The role and importance of logistics in the activities of the enterprise. Abstract: Logistics of a manufacturing enterprise
Most enterprises of various forms of doing business need to organize logistics, as this allows them to correctly deliver various products and goods to the end consumer. Not everyone knows that a well-organized work of the logistics department will significantly reduce the cost of products, avoid production downtime, and minimize costs, which ultimately affects the increase in net profit.
What is logistics in simple words?
Logistics is a science that studies the rational transportation of various resources from the producer to the final consumer at the lowest cost. It is an essential tool for running a profitable business for every company. Today, without logistics, it is impossible to imagine the stable operation of most trade and manufacturing enterprises.
Logistics (as a practical activity) is a system of planned management of information, material and cash flows of any company. Let's take a closer look at the definition of each of them.
Under the material flows it is customary to understand the raw material base, components and all kinds of materials that are used in production. For its smooth operation, the purchasing and supply department is obliged to purchase everything necessary in advance, and it is also important that the delivery of raw materials is carried out strictly on time. This should also include intra-production transportation and movement of materials and equipment.
The distribution of money and their receipt on the accounts of the company are financial flows. Control over production costs, the movement of funds, payment of bills and profits is carried out by the finance department of any company.
With regard to information flows, in simple terms, this can be explained as follows: logistics provides a system for distributing the necessary information in such a way as to establish a relationship between the company's divisions and with the end consumer.
As a result, logistics determines the method of transportation (delivery) of the necessary products at the appointed time to the right place, while ensuring the optimal cost of services and the proper conditions for their provision. At the enterprise, the logistics department performs a number of important functions, which include:
- selection of transport companies and suppliers, conclusion of cooperation agreements with them;
- conclusion of contracts with supplier companies on certain conditions;
- consumer segment analysis;
- organization of work with government services and regulatory authorities (customs, traffic police, etc.);
- conclusion of contracts for cooperation with buyers;
- organization of transportation of products and raw materials to the enterprise;
- delivery of goods to the buyer.
The activities of the logistics division are aimed at improving the operation of the enterprise and increasing profits. It is important to understand that most companies invest in the efficient operation of logistics, and these costs are the most significant part of the cost item, which emphasizes the exceptional importance of working in this direction.
Who are logisticians?
Logisticians are specialists who organize the delivery of products from the manufacturer to the end consumer, while ensuring minimal waste of time and financial resources.
Without fail, the logistician takes into account the interests of the manufacturer, consumer and carriers, because the quality of the services provided and the profit of the company ultimately depend on this. This specialist also deals with:
- management of the material base and technical means of the enterprise;
- registration of accompanying and customs documentation;
- control and organization of warehouse activities;
- organization of delivery and forwarding of transported goods;
- search for optimal solutions for the sale of finished products.
In addition, the logistician manages a complex of information and service services related to his activities. One of the most important skills that a logistician must possess is the ability to anticipate possible risks. For example, when working with a supplier located at a considerable distance from the enterprise, the probability of a failure in the delivery of raw materials increases. This means that traffic accidents and breakdowns of trucks are possible along the way. Therefore, for the fastest possible delivery of the raw materials necessary for the company, the logistician will choose the supplier closest to it in order to eliminate the risk of production downtime.
Important: the specifics of doing business, the features of production and its location, weather conditions, the remoteness of suppliers from the company and many other factors directly affect the development of the work of the logistics department. For this reason, there are no standard schemes for distributing funds, organizing delivery, optimizing routes, and other important functions that logisticians perform. This leads to the fact that specialists, taking into account the specifics of the enterprise, develop optimal logistic models of work, aimed primarily at minimizing costs and making a profit.
Tasks and goals of logistics
Speaking in simple terms about the goals and objectives of logistics, it must be understood that they are aimed at optimizing the movement of products from the manufacturer to the buyer. To do this, the specialists of the logistics department take a comprehensive approach to solving all kinds of issues even at the stage of production of goods, their storage, delivery and marketing.
Production logistics is designed to ensure the planning of the manufacture of various products in accordance with consumer demand. This data and a detailed market analysis are provided by specialists from the sales and marketing departments.
This should also include the solution of problems aimed at ensuring the necessary conditions for the smooth operation of the enterprise and the production of the required amount of goods. This obliges logisticians to ensure the purchase of equipment and raw materials in the right amount required at all stages of production.
The main tasks of the logistics department should also include the optimization of the work of the warehouse and the delivery of products to the warehouses of the final consumer. Specialists without fail plan the volume of warehouse stocks and monitor the shelf life of goods.
Logistics plan routes for trucks, aircraft and ships, which is necessary to minimize the cost of transporting goods. They also draw up the documentation necessary for transportation, including waybills and customs declarations.
Types of logistics services
Let's take a closer look at the types of logistics services.
Production
Considering the types of logistics services, it is necessary to start with the logistics of production, since it is designed to manage the flow of cash, raw materials and finished products directly within the company. In addition, this type of activity has an impact on the development of the technological process.
The logistics of production pursues the most important goal, aimed at optimizing the costs of the enterprise. Professionals in the industry do:
- consumer demand analysis;
- production volume planning;
- optimization of work and plans of all production departments;
- tracking the interaction of production departments with the supply and marketing departments of finished products.
Logisticians exercise control over the production process at the enterprise. If necessary, they can make adjustments aimed at optimizing work and increasing profitability.
Informational
This type of logistics activity is aimed at the competent management of information flows, which in parallel accompany the material ones. This is due to the fact that the correct work with information (timely notification of employees about various delivery problems, changes in production activities, ensuring interaction between departments, etc.) is just as important as the proper management of financial resources.
Specialists in this area are engaged in the optimization of internal and external information flows, channels for their receipt and transmission, as well as the development of internal regulatory documentation.
Transport
These services are aimed at optimizing and developing the routes used to deliver finished products, raw materials and equipment for a manufacturing enterprise. The logistics of road transport is the most relevant, since most of the transportation is carried out by trucks. One of the most important goals of this direction is advice, which consists in the delivery of products to the final consumer strictly on the agreed date and time.
Customs
As for customs services in logistics, it is worth noting that this industry is one of the most important in companies engaged in international transportation of various goods. Specialists bear a great responsibility for their activities, since the timeliness of cargo delivery depends on the quality of their work.
Logisticians are responsible for accompanying products to the place of delivery, as well as the availability of all necessary documentation. In addition, specialists are savvy in many legal issues, which allows them to competently draw up customs declarations and accompanying sheets. This makes it possible to avoid cargo delays, production downtime at the enterprise, as well as loss of products.
Purchasing
Procurement logistics services are essentially the work of the supply department, since this industry deals with material flow management. This should include the purchase and distribution of component materials, equipment, raw materials and other components that are necessary for a smoothly running production. Specialists in this area also perform the following functions:
- organize the delivery of raw materials for production;
- looking for suppliers;
- conclude cooperation agreements;
- ensure proper storage of raw materials prior to their direct use in production units.
The responsibilities of logisticians also include optimizing the purchase of raw materials and auxiliary materials so that they are enough for all production cycles (including continuous ones) and there is no downtime. Specialists in this industry play an important role in the development of the company, since the amount of expenses and the cost of goods produced ultimately depend on the quality of their work.
Warehouse
This industry is necessary for the management of warehouse processes. These include the receipt, issuance of materials and raw materials from the equipment warehouse, their storage, as well as the shipment of finished products. Warehouse logistics specialists are directly involved in the selection of storage facilities for the organization and construction, selection of special equipment.
Also, the responsibilities of the logistics department in this area include organizing the work of industrial warehouses, maintaining accounting activities and monitoring the processes of receiving and shipping products.
Inventory Logistics
The efficient operation of production at an enterprise directly depends on the organization of inventory management processes for finished products, raw materials and necessary materials. This is what inventory logistics does. The specialists of the department calculate the required volume of stocks of raw materials and finished goods (products) in the production as a whole and form them. The main task of this industry is to ensure the continuous operation of production processes at the enterprise.
Problems of logistics in Russia
As practice shows, the logistics system in the Russian Federation is an order of magnitude more complicated and requires significant costs compared to other countries. This is due to certain reasons and the specifics of the state.
