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Logistics

Logistics is (almost) anywhere, 365 days a year, 24 hours a day. But not all logistics operations is also “logistics” to it. And that is why this economy is in the area of perception often reduced to “transport, handling and storage.” In the English language is spoken synonym of “supply chain management”, ie the intelligent planning and management of supply chains.

Procurement Logistics consists of activities such as market research, requirements planning, make or buy decisions, supplier management, ordering, and order controlling. The targets in procurement logistics might be contradictory – maximize the efficiency by concentrating on core competences, outsourcing while maintaining the autonomy of the company, and minimization of procurement costs while maximizing the security within the supply process.
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“Logistics is a system that is initially in the company, but also across the enterprise with suppliers and customers, an optimal supply of materials, components and modules for the production -, and on the other side of course the markets,” a logistics definition.

Logistics is not only business-but also across sectors – an interface discipline par excellence.
Transformation of the logistics concept
The term logistics is derived from the ancient Greek word λογιστική ago and originally meant ‘practical arithmetic’. It was only during the Napoleonic Wars, the term used specific and included the management, storage, and transport control war-essential goods. Nowadays the logistics concept is no longer limited to military affairs, but the division of labor implies all economic systems in which it depends on the time, cost and volume-optimized distribution of goods and services.
The logistics thus provides for full and partial systems in businesses, corporations, networks, and even virtual business process and customer-oriented distribution solutions.
Goals of logistics
Generally speaking, there is an ongoing task for the logistics in the securing of transport, storage, deployment, procurement and distribution of goods, people, money, information and power. This is accompanied by the need to manage and control all associated tasks.

The optimization of the individual processes is an essential part of logistics. In addition to the cost reduction of logistics activities to include improving the flexibility of logistics systems as well as changes in market conditions. This ultimately benefits of logistics products and services is steadily improving.
Branches of logistics
The logistics sector is constantly changing due to the ongoing differentiation and brings forth new fields again. To better distinguish logistics activities to a conceptual division has been established, which is based on the phases of the production process. So designated procurement logistics the way of raw materials from supplier to warehouse receipt, whereas the production logistics includes the management of semi-finished and the related materials and merchandise. The distribution or sales logistics focuses on the distribution of the distribution warehouse to the customer, while the reverse logistics is concerned with the redemption of waste and recycling, but also ensures the delivery of returned goods.
Procurement Logistics: An important component for success
The global markets are experiencing an ever increasing interdependence, so that many companies now have to compete internationally. Nevertheless, in order to generate added value with their products, it is therefore of central importance, with purchasing all the optimization potential to be realized. A well-organized procurement logistics is therefore for many companies is the key to success.

Tasks of procurement logistics
The acquisition logistics specialists take care of the supply of the company with all the necessary goods, services, information and rights. Procurement logistics are excellent knowledge of the markets and the impact of current developments in the segment at a glance. This is partly in commodities and agricultural products of vital importance, as seasonal supply constraints in forward planning can be compensated. But the purchase of licenses or patents requires eligible buyers who know the current offer on the one hand, on the other hand also have the competitive situation in view. Of course, not in procurement logistics shopped by your instincts. In most companies, there is a more or less explicit purchasing policy that establishes criteria for the selection of business partners and regulates the design possibilities of contracts. Aware of these guidelines exactly for all parties to the procurement logistics enormously important, because here also set quality standards for the use of goods or stock levels are defined. Only when all steps of procurement logistics intertwine, the continuous feeding of the production can be guaranteed.

Procurement logistics globally
Many companies currently apply some of their raw materials from abroad. This cross-border trade brings more challenges. For a better understanding of international trade have now called Incoterms ™ firmly established. About this uniform global rules, there are a variety of issues depending on which must also be considered when purchasing. This might include national holidays, customs regulations, legal reasons, or even to exchange rate fluctuations. Procurement logistics needs in this environment that is not only familiar with the laws, regulations and practices, but also on current, unforeseen events respond appropriately – such as the damage to the air traffic due to the volcanic eruption in Iceland and the earthquake in Japan.
Production Logistics
The main task of the production logistics lies in the optimal internal distribution of all goods, services and information that are needed at individual workstations or are ready for transport. This affects not only the current charge of the department or the further transport of finished intermediates. Production logistics is involved also in the previous planning of production and way of storage capacity.

