What is Logistics?
Logistics refers to all processes covering the journey of a product from the manufacturer to the final consumer. This process includes organizational and management work to ensure that "the right product is available at the right place, at the right time".
Have you ever wondered how the products arrive at your door when you order? All the details behind this process are the job of logistics. Products leave the manufacturer's facilities and move within the logistics network. It is first rested in storage centers, then loaded onto transport vehicles (trucks, ships, planes, etc.). After going through various checks at customs procedures and distribution centers, it is finally delivered at the right address, at the right time.
Logistics manages all these steps meticulously and ensures that the products are transported safely and delivered on time. Each of these processes is part of the complex and detailed organization that logistics carries out in the background. But logistics is not limited to individual orders only; It also plays an important role in wholesale sales. Large-scale purchases and distributions are made possible thanks to the effective management of logistics. When storing, transporting and distributing products in large quantities, logistics optimizes costs and makes processes more efficient. This makes a significant difference in both the supply chain and customer satisfaction.
In short, logistics is a process that perfectly organizes the journey of products from the manufacturer to the final consumer, working in the background to ensure that everything is in its place and on time. At every step, from wholesale to individual orders, the perfect organization of logistics forms the basic building blocks of a successful distribution process.
Historical Development of Logistics
Antiquity and the Middle Ages
- B.C. 2700s: The construction of the pyramids in ancient Egypt is an early example of large logistics projects. These projects used sophisticated material handling equipment to transport and place stone blocks.
- B.C. 300s: During the campaigns of Alexander the Great, logistics support systems were created. These systems formed the basis for the movement and supply of the army.
- 700s AD: In the construction of the Mosque of Cordoba, materials from various parts of the Islamic Empire were brought to Spain.
- 1200s AD: The Hanseatic League is founded in Hamburg, Germany, and international shipping and trade networks are established.
- 1500s AD: Postal services were established in Europe and the first postal service with specific transit times was organized.
Industrial Revolution and 20th Century
- 1800s: The invention of the steam engine and its use on railroads and ships led to the expansion of logistics tasks and created new economic opportunities.
- 1905: The term logistics was used by Colonel Chauncey B. Baker to describe a military function. During this period, logistics played a critical role in supporting military operations.
World War II and After
- 1940-1960: During World War II, logistics was vital to the effective support of armies. In the post-war period, the concept of logistics began to be applied in the business world.
- 1950-1960: During this period, distribution systems were unplanned and irregular. Businesses began to use logistics terms and integrate their logistics activities.
- 1960-1970: Companies developed marketing strategies to create customer loyalty and the concept of business logistics emerged. During this period, CLM (Council of Logistics Management) was established.
- 1970-1980: The concept of distribution developed and large retail chains created their own distribution networks. Integration across the supply chain has begun to increase.
- 1980-1990: The concept of logistics began to be used by the masses. With the rapid developments in information systems and communication technology, the concept of Supply Chain Management (SCM) has emerged.
- 1985: The concept of Quick Response (QR) emerged in the clothing industry and spread to other sectors. EDI (Electronic Data Interchange) technologies were developed.
1990s and 21st Century
- 1990-2000: Businesses expanded their integrated logistics management activities and ensured the integration of all subsidiaries throughout the supply chain. QR and ECR (Effective Consumer Response) technologies have been developed and have made a huge impact on logistics.
- 2000 and After: Logistics has become an important component of business strategies and a general necessity to achieve competitive advantage. With the development of technology, the concept of e-logistics emerged and the integration of logistics with web-based information communication was achieved.
- Today: Supply chain management is seen as a holistic evaluation of important business processes that extend from the vendor's supplier to the end user. Effective logistics creates a significant competitive advantage for companies expanding in global markets.
Why is Logistics Important?
Logistics is a process that we encounter in every field and forms the backbone of the business world. A small business or a large company cannot run their business effectively without using logistics. Logistics ensures that products and services are delivered to the right place, at the right time and in the right way. In this way, work continues both quickly and reliably. Logistics is an indispensable element to achieve goals such as customer satisfaction, keeping costs under control and providing competitive advantage. Especially in the globalizing world, the impact of logistics has become more evident than ever. Even small businesses must use logistics to best meet customer demands. Therefore, logistics is of great importance for all types of businesses, and good management of these processes directly affects the sustainability of businesses.
What are the Basic Logistics Activities?
The main logistics activities are:
Order Processing : The process of receiving, verifying and processing orders from customers. This phase ensures that orders are processed correctly and fulfilled on time.
Stock Management : It is the process that determines when and how much products will be stored. Inventory management ensures that inventory is kept at the correct level and unnecessary costs are prevented.
Transportation (Freight) : It involves moving products from storage areas to customers. Transportation involves selecting and managing the transportation methods necessary to deliver products safely and on time.
Storage : Creating areas where products are stored safely and can be accessed when necessary. Storage ensures that products are protected and managed in an orderly manner.
Material Transportation : It is the movement of products and materials between different points within the business. This process increases efficiency in the production and distribution stages.
Packaging : It involves packaging products appropriately for transportation and storage. Packaging ensures the safety of products and their delivery without damage.
Logistics Network and Establishment Location Selection : It is the selection of the network structure and strategic locations that determine the effectiveness of logistics processes. Choosing the right network and location optimizes transportation costs and increases the efficiency of processes.
What are the Stages of Logistics?
Logistics is a process that manages the journey of products from production to the consumer, and this process has three basic stages.
Pre-Production Logistics: Pre-production logistics are the preliminary preparations at the beginning of the work. At this stage, the business purchases the materials and raw materials to be used in the production of the products and stores them regularly. You can think of this process as grocery shopping and stocking the kitchen. Just as a chef collects and organizes his ingredients before entering the kitchen and cooking, businesses also obtain the materials they need before starting the production process and store them regularly in warehouses.
Production Logistics: Production logistics involves complex but coordinated movements within the factory. The raw materials purchased by the business are processed step by step during the production process and transformed into final products. This stage resembles a dance show in which all movements inside the factory are in harmony. Raw materials come together, production stages are completed and everything is ensured to proceed correctly. This means that it ensures that everything is in its place and on time.
Post-Production Logistics: Post-production logistics ensures that products are delivered to customers after production is completed. At this stage, finished products are stored, orders are processed and finally delivered to customers at the right time and in the right place. Post-production logistics represents the final step that ensures products arrive at your doorstep. Think of it as a sort of final performance; After passing all the preparation and production stages, the products are delivered to customers with great excitement.
These three stages ensure that logistics operates effectively and efficiently, ensuring that products reach customers at the right time and in the right way. Each of them plays an important role in the life journey of the products and ensures that all processes proceed in an orderly manner.
