The Importance of Logistics Management

When the carriage has broken many will tell you where it should not be passing General, concept and basic considerations Many companies have neglected the relevance, importance, scope of logistics management and logistics business, which she represents on behalf of its projection, costs , efficiency, customer service focus. We believe that it is necessary that management will identify more with the relevance, importance of logistics that is favorable in achieving goals. Taking into account what is stated above that companies should be able to understand success today has much to do with the emphasis placed on logistics. There is a consensus that the route to development is the raid on the outside, keep in mind that the export business will be successful to the extent that businesses to achieve focus some of their competitive advantage around their ability to manage and logistics operation. Indeed, it is not surprising that logistics management is becoming increasingly important in organizations, and that it includes functions such as planning, organizing, controlling and execution of materials from the start of an activity to surrender, while looking for maximum customer satisfaction at lowest possible cost.

Very important navactiva points out that in the past, logistics lacked any strategy, and companies put their output on the market by the method "push?. Thus, the demand forecasting, and, according to results , were placed products. In many cases, companies produced more than required by the public and its stock was "depressed? to the market, believing that the supply would equal demand. However, the market was not able to consume such quantities, and the customer was not satisfied, because their tastes and preferences were not taken into account. It produced the so-called "bullwhip effect?: More production, more stock and less service. Relations with utility companies, on the other hand, were not optimally exploited. The companies ultimately were not aware that improving relations with both suppliers and end customers with the means to achieve a higher turnover and lower costs.

Currently meet the actual demand of the consuming public is the primary goal of most businesses, while minimizing the time of delivery, quantity of goods stored and costs. To accomplish these goals many use the method of logistics management called "pull?. Under this system, market demands dictate the operation of companies, including logistics. The production is now based on actual demands that provide insight, for example, who will be the ultimate consumer of a product that is starting to build. Economies of scale has been moved to a more limited production, which reduces the stocks in the warehouses and costs required to keep. However, the market was not able to consume such quantities, and the customer was not satisfied, since their tastes and preferences were not taken into account. It produced the so-called "bullwhip effect?: More production, more stock and less service is true that many companies, especially SMEs in the Venezuelan case you have neglected the importance of good logistics, much of this product the absence of a good organizational culture, not to consider its scope, that it represents, plus some with not having the means to optimize its function.

Unaware of some managers, who coordinates the logistics and plan different activities in order that the product reaches its end user in time, properly and cost-effectively as possible and Dr. David Simchi-Levi, a prolific researcher in logistics and professor at the Massachusetts Institute of Technology, logistics define clearly and precisely as "a set of approaches used to efficiently integrate suppliers, manufacturers, warehouses and stores so that merchandise is produced and distributed in the right quantities, to the right places, and at the right time in order to minimize the overall costs of the system, while meeting the service level requirements.? Not surprisingly, the comment also that logistics mission is to place the products in accordance with the appropriate parameters of quality and quantity, in order to avoid shortages. However, the problem arises when resources enter the market in abundance. The idea is to compensate for this error with the greatest possible economy. Avoid complicated processes when producing and distributing the product, the simplicity of action planning is ideal.Asimismo logistics, the logistics system must be able to adapt to different circumstances, changing situations, for there to be required of flexibility.

You must also properly coordinate the many diverse activities that comprise, in order to meet market demands immediately. The logistics functions as a cycle in which the producer, distributor and end user up a gear indestructible. If any of them lack the logistical flow breaks. This is precisely what we must avoid. Perez Valietti invites us to consider, today, the logistics involved in almost all stages of product life, and Logistics Policy is a major concern of the main directions of the Company: Purchasing Department, Directorate of producing, directing Commerce. The logistics manager activity is designed to make the right decisions concerning the means used in a universe of complex requirements, which include human needs, physical, geographical and environmental ... The logistics manager simplifies and continuously improve the processes of sourcing, production and distribution in order to reduce costs or delivery to the customer. In an earlier stage to a later stage, the Supply Chain has been below the rank of a fundamental process, strategic for the company.

It has become as important as the other major process of customer-oriented company, which is the Design Process, which allows to develop product offerings based on the information on market demand. Of course, once the management enters the scope and impact of logistics, determine its relevance and all the benefits it can generate, such as: To comply with market requirements increase competitiveness optimize costs, both for suppliers and customers effectively plan internal and external activities of the company to plan strategically to avoid unexpected situations Streamline procurement activities of the finished product will definitely not be forgotten that logistics is essential for trade. The logistics are the bridge between production and markets that are separated by time and distance. * References: Different Web pages D.M. Lambert, M. Cooper, J. D. Pagh, "Supply Chain Management: Implementation Issues and Research Opportunities, The International Journal of Logistics Management. Vol.9, No. 2, pp. 1-19, 1998