First of all, it should be noted that the territory of the country is vast, so enterprises that are engaged in the transportation of goods have to face the problem of overcoming significant distances. This leads to significant costs for the purchase of fuel and lubricants, spare parts, and repair work. It is easy to guess that even those logistics companies that carry out cargo transportation within their region incur significant costs due to the need for long distances.
The next most important problem of all logistics enterprises is the poor quality of the road surface in Russia. The performance of repair and service work cannot but affect the final cost of transporting products.
Logisticians are also not happy with harsh climatic conditions, because winter time in most regions is quite long, which leads to significant fuel consumption and an increase in the cost of services for storing products in warehouses. This is due to the fact that the cost of heating large areas is significant, and without providing the necessary temperature conditions, the storage of most goods is simply not possible.
The problems of logistics should also include shortcomings in the legislative framework of the Russian Federation. For example, companies are often faced with the impossibility of obtaining monetary compensation (of course, by decision of the judiciary) from suppliers or transport organizations guilty of disrupting the supply of products or raw materials, as well as idle production.
Important: due to some gaps in the legislation, the legal department of the enterprise is obliged to provide for possible force majeure circumstances and write down a penalty clause in the cooperation agreement with suppliers.
How to choose the right logistics company?
In order to choose the right company that can competently organize all logistics processes, the management of enterprises needs to take into account several important factors. These should include:
- reputation of a transport and logistics company;
- the possibility of providing professional assistance in general logistics issues;
- the cost of the services provided;
- delivery time of goods;
- condition of the applicant's car park;
- professionalism of drivers and forwarders;
- guarantees for the services provided.
When choosing a logistics company, you need to find out reviews about its work and the quality of services. To do this, you can ask colleagues or find user opinions on the Internet.
An important factor to consider is the time and distance of product delivery. Some companies carry it out only within the city, while others, on the contrary, specialize in regional and international cargo transportation. It is very important at the initial stages of cooperation to discuss the delivery time and the nuances of the work ahead.
It is important for every enterprise to receive qualified assistance in solving various situations. For this reason, it is necessary to ask the applicant for cooperation whether there are specialists in the state who are able to quickly solve logistical problems of any complexity and provide assistance in case of any questions.
When looking for a transport and logistics company, you should pay attention to the cost of the services provided. This is an important factor, since it directly affects the expense item of the enterprise. Perhaps it makes sense to turn your attention to organizations providing rail freight services. As practice shows, such transportation is cost-effective, especially when it comes to delivering products or raw materials over long distances.
Pay attention to the condition of the applicant's fleet. A large number of trucks and special equipment in proper technical condition indicates the seriousness of the logistics company's business.
It is also necessary to inquire about the classiness of drivers and the experience of forwarders who will accompany the goods during transportation. If constant transportation of oversized items is required, it would be useful to learn about the skill and experience of drivers.
Every businessman interested in cooperation with a transport company wants to receive guarantees for the services provided. They consist in the fact that the carrier undertakes to deliver the goods, maintaining its integrity. This should also include the exact time of the order. It is not recommended to cooperate with logistics companies that cannot guarantee safe transportation.
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As you can see, logistics at the enterprise is the most important subdivision, the scope of which is multifaceted. Not only uninterrupted operation of production, timely delivery of products to the end consumer, but also the amount of profit depends on its work.
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The effectiveness of the organization of logistics in the enterprise depends on the formation of the enterprise logistics system. The logistics system is an element of the organization of the enterprise. Its application allows integrating various processes of the enterprise and organizing internal processes with minimal costs while optimally adapting the internal environment of the company to external factors affecting its activities. The process of forming an enterprise logistics system is complex, so it is advisable to divide it into several stages. We propose the following section (Fig. 1):
1st stage - determination of the main aspects of the formation of the logistics system;
2nd stage - taking into account the main factors in the formation of the logistics system;
3rd stage - the formation of the logistics system of the enterprise.
At the first stage, the process of forming an enterprise logistics system must be considered from several points of view. Logistics methods are known for their multidimensionality in practice, therefore, when forming an enterprise logistics system, great importance must be attached to this. We have developed the main aspects of the formation of the enterprise logistics system, which are shown in fig. 2. In our opinion, it is necessary to form an enterprise logistics system from the point of view of the main and secondary aspects. The main aspects include: organizational, functional, informational. It is expedient to refer to the secondary aspects of the formation of the enterprise logistics system: personnel, financial. Taking into account all the above aspects in the formation of the enterprise logistics system will ensure the versatility of logistics and confirm its universality as a science in practice. The result of this approach will be the flexibility, mobility of the system, and most importantly, its successful functioning in the future. Having determined all aspects of the formation of the enterprise logistics system, you can proceed to the second stage of its formation. The basis of this stage is to take into account the main factors in the formation of the logistics system.
The main factors in the formation of the enterprise logistics system should be:
Mission of the enterprise;
Enterprise strategy;
Risks of the enterprise activity;
Factors of the external environment of the enterprise;
Components of the functioning of logistics in the enterprise;
Components of the organization of logistics in the enterprise.
Let us present a detailed description of the main factors in the formation of a logistics system at an enterprise. The mission of an enterprise is a clearly defined reason for the existence of a particular enterprise. As a rule, the mission of a modern enterprise can be considered the production of products or the provision of services to meet market requirements and make a profit. It gives generalized guidelines for the functioning of the enterprise and its place in a particular area of business. Based on the mission of the enterprise, the goals of doing business are formulated. The mission of the enterprise has a huge influence on the formation of the logistics system. There must be a clear relationship between these elements. The logistics system should be formed in one direction with the mission and goals of the enterprise.
This will help:
2) identify actions and decisions that impede the efficient conduct of business activities;
3) ensure the implementation of mutually dependent (synergistic) functions of the logistics system;
4) will ensure the correction of the functioning of the logistics system in time, since all the goals of the mission of the enterprise have a short, medium or long-term forecasting period. The strategy of the enterprise is connected with the activities of the enterprise as a whole and is aimed at fulfilling its main mission. In the process of its implementation, material, labor, information, and financial resources are used. Therefore, the connection between the processes of formation and functioning of the logistics system with the strategy of the enterprise is obvious. The main components of the functioning of logistics must be considered in the context of its main functions.
The main components of the functioning of logistics are supply, production, marketing, sales, warehousing, transport, personnel. Delivery ensures the flow of material flows into the logistics system.
Manufacturing is the process of converting raw materials and materials into finished products. It includes material flow management at the production stage. Inventory allows you to optimize the functioning of the entire system and play an important role in the stages of exchange between supply, production, transportation and marketing.
Marketing is the identification of the requirements and preferences of consumers. In other words, this process can be characterized as market research.
Sales are processes aimed at bringing finished products to consumers.
Warehouses are special buildings and devices designed for receiving, accommodating, servicing and storing raw materials and finished products.
The transport economy is understood as vehicles and the material and technical base, with the help of which transport processes are implemented within the framework of the producer-consumer.
Personnel - a certain way organized personnel that manages logistics, logistics operations and implements the implementation of logistics tasks to achieve logistics goals.
All components of the functioning of logistics are one of the factors in the formation of the logistics system of the enterprise. The material flow passes through each of the listed functional components of logistics. During this process, there is a gradual transformation of the material flow at various stages of its movement under the influence of other logistics flows and functions. All processes occurring in these components should be logically structured, and the basis of their functioning should be the maximum interaction between themselves and other factors in the formation of the logistics system. The buffer of interaction should be logistics at the enterprise. This principle of functioning will ensure effective management of logistics flows at any stage of their movement in any functional area of logistics. Another factor in the formation of the logistics system is the components of the organization of logistics in the enterprise.
