can save time, resources and costs.
The significant part of the management process is focused on logistics. Almost all business processes, including production line, warehouses and distribution centers, require constant movement of goods. By effective implementation of business logistics, the company can use fewer resources to provide the same quality of products or services. This is usually reflected in a larger profit range and gaining an advantage over competitors.
Logistics has its roots in the army. During World War II, this became an effective finding ways of moving people and material. In the 1950s of the 20th century, business began to integrate this philosophy into its processes and the grainBusiness logistics. Since its foundation, business logistics has proceeded to include a number of other management concepts.
During the 1950s, logistics officers who served in World War II transferred and contributed their expertise to the private sector. Their experience with coordination of war efforts was reflected in new practices in the transport of resources and supplies. In addition, the 1958 recession led to measures to reduce costs, which meant that logistics managers had to introduce new ways to move goods more efficiently and at lower costs.
Seven principles form the basis of business logistics management. The first is to have the correct items and the second has items when they are needed. Third and the fourth principles deliver the correct number of items and deliver them at the right time. Fifth buys items at the right price; Sixth is to maintain a good condition of the item; and seventh adds the items to the right person.
Information logistics is generally considered an important element of business logistics for several reasons. Improvement of information technology has made it possible to communicate immediately with suppliers and customers from around the world. In addition, the supply chain management is more efficient because the materials can be monitored in every step of the production process. Finally, the requirements for materials and business resources planning are accelerated by the software designated for these processes.