When talking about logistics in a company, it is very closely related to planning and controlling the flow of goods or materials. Broadly speaking, the main purpose of logistics in a company is to arrange for goods or materials to arrive at their destination in the right condition, quantity and time. This is where a good system and role from the company’s logistics team is needed to optimize performance and the ability to minimize operating costs.
Initially the concept of logistics was known in the early days of war, which was used to describe the military’s need to meet their supplies when they wanted to go to the battlefield from the base.
From terms used only on the battlefield, the word logistics has expanded its meaning. Logistics, namely a series of management processes that include planning, implementation, and maintenance or monitoring of a process of movement, whether certain goods or equipment, from the starting point to the point of use.
In any system, there are components that support the system to “run”. Here are 5 (five) components that support the flow of goods and logistics distribution, namely:
1. Location of Logistics Facilities
The facility location network is absolutely mandatory for the company for planning purposes where and through which materials and products are transported. As a form of service to users who have a direct relationship with the product, the company provides facilities including factories, warehouses and retail shops.
A good set of strategic location structures can provide many competitive advantages. Companies of course want efficiency in the logistics system. Well, the level of efficiency is directly related to and limited by the location structure of the facility.
Transportation is one of the most important things in the logistics system. In general, a company has 3 (three) alternatives to support its transportation capabilities, namely as follows:
A fleet of private equipment that can be bought or rented.
3. Inventory Procurement Management
Inventory procurement management in the logistics system is part of the company that functions to manage the inventory of goods owned. The company must manage how to obtain inventory, the storage process, until the inventory is used or released.
The purpose of inventory procurement management into the logistics system is to maintain the number of items in accordance with service objectives.
Communication is an activity of exchanging information between all logistics processes and company customers in the logistics system.
Poor communication in the logistics process can cause several problems, including the following:
Wrong assessment of logistics rate trends. If this happens, the logistics flow will experience a shortage of inventory items or even cause excessive commitment between the company and the company’s suppliers, intermediate customers (trade customers), and end customers.
Causing disruption to system performance which will result in instability due to excessive correction or inadequate correction.
Storage in this system covers all aspects of logistics operations such as movement, packaging, and containerization (packaging). All these operational aspects concern the flow of supplies to meet the needs of a product or material.
Within the company, the logistics system is indispensable to ensure the execution of transactions. Companies that already have an integrated network of facilities, reliable transportation capabilities, good inventory deployment will get the best position in gaining long-term advantages over their competitors.
Logistics Role In Companies
A logistics team that is able to work effectively will be able to increase marketing efforts by providing efficient transfer of products to customers.
The following is a further explanation of the logistics duties in the company:
As part of the marketing efforts, logistical tasks play an important role in satisfying customers. In addition, logistics is one of the keys to achieving profits for the company as a whole.
Logistics provide “added value” to time and place
The company continues to strive to improve the quality of its products so that it gets “loyal” consumers. A good logistics system will be able to provide “added value” to consumers on space and time utility.
The point of place utility here is the value created or added to a product by making it available for purchase or consumption at the right place. Meanwhile, the utility of time is a value that is formed by making something available at the right time.
Logistics enables efficient transfer of products / goods to consumers
The logistics system is able to create the right product supply process, in the right place, at the right time, and in the right condition and at a cost that is affordable for consumers to use the product.
Logistics Are Ownership Assets
An efficient and economical logistics system is an asset that must be maintained and maintained by the company. If the company can provide products to consumers quickly and at minimal costs, it can increase market share far more than its competitors who do not have a good logistics system.
The company will be able to sell products at lower costs as a result of logistics efficiency, or provide better service satisfaction to customers, thereby creating goodwill.
The logistics unit in a company usually has a logistics management staff consisting of logistics administrators and logistical technical personnel. The following is a description of the duties of the logistics staff:
Create and share an item request form
Request and collect goods request forms that have been filled in by the work unit and approved by the supervisor
Perform data recapitulation of demand for goods needed by the unit
Place an order for goods
Check or inspect incoming goods starting from the volume, type and condition
Arrange and store goods according to their type
Prepare goods in accordance with the demand for unit needs
Record the release of goods on the stock card
Count the physical goods and record them on the stock card according to the physical number of goods
Create a report on the receipt and expense of goods
Make monthly and quarterly reports of goods that contain reports of goods receipt and expenditure
This is an explanation of the meaning of logistics and its important role in a company. The logistics management system in an organization or company is very important in determining service quality.