Logistics - what is it in simple words, what functions and tasks does it perform + 8 criteria for choosing a logistics company

Hello, dear readers of the business magazine "site"! Today we will talk about logistics - what it is in simple terms, what tasks and goals it has, and also give advice on how to choose a logistics company.

In the modern world, the issue of cargo transportation is an integral part of the work of any enterprise. Properly organized delivery allows you to save the resources of the organization in the conduct of commercial activities. Perhaps there is no such area where such services are absolutely not needed. These and many other tasks are solved by properly conducted logistics policy.

Modern universities train narrow specialists in this field, and the science of logistics itself reveals the secrets of a successful business and teaches how to optimize the flow of materials, funds and information.

From this article you will learn:

• What is logistics and what are its tasks;
• What types of logistics are there;
• How to choose the right transport company for cooperation;
• On the specifics of Russian logistics and the logistics profession itself.

This article will be useful for beginners logisticians, business representatives who want to optimize the transport process, organize logistics control within the enterprise itself (for example, a system business), and also choose the right partner for long-term and profitable work in the field of delivery and freight forwarding.

Do you want to get acquainted with all the intricacies of logistics science? Then read about it right now!

About logistics - what it is and what functions and tasks it has, how to choose a logistics company and who is a logistician - read on

Logistics is modeling, control And rationalization process transfer of goods , services or information from supplier to consumer. It can be assessed as a strategic management of the supply process. Logistic control is aimed at reducing costs in the implementation or transfer of material, financial and information flows.

The logistic structure can be represented by the following processes:

• management by the buyer or consumer, in order to minimize costs;
• management by the supplier, aimed at increasing the profitability of the supply.

The logistics management process cannot be reduced to one permanent action, it includes several aspects at once:

• execution of contracts;
• inventory management system;
• product delivery scheme;
• close communication with customs authorities;
• market demand monitoring;
• And so on.

To optimize this process, a variety of logistics models are used at various stages. Some of these models can be attributed to marketing, but they all come down to the ultimate goal - increase the profitability of commercial activities.

Logistics, as an independent area, arose due to a number of difficulties, related to the delivery of goods.

There are specialized logistics organizations that are approached by entrepreneurs and legal entities that do not have their own logistics department.

Although, in fact, logistics arose a long time ago. Even in the days of an agrarian society, there was international trade, and its participants tried to reduce the cost of transporting goods. In modern economic conditions and the industrial scale of production, logistics has reached a new level.

Logistics costs are one of the largest items in determining the cost of production.

2. Tasks, functions and goals of logistics

The subject of logistics science is the state material, financial or information resources at various levels in a particular system and optimization of their flows.

The purpose of logistics is to increase the efficiency of the economic system, through the management of logistics processes.

Logistics tasks include:

• commodity flow management;
• development of a system for managing the flow of goods, services and information;
• monitoring the market and identifying demand for materials and goods, forecasting the future situation on the market.

Logistics includes the following concepts:

logistics operation– operations aimed at changing material flows or service flows.

Logistics system is a system for planning and implementing all logistics operations.

In modern science, logistics systems are divided into:

• direct (establish a connection between the supplier and the consumer);
• intermediary (include at least one additional participant).

material flow- an object of logistical actions, which is measured by physical indicators of weight, size and time.

Logistics function- actions aimed at improving the efficiency of work at a particular stage of the logistics process.

Among them are:

• transport services;
• product storage;
• purchase of goods;
• stock creation.

Logistics costs- expenses associated with the conduct and execution of logistics operations. They can become components of marketing costs or be included in the cost of production.

In fact, the formation of a logistics system is a balancing of production interests and ensuring liquidity.

The efficiency of the logistics system directly depends on the volume of stocks available to the organization, which can be presented in the form of a comparative table:

From this table it can be seen that the amount of stock of the enterprise determines that the operation of the logistics system is related to the amount of resources of the enterprise.

3. The concept and main types of logistics - the 7 most popular types

The process of logistics management includes various components that provide optimal results for this system. Based on this, several types of logistics can be distinguished.

1) Transport logistics (Transport logistics)

Determination of the most profitable route for the movement of funds, ensuring the transfer of material resources in the required amount and the required time from one point to another, with the aim of further processing, redistribution or consumption of these resources.

2) Customs logistics

Implementation of control over the material flow passing through state borders.

Customs logistics allows you to solve several problems at once:

• carrying out the transportation of goods;
• obtaining the necessary certificates for imported goods;
• registration of customs documentation;
• assessment of the cost, condition and compliance with customs requirements of the cargo;
• accompaniment of the further movement of cargo that has passed the customs border;
• ensuring compliance with currency legislation.

Customs logistics obliges to take into account the legal customs requirements and the costs associated with their implementation.

3) Production logistics

When production resources go through several stages within the enterprise itself in the process of creation and processing, it is necessary to establish control over this process in order to optimize it.