It is hard to imagine the commercial processes of a modern enterprise without computers and other information, electronic and technical means. In logistics, it is known that of all logistics flows, it is the information flow that underlies the transformation processes of all other logistics flows. Therefore, the formation of an enterprise logistics system without a logistics information system is inefficient. Management of the logistics system, like any other economic system, should be carried out on the basis of well-known basic principles of management in the economy. We believe that it is appropriate to apply the basic functions of management to manage the logistics system of an enterprise and organize its main processes. The mission of the enterprise, the strategy of the enterprise, the components of the functioning of logistics and the components of the organization of logistics in the enterprise are factors in the internal environment for the formation of the enterprise's logistics system, and the enterprise, as a rule, can influence their course. The factors of formation of the enterprise logistics system related to the external environment, in our opinion, include the logistical risks of the enterprise's activities and the processes of the enterprise's external environment that affect its activities. The enterprise cannot influence these factors, but they directly or indirectly affect its activities. The processes of the external environment of the enterprise that affect its activities can be divided into two categories: processes of direct impact and processes of indirect impact, which in turn are divided into groups. Direct impact processes include consumers, suppliers, intermediaries, competitors, contact audiences, and other market entities. To the processes of indirect impact - economic, political, legislative, scientific, demographic, socio-cultural, technical and technological, natural resource and environmental processes. The magnitude of the influence of a particular factor is determined depending on the conditions of activity of a particular enterprise: the scope of its activities, size, location, scale of action, and the like. The logistics system in the course of its functioning falls under the influence of certain risks that can change its final result for the worse. Therefore, when forming a logistics system, in order to avoid unforeseen circumstances, this must be taken into account. On fig. 7 schematically shows the main types of logistical risks. The main types of logistics risks, as we see, are the risks of low qualification of personnel (human factor), commercial, social, technical, economic, natural risks. Accounting for risks in the formation of the logistics system of the enterprise is required. In modern business conditions, which can vary significantly over short periods of time, an enterprise must have reserve resources, additional development options and possible ways to adjust the mission, main goals and strategy of the enterprise in the event of a particular risk. The last, final stage in the formation of the enterprise logistics system is the formation of the system. Logistics, as a new science, has its own specific organization features in practice. In order for the logistics system to function effectively, the process of its formation should be based on a systematic approach, taking into account the aspects and factors of its formation developed above. The systematic approach is based on the principle of successive transition from the general to the particular. This approach to the formation of the system will ensure a smooth and conflict-free transition from one functional area of logistics to the next.
The structural and organizational model of the formation of the logistics system covers a significant list of structural units of the enterprise and structural units of the functioning of the market, in this case it is its elements or subsystems.
It is advisable to include the following structural units of the enterprise:
purchase department;
marketing department;
sales department;
wholesale warehouse or distribution center;
transportation department;
logistics Department;
pharmacy chain.
The structural units of the functioning of the market should include:
manufacturers;
intermediaries, transport and forwarding organizations;
pharmacies of other companies; consumers.
In practical activities, the integration of these elements forms the enterprise logistics system. Each of the elements has its own structure and operates according to its organizational principles. The relationship of all elements is close and inverse, which makes it difficult to single out each of the structures separately. This approach to the formation of the enterprise logistics system ensures its flexibility. The flexibility of the enterprise logistics system is determined by its ability to quickly respond to changes in the micro and macro environment.
The formation of the enterprise logistics system should be carried out due to the consistency and synchronization of the functional areas of logistics: supply, production, marketing, transport, warehousing and external factors affecting the activities of the enterprise. Ignoring some factors will lead to conflict between the functional areas of the system, negative consequences in the planning and forecasting process.
The essence of the functioning of the developed structural and organizational model of the logistics system is to orient the development of the enterprise in those directions that correspond to its interests and possibilities of organizational and economic development, increase the efficiency of activities and competitiveness through the formation of economic potential. Conclusions. The formation of an enterprise logistics system will ensure a smooth transition from one intra-production process to the next, it is a universal tool for increasing competitiveness, with which you can remove obstacles to the formation of an intra-production commodity-information-financial system for a particular enterprise and optimally adapt it to external macroeconomic systems. Due to the formation of the logistics system of the enterprise, the quality and productivity of workers increase, which indicates the motivational properties of logistics for personnel. The functioning of the logistics system allows you to combine all the internal processes of the enterprise into a single whole, coordinate their activities for optimization and seamlessly connect them with the processes occurring in the external environment in order to maximize profits.
You will learn what logistics is, why it is needed and what types of logistics exist, as well as how to choose a logistics services company for a novice businessman
Good afternoon, Eduard Stembolsky is with you. I have several years of experience as an economist in large domestic corporations. Logistics is an area with which I am familiar firsthand.
A competent approach to logistics will allow you to optimize the process of managing working capital and stocks, reduce the cost of final products, increase your ability to respond to market demands, and, as a result, make your business more efficient.
Also at the end of the article, I will share 7 practical tips for choosing a logistics company. So be sure to read this article to the end!
1. What is logistics in simple words - we give a definition
In the most universal format, logistics is the process of planning and organizing the flow of material values, services and information from the places of their origin to the places of their consumption in order to ensure the operation of the enterprise.
Such a comprehensive definition requires some clarification.
Modern logistics in terms of structure includes two large-scale processes:
- Formation of the parameters of the relationship of your business with resource suppliers and management of the movement of resources in the process of creating products.
- Building a mechanism for the receipt of products created by your enterprise to its consumers.
The logistics process is multifaceted.
In practice, it contains:
- contracts with suppliers;
- inventory management policy;
- organization of cargo transportation;
- interaction with customs authorities;
- market needs analysis;
- features of the conclusion of contracts with buyers and much more.
Individual stages of the logistics process can be optimized in different ways in accordance with the accepted overall logistics model. Some functions are on the "borderline" of logistics and marketing. However, their ultimate goal is the same - to increase business efficiency.
It is the complexity of the process of transporting goods that led to the fact that such an activity stood out in a separate direction.
Therefore, in the modern world, firms very often resort to the services of logistics companies, and training in logistics and supply chain management is a special area of knowledge.
Historically, logistics appeared early. Even in the period of agrarian society, it was closely intertwined with international trade in luxury goods (the logistics structure of the caravans of the Great Silk Road or Phoenician trading fleets was quite complex) and military craft (the first treatises on military logistics arose even before our era).
Everything changed with the release of industry to a new level of modern economic relations and the role of logistics has increased.
Now, what is logistics know at every enterprise.
Fact
General logistics costs are a large item in the cost structure of industrial products. Here, logistics outstrips wage costs and is second only to material costs.
2. Features and key problems of logistics in Russia
The state of logistics in Russia is far from ideal. Unfortunately, this has happened in the past as well. The well-known saying about the fact that one of the two main domestic troubles - bad roads was not born yesterday.
The share of transportation costs in our country in the structure of GDP reaches 20%, which significantly exceeds the world average (in fairness, it should be noted: this is partly due to the fact that the Russian Federation is one of the largest oil suppliers, as well as the significant size of our country).
Among the problems of logistics in Russia, it is worth highlighting:
- underdeveloped logistics infrastructure, which, according to experts, limits the growth of the Russian economy at the level of 3-4% per year (under other optimal conditions);
- high costs for warehouse services, storage, unloading and loading;
- market volatility and low quality marketing plans;
- limited number of suppliers for a number of positions;
- opacity of a large list of costs;
- low quality of contract execution;
- severe climatic conditions in many regions;
- staff shortages and poor logistics management models.
Case Study
Minor violations of supply contracts in Russia are almost impossible to challenge in court. In the conditions of the domestic legal system, the amount of amounts to be collected will not justify the efforts expended.
In the case of problematic situations with natural monopoly enterprises (Russian Railways, electricity suppliers), litigation is absolutely futile.
In a crisis, most logistics systems begin to shrink. This may lead to the fact that a number of sectors of the domestic economy will lose an acceptable level of profitability.
The reverse side of the situation is the opening up opportunities for logistics companies. With the competent organization of such a business, it is possible to penetrate into market niches with an extremely low level of competition.
3. Theoretical aspects of logistics: subject, goals, objectives and logistic models
The subject of logistics as a science is the state of resources in a certain system (both micro and macro levels) and the management of their flows.
Purpose of logistics– increasing the economic efficiency of the system by optimizing the logistics process.
The main tasks solved by logistics:
- goods movement management,
- control over the flows of material values, services and information by creating a developed system,
- analysis of demand for materials and goods, forecast of these indicators.
Logistics explores a number of facilities:
- logistics operation- the action to transform the material flow or the flow of services.
- Logistics system- a set of principles for planning and implementing the entire set of logistics operations. Modern logistics systems are adaptive and use feedback from their environment. There are logistics systems that operate on the basis of direct links (flows are directly stretched from producers to consumers) and echeloned (multi-level systems that include at least one intermediary).
