It is the art and science through which the flow of goods, energy, information and all other resources, such as: products, services, and people, is managed from the area of production to the area of consumption, and it is impossible to complete any global trade or transfer of primary resources and products that are manufactured. and production without the presence of professional logistical support, and logistics include: obtaining information, transportation, inventory, warehousing, physical handling and packaging.
short term goals
This is done by improving the material flow from the exporter to the importer, which leads to:
- Introducing purchasing programs and the production process.
- Programming of commercial shipments.
- Organizing after-sales services and distributing spare parts.
- Maintaining the continuity of operations, by making a plan for maintenance and repair.
medium term goals
This is done by setting a framework for work plans and budgets, which aim to:
- Determine the procedures that will control the logistics expenses of the services that the company wants to develop, for example: if a company wants to carry out the production process on the basis of deferred differentiation, it is necessary that the logistics help to clarify and improve all the production and warehousing frameworks that have been set from this type of organization.
- Giving advice to managers, so that they are able to choose the operations that it is necessary to guarantee from the company itself, and in which it is in the interest of contracting with specialized companies.
- Contribute to a large degree in providing the greatest benefit from investments or from the capital of the company.
long term goals
By focusing on the long-term level, the goal will be:
- Serving the organization in control of the complexity, uncertainty and delay that result from the presence of multiple products in the markets.
- Continuous renewal in order to know the impact that the logistics have on the operating expenses of employees and the organization.
- Giving the organization an advantage that enables it to compete, by providing the necessary logistical services, which provide the best customer service.
The origin of the word logistics
Its origin goes back to the ancient Greek language, and its source is the word “Logos” which means ratio, account or reason. The use of the term moved from the army’s need to transport equipment and supplies from one place to another to a term used in the economic field, and there are also uses for it in many fields, and we mention some of them :
- Administrative Logistics: It is part of the chain through which resources are supplied that aim to plan, implement, control the export of products, and store them in a smooth and efficient manner, and this is done between the point of production and consumption, with the aim of obtaining consumer satisfaction.
- Production logistics: This term is used to describe the logistical functions that are related to production, such as the supply of some basic products to the factory, and the distribution of products after the completion of their manufacture. can be submitted.
The meaning of logistics