How To Better Understand The Logistics Cycle

How To Better Understand The Logistics Cycle

Logistics Cycle.

In the world of logistics, there are some easily identifiable cycles that make sure the beginning, the process and the results of proper logistics chain work efficiently. Each one of them complements the other in order to maintain a working order and that is how they become each a prerequisite of the other, meaning that each activity from customer service to the choice of product, quantification, and procurement and even inventory registry depend on each other and will be affected if something doesn’t go according to plan in other steps of the cycle.

In order to properly run a logistics cycle, it is important to perform each or its components in an organized and correct manner and thus get positive results. There are support functions within the cycle that assure that it is being done properly and it is functioning correctly and those are according to the personnel, the budget, supervision, and evaluation. Each one of these factors from which other items derive from are necessary for the process of correct and effective logistics.

Main activities in the logistics cycle

Customer Service: The main service that must be offered to the customer is the effectiveness of the other cycles and the activities that take place during those cycles. That is the best obvious way to service customers with a great product and it’s guaranteed efficiency. People who work in logistics know the importance of making a product, storing and distributing it adequately and with enough efficiency to meet the customer’s needs. This is where the correct logistics model begins to take place.

Choosing the product: Product selection is without a doubt the main focus of this level of logistics because from this aspect is where the quality of labor and the great quality of the product begin and those aspects are the ones that most interests the customer. When choosing a product, it must be properly classified according to the quality and the special care it needs in order to store and transport it to its final destination.

Quantification and procurement: In this process, the quantity and cost of necessary products are estimated right after choosing them. Procurement is done through bigger entities that distribute product to those who purchase and so that is why is necessary to consider all aspects within the cycle and make sure they are functioning properly in order to check, direct and complete products before delivering and receiving with satisfaction.

Functions within the logistic cycle

Organization: First things first; in order to have great personnel and a proper organization, your people must be trained to run the logistics cycle correctly because this can only happen with a competent and efficient human component. Employees must be able to create orders, identify the standard of the products throughout the whole process and provide that product to consumers.

Budget: This is fundamental during the entire logistics process and it is absolutely necessary that it is managed in an effective manner because assigning budget affects directly every process of the entire cycle. Everything starts with the selection of good products, having the space available for storage, hiring the right transportation, distributors, and personnel to supervise and make sure everything runs smoothly. When it comes time to determine the cost of products, it is important to keep in mind the requirements this entire process has and how that factors into the delivery of satisfactory goods to the customer.

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Supervision and evaluation: Personnel working inside the logistics cycle allows for a correct optimization of the processes that ensure a correct logistics. The must follow the process without any issues and create strategies and plans that can help anticipate necessary changes and at the same time perform routine checks the make sure the standards are being applied and followed. Continuous training of the team is also necessary to avoid any type of issues and to know what to do when such issues do arise. The system must be constantly evaluated and monitored in order to defined areas that need improvement and immediate changes that are needed as well.

Adaptability: In every successful logistics system, adaptability is right at the beginning of the list of main factors that make the system function. Logistics systems must be designed in a way they are flexible and easily replace if and when they become obsolete. It would not be cost efficient or logical to design a new system every time a new product appears or when production slows down, it is important to put in place a system that is easily adaptable while being able to procure the necessary resources to stay prepared to change along with supply and demand. All of this is done with the purpose of having contingencies in place that while ideally should never have to be used, are ready and have been proven effective in case it becomes necessary to make adjustments.

For more great insights in logistics and how to better manage your supply chain, check out our articles at David Kiger’s Blog.

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