Logistics Operations and Supply Chain Management Practices

Logistics Functions

LOGISTICS FUNCTIONS: Customer service, transportation, inventory management, order processing, storage, handling of goods, purchases, packaging, information management.

• Customer service
• Transportation
• Inventory management
• Order processing
• Storage and handling of goods
• Purchases and procurement
• Packaging
• Information management

Personnel and Staffing

PERSONNEL: Account-level operation of supervision and management specialists with the number of staff required. The staff has significant experience in the activity (at least 5 years).

The staff sees possibilities for promotion and professional advancement within the logistics areas. There is a performance evaluation of each employee once a year. There is high participation of workers in the management of the logistics system, for example:

• Decision-making processes for workers at all levels
• High participation in proposals from workers
• Systematic evaluation and implementation of system enhancements
• Promotion of teamwork

Supplies and Supplier Relations

SUPPLIES: Your mission is to supply the company from raw material suppliers and manufacturing system components. The growing interest of management in this area means that new policies are developed in relation to suppliers — moving from a relationship of force to a cooperative relationship that seeks a global optimum.

Procurement Logistics Functions

FUNCTIONS OF PROCUREMENT LOGISTICS:

• Purchasing
• Transport (traffic)
• Reception
• Materials and warehouse management of raw materials and components

Trends in Supply Management

TRENDS IN SUPPLY MANAGEMENT: Flexibility; reduced costs of storage and transport; reduction in the number of suppliers; long contract deadlines; agreed quality and supplier certification; technical assistance from providers; computerization of telecommunications.

Organization and Management

ORGANIZATION AND MANAGEMENT: The structure of the company's logistics management is characterized by dynamism and resilience. There is an evidence base, the staff roles are well defined, and outsourcing is used to ensure a wide range of logistical services.

Transport, Storage and Procedures

TRANSPORT, TECHNOLOGY, STORAGE AND PROCEDURE: The physical and environmental conditions of warehouses ensure the proper conservation of the goods and a rewarding job, with high protection for workers. This protection is reflected in minimal losses and wastage, low freight losses, and high satisfaction with workplace accident and occupational disease prevention.

Internal transport is mechanized to execute all processing operations with unitized loads and loads with permanent identification to maintain smooth business flow within the organization.

External Transport and Handling Technology

EXTERNAL TRANSPORT AND HANDLING TECHNOLOGY: In external transport, transport means are selected to best suit the type of cargo. There is a formalized system of planning and controlling external transport operations. Loading and unloading and internal work in warehouses and workshops are performed in mechanized forms with the necessary equipment (EMDI) available.