Logistics

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What is logistics?

Logistics refers to the holistic planning, control and optimization of material and information flows within a company and across company boundaries to the end customer. The aim is to have the right quantity of products or goods available in the right place at the right time.

Objectives of logistics

The objectives of logistics are diverse and include:

  • Increased efficiency: The optimization of processes and resource utilization should lead to higher productivity.
  • Cost reduction: Effective logistics helps to minimize inventories and reduce transport costs.
  • Customer satisfaction: Punctual deliveries and a reliable supply contribute significantly to customer satisfaction.
  • Flexibility: Agile logistics enables companies to adapt quickly to changing market conditions.

areas of logistics

Logistics is divided into four key areas:

  1. procurement logistics: This involves planning and controlling the purchase of raw materials and components.
  2. production logistics: This area deals with the organization of production and the provision of materials for production.
  3. distribution logistics: this deals with the delivery of finished products to customers and the corresponding distribution channel.
  4. supply chain management: This area looks at the entire supply chain and coordinates the processes between the various stations.

The 6 Rs of logistics

Logistics is based on six fundamental principles known as the "6 Rs of logistics":

  1. right product: the right product must be available in the right quantity
  2. right place: the product must be available in the right place, be it in the warehouse or directly at the customer's premises.
  3. right time: the product must be available at the right time to meet demand.
  4. right quality: the product must meet quality standards and meet customer expectations.
  5. right quantity: the right amount of product must be available to meet demand, but also to minimize storage costs.
  6. right costs: logistics should be cost-efficient to maintain the company's competitiveness.

What is the importance of logistics for the economy?

Logistics plays a central role in the economy. Efficient logistics processes make it possible to reduce costs, shorten delivery times and increase customer satisfaction. Companies can strengthen their competitive position through well-functioning logistics and position themselves on the market in the long term.

Influence of technology and digitalization on logistics

Technological developments and advancing digitalization are having a significant impact on modern logistics. Automation, artificial intelligence and the Internet of Things enable more precise planning, real-time monitoring of processes and more efficient use of resources.

Digital platforms and systems also open up new opportunities for collaboration between companies along the entire supply chain.
Logistics is therefore not only an essential component of a successful company, but also a dynamic field that is constantly evolving to meet the growing demands of the global economy.

Mike Schubert und Raimund Bergler

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