This is done by production logistics, by solving the following tasks:

• coordination of work schedules carried out in various production units;
• compliance with the deadlines for the performance of work by all departments of the processes of purchasing resources and selling products;
• identification of consumer needs in order to effectively plan the production process;
• quick response to failures in production, its adjustment and control over the fulfillment of tasks within the specified time frame.

4) Inventory logistics

The main task of inventory logistics is to establish a continuous uninterrupted process of production and sale of the product. Its solution is carried out by monitoring the available stocks of goods and production resources, taking into account risks, seasonal specifics and constancy of supplies.

5) Purchasing logistics (Supply logistics)

It controls the movement of material flows that provide the production process with the necessary resources. It includes the supply of production, the supply of materials, their storage until they are released into production.

The need for supply logistics is determined by:

• The lack of coordination in the supply process inevitably entails downtime in production. It is necessary to control purchases in terms of quantity, quality, organization of supplies, package integrity and assortment.
• More than half of the cost of manufactured goods is created in the process of supply.

To increase and maintain the required level of business competitiveness, the organization of supply logistics is mandatory. To do this, a constant monitoring of the state of the market for purchased materials is carried out and the profitability of purchases or self-production of the necessary raw materials is determined.

6) Information logistics

This direction of logistics deals with the control and coordination of data flows that go in addition to the material. In relation to the enterprise itself, such flows can be divided into domestic And external and within the organization horizontal And vertical.

The provisions of information logistics are determined by internal regulations on the workflow at the enterprise.

In cases of desynchronization of material and informational movement, important so that the information does not go ahead of the material.

If it is impossible to synchronize the material and information flows, it is desirable that the information flow is somewhat ahead of the material one.

7) Warehouse logistics

This type of logistics is aimed at controlling the work of the warehouse - acceptance, storage, issuance of materials. It also defines issues such as the optimal location of warehouses and warehouse accounting, which directly affects the assessment of the cost of production in accounting.

Warehouse Logistics also solves the problems of organizing warehouse management, optimizing the placement of warehouses. The nature of inventory management can affect the accounting estimate of the cost.

Logistics company - the main criteria for choosing a logistician. company

4. How to choose a logistics company - TOP-8 selection criteria

The Russian market of logistics services is represented by many companies. There are no monopolies and high competition, but the quality of the services provided is not always of the proper level.

There are several criteria, which should be used when choosing such a company, even in a little-studied region.

Criterion 1. The carrier must have its own fleet, otherwise it is an intermediary, which will increase the cost of transportation. Ask the company whether it even intends to seriously provide services or the company provides only intermediary services.

Criterion 2. The carrier company must provide guarantees. The contract must specify the exact time of delivery of the goods and the time in transit.

Criterion 3. If the company does not have its own fleet or it is not enough, the use of the services of transport companies is necessary. But, even if you have your own means of transportation, it makes sense to estimate the costs, perhaps delivery by a logistics company will be cheaper.

The fact is that those companies that specialize in transportation have more opportunities in this area due to cost savings, through the formation of groupage cargo in one direction and preferences for the wholesale purchase of fuel, vehicle maintenance, and so on.

Criterion 4. Carrier liability insurance is an important aspect that allows you to get guarantees for the safety of the cargo or compensation for damage in the event of an insured event.

Criterion 5. It is necessary to compare the conditions and cost of several carriers at once.

Criterion 6. The ability of a logistics firm to handle non-standard orders speaks volumes about its seriousness. It is possible to conclude an additional agreement on the provision of alternative transport, in case of emergency, it goes without saying that the tariff will be higher.

Criterion 7. It is important to read reviews about the work of the company via the Internet.

Criterion 8. Particular attention should be paid when using additional services of a customs broker. Documentation errors can significantly delay deliveries.

5. Main problems and features of Russian logistics

In Russia, the situation in the field of logistics is not the most favorable. This is due to climatic conditions, long distances, the condition of the road surface and the technical capabilities of transport.

Transportation costs in the Russian Federation are much higher than the world average and amount to about 20% of GDP, this is primarily due to the specifics of the actions of the Russian Federation in the international market as one of the largest suppliers of raw materials, as well as territorial dimensions.

Russia has a number of problems in the field of logistics:

• high level of prices for storage and unloading services;
• the hidden nature of many costs;
• non-execution of the parties to the contract;
• unstable market conditions and inefficient sales planning;
• poor development of transport infrastructure, limiting economic growth to a limit of 4% per year, at best;
• limited number of suppliers;
• shortage of qualified personnel and, as a result, erroneous logistic models;
• difficult natural conditions in most regions.

Due to the crisis, many logistics systems are being reduced, which leads to a decrease in the profitability of many sectors of the country's economy. However, in the face of reduced competition, there are more “strong” firms that are able to maintain an appropriate level of logistics services provided and occupy vacant niches in the market.

6. Who provides logistics services - an overview of the TOP-5 companies in the Russian market of logistics services

There are many private carriers and large logistics companies on the Russian market, capable of providing a wide range of services and operating throughout the country or most regions.