Strategic tasks of production logistics
To reduce the wait times of work objects, it requires a forward planning, as its primary objective the timely order processing. In this context, the production logistics involved already in the planning layout and thus decides on the spatial arrangement of the production segments in the production planning. The main focus is on the production logistics of minimizing both the transport burden and the transport route.
In terms of the planning required storerooms production logistics is involved at an early stage. The results are innovative storage concepts that combine mostly low storage capacity with high handling capacity. This reflects the continuing trend, both in the incoming and outgoing goods to keep stocks as low as possible. The consequences are not only lower storage costs but also an increasing flexibility in the supply and sales markets.

Production logistics as a link
As the link between procurement and sales logistics, production logistics engages partially in these areas. Thus, for example, when deciding between in-house production or the outsourcing of parts and the cost of transportation and storage critical. Sometimes it is cheaper to purchase rarely used products from suppliers as they prepare themselves, and maintaining the necessary infrastructure. But opposing models have proven themselves in the market. Instead of allocating scarce recalled products or services only in-house, some companies also offer these on the market and are able to generate the change in lot size value.

The design possibilities in the field of production logistics are enormous and affect the success of a company significantly. By the strong fluctuations of the markets, it is constantly in the production logistics required to meet the current movements with adequate logistics concepts.

Distribution Logistics
(Also known as sales or marketing logistics) The main task of the distribution logistics is despite all the changes in recent decades have remained basically the same: The finished products are at the right time (ie fast), passed in the right quantity and in richtgen state to the customer be. The for running background processes and techniques, however, have changed dramatically.

Changes in distribution logistics
The average delivery time has been halved in the past 20 years more than. Customer demands for a quick order processing have increased enormously. Distribution logistics many companies responded to the increasing use of advanced computer-based technology and distribution methods.

Nowadays, many goods are ordered only immediately before use. The observance of delivery times is therefore one of the most important quality criteria for distribution logistics. To meet these deadlines reliably, is the design of the distribution network is of central importance. Locations for warehouse but also transport and storage systems must be carefully selected. Ultimately, every company has to strike a balance here between supply reliability and cost are.

Regarding the transport companies will with their own fleet on a computerized fleet management. The locations of the vehicles used are thus known at any time, so that even short-term route changes are possible. Often for the transportation and third party logistics service providers are used.

Which route also takes an order, is ultimately important, especially that the customer receives their goods undamaged. The packaging and protection against transport loads of mechanical, biological or climatic also belongs to the tasks of distribution logistics.

Distribution Logistics: a job for specialists
Increasing product variety, shorter product cycles, increased customer expectations and global megatrends such as globalization and digitization require nowadays but using modern technology and therefore the staff well trained and motivated specialists. The only way to implement sustainable concepts, design, and adapt to the rapidly changing needs of the market.
Reverse logistics: Much more than just solid waste
Logistics is found today wherever goods are produced. If logistics is however understood as distribution of resources, services and products, gets an important and very exciting field of logistics from view. Of crucial relevance for the smooth running of the logistics is namely the elimination of all non-recyclable residue production. This task is the reverse logistics.

A task with many facets
The basic task of reverse logistics has always been the same: all kinds of waste must be collected, sorted, packaged, stored and transported. It can be a waste, scrap, surplus, obsolete stocks of finished goods, recyclable materials, unwanted by-products or loading equipment such as pallets and packaging. For each of these areas there are numerous rules, regulations and laws. In this regard, to be up to date is one of the main disposal logistics tasks.

Since disposal processes are expensive, is in the business outset of the planning of new production processes at keeping the amount of generated waste to a minimum. Through the integration of reverse logistics in the planning stage savings can be uncovered and thus disposal costs are minimized. Henry Ford, for example, pointed to some of its suppliers, he finished parts to be delivered in wooden boxes of a certain size. These boxes were dismantled and then gave the floor numerous early Ford models. The reverse logistics is still working on this principle: waste should be avoided. Where this is not possible, an internal or external recycling of the residues is sought – ie recycling. The disposal of the waste is the least attractive option, as the highest costs are incurred.

