The Logistics Importance

The Logistics Importance

Logistics is defined by the RAE, for its acronym in Spanish (Real Academia Española) as the combination of means and methods needed to carry through the organization of a company or a service, especially of distribution. In the company field it exists multiple definitions about the logistics term that have been develop since the military logistics to the contemporary concept of art and the technique that deals with the organization of the flow of merchandise, energy and information.

Logistics are fundamental for trade. The logistic activities form a system which is the link among the production and the markets that are separated by time and distance. The company logistics, by means of logistic administration and the chain supplies, covers the paperwork and planning of the activities of the purchase, production, transportation, warehousing, support and distribution departments.

The fundamental mission of the company logistics is to place the appropriate products (good and services) in a correct place the précised moment and the desire conditions contributing a much as possible to profitability. Logistics have as objective the satisfaction of demand in the best service, cost and quality conditions. In order to achieve this objective (surfaces, means of transport, computing) and mobilize both human and financial resources that are appropriate.

To guarantee the service quality, it means, the acceptance with the clients requirements, gives an advantages to the company. By doing it with a low cost allows it to improve the profit margin of the company. To achieve it by guaranteeing the security allows the company avoid penalties, but communicating contemporary topics such as: the respect to the environment, the ethic products, etc. these three parameters allow to explain the strategic character of the logistics function in many companies (the pressure of the surrounding creates the function). Nowadays the logistics directors are members of the committees of direction of companies and report the stockholders.

The responsible territory of logistics is varied: operational (execution), tactical (company organization) and strategic (strategic plans, futurology, responsibility and knowledge).