- Logistic function- a set of actions pursuing a common goal corresponding to the stage of the logistics process. Among the logistics functions are: transportation, warehousing, purchasing, stockpiling.
- material flow- physical products undergoing a logistics procedure. The material flow is measured by quantitative indicators (volume, mass) presented in time.
- Logistics costs- the cost of providing the logistics process. When conducting accounting, they can be partly included in the cost of production, and partly be sales expenses.
In practice, building a logistics system involves finding a balance between "production interests" and "liquidity optimization".
The system of “working from wheels” (one of the extreme points of the dual model mentioned above) is good from the standpoint of enhancing the use of working capital. In this case, there are no funds dead in stocks of raw materials or finished products, and storage costs are minimized.
The reverse side is a high risk of production downtime or violation of the terms of contracts concluded with counterparties. The system becomes extremely fragile.
Fact
Industrial enterprises of the Russian Federation are forced to form reserves that exceed the same indicator in the EU and the USA by 18%.
A comparison with Japan shows that the volume of reserves in this country is 64% lower than in Russia. The reason for this situation is the low quality of the domestic logistics system.
Below I provide a comparative table of the effectiveness of the logistics system, depending on the volume of available stocks:
| № | Index | Large inventory | Low inventory |
| 1 | Logistics costs | High (-) | Low (+) |
| 2 | Working Capital Efficiency | Low (-) | High (+) |
| 3 | Risk of breach of contractual obligations | Low (+) | High (-) |
| 4 | Ability to adapt to changes in volume demand | High (+) | Low (-) |
| 5 | Ability to adapt to changes in demand across the range | Low (-) | High (+) |
| 6 | The complexity of managing the logistics system | Low (+) | High (-) |
4. Main types of logistics - TOP-7 popular types
In order to simplify the mechanism for managing the logistics system, the logistics process is divided into a number of components. Based on this, separate types of logistics are distinguished.
View 1. Production logistics
The material flow, passing through the enterprise, participates in a number of production operations and is transformed. It is managed at this phase on the basis of production logistics. Its goal is to optimize costs at the stage of technological processes.
Production logistics solves a number of tasks:
- production planning based on customer needs assessment;
- formation of schedules for individual production units;
- coordination of plans-schedules with departments of supply and sale;
- operational management of production, control over the fulfillment of tasks and their adjustment.
View 2. Procurement logistics
Material flow management in organizing the provision of an enterprise with components, raw materials and materials is the task of procurement logistics (supply logistics). The supply phase includes: procurement, delivery, temporary storage of resources before they are transferred to production.
The importance of procurement logistics is due to two factors:
- Poor organization of this process leads to production downtime. Purchasing must be coordinated with production in terms of assortment, quantity, quality, packaging, delivery schedule.
- At the supply stage, about 55% of the cost is formed which determines the importance of this stage.
Competent organization of procurement logistics is a prerequisite for the high competitiveness of a business. This process requires research into the procurement market. Sometimes it is necessary to solve the problem of "buy or make yourself."
View 3. Inventory logistics
Inventory logistics is responsible for the management of production stocks and commodity stocks. As part of this process, the inventory rate is calculated based on an assessment of the rhythm of deliveries, seasonal fluctuations and risks. This parameter should ensure uninterrupted production and sale of products.
View 4. Transport logistics
It solves the problem of delivering material values in a given volume and within a certain period of time from the point of the previous transformation of the material flow to the point of the subsequent transformation of the material flow. This determines the optimal route.
View 5. Information logistics
Information logistics is the management of the flow of data accompanying the material flow. At the same time, information flows are external and internal in relation to the enterprise. Horizontal and vertical flows are also organized separately.
Information logistics should be fixed in the internal position of the enterprise on document management (including electronic). If it is impossible to synchronize the material and information flows, it is desirable that the information flow is somewhat ahead of the material one.
View 6. Customs logistics
Customs logistics is a process that ensures the passage of a material flow between different countries.
At the same time, a number of tasks have to be solved:
- execution of a customs declaration and assessment of cargo;
- checking the conformity of the cargo and the declaration;
- organization of transportation;
- certification of goods, if necessary;
- post-customs support of the material flow;
- control over observance of currency legislation.
Customs logistics requires taking into account a number of legal nuances that can greatly affect the emerging obligations to the budget.
View 7. Warehouse logistics
The purpose of this type of logistics is to manage the procedure for accepting material assets to the warehouse for their storage and issuance.
It also solves the problems of organizing warehouse management, optimizing the placement of warehouses. The nature of inventory management can affect the accounting estimate of the cost.
5. How to choose the right logistics company - 7 golden tips
There are many logistics companies in Russia. The quality of services is not always high, but the market is not monopolized, which almost always leaves room for choice.
It is enough to use a small list of the rules below to make the right choice even in an unfamiliar region.
7 golden tips:
- The services of a transport and logistics company should almost always be used unless the nature of your business requires a large fleet of vehicles. And even in such a situation, evaluate the option of engaging a third-party carrier. The fact is that in such a situation, the “scale effect” plays the role. Anyone who is professionally engaged in transportation does it cheaply. The logistics company saves on wholesale purchases of gasoline, on repairs (it has discounts or its own craftsmen).
- If the carrier does not have its own fleet, then it is not a carrier. Don't do business with this company.
- Look at what guarantees a potential partner is ready to provide. Whether the draft delivery contract specifies the exact time of receipt of the goods and transit time.
- It is highly desirable that the carrier insure its liability for the safety of transported material assets in a third-party insurance company.
- Compare the cost of services and the willingness of the carrier to work with "non-standard" delivery. If necessary, conclude an additional contract that guarantees the provision of a vehicle in the event of an emergency need for transportation (of course, you will not have to rely on “standard” rates in such a situation).
- Check out company reviews. The World Wide Web will help you.
- Pay even closer attention to company reviews if you are provided with the services of a customs broker. Declaration errors can have a negative "delayed effect".
6. Conclusion
So, in this article, I told what logistics is and formed an idea of a multifaceted logistics process. Although the concept itself, at first glance, refers only to the distribution of ways of transporting goods, it is actually more extensive.
Introduction…………………………………………………………………………………3
1. Basic provisions of logistics…………………………………………………….5
2. Logistics of a manufacturing enterprise……………………………………….17
2.1. Essence and tasks of production logistics………………………...17
2.2. Management transformations in in-house
logistics systems……………………………………………………………20
2.3 The effectiveness of the logistics approach to management
material flows to enterprises……………………………………..23
Conclusion………………………………………………………………………………25
References…………………………………………………………………...26
Introduction
Logistics becomes the most important tool in improving the work of the enterprise. Logistics offers a new approach to organizing the effective functioning of the customer service system.
In modern conditions, the range of activities covered by logistics is constantly expanding, including not only intra-company, but also inter-company logistics integration and coordination.
Competitiveness in the market is largely determined by the availability of a system of logistics services for consumer orders, and, consequently, the level of quality of the service provided.
The client selects the goods or services he needs among a number of similar ones offered on the market, and purchases those that best satisfy his needs. Increasing the quality of order fulfillment at the same time as reducing its cost contributes to an increase in sales.
The problem of logistics services to consumers is exacerbated by the tough financial conditions in which product supply planning is carried out, the insufficient level of reliability of Russian supplier enterprises, the significant time interval between the start of supply planning and their implementation, and, consequently, the low level of logistics services to consumers.
Improving the quality of service requires, as a rule, additional costs. However, the need to reduce overall logistics costs requires achieving high quality while reducing the cost of the service provided.
The object of study of the new scientific and educational discipline "logistics?" are material and related information and financial flow processes. The widespread use of logistics in the practice of economic activity is explained by the need to reduce the time intervals between the acquisition of raw materials and the delivery of goods to the end consumer. Logistics allows you to minimize inventory, and in some cases completely abandon their use, can significantly reduce the time of delivery of goods, speeds up the process of obtaining information, and improves the level of service.
Activities in the field of logistics are multifaceted. It includes the management of transport, warehousing, stocks, personnel, organization of information systems, commercial activities and much more. Each of the listed functions is deeply studied and described in the corresponding branch discipline. The fundamental novelty of the logistics approach is the organic interconnection, the integration of the above areas into a single material-conducting system. The purpose of the logistics approach is the end-to-end management of material flows.
