Main Components of Logistics System
Logistics is a part of the supply chain that plans, implements, and monitors the processes and operations. Its controls and strengthens efficient, reversible flow of the storage of goods, services, and relationships between one operation to another. To meet consumers’ requirements, the logistics system and supply chain has to make sure all operations are ready and well set. The processes have to match the requirements and the needs of the customers; most importantly, transportation plans have to be safe and secure to protect goods and prevent damages. Logistics describes the whole system, the entire picture of goods and processes they have to go through. From the origin, raw materials are processed and made into final products at the end of the production line. In inbound logistics, the process of products flow as received from suppliers is important. Material management involves movement of materials and products as well as components within a firm. The whole system of logistics involves numbers of operations and factors that will together produce finished goods and services at the end of the productivity line, delivering them to the customers via transportation systems and management.
The main components of logistics system are well-linked; logistics services, information systems, and infrastructure are the main components. Logistics services support the flow of goods and products from one process to another which also includes the manipulation and elimination of wastes when producing products that can turn into defected products. Activities within logistics services include in-house services like those of storage and internal production. Logistics services include both physical and non-physical activities which can ensure production quality and save time. Physical activities such as storage, load, production, and transportation can really push the products onward to the next processes in the productivity line. However, non-physical processes such as selection of contractors and supply chain design can also improve services and enhance product quality without breaking a sweat. Managers and transportation planners must be able to multi-task. Information systems include modeling, tracking, tracing, and management of ideas and decision making plans. Information systems are considered essential when it comes to logistics planning and productivity. Decision planning and future predictions by using original data, past performances, and past results will help businesses in evaluating results in the future. Information systems will provide essential data and consultation for each operation or process; this ability will enhance team work and quality of final products to ensure customer satisfaction. Infrastructure comprises human resources, financial resources, warehouses, transportation, communication, and packaging materials.
Essential Relationship between Logistics and Transportation Systems
Without well-developed transportation systems, businesses would have gone bankrupt. Logistics and the supply chain need well-planned transportation systems in order to transport finished goods to the customers efficiently. Without transportation systems, logistics could not bring its own benefits out to the maximum. Good transportation system and planning can reduce operational costs, costs of transportation, provide efficient logistics services, and promote service or product quality. However, rapid development and improvement of logistics chain and transportation requires great amount of effort, both publicly and privately. According to the investigation of National Council of Physical Distribution Management, transport systems are the most important factors that determine a business’s progress and success. About one third of a business’s expenses are spent on transportation alone; this greatly implies that transportation is indeed essential and considered fixed expenses for all business and therefore, it is important and considerate to ensure that expenses spent on transportation will benefit businesses wisely and will be worth the money paid.