Logistics functions are classified according to various criteria. Below we will look at some of them and truck dispatcher course price.
There are two types of logistics functions: operational and coordination.
Operational logistics functions
The operational functions of logistics include the management of the movement of resources in the field of supply and distribution. For supply, this is manifested, first of all, when moving raw materials and materials. In manufacturing, it is the management of the movement of the product from the initial stage to the final result through all stages of the production process. Distribution management involves the movement of goods from production to consumer.
Logistics coordination functions
Coordination functions consist in identifying the needs of production at all its stages, analyzing the markets in which the organization operates, analyzing the behavior of potential consumers.
There is also another classification, according to which logistics is divided into:
Let’s consider each of the types in more detail.
The systematizing function of logistics is to manage the resources of an economic entity. It is also customary to include the coordination of actions of internal divisions of the enterprise.
For the integrating function of logistics, it is most important to synchronize the processes taking place in each separate department. For production, it is important to coordinate the actions of supply departments, warehouse, sales of finished products and other departments.
The purpose of the regulatory function can be summarized as cost reduction. As part of the function under consideration, all flows within the enterprise are managed to ensure a rational production process.
The resulting logistics function is a kind of final function. It implies timely delivery of the product to the end consumer at the lowest possible cost. It is this function that actually allows you to determine the efficiency of logistics at the enterprise.
Some authors provide a more detailed classification of logistics functions, which looks like this:
Procurement management. The function supports the production process of the organization. This includes determining the raw materials and materials needed for the production process, finding suppliers of the necessary resources, choosing the method of supplying raw materials and materials, etc.
Manufacturing procedure management is also called operational management. This function usually includes the management of material flows within production, reducing the level of inventories, the most optimal production process.
Inventory Management. Within the framework of this function, there is a regulation of stocks of both raw materials and materials, and finished products. It is very important to strike a balance here in order to avoid both a deficit and a surplus for the organization.
Management of transportation processes. The function is key, since in the course of the organization’s activities it is necessary to transport both raw materials and materials, as well as a product. Here the choice of transport, route, organization of transportation and even the place where it is necessary to carry out this transportation is carried out.
Management of ordering procedures. It is very important for an organization to find its consumer and it is equally important to provide him with the opportunity to purchase a product. That is why it is important to work out the order processing system, the moment of providing the service or transferring the goods to the buyer. In fact, this is what affects the quality of customer service and affects the further activities of the company in one area or another.
In addition, the functions of logistics can also include the functions of pricing, ensuring the return of goods, sales of returnable waste, information and computer support, etc.
Thus, in conclusion, it should be noted that logistics functions ensure the coordination of production and distribution, and allows you to determine the effectiveness of logistics processes within the organization.
It should also be borne in mind that virtually all logistics functions pursue a single goal. In addition, practice shows that participants in the logistics process are all employees of the organization, as well as any employee actually involved in the logistics process.