Reverse logistics and recycling logistics?
One thing has become clear: the reverse logistics is an integral part of all production processes. The main focus is indeed still in the elimination of production waste, but especially in times of rising commodity prices more attention is paid, through clever recycling much of the raw materials used for profitable reuse it. The early involvement of appropriate specialists in the field of reverse logistics and even at the stage of production planning is therefore now on the agenda. Other tasks will be added, legal requirements may change and changes in production methods will require new disposal solutions. The variety of tasks in the reverse logistics is therefore likely continue to increase rather than decrease, and convert the area into a cycle logistics.
Automotive Logistics
“Any customer can get his car in any color as long as it is black.” This quote attributed to Henry Ford impressively shows how much the automotive industry since the beginning of the 20th Century has changed. While Henry Ford’s Tin Lizzy deliberately purist and interpreted to be as simple and easy to repair, modern cars are filled up in the last alcove with technology and offer the driver next to numerous driver assistance systems now also entertainment and communication possibilities. Accordingly also the number of required components for a particular automobile has increased dramatically. Sun models need to find other facilities up to 20,000 different variations of material items that need to coordinate the logistics process.

Task change in suppliers and logistics service providers
Automobiles are becoming increasingly more complex, since its invention, but also become more diverse. This fact has an impact on all those involved in automotive logistics. For example, the delivery of components for the automotive industry has been declining for years and increasingly giving way to a module or set delivery. Either the supplier or the logistics service be entrusted with tasks in addition to the transport of pre-assembly.

Another challenge is the reduction of inventories represents Since the 1950s, the continued “just in time” principle through the best way to reduce high inventory costs. This also increases the depth of performance of logistics service providers, who are now responsible for ensuring that the necessary components and modules on time on the production lines are available. In addition to optimum coordination of all available production and transportation is such a division of labor also requires a smooth flow of information between the parties.

Stronger linkage of all participants
Recent concepts in automotive logistics allow an even better integration of the production processes. One example is the “just-in-sequence” concept, which adjusts the supply of components to the needs of the production lines. If, on the production line, the so-called wedding, so the merging of the body and chassis is completed, for example, the need to be mounted mirrors are ready already in the corresponding body color.

The optimization of the individual logistic processes extends naturally not only to the supply logistics. In the other areas of logistics service providers are entrusted with new tasks.
Looking for a cost-effective handling of all necessary steps in the future there will be many changes in the automotive logistics. As in the past, the actors are presented as innovative and thus give new impetus for other logistics areas.

Port logistics: core global goods flows
The increasing linkage of the global economy have especially in the last 100 years, the tasks of port logistics changed dramatically. Although the primary function of a port is still the transfer of goods. Due to the still continuing rise of international trade flows have changed dramatically but many processing steps.

The container revolution
Until the early 20th Century cargoes were often cleared by the crew of the ship itself, or the so-called stevedores and congested. This work was not only physically demanding, but also extremely time consuming.

To speed up the storage and deletion, there were from 19 Century summarize numerous attempts piece and bulk to larger portable units. The transport boxes were made of wood or metal, and had the advantage of a faster transfer was made possible on other means of transport. But only in 1955 was by the Americans Malcom McLean and Keith Tantlinger developed a standard for container port logistics, began to assert themselves internationally. The advantages of this container standards are primarily in the acceleration of the land-water transport chain. Meanwhile, this Containermaß has established itself as the international unit of port logistics. The abbreviation TEUs (Twenty Foot Equivalent Unit) today anywhere in the world information about the storage capacity of a container ship.

The container revolution continues
With the introduction of standardized shipping container, the global port logistics has changed significantly. Although there are still special ports that do not require containers (eg bulk ports and ports for oil and chemical products), but the global container market now grows three times faster than the global economy itself of containerization, ie the share of container transport on cargo transportation, rose, for example, in Hamburg harbor of 68.6% (1990) to 97.3% (2011). Worldwide 2011 about 600 million TEUs were transported. Logistics experts consider the development of the container revolution (English: Containerization) has not been completed for.

The development of container ships reflects this trend. While the world’s first container ship Clifford J. Rogers, built in 1955, still had a capacity of approximately 210 TEU, ships of the current Emma Mærsk class have a capacity of 14,770 TEU handsome. Already in 2013, even larger ships of the so-called Triple-E class to run with a volume of about 18,000 TEUs from the stack.

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