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2600 BCE
Introduction
Logistics is the set of means and methods necessary to carry out the organization of a company, or a service, especially distribution.
It is essential for trade. Logistics activities form a system that is the link between production and markets that are separated by time and distance.Logistics aims to satisfy demand in the best conditions of service, cost and quality. It is in charge of the management of the necessary means to reach this objective and it mobilizes. -
1 CE
Objectives
Generate value: The key lies in generating value for the customer through this process. This can be achieved in various ways: speed of delivery, quality of information and traceability, synergies for the supply chain, cost reduction through optimization, and so on. -
1 CE
Objectives
Strengthen the relationship with customers and suppliers: Achieving a good logistical relationship -achieving the agreed results, a good system of customer service and incident resolution and good information channels- greatly improves the perception that the rest of the actors have of our firm.
Improve service: Every company in the world wants to provide better customer service. And, at the same time, few activities have as much influence on customer valuation as logistics. -
1 CE
Objectives
Optimization of costs: A good way to view logistics is not to interpret it as an expense, but as a constant search for the optimization of costs that are always going to be necessary to face. Logistics can help us in this process in different ways.
Social value: Caring for the environment is not the only beneficiary of logistics tasks. Logistics is critical for the functioning of the economy of countries. -
Birth of logistics 1801-1869
It goes back to the origin of the human being. Our ancestors stored food in caves, with the purpose of having food during the cold and long winter without knowing it carried out the processes of provisioning and inventory control. At the end of the 19th century, companies obtained more profits, reduced their expenses, improved transportation, injection of more capital, technology development and globalized growth. -
Origin of the logistic term
According to historians, the word logistical comes from the Greek root Logis, which means calculation, and from the Latin logistical, a term with which the administrator or Intendant of the armies of the Empire was identified in times of Ancient Rome. It is also believed that it comes from the word loger, of French origin, whose meaning is to inhabit or to lodge. The United States and Western Europe carried goods from one place to another favored production and also consumption. -
Military logistics
Origin of the logistics in the military camps, the events related to the Second World War stand out. The relationship between military logistics and industrial production begins. -
Conceptualization of logistics
The logistics takes greater importance, being these its main characteristics:
First developments of total cost of the logistic operations.
The concern for customer satisfaction arises. The distribution channels acquire special importance.
You want to sell any product anywhere.
New products increase, as a consequence the product lines are originated. -
Integral logistics
The potential of integral logistics and the awareness of total costs are discovered. The approach of cost as a systemic structure revealed that to reach the lowest total cost, it is not always necessary to cut or eliminate a part of the process, the important thing is to increase the effectiveness with which tasks are performed to eliminate costs. -
Customer Satisfaction
Due to customer demand for better service, logistics performance was improved to improve quality and delivery time, allowing companies to position themselves better and achieve a competitive advantage. This new concept was called cost-services equilibrium. -
Container entry to logistics
Invention of the sea container – structural evolution of world trade and the boom of international flows of goods. -
Foundation of the organization Council Logistics Management
It is founded the professional organization of logistics managers, teachers and professionals CLM (Council logistics Management), with the aim of capturing the essence of the management or direction of logistics in trade and business. -
The company sees logistics as important
Companies begin to focus and specialize in logistics, making it their only economic activity, so their specialization led to reduce the costs of it. This encouraged companies whose commercial turn is not logistics to turn to these companies that are, because their subcontracting represented a lower cost to do for themselves. This means that this era was characterized by the outsourcing of organizations. -
Just in time
Just in time: JIT manufacturing is one of the main concepts of the Toyota production system. Alberto Villaseñor, Director of the CCI-ITESM-CSN Manufacturing Center defines the JIT production system as producing the type of units required, in the required time and in the required quantities. Just-in-Time eliminates unnecessary inventories both in process and in finished products and allows you to quickly adapt to changes in demand. -
The concept of logistics to test
Customer service becomes a prerequisite for continuing to compete with market leaders.
Advances in the concept of physical distribution.
Periods of recession and growth in the world economy are originated.
Development of inventory management strategy. -
Consolidation of logistics
Logistics are consolidated as a consequence of the uncertainty generated by the economic recession characteristic of the decade. Management of the entire distribution process becomes indispensable. -
Zero defects
This quality improvement program has as its main objective that things get done right the first time. It breaks a certain way with the product error detection system and certain manufacturing systems, as everything must be perfect from the very first moment. -
Quick Response
Quick response: A commercial strategy to reduce inventory in the chain and shorten the cycle time of making, distributing and selling a product. Point of sale information is electronically transmitted back to the store supplier who is responsible for the proper supply of the store. -
Definition of logistics by Council Of Logistics Management
The Council of Logistics Management (CLM) defines logistics as: "A part of the supply chain process that plans, implements and controls the efficient and effective flow and storage of goods, services and related information from the point of origin to the point of consumption in order to satisfy customer requirements". -
Promotion of logistics
At the end of the twentieth century large companies obtain more benefits and reduce their expenses more than a small company. - Technology continues to position itself in conventional logistics processes and distribution channels. - Outsourcing of services - The demand for logistics services expands. -
Processes comprising logistics
Logistics in theory includes the strategy processes of planning, sourcing, manufacturing, movement or distribution and sale, from suppliers to customers that allows optimization on the variables that determine a competitive advantage, whether cost, flexibility, quality, service and innovation through the maximum integration of its organizational structure. -
ERP
(Enterprise Resource Planning System) For this period was not enough outsourcing of organizations, companies needed to employ the concept of just in time in orders, this means that the exact amount would be delivered, at the exact time, in the exact time that was necessary. -
conclusion
We can conclude with the great importance of logistics that matters in the commercial area to transport, reduce costs and other factors that are included in international negotiations and with the importance of each stage to have a prior knowledge of the history of logistics .
