When we talk about logistics there are fundamental definitions that are constantly repeated, nowadays it is very important that you have well defined and identified some concepts because with the increase of e-commerce and the digitalization of companies, knowing about logistics has become essential.
Before starting with the fundamental concepts, it is necessary to define what logistics is. Logistics refers to the management of commercial goods from the transportation phase to the distribution to the final customer; this involves inventory, transportation, packaging, labeling, delivery and returns.
This is the closest combination of traditional logistics and online commerce; it makes use of the latest technologies to provide the customer with a more efficient service. E-logistics uses digital information and storage systems that allow a better organization in e-commerce and create the possibility of distributing the products, reducing costs, and increasing the speed of delivery.
Logistics chain or supply chain
It is the flow of goods and information from the point of origin to the point of destination, this chain is formed by customers, suppliers and the appropriate procedures for the product to be delivered and produced at the right time and place.
This is the number of products or materials in a warehouse when they are destined to be delivered to customers. Inventory or stock is the detailed and ordered list of goods at a given time, its management involves costs and is therefore considered an asset.
Flow of materials
This is the physical handling of materials, also known as goods turnover, and consists of understanding how raw materials and products are moved in the company’s warehouses. The rotation of materials has three units, the input, internal processing and output.
Picking is the strategic process dedicated to the preparation of orders, it consists of collecting the units of one or several products stored in different locations and unifying them to be delivered in a single package.
Logistics reviews the entire process to eliminate less productive actions such as large displacements; to avoid these problems is to combine several strategies to optimize storage and distribution time.
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