Material flow management has always been an essential aspect of economic activity. However, only relatively recently has it acquired the position of one of the most important functions of economic life. The main reason is the transition from the seller's market to the buyer's market, which necessitated a flexible response of production and trade systems to rapidly changing consumer priorities.
In the context of the transition to market relations, the unified systems of standards for improving the material and technical base are losing their former significance. Each business entity independently assesses a specific situation and makes decisions. As the world experience testifies, the leader in the competitive struggle today is acquired by those who are competent in the field of logistics and own its methods.
The purpose of the work is to consider the logistics of a manufacturing enterprise.
The tasks of the work are to analyze the main provisions of logistics and the logistics of a manufacturing enterprise.
1. Fundamentals of logistics.
Logistics comes from the Greek word logistics, which means the art of calculating, reasoning. This term has a long history. The ancient Greeks understood logistics as the art of making calculations, and special state controllers were called logisticians. According to the testimony of Archimedes, in the 4th century BC there were logisticians in Greece, in Rome, during the period of the Roman Empire, there were servants who bore the title of "logistics" or "logistics"; they were engaged in the distribution of food. In the first millennium of our era, in the military lexicon of a number of countries, logistics was associated with the activity of providing the armed forces with material resources and maintaining their stocks. The king of Byzantium, Leon VI (865-912), who lived in the 9th-10th centuries AD, used the term "logistics" in a textbook on military affairs in the sense of "rear, supply of troops."
Logistics has grown into a science thanks to military affairs. The creator of the first scientific works on logistics is considered to be the French military specialist of the early 19th century, Jomini, who gave the following definition of logistics: "the practical art of maneuvering troops." He argued that the concept of logistics includes a wide range of issues, such as planning, management and supply, determining the location of troops, as well as the construction of bridges, roads, etc.
The word logistics in modern European languages is used mainly in the following two meanings: 1) mathematical logic; 2) equipment and technology of transport and storage operations in the military and / or civilian field.
In the Soviet period, the term logistics was first used in the English-Russian military dictionary of 1956: logistic - rear and supply, logistics, rear work; planning, organization and implementation of logistics; logistic - related to the work of the rear services.
In the 1980s in the Russian language, the meaning of this word has expanded and from a scientific term it has become a general literary one, moreover, in its second meaning. Since the beginning of 1990. in Russia (as in Western Europe and the USA), this term began to be used not only in specialized literature, but also in the media to denote a new direction in science - theory and practice of material and relevant information flows, i.e. the whole range of issues related to the processes of circulation of raw materials, materials and finished products, bringing them from the supplier to the manufacturer and from him to the end user in accordance with his requirements and interests.
To date, the following definitions of logistics are best known:
1. American Council on Management.
"Logistics is the planning, implementation and control of technologically and economically efficient processes for the movement and storage of goods, materials, semi-finished products and finished products, as well as the transfer of relevant information from the place of production to the place of consumption in accordance with the interests of consumers."
2. British Institute of Procurement Organization Problems.
“Logistics is the management and coordination within the supply-production-sales chain, including the selection of a supplier, the organization of material support for production, the placement of stocks and the delivery of finished products to consumers through distribution channels.
3. Professor G. Pavelek gives the following interpretation of the concept: “Logistics is the planning and control of the material flow entering the enterprise, processed there and leaving this enterprise and the corresponding information flow”
4. A well-known specialist W. Kielhof (Germany) believes that: “Logistics is the coordination of all systems for the movement of materials and finished products both inside and outside the enterprise. It allows you to manage material flows from the moment of procurement to implementation in the physical, informative and organizational sense.
According to the author, logistics is an objective business process that takes place at the level of structural divisions of enterprises in order to optimize the management of material and information flows, reduce costs and increase profits.
According to the scale of the problem being developed, logistics is divided into:
1. Macrologistics - studying the processes occurring at the regional, interregional, national and interstate levels.
2. Micrologistics - dealing with a set of issues related to the management of material, informational and other flows, based on the interests of an individual enterprise or a corporate group of enterprises, united by common goals of optimizing economic ties.
In addition to the criterion of the scale of the problems being developed, for the structuring of logistics, a division according to the nature of the control zones is used:
1. External logistics - deals with issues of regulating flow processes that go beyond the scope of activities, but are in the sphere of influence of a business entity.
2. Internal logistics - is aimed at coordinating and improving economic activities related to the management of flow processes within an enterprise or corporate group of enterprises.
According to the principle of economic activity, the following types of logistics are distinguished:
Procurement (supply) - solves issues related to the material and technical support of the enterprise and the preparation of products for production use;
· Production - solves issues related to the organization and management of the movement of material flows (from raw materials to finished products) directly in the production process.
· Distribution (marketing, sales) - resolves issues related to the sale of products, including its delivery "just in time" from the "door" of the manufacturer to the "door" of the buyer and after-sales service.
Transport - solves issues related to the transportation of material resources to consumers.
Logistics contributes to the success of an enterprise by providing consumers with products in a timely manner and in accordance with needs. In this sense, the key issue is to find out who the consumer is. For logistics, a consumer is any legal and natural person to whom deliveries are made to the required destination. The destination may be a private house, a shop, a wholesale trade enterprise, an industrial warehouse, a specialized warehouse, etc. The consumer may be a legal or natural person who transfers the ownership of the supplied products. One of the enterprises or divisions of the enterprise, or its business partner belonging to another link in the supply chain, can also act as a consumer. Regardless of the motives and goals of supply, customer service is a key factor in shaping the needs of the logistics service system. When developing a logistics strategy for a company, it is necessary to clearly understand the company's capabilities in providing services. It is necessary to consider the nature and characteristics of customer service, as well as strategies that increase the effectiveness of the service system.
The main goal of a logistics distribution system is to deliver goods to the right place at the right time. Unlike marketing, which deals with identifying and stimulating demand, logistics is designed to meet the demand generated by marketing at minimal cost. It is obvious that the solution of the problem of organizing distribution channels plays a major role in this.
Due to the generality of the object of study, distribution logistics and marketing use the same concepts. This also applies to distribution channels. The basics of their organization and functioning are considered in sufficient detail in the literature on marketing problems. However, it is worth highlighting here some important definitions and provisions regarding the operation of distribution channels.
A distribution channel is a collection of organizations or individuals that assume or help transfer ownership of a particular good or service to another along the way from producer to consumer.
The use of distribution channels brings certain benefits to manufacturers:
Saving financial resources for the distribution of products;
The possibility of investing the saved funds in the main production;
Selling products in a more efficient way;
High efficiency in ensuring the wide availability of goods and bringing it to target markets;
Reducing the volume of work on the distribution of products.
Thus, the decision on the choice of distribution channels is one of the most important, which must be taken by the management of the organization.
The channel of distribution is the path along which goods move from the producer to the consumer. The selected channels directly affect the speed, time, efficiency of movement and the safety of products when they are delivered from the manufacturer to the final consumer. At the same time, the organizations or individuals that make up the channel perform a number of important functions:
1) carry out research work to collect information necessary for planning the distribution of products and services;
2) stimulate sales by creating and disseminating information about products;
3) establish contacts with potential buyers;
4) adapt the goods to the requirements of buyers;
5) conduct negotiations with potential consumers of products;
6) organize the movement of goods (transportation and warehousing);
7) finance the movement of goods through the distribution channel;
8) assume the risks associated with the functioning of the channel.
All or part of these functions can be taken over by the manufacturer. At the same time, producer costs increase. Due to the specialization of intermediary organizations, they often perform the listed functions of goods distribution channels more efficiently. To cover their costs, intermediaries charge the manufacturer an additional fee. Thus, the question of who should perform the various distribution channel functions is a matter of relative efficiency. When it becomes possible to perform functions more effectively, the channel is rebuilt.
Distribution channels of goods can be characterized by the number of their constituent levels.
The channel level is the intermediary that does the work of bringing the product and ownership closer to the end consumer.
The length of the channel is determined by the number of intermediate levels between the producer and the consumer, which, like the levels of the channel, are members of the distribution channel.
