Monday, 4 August 2014

What are the Activities of Logistics? – Part One

There are several activities that fall under the term logistics. Over the next two days we’ll be looking at some of the activities that an organisation might include in their logistics while moving materials and products.

Procurement and Purchasing
The procedures that take place to ensure the right materials flow through the organisation include finding suppliers, negotiations, delivery organisation, insurance and paying for the materials and goods. This is part of the upstream activities.

Inward Transportation
This is the movement of the materials as they come from the suppliers and arrive into the receiving area. Managers will need to establish the best route and correct form of transport while ensuring all legal obligations are met, that the deliveries will be timely, correct and that the costs are kept to a minimum.

During this part of logistics it’s necessary to ensure that all the order matches the invoice and acknowledge the receipt. Other activities include the inspection of the materials for damage, sorting and unloading the delivery vehicles.

Once the materials have been received they go into storage until the time comes when they are required. The warehousing must provide the right storage conditions.

Stock Control
It’s down to the stock control to set the policies for inventory. Stock management activities include the consideration of materials to store, the investment made. Stock levels, customer service, size of orders and the timing of the orders.

Material Handling
This is the movement of materials within the organisation itself. The main aim of the activities is to make sure all movements are as efficient as possible, using short journeys and the right equipment.  Damage needs to be avoided so using careful handling and the right equipment is necessary.

Tomorrow we’ll be looking at part two of the activities in logistics.

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