1) Business lines

The largest transport and logistics company in Russia. It has been operating throughout the country for more than 12 years and provides a variety of services in the field of logistics:

• road, rail and air transportation;
• transportation by separate transport;
• the presence of branches and points of delivery of goods in most regions of Russia, Kazakhstan and Belarus;
• groupage cargo transportation;
• availability of services for fast delivery of goods;
• the possibility of observing the temperature regime of transportation with the help of specialized equipment on a special flight;
• cargo tracking and alert system;

This company cares about the peace of mind of customers and controls the quality of service, guarantees and insurance services are provided.

2) PEC

This company operates throughout the country and has more than 100 representative offices, constantly expanding.

For more than 10 years, PEC has been improving the quality of services and their diversity:

• targeted delivery of cargo and collection from the client;
• a system for informing customers about the intersection of key points along the route;
• variety of packaging of transported material;
• loading and unloading of delivered goods.

3) Delko

The company has been operating for more than 17 years, has more than 1000 vehicles and delivers any cargo weighing up to 20 tons by various vehicles in Russia and Kazakhstan:

• refrigerated semi-trailers (mode ±20C);
• semi-trailers with an awning - 90 m3;
• tent semi-trailers 110 m3 (16.5 m, 40 pallets) using bunk.

4) TTG

The company has been operating for about 5 years in Russia and the CIS, transporting goods from 0.5 to 20 tons, and has more than 5,000 units of various equipment, which allows you to quickly load vehicles in any region of the country and just as quickly find a replacement if necessary.

In ATI's electronic database of carriers, TTG has the highest rating and several hundred positive customer reviews. The company was awarded the "Guarantor of Quality and Reliability"-2014 award and provides its services to many large customers on an ongoing basis.

5) DA-TRANS

This company provides both logistics and forwarding services in full. Transportations are carried out throughout the territory of the Russian Federation, including the Crimean peninsula, as well as to the CIS countries - Armenia, Kazakhstan, Belarus. There is a possibility of delivery "to the door" of the client. Cargoes from 500 kg or 2 m³ in volume are accepted for transportation and are delivered both by separate transport and by a combined vehicle. Oversized cargo and cargo with the requirement to comply with the temperature regime are also accepted for work.

The company's specialists optimize cargo routes, having complete data on the state of the route, road repairs and traffic jams, which helps to reduce transportation costs.

The calculation of the amount of payment for transportation in any of the directions is calculated in 15 minutes.

7. What is the difference between forwarding and logistics

Forwarding activity is an integral part of the work of a logistician, but it is limited only to the coordination of the movement of goods, escort and delivery to the destination.

Logistics, in itself, is a broader concept. It implies the optimization of material and information flows in parallel with forwarding activities.

The full range of freight forwarding services includes:

• cargo pickup, transportation and delivery to the destination
• loading and unloading of goods;
• control of payment for transportation;
• registration of necessary documents;
• possible services of a customs broker;
• informing the parties to the agreement about the route and stage of cargo movement
• And so on.

I.e, forwarding activity This is just one part of logistics.

8. Logistician - what kind of profession is this or who is a logistician

A person engaged in logistics activities is referred to as "logist" (logistician).

logistics is responsible for optimizing product sales flows by performing various tasks to rationalize and improve the efficiency of material and information flows in a time-limited environment and specify the starting and ending points.

The areas of work of a specialist (manager) in logistics are as follows:

• transportation carried out by more than one vehicle under one contract, called multimodal;
• freight forwarding;
• warehouse management and control of storage of materials;
• control of the material and technical base;
• filling in and submitting the necessary customs documents;
• planning and management within corporate logistics;
• ensuring control over services related to information, reference and service activities;
• marketing control of the distribution of inventory items;
• other.

A successful logistician must master the free use computer programs , such as: 1C , Client bank And others and also be able to quickly find high-quality and reliable information that is relevant at the moment.

A prerequisite for the activity of a logistician is the ability to make forecasts of sales, purchases and possible transport difficulties, to assimilate and apply statistics in daily work.

9. Conclusion + related video

The importance of proper organization of the delivery of goods during the sale, coordination of procurement processes and control over warehouse operations is undeniable. At the same time, it is important to understand what kind of services can provide logistics firm, as well as what logisticians should do within the enterprise.

The efficiency of any business directly depends on costs, including transport operations . For example, when maintaining a product, it is important to understand what part of the cost will be for the delivery of goods, since, as a rule, buyers of Chinese "trend" goods (usually goods with a cost of about $ 10-20) have to spend a third of the cost on delivery.

Nowadays, the Russian market is represented by a wide range of transportation partners and a range of services provided. Equally important are the guarantees that the freight forwarder can provide.

Logistics, as a separate branch of business, appeared relatively recently, however, is already firmly established in the market. At the same time, there are many of its types and directions, which you have already familiarized yourself with in the article.

Now you know how important it is to choose the right partner for transportation, what skills a logistician should have and which companies occupy top positions in the logistics services market.

Dear readers of the magazine "RichPro.ru", we will be grateful to you if you share your wishes, experience and comments on the topic of publication in the comments below.