One of the members of the channel, as a rule, either owns the others or grants them certain privileges. Such a member may be a manufacturer, wholesaler or retailer. Vertical channels arose as a means of controlling the behavior of the channel. They are economical and exclude duplication of functions performed by channel members.
When forming a channel for the distribution of goods, the decision on the structure of the channel is put forward in the first place, i.e. about the number of channel levels and about the specific composition of the channel members. When identifying possible options for distribution channels, it is necessary to determine the type of intermediaries used. Classification of intermediaries can be carried out according to a combination of two features:
1) on whose behalf the intermediary works;
2) at whose expense the intermediary conducts its operations.
Dealers are wholesale, less often retail intermediaries who operate on their own behalf and at their own expense. The goods are purchased by them under a supply contract. Thus, the dealer becomes the owner of the product after the full payment for the delivery. Relations between the manufacturer and the dealer are terminated after the fulfillment of all conditions under the supply agreement. More recently, dealers have become privilege holders, bringing together in their hands a series of successive steps in the production and distribution process. In the logistics chain, dealers occupy the position closest to the end consumers.
There are two types of dealers.
· Exclusive dealers are the only representatives of the manufacturer in the region and are endowed with exclusive rights to sell its products.
· Dealers cooperating with manufacturers on a franchise basis are called authorized dealers.
Distributors are wholesalers and retailers. The manufacturer grants the distributor the right to sell its products in a certain territory and for a certain period of time. Under the contract, they acquire the right to sell products. In the supply chain, distributors usually occupy a position between the manufacturer and the dealers.
commissioners. Wholesale and retail intermediaries. They do not own the products sold. The manufacturer (or the committent in this operation) remains the owner of the product until it is transferred and paid for by the end consumer. The contract for the supply of products is concluded on behalf of the commission agent. Thus, the commission agent is an intermediary only for the committent, and not for the end consumer, whose money is transferred to the commission agent's account. The commission agent must ensure the safety of the goods.
Agents are intermediaries acting as a representative or assistant of another principal person (principal) in relation to him. As a rule, agents are legal entities. The agent concludes the transaction on behalf of and at the expense of the principal. Agents are divided into two categories according to their scope of authority. Universal agents perform any legal action on behalf of the principal. General agents conclude only transactions specified in the power of attorney. They receive remuneration both by tariffs and by proxy.
Brokers are intermediaries in the conclusion of transactions, bringing counterparties together. They are not in contractual relations with any of the parties to the transaction being concluded and act only on the basis of individual orders. Brokers are only rewarded for products sold.
After choosing the types of intermediaries in the distribution channel, it is necessary to determine the number of these intermediaries. In logistics, three approaches have been developed to solve this problem:
intensive distribution,
Exclusive distribution
selective distribution.
Intensive distribution involves the provision of stocks of products in the largest possible number of trade enterprises.
Exclusive distribution implies a deliberately limited number of intermediaries selling a given product within the marketing territories.
Selective distribution is a cross between intensive and exclusive distribution methods. Selective distribution allows the manufacturer to achieve the required market coverage with tighter control and at a lower cost than with intensive distribution.
To improve the efficiency of product distribution and in order to save money, organizations often resort to the use of multi-channel product distribution systems.
Each manufacturer, on the basis of marketing research of the sales market for its products, determines the structure of possible distribution channels, their relationship with specific categories of consumers and with each other.
The forms of bringing the product to the consumer are determined, first of all, by the nature of the product itself, the place and conditions of its production, consumption, and the possibilities of transport. This allows you to minimize transport costs and the cost of intermediate storage of goods.
The form of organization is:
Direct marketing - when a product manufacturer enters into direct relations with its consumers;
Indirect marketing - when a manufacturer of products uses the services of independent intermediaries.
The choice of one or another method of organizing sales depends on the specific conditions of the market, sales and the strategy of the company itself.
When forming a sales system and a network of distribution channels, a supplier company should take into account:
Features of end consumers - their number, competition, the value of the average one-time purchase, income level, patterns of behavior when buying goods, the volume of services, credit conditions, etc.;
The possibility of the manufacturer itself is its financial position, competitiveness, the main directions of the market strategy, the scale of production. It is preferable for small firms with a narrow product range and limited financial capabilities to work through independent resellers, while large firms are recommended to carry out part of the sales organizations through their own sales network;
Characteristics of the goods - type, average price, seasonality of demand, shelf life, etc.;
The degree of competition, the marketing policy of competitors - their number, concentration, marketing strategy and tactics, relationships in the sales system;
Characteristics and features of the market - actual and potential capacity, customs and trade practices, density of distribution of buyers, average income per capita, etc.;
Comparative cost of marketing systems;
Selling manufactured products through your own distribution network or using the services of intermediaries is a problem that is solved taking into account many factors related to both goods and consumers and intermediaries.
Direct marketing is possible when:
The quantity sold is large enough to justify the considerable expense of direct marketing;
There are few consumers and they are located in a relatively small area;
The product requires a highly specialized service;
The batch size is sufficient for wagon or container shipping;
There is a sufficient network of own basic warehouses in the markets where the company trades;
The market is vertical, i.e. the product is not used by many consumers, although in several industries;
The product is highly specialized or produced according to the specification of the buyer;
The price of a product changes frequently.
The direct sales method has advantages - the company gets the opportunity to:
Directly study your market;
Save money on paying for intermediary services;
Establish close cooperation with consumers.
The market is horizontal (many consumers in each sector of the economy) and requires the creation of a powerful distribution network, but there are not enough funds to create it;
The market is geographically dispersed so that neither direct contact nor agent work is profitable;
The difference between the selling price and the cost price is small, so that the maintenance of its own distribution network is inefficient;
Significant savings can be made on transport costs by supplying large quantities of goods to a small number of wholesalers.
The wholesaler buys and resells mostly standard industrial products that do not require maintenance. Wholesale intermediaries know the specifics of regional markets in more detail.
Selling goods through a wholesaler allows the manufacturing firm to limit the sales market for its products and include in it numerous small consumers, whom it is not able to serve directly. Some firms use the services of wholesalers when marketing new types of products, so as not to spend money on sales promotion and direct sales.
The choice of distribution channels is a responsible task, in the solution of which it is necessary to take into account the fact that with a small number of intermediaries it is easier to establish close ties with them and thereby guarantee a serious influence on their work, to achieve the desired training of sales personnel, etc. At the same time, focusing on an excessive number of intermediaries working in parallel in this market makes the supplier firm heavily dependent on them. The refusal of one of them to fulfill the concluded contract can cause serious commercial damage to the company.
There are a number of factors that influence the decision to choose a distribution channel (in the general case):
The nature of the goods;
Product benefits;
Goods transportability;
Geographic location of the manufacturer;
The presence of competitors;
Degree of competition;
The breadth of the range;
Storage conditions;
Shelf life;
Remoteness (geographical dispersion) of consumers, etc.
We can say that the higher the mass consumption of goods, the wider the range, the more branched the distribution network will be. With a high concentration of consumers in one region, a direct distribution channel is rational, with a dispersion in another region, sales using intermediaries (wholesalers).
2. Logistics of the manufacturing enterprise.
2.1. Essence and tasks of production logistics
The material flow on its way from the primary source of raw materials to the final consumer passes through a number of production links. Material flow management at this stage has its own specifics and is called production logistics.
Rice. 2.1 The structure of social production
The tasks of production logistics relate to the management of material flows within enterprises that create material goods or provide such material services as storage, packaging, hanging, stacking, etc. A characteristic feature of the objects of study in production logistics is their territorial compactness. In the literature, they are sometimes referred to as “island logistics facilities”.
Material services for the transportation of goods can be an object of both production logistics, in the case of using one's own transport for intra-production movement of goods, and transport, if public transport is used.
The logistics systems considered by production logistics are called in-house logistics systems. These include: industrial enterprise; a wholesale enterprise with storage facilities; nodal cargo station; nodal seaport, etc.
Intra-production logistics systems can be considered at the macro and micro levels.
At the macro level, in-house logistics systems act as elements of macro-logistics systems. They set the rhythm of these systems, are the sources of material flows. The ability to adapt macro-logistics systems to environmental changes is largely determined by the ability of their intra-production logistics systems to quickly change the qualitative and quantitative composition of the output material flow, i.e., the range and quantity of products.
