Processes-more-important-of-the-logistics-Logistics, as mentioned above, is composed of a series

of activities or processes, which together and developed in an efficient manner, should result in an
optimal product or service, delivered to the client in the place and time stipulated. Generally
speaking, there are five processes through which the quality of logistics can be measured.

The proper management of these processes is achieved if the most relevant activities are taken
into account or properly managed, combined with some logistical practices and adequate
technological and computer support.

In this way, it is considered that the structuring of a logistics process must have very clearly
developed the five operations that are presented below: Purchasing, Customer Service, Inventory
Management, Storage and Transportation.

in the subject they speak of less

processes, the majority indicates that there are five that mainly make up the logistics:

Purchases

This process is part of the procurement stage in which you determine what materials, supplies and
raw materials are needed to manufacture the goods you sell, or buy finished products to sell or
offer services, as well as who will be the suppliers (depending on prices, delivery times, guarantee
and means of payment ...).

Purchases are considered one of the key aspects for the profitability of the companies, since the
provisioning policy has an enormous importance on the financial needs of the same.

Among the basic functions that are carried out in this department are:
• Panify purchases. It is established in a document called Annual Purchase Plan that covers the
annual budget of the company and includes the amount of material to be acquired and the dates
on which these transactions will be made.

• Selection of suppliers. This is done among all the companies that have the possibility of doing
business with the company; The commercial conditions with these suppliers must also be agreed
upon.

•Ordering. It is made based on the actual purchase needs for the production or sales cycle.

• Control purchases. At the moment in which the supplier sends the required merchandise, you
must attach a mercantile document that certifies the dispatch of the order; who receives the
merchandise signs it to verify that it does not present any anomaly.

Additionally, it is important that companies set certain criteria on prices, which will help identify
and control costs. For example: the average period of permanence of the raw materials or the
merchandise in the warehouse -dependent, to a large extent, of the policy of provisioning and of
the reliability and seriousness of the suppliers and the payment term, are fundamental for the
own feasibility of the business project.

When this cycle is completed and the data of the stocks in the warehouse are verified after the
entry of the new materials, the purchase planning update is carried out and the consumption is
expected to generate new orders.

Proper management of supply can give a better competitive position to the organization, taking
into account principles such as: that acquisitions must obey the company's particular
requirements; that a detailed analysis of the advantages of the products and services that the
provider is offering is needed; that the buyer is the one who decides what to acquire and when to
do it, this with the full knowledge of market trends (supply - demand) and prices ...

• A purchase is made with the supplier that offers the most favorable terms for an item that has
the same quality, quantity, price and delivery date.

• An efficient buyer must anticipate the future evolution of the market.

• The person in charge of the purchases must keep in mind the service or product that is going to
be acquired.

• Price - Quantity – Quality

Customer service

This has become one of the most important areas of logistics. It is defined as the set of
interconnected activities offered by a supplier for the customer to obtain their orders at the
indicated time and place. It can also be said that customer service is a very powerful marketing
tool because a well-served consumer is a satisfied, faithful user who will buy back in the future.

It is important that the company compares with its main competitors to detect real opportunities
to improve and scale positions in the market.

The elements of customer service are:

• Quick contact and without setbacks.

• Acquisition of the order quickly and effectively

• Delivery of the merchandise in the established times.

• Infrastructure necessary for logistics operations.

• Management of complaints and compliments.

Customer Service - within the supply chain - as a process, covers the entire cycle of the order from
its birth to its end, and includes the following subprocesses:

1. Generation of the order.

2. Acquisition of the order.

3. Processing of the order.

4. Delivery of the order.

5. Collection.

The goal is to have "transparent" orders, which must flow quickly, without errors, without
stopping and without being manipulated from the beginning to the end, to guarantee speed in
delivery, decrease of failures, reduction of billing errors, elimination of re-processes, reduction of
the cost of serving an order, quality of orders and perfect deliveries.

