Activities Included in Logistics

At present, the role of logistics for the company is crucial, the excellence and sustainability of the company is largely determined by how the company manages logistics effectively. Logistics is the art and science that regulates and controls the flow of goods, energy, information and other resources, such as products, services, and people, from sources of production to markets to optimize the use of capital.

The following are activities that are included in logistics activities.

Reverse Logistics

The handling of return goods in the form of salvage and scrap disposal is part of a process that is closely related to reverse logistics. It is considered as a logistical component that requires more attention.

Returned items can be due to product damage, expiration, shipping errors, trade-ins, and other reasons. Reverse logistics costs tend to be higher than forward logistics costs.

Customer service

Customer service is a process that takes place between buyers, sellers, and third parties to discuss some issues such as single or long-term transaction contracts. This added value is also divided into each group of transactions or contracts. Thus, customer service is the process of providing important value-added benefits to the supply chain effectively.

Request forecasting

Demand prediction determines how many items must be transported to various markets. Logistics management must know where the demand came from so that it can place and store in the right market. Accurate estimates of future demand allow logistics managers to provide resources (budget) for the activities that will serve these requests.

Logistics Communication

Communication is a vital network between the entire logistics process and the company’s customers. Accurate communication is the basis of successful logistics management.

Material Handling

Material handling deals with every aspect of movement or flow of raw materials, semi-finished goods, and finished goods in factories or warehouses. The purpose of material handling is:

1. Simplify and remove any handling systems that are possible.
2. Minimize the mileage.
3. Minimizing semi-finished goods
4. It provides a simultaneous flow free of bottlenecks.
5. Minimizing losses due to disposal, damage, and theft.

The company is incurring expenses when handling goods. If based on handling does not provide value for a product, it should turn to be minimum.

Transportation

The transportation function is related to the outside and inside the logistics department. Such as financial part such as (freight bills/shipping costs), engineering such as (ordering transportation equipment), inventory management (raw materials, finished warehouse components), law (contract warehouse and transport equipment), production (on-time delivery), purchasing (selection supplier), marketing (customer service standards) receiving (claims, documentation), and warehousing (equipment supply, scheduling). Those are some of the activities contained in logistics activities. Hope this article useful.