Qualitative flexibility of intra-production logistics systems can be ensured through the availability of universal service personnel and flexible production.
Quantitative flexibility is also provided in various ways. For example, in some enterprises in Japan, the main staff is no more than 20% of the maximum number of employees. The remaining 80% are temporary workers. Moreover, up to 50% of the number of temporary workers are women and pensioners. Thus, with a staff of 200 people, an enterprise can supply up to 1,000 people to fulfill an order at any time. The manpower reserve is supplemented by an adequate reserve of equipment.
At the micro level, intra-production logistics systems are a number of subsystems that are in relationships and connections with each other, forming a certain integrity, unity. These subsystems: purchasing, warehouses, stocks, production maintenance, transport, information, sales and personnel, ensure the entry of the material flow into the system, passing through it and exiting the system. In accordance with the concept of logistics, the construction of intra-production logistics systems should provide the possibility of constant coordination and mutual adjustment of plans and actions of supply, production and marketing links within the enterprise.
The logistical concept of the organization of production includes the following main provisions:
¨ rejection of excess stocks;
¨ rejection of excessive time for the implementation of basic and transport
warehouse operations;
¨ refusal to manufacture series of parts for which there is no order from buyers;
¨elimination of equipment downtime;
¨mandatory elimination of marriage;
¨elimination of irrational intra-factory transportation;
¨transformation of suppliers from an opposing side to benevolent partners.
In contrast to the logistics, the traditional concept of the organization of production assumes:
¨never shut down the main equipment and maintain a high utilization rate at all costs
¨to produce products in as large batches as possible;
¨ to have the largest possible supply of material resources “just in case”.
When demand exceeds supply, it can be assumed with reasonable certainty that a batch of products manufactured taking into account market conditions will be sold. Therefore, the goal of maximum utilization of equipment takes priority. Moreover, the larger the manufactured batch, the lower the unit cost of the product will be. The task of implementation is in the foreground.
The situation changes with the advent of the market "dictatorship" of the buyer. The task of selling the manufactured product in a competitive environment comes to the fore. The volatility and unpredictability of market demand makes it impractical to create and maintain large stocks. At the same time, the production worker no longer has the right to miss a single order. Hence the need for flexible production facilities that can quickly respond with production to emerging demand.
Reducing the cost in a competitive environment is achieved not by increasing the size of the batches produced and other extensive measures, but by the logistics organization of both a separate production and the entire commodity distribution system as a whole.
2.2. Transformation of management in intra-production logistics systems
Management of material flows within the framework of intra-production logistics systems can be carried out in various ways, of which there are two main ones that are fundamentally different from each other.
The first option is called the “pushing system” and is a production organization system in which the objects of labor entering the production site are not ordered directly by this site from the previous technological link. The material flow is “pushed out” to the recipient by a command received by the transmitting link from the central production control system (Fig. 2.2).
Legend:
Material flow, Information flow
Rice. 2.2 Schematic diagram of a pushing material flow management system within an in-house logistics system
Push models of management, flows are typical for traditional methods of organizing production. The possibility of their application for the logistics organization of production appeared in connection with the mass distribution of computer technology. These systems, the first developments of which date back to the 60s, made it possible to coordinate and quickly adjust the plans and actions of all departments of the enterprise - supply, production and marketing, taking into account constant changes in real time.
Pushing systems, capable of linking a complex production mechanism into a single whole with the help of microelectronics, nevertheless have natural limits to their capabilities. The parameters of the material flow “pushed out” to the site are optimal to the extent that the control system is able to take into account and evaluate all the factors that affect the production situation in this area. However, the more factors for each of the numerous sections of the enterprise must be taken into account by the control system, the more perfect and expensive should be its software, information and technical support.
The second option is based on a fundamentally different way of managing the material flow. It is called a “pull system” and is a production organization system in which parts and semi-finished products are fed to the next technological operation from the previous one as needed.
Here, the central control system does not interfere in the exchange of material flows between different sections of the enterprise, does not set current production targets for them. The production program of a separate technological link is determined by the size of the order of the next link. The central control system sets the task only for the final link of the production technological chain.
In practice, various versions of push and pull systems are implemented. The push systems are known as “MRP systems”. They are characterized by a high level of control automation, which makes it possible to implement the following main functions:
¨to ensure the current regulation and control of inventories;
¨ in real time to coordinate and promptly adjust the plans and actions of various services of the enterprise - supply, production, marketing.
In modern, developed versions of MCI systems, various forecasting tasks are also solved. As a method of solving problems, simulation modeling and other methods of operations research are widely used.
Pulling in-house logistics systems include the Kanban system (translated from Japanese as a card), developed and implemented for the first time in the world by Toyota (Japan).
The Kanban system does not require a total computerization of production, however, it implies a high discipline of the stands, as well as a high responsibility of the staff, since the centralized regulation of the intra-production logistics process is limited.
2.3 The effectiveness of the logistics approach to managing material flows in enterprises
It is known that 95-98% of the time during which the material is at the manufacturing plant falls on the performance of loading and unloading and transport and storage operations. This is due to their significant share in the cost of manufactured products.
The logistical approach to the management of material flows at the enterprise allows you to optimize the implementation of a complex of logistics operations as much as possible. According to the firms Bosch-Siemens, Mitsubishi, General Motors, one percent reduction in logistics costs had the same effect as a 10% increase in sales.
We list some of the elements that make up the cumulative effect of applying a logistics approach to managing material flow in an enterprise.
1 Production is market oriented. An effective transition to small-scale and individual production becomes possible.
2 Partnerships are being established with suppliers.
3 Equipment downtime is reduced. This is ensured by the fact that at the workplace there are always materials necessary for work.
4 Inventory optimization is one of the central problems of logistics. The maintenance of stocks requires the diversion of financial resources, the use of a significant part of the material and technical base, labor resources. An analysis of the experience of a number of Western European companies using modern logistics methods of organizing production (Kanban system) shows that the use of logistics can reduce inventories by 50%.
5 The number of support workers is being reduced. The lower the level of consistency, the more uncertain the work process and the higher the need for support staff to perform peak work volumes.
6 Improved product quality.
7 Material wastage is reduced. Any logistic operation is a potential loss. Optimization of logistics operations is the reduction of losses.
8 Improved utilization of production and storage space. The uncertainty of flow processes makes it necessary to reserve large additional areas. In particular, when designing retail wholesale depots, the uncertainty of flow processes forces a 30% increase in the area of warehouse space.
9 Injuries are reduced. The logistic approach organically fits into the system of labor safety.
Conclusion
It's no secret that at present the Russian economy operates according to the laws of the market. Each enterprise in such conditions conducts an absolutely independent policy and only it bears responsibility for the results of its activities.
In modern conditions, the market imposes rather harsh conditions on each subject of financial and economic activity, and problems in the Russian economy only exacerbate the already difficult situation of many Russian enterprises. In order to survive and function successfully in such conditions, it is no longer enough for an enterprise to simply produce products to the maximum extent possible, fulfilling its internal plans, it is important to sell these products later. But in the face of fierce competition, only the enterprise that can offer the market quality products at a lower price than its competitors survives.
The price of products depends not only on the costs of its production, but also on the costs of its transportation, storage, sale, etc. By reducing these costs, we reduce costs, thus increasing our profits. It is these issues (and not only them) that marketing logistics deals with.
The role of logistics has not been given importance for a long time. In particular, in the markets of consumer goods with products that are very homogeneous in price and quality, and at the same time substitutable from the point of view of consumers, the provision of spatial and temporal possibility of disposing of products becomes of great importance for recruiting clients. Thus, logistics becomes an independent, active tool of the enterprise.
So, in this paper, we examined the concept of "logistics", defining its goals and objectives.
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For a long period of time, many foreign companies have been hiring third-party organizations to provide services to perform non-core functions for them. This scheme is called "outsourcing". It means the involvement of a third party on a reimbursable basis in order to fulfill the tasks that the company faces. Outsourcing helps a business to be more flexible, which allows it to make good profits.
Logistics Services
To date, there are organizations that offer a wide range of operations related to the storage, acquisition and transportation of goods. Among them:
- warehouse logistics, processing, storing and distributing goods;
- transportation logistics designed to meet the needs of companies that do not have their own fleet of vehicles in the transportation of goods;
- representing assistance in the certification and customs clearance of goods.
