Logistics System Components

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Logistics System Components

Theoretically, there are 5 components that combine to form a logistics system, which includes:

a. Facility

Structure The facility structure chosen by a company is fundamental to its final logistical output. The number, size, and geographic arrangement of the facilities being operated or used have a direct relationship with the ability to service the company's customers and to its logistics costs.

A realistic assessment of competence indicates that all trade transactions must be developed at specific locations. A company's facility network is a set of locations to which and through which materials and products are lifted. The selection of a series of superior locations (superior) can provide many competitive advantages.

b. Transportation

In a network of facilities, transportation is a chain link. There are 3 aspects of transportation that must be considered because they are related to the logistics system. First is the speed/service time required to move goods from one place to another.

This is important considering that delays in the distribution process result in delayed work at the company level. The second aspect is the aspect of transportation costs. Logistics systems should be designed to minimize transportation costs in relation to overall system costs. The

The third aspect is consistency. Consistency shows the performance of regular times and a fixed place for a number of transportation of goods/materials. The consistency of transport affects both the seller's and the purchaser's supply commitments as well as the risks involved.

c. Procurement of Inventory

The procurement of inventory is calculated based on the amount of customer demand or demand. This is important for overall system cost efficiency.

d. Communication

Communication is often neglected in logistics systems. Lack of quality information can create many problems. The shortcomings are the information received is incorrect, incomplete and the information received is no longer needed or out of date. Thus, fast and accurate communication affects logistical performance.

e. Handling and Storage

In a broad sense, handling and storage include movement, packaging, and packaging (containerization). Storage of materials incurs a lot of logistical costs in terms of expenses for operations, so the less product handled in the entire process the more limited and efficient the total physical flow is.

f. Maintenance of Information

Collects information, stores and manipulates performs data analysis, and establishes control procedures.

Thus an article about Logistics System Components. Hopefully it will be useful to you.