Economics and management in the field of ict

CHAPTER 1. THEORETICAL BASIS OF LOGISTIC ACTIVITY.

1.1. The essence and types of logistics activities.

Logistics is more widely used to coordinate the process of coordinating and moving resources, people, materials, inventory, and equipment from one location to the desired location. The term logistics originated in the military field, which refers to the movement of equipment and materials to troops in the field.

Logistics refers to things that happen in a company, such as the purchase and delivery of raw materials, packaging, shipping, and transportation of goods to distributors. Supply chain management involves a large network of external organizations working together to deliver products to customers, including vendors, transportation providers, call centers, warehouse providers, and more.

Logistics management may include some or all of the following business functions, including:

- Incoming transport

- Walk out

- Warehouse

- Working with materials

- Execution of the order

- Inventory management

- Requirement planning

Although many small businesses focus on designing and manufacturing their products and services to better meet customer needs, if these products do not reach customers, the business will fail. Logistics plays a key role in this.

But logistics also affects other aspects of the business.

The more efficiently the raw material can be purchased, transported and stored until it is used, the more profitable the business can be. Coordinating resources that allow for the timely delivery and use of materials can be a great success for a company. On the customer side, if it is not possible to produce and ship products on time, customer satisfaction can decline, which can also negatively affect a company’s profitability and long-term performance.

Supply Chain Management - involves the regulation of goods and services through the effective planning, design, execution, control and monitoring of supply chain activities. Supply chain and logistics management is very important for any company working in many fields. 7R “Rules” are one of the most important concepts in logistics management. (1-picture).

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1. The desired product.

In the product selection process, the company should consider the problems that may occur during the transportation phase. For example, brittle or bulky products require special packaging, and this can affect the decision to choose the most appropriate mode of transport.

2. Desired customer.

Once created, the required products must be delivered to the desired customers. The biggest challenge in this process is identifying target customers and spreading awareness about the product or service. Beneficial market research gives managers an understanding of potential customers and therefore allocates a reasonable budget for marketing strategies. Thus, the company has more leaders and can reach more customers.

3. The required amount.

The right amount plays an important role in logistics. Knowing the exact amount and meeting the demand is the key point for the manufacturer to maintain its reputation and avoid losing money. If a company produces too many products, the warehouse will be overloaded and other related costs will increase. With the help of modern technology for any logistics company, the company can easily manage all quantities of goods for delivery.

4. The desired condition.

Delivery of products in the required condition indicates a safety factor in shipping. The quality of the product must be maintained and its packaging must be intact when it reaches the end user or customer. The delivery team and distribution team can be considered responsible for maintaining product quality without increasing the overall cost.

5. The right place.

The next important factor is to ensure that the products are delivered to the desired destination. In addition to having experienced suppliers, the company must have an efficient traffic management system or a route optimization program. These types of systems can help managers track and regulate the movement of materials and products, allowing managers to analyze and analyze past decisions through data storage capabilities.

6. The required time.

Timing is another important factor when it comes to logistics, as customers are more concerned about delivery time. In order to maintain competitive advantages in the industry, there should be no delays in delivering the product to end consumers. With the help of the routing program, the company can have the most optimized route and therefore save time. With a route optimization program, a company can optimize routing, scheduling, shipment tracking, and even routing, etc., making better decisions, thus saving time for the company.

7. Required price

Combined with the previous factors, the products should be shipped at the most reasonable prices. An appropriate price point not only ensures the company’s profit, but also helps it gain a competitive position in the market. As noted above, the use of a route optimization program reduces operating costs by reducing the total cost of transportation as well as the total distance of the route and the average mileage of the stopping distance.

Logistics, known as a large chain network, is an organization responsible for performing various operations related to delivery and dispatch. When you buy any product from an online store, this logistics will take care of your shipment and make sure you get the product you need on hand. The growth of e-commerce has made a huge contribution to the global economy, and so has logistics. Without logistics, the concept of e-commerce would never have been possible.

Logistics levels such as 1PL, 2PL, 3PL, 4PL, 5PL will help. (2-picture).

2-picture.

1PL logistics.

First-party logistics refers to a firm or individual that has its own cargo, cargo, and is able to transport goods and items from one point to another. They are, in particular, shippers of a variety of goods and products, arranging for the delivery of products to their addresses. It basically consists of two parties benefiting from the deal. The manufacturer or supplier and the person who purchased it have no other intermediaries in the process.

2PL logistics.

The second side involves the transportation of goods from the transport zone of the logistics supply chain, such as rail, road, sea or air. They are asset-based carriers and include transportation using their own leased vessels and airlines with which they have a contract. They are mainly used for international transportation of heavy and wholesale goods, as well as for commercial purposes.

3PL logistics.

Third-party logistics is a supply chain that is primarily concerned with the transportation and delivery of various products, but also includes various additional services. 3PL functions include warehousing, terminal operations, customs intermediation, supply chain management and much more. It also includes logistics IT software products and analysis services to track and monitor the delivery status of various products. This third party logistics provides all of the services mentioned above and at the same time manages various hurdles. They specialize in local and external warehouses, as well as collaborate with other supply chain management systems.

4PL logistics.

Fourth-party logistics is a new concept entering the market and involves engaging the customer to manage the entire supply chain of this company. These logistics are often referred to as Lead Logistics providers and they are often seen as a consulting company for many delivery chains. They act as general managers and deal with every aspect of these supply chain companies. They often contract to support many third party logistics and neutral management and provide feedback on various 3pl logistics services. With high efficiency, 4pl is becoming the next important thing in logistics. They offer a single invoice solution and simplify logistics operations like no other.

5PL logistics.

A fifth party logistics provider is also known as a logistics aggregator. They combine the requirements of 3PL and others in bulk to get good fares with different types of airlines and shipping companies. This type of logistics is not asset based. It usually works smoothly in all areas.

5PL appeared more recently than 3PL and 4PL. The 5PL provider focuses on wider supply networks in addition to supply chains.

5PL plans, organizes and implements customer logistics solutions, removing all elements of supply chain management from its own hands. Their focus on supply chains means that they control every supply chain within the organization.

Because many 5PLs specialize in big data and the use of efficiency-enhancing technology, they are more expensive than companies that manufacture them for e-commerce businesses. Other technologies that 5PL can use include robotics, blockchain, artificial intelligence, and Bluetooth beacons.

5PL is a very new addition to the logistics space, but their ability to manage multiple supply chains makes them attractive to established or fast-growing online retailers who need an efficient supply chain.

With the emergence of new technologies that have the potential to change supply chains, partnering with 5PL can be strategically and commercially important, especially if the company sells primarily through digital channels.