2007

DEFINING LOGISTICS

HISTORY LOGISTICS

The period of the 50's is the stage where logistics becomes more significance due to the transition go more developed countries with an economy characterized by the excess demand in an economy with supply overshoot. During the age of 50 is allowed to determine the second major stage through the development of logistics, in the year 1950 there lies a new development for the management of logistics or a process for improvement in the processes related to this, is this time will become increasingly important service forecasting sales and production planning, without discarding the focus on minority issues such as storage Materials and protection of reserves or safety stock in the stores, as well as the issue of distribution.
Here are some general factors involved in the evolution of logistics at this time. 1950

Hit the great potential of the logistics and awareness of total costs. The cost approach and structure systemic allowed to reveal that to reach the lowest total cost is not always necessary to minimize any of the components of cost. The discovery of the compromise between costs led to proclaim the "cost-cost balance." 1955

Optimizing customer service through better logistics performance was proposed as a strategy to generate profits and achieve competitive advantage. Now it was the "balance-cost service." Although this concept was introduced in the fifties it was not until the eighties when it was used widely. 1965

Logistics is focused on a new resource outsourcing. The benefits of "balance cost-service" could be obtained by integrating services "multithreaded". This concept was strengthened in practice in the nineties with strategic alliances in logistics, essential for managing global businesses including franchise chains. 1970

At this time there was a new interest in the integration of logistics operations of the company. Reducing the cost of information technology enabled managers to focus more on improving operational quality. At this stage, changed management practices in order just in-time (JIT), ie, accurate delivery with the exact amount, when and where needed, to meet the requirements of each customer. The JIT concept was introduced mainly in manufacturing processes and consolidated in the aeronautics and aerospace, automotive and appliances.

1985 were amended at this stage practices for the management of orders. The JIT approach to reaching the final consumer with strategies QR (Quick Response) and ECR (Efficient Consumer Response) is looking for an accurate delivery with the exact amount, when and where needed, to meet the requirements of each customer. The big distributors, including department stores and supermarkets, led these schemes, given the restrictions of shelf space sales and diversify its suppliers mix offered to the consumer. This led to the overnight were raised the expectations of operational service. Logistics managers also began to measure and report operational performance in financial terms, including measuring the performance of the logistics revenue generation by reducing working capital, and so on.

1995
were developed close relationships with customers, especially with so-called "strategic customers" and more emphasis on forging partnerships with suppliers, all in an effort to increase the logistical control about the company total. This need has grown due to globalization of markets and production. The needs and capabilities of suppliers of materials and services, and special guests, joined the company's strategic planning and the need for dedicated logistics strategic plan. Also at this time it was discovered that the business focus was to replace the attitudes of competition for collaboration and cooperation throughout the supply chain.

2000
There is a clear awareness of the need for a change in management to successfully deal with the logistics management supply chain.

DEFINING LOGISTICS Logistics in military science, improved operations group in support of combat units. Logistics involves the procurement, maintenance and transport of military personnel, supplies and equipment. The complexity of modern warfare requires a vast logistical support in a combat division, one in four men will develop this kind of functions. These include the movement of military forces and their conclusion in relation to food, shelter and health supplies. Logistical support to combat troops from units of supplies, communications and transport. A type of boat supply provides similar support at sea to combat ships. Some

defined logistics as inventory management, others think of it as the transport of goods and others say that logistics is responsible for the goods delivery system. All of them are right. Today, there are many different definitions of Logistics spinning. The likely reason is that it is often used as a generic term covering many different components of the operations and influencing all aspects of the business. In general, integrated logistics is a very extensive system of managing the entire supply chain from raw material to the distribution of consumer goods produced. In a broad concept applies to all phases of product distribution, including all links in the distribution chain, required to bring the product to the customer. Will optimize freight, make sure the products are either transported to calculate waiting times and unloading, storage management and control. The ultimate goal of logistics is to reduce inventory levels and optimize the performance of the entire supply chain.

Logistics, from the standpoint of management is a necessary strategy to comprehensively manage the supply chain in such a manner that achieves the optimal balance between customer needs and available resources of the company and its performance should be measured by the final customer service. About ten years over here, business logistics function has taken hold because markets have become more demanding, integration and globalization is a fact, firms have to compete with companies around the world and must meet the best way to every customer, in addition, the emergence of new information technologies have resulted in shorter lead times and transaction costs, this has forced companies to take more seriously the logistics management if they want remain competitive. The chain consists of five basic elements of any strategy that works like this:

Customer service

Inventories
supplies and distribution transport
storage.

logistics management becomes the main component of the value chain that incorporates the product. Ensures logistics optimization and maintenance of the resources of this chain through information systems shared by all involved in it and through the application of performance indicators which show the levels of inventory, processing times, rotation products in supermarkets.

Division Logistics System.
Like any system, logistics consists of subsystems:

Provisioning Subsystem Subsystem Subsystem Production

Physical Distribution Supply subsystem includes all providers and includes all the processes needed to bring raw materials, parts and acquired in the service parts production subsystem-

Production subsystem comprises: the transformation of raw materials, parts and intermediate or finished products, and associated storage.

Physical Distribution Subsystem responsible for meeting the demands of customers, either directly or through intermediate storage.