The total management of the order must guarantee that the subprocesses - from the generation
of the order until the payment is made - happen in chronological and sequential order, providing
the organization with reliable information in real time that allows us to have control and the
adequate levels on the resources invested in working capital.

Good logistics materialized with good customer service can become a promotional element for
sales, with as much power as advertising, discounts, or personal sales.

Capturing new users is almost six times more expensive than maintaining one; Due to this,
companies have begun to strive to provide excellent service. It has been shown that consumers
are very sensitive to the service they receive from their suppliers; a reliable and fast supplier
means lower costs for customers.

Inventory management

Another process that stands out in logistics is related to the control and management of stocks of
certain products; In this management, strategies and methods are applied that make the
possession of these goods profitable and productive. Additionally, it allows the evaluation of the
entry and exit procedures of said articles.

Within the management of inventories, three fundamental operations are included:

• Custody of stocks. It refers to the processes that are needed to consolidate the data related to
the physical stocks of the goods to be controlled. It is possible to detail these tasks as follows:
• Physical taking of inventories.

• Inventory audit.

• Analysis of the reception and sales processes.

•Cycle counts.

• Analysis of inventories. These are all the analyzes and calculations that are made to define if the
stocks that were previously determined are those that should be in the plant, always thinking
about the profitability that these products can generate. For this purpose, the following
methodologies can be applied:

• Just in Time - Just in Time.

• Wilson's Formula (Maximum and Minimum).

• Needs compensation systems

•Production planning. Organizations must produce and / or buy goods to sell, the logistics area
must establish what, how much and when they should be produced and / or buy the products.
Some methods that can be used to carry out this function are:

• MPS (Master Production Plan).

• Establish security inventories according to the desired levels of service

• MRP (Manufacturing Resource Planning).

Storage

It is the function that is in charge of guarding all the merchandise; for this purpose, an inventory
control and custody process must be implemented. This operation physically controls and keeps all
the goods inventoried. When creating the storage strategy, the storage model and the warehouse
management system must be defined.

Leaving aside the fact that storage decisions that can be made should be framed in integrated
distribution operations, you should always consider the Storage Principles that we list below:

• The warehouse is not an isolated entity or independent of the other tasks of the company;
therefore, its planning must be in accordance with its general guidelines and be integrated into the
general planning to be part of its goals.

The management of the warehouses has the essential function of optimizing the physical flows
that are imposed from the areas of supply and manufacturing. On the other hand, the
management has the ability to make a valuation of the stock to control insurance premiums.

Among the functions of the warehouses are:

• Keep materials protected from damage, theft and fire.

• Allow authorized personnel to access the materials and finished products that are stored.
• Constantly inform the purchasing area about the actual stocks of the materials.

• Carry out the controls of the materials (exits and entrance) meticulously.

• Check that these materials are not used up (minimum - maximum).

• Reduce costs, thus achieving greater efficiency for the company.

• Give movement to the items parked inside the warehouse, covering entry and exit.

• Supervise, control and valorize the internal tasks of the administrative and physical movements.

• Dispatch purchase orders that are issued from customers in the shortest time possible and
without errors.

• Manage the obsolescence of the products generating reports of rotations.

Transport

One of the most outstanding aspects of logistics has to do with transportation, which is
understood as the means to mobilize goods or people from one point to another. Modern
commercial transport is at the service of the public interest and covers all the modes and
infrastructures involved in the flow of materials and the delivery, handling and reception services
of these.

Commercial transportation of goods is classified as cargo service; As has happened in other

regions, in Latin America, transportation is a fundamental factor for the development or delay of
nations.

Generally, six modes of transport are used for the distribution of merchandise:

• Carter.

•Aerial.

• Iron.

• Aquatic.

• Maritime.

• Multimodal (movement of products using two or more different transport modes).

Transportation is essential to unite the products with the market, in the following graphic the
processes that are part of the SCM - Supply Chain Management appear.

Graph No.2

SCM processes
PRINCESITA TE EXTRAÑO Y AMO
CON TODO MI CORAZON …. ☹

Perdóname¡¡¡¡