To date, the services of logistics companies have already outgrown the 2PL level offered by small providers for performing the simplest operations in the field of transport and warehousing services, namely storage or transportation of goods.
A modern logistics company is an organization located at the 3PL level. That is, it adheres to a scheme in which it acts as a third party in transactions between buyers and suppliers, providing a full range of services that allow you to process cargo.
Field of activity
Logistics is the science of controlling, managing and planning the movement of resources and goods. The main goals of this direction are:
- development of processes for the infrastructure of trade turnover, starting from the producer of raw materials and materials to the manufacturer of goods from these resources, and then - from the company that produced the products to the end consumer;
- formation and constant maintenance at the proper level of functioning of the general system of circulation of goods;
- inventory management;
- optimization and rationalization of the process of moving goods, as well as the production and marketing of finished products.
In management, it is considered when developing a strategy for managing purchases and transportation, storage and sales, financial and information flows. The main object of this discipline is the direct process of moving goods, resources and goods. One of the main tasks of logistics follows from this, which is to use effective methods and techniques, as well as forms of information management and the flow of goods, formed due to a preliminary analysis of cause-and-effect relationships in the commodity circulation chain.
It is worth noting that logistics got its start thanks to the military sphere. It was there that, first of all, the well-functioning work of industry and transport was necessary to achieve the set goals. Then the first logistics company appeared in our country. And only after such a management system was borrowed by business, which turned out to be very effective for him.
Extensive range of services
A logistics company is an organization that offers its partners the following:
- Optimization
- Escort of transported goods by representatives of the company.
- Monitoring the movement of goods.
- Certification and customs clearance of goods.
- Warehouse processing and subsequent storage of material values.
- Expert and consulting services.
A logistics company is a reliable business assistant that will allow the company to legally reduce the cost of goods production due to optimization. This is due to the choice of optimal routes that are most effective in terms of terms and tariffs, as well as due to the reduction of storage and customs costs.
A logistics company is an organization that allows you to save significant amounts on the maintenance of your own unit that performs similar functions. In addition, it can be used to flexibly restructure the supply policy, quickly responding to changing market requirements.
How does a logistics company work? It creates its own infrastructure, establishes close relationships with the customer's administrative services and carriers. Thanks to this, customers are provided with a mechanism for optimizing and building all chains of cargo movement. The advantage is very obvious when a logistics company takes over. How it works? The customer enterprise receives a significant gain not only in terms of the cost of services, but also in terms of the delivery of its cargo.
As you can see, business logistics solves an extensive list of tasks. They relate to almost all areas of the enterprise, not covering only the issues of accounting and personnel.
Benefits of cooperation
Is it profitable for an enterprise to involve a company operating in the business sector to solve its problems (logistics is an area that is given increased attention)? After all, you can create your own departments that will deal with the movement, storage and promotion of goods. It should be borne in mind that such divisions of the enterprise will require considerable additional funds for maintenance. Based on existing practice, we can make an unambiguous conclusion that such departments are not always able to demonstrate the required level of efficiency in their work.
The main advantage of a logistics company is that it really allows you to increase the productivity of the enterprise's turnover and its productivity. Many organizations, seeing the pointlessness of the existence of their own departments, involve third-party organizations in cooperation, which:
- allow to expand the sales market, bringing the customer's finished products to the international level;
- organize the processes of transportation of small and large consignments of goods, specific and dangerous goods that require special conditions of transportation;
- allow the cost of goods to be reduced.
Conclusion of contracts
How to start working with a logistics company? To do this, it is necessary to conclude an agreement with her, which must indicate:
- volumes and ranges of services provided;
- responsibility of both contracting parties;
- features of registration of documents accompanying the cargo;
- the amount of remuneration, as well as the methods and procedure for paying for the services of the company;
- ownership of the goods.
Company selection
Today in Russia they have opened their own business and many logistics organizations are operating. How to choose the most suitable one for the enterprise?
To do this, follow the following rules:
- The services provided by a transport and logistics company are worth using in most cases. An exception may be situations where the company has its own large fleet of vehicles. In this case, a preliminary assessment of the option of involving a third-party organization should be given. But even in such a situation, the "scale effect" will play a significant role. After all, a transport and logistics company will carry out transportation quickly and make it cheaper. It will save money in connection with its bulk purchases of gasoline, as well as low costs for vehicle maintenance, as it has its own workshops or enjoys significant discounts as a regular customer in third-party repair organizations.
- If the carrier does not have its own fleet of vehicles, it is not worth concluding a contract for the provision of logistics services with it. This will result in a large amount of financial costs for the enterprise.
- When choosing a logistics company, you should pay attention to the guarantees that a potential contractor can provide. In addition, the draft contract must specify the exact timing of the receipt of goods, as well as transit time.
- It is desirable that the carrier be ready to insure its liability for the complete safety of the material assets transported by it in any third-party insurance company.
- When considering candidates for concluding a contract, one should compare the cost of the services of carriers and clarify their willingness to work with “non-standard” deliveries. If necessary, an additional contract can be concluded that guarantees the company the provision of the vehicle it needs in case of an emergency need for it.
- Before concluding an agreement, you should read the reviews about the prospective partner.
- When providing the services of a customs broker, you will need to take the choice of a logistics company as seriously as possible. After all, mistakes made in declaring sometimes have a negative delayed effect.
On which artist should you choose? For this, it is worth considering the rating of logistics companies in Russia.
Business lines company
The motto of this organization is the words "Quality and reliability". Organization "Business Lines" is one of the logistics companies in Moscow. It is in the capital that its main office is located. After all, transport services are very relevant for this metropolis.
The company carries out its activities taking into account the wishes of its customers. She is ready to quickly and with a high level of quality deliver the necessary goods to their destination not only from Moscow, but also from St. Petersburg. The customer can receive his cargo the very next day after its release from the warehouse. The company offers its services at the most affordable prices and at the most modern level. Their list includes:
- transportation by rail, air or road;
- delivery of groupage cargo;
- transportation of goods by a separate mode of transport;
- delivery of goods to all regions of the country, as well as to Kazakhstan and Belarus;
- expedited express delivery.
The company also offers the customer the transportation of goods subject to temperature conditions. To do this, she uses special equipment with the organization of a separate flight.
In the course of its work, the logistics organization constantly maintains contact with the client, notifying him of the location of his material assets.
PEK company
This organization provides throughout Russia. It is also on the lists, which include logistics companies in Moscow. Constantly expanding its work, it opens more and more branches in various regions of the country. At the same time, the organization constantly acquires new customers.
PEC offers only modern services at the highest level of service. After all, its staff consists of qualified specialists who constantly improve their level of work. The company uses trucks and aircraft to deliver goods.
PEC's range of services includes:
- collection of goods from the customer and transportation to the destination;
- constant informing the client about the location and condition of the cargo;
- high-quality packaging of goods;
- loading and unloading of material assets.
Bee Logistic company
This company provides a comprehensive service offering:
- performance of the entire volume of logistics operations with the goods;
- transportation, storage, loading and delivery of cargo to the buyer;
- placement of goods in a beautiful package.
Bee Logistic is included in the list, which includes the best logistics companies in St. Petersburg, but in addition to the Northern capital, it also operates in Novosibirsk.
In addition, she offers the client:
- storage of goods in a warehouse;
- preparation of products for sale (gluing stickers, marking, sealing in film, repacking);
- providing any necessary information transmitted online;
- providing an office.
Air transport
Pulkovo Logistics Company is engaged in air cargo transportation, considering them the most reliable and fastest. Indeed, the delivery of goods by air is the fastest option, especially in cases where the route runs to remote corners not only of our country, but also of the planet.
Qualified specialists of the company provide logistics support for cargo and choose the most optimal transportation options for them.
In order to order air transportation, just call the company. In this case, you will need to accurately indicate the dimensions of the delivered material assets, their nature, weight, as well as the number of seats. The specialist will immediately calculate the most optimal delivery options. Further, the cargo must arrive at the cargo terminal of Pulkovo airport. If the client does not have such an opportunity, then the logistics company will take care of it. In case of urgent delivery, a charter flight can be arranged.
