The five elements Entertainment logistics
n this step, we look at the role of each element of logistics often defines logistics activities within the supply chain.
The role of each element of logistics often defines logistics activities within the supply chain.
The problem with definitions and discussions of supply chains is that it is not easy to recognize the role of logistics in them, so the supply chain river is a simple way to relate the role of logistics within the supply chain.
The elements of logistics further help to explain what logistics activities and processes are carried out in the supply chain.
Logistics has five elements:
- Warehousing, storage and material handling
- Packaging and consolidation
- Information and control
What is the role of warehousing, material handling and warehouses in logistics?
It is intended to enable a steady flow of products supplied by manufacturers. Why is this important? Manufacturers need to operate at peak efficiency, but consumers typically do not demand goods at the same speed as the manufacturer supplies them.
There tends to be an imbalance between supply, which is constant, and demand, which can be unpredictable. The answer is to store surplus goods produced by the producer until consumers demand them. For this, warehouse buildings are needed. These need special storage equipment such as shelving or racking and material handling equipment to move them around the warehouse and load and unload delivery vehicles.
What is the role of packaging and unification?
A key definition and one of the Rs of logistics are product care and condition. Packaging is an essential part of this. Consolidation is also important as it helps with storage and transportation. The easiest product to move and store is a cube, so packaging and unification tries to take all the different sizes and shapes of product and pack them as close to a cube shape as possible.
What is the role of inventory?
Inventory is a logistics element closely related to warehousing and storage. It is about what stock to hold, where the warehouse is located and how much stock to hold. Inventory actually controls the flow of goods into and out of the warehouse. How is this achieved? By looking at sales data from past orders and using various mathematical and statistical tools, they try to predict how much goods consumers will demand. Inventory management is not an exact science, but depending on how variable demand can be, it is a useful tool to help manage the flow of goods in the supply chain.
What is the role of transport?
The main element of logistics that most people will recognize is transport. This includes all modes of transport including road vehicles, freight trains, freight shipping and air transport. Without transportation, goods would not be able to move from one stage to another within the supply chain. Some goods with short supply chains, such as food, do not travel very far. Other more complex products consist of many components that can be shipped from all over the world.
What is the role of information and control?
An element of information and control is needed by all elements to act as triggers for various operational procedures. We have mentioned the information needed for the inventory. Order levels help decide which orders need to be picked and packed in warehouses and allow shipping to be planned and organized. The role of information and control is to help design information systems that can guide operational procedures. They are also key in forecasting demand and inventory as mentioned earlier.
If you are trying to determine which parts of the supply chain are logistics, the elements of logistics are an essential tool.
Chapter One: Rushton, A., Croucher, P. & Baker, P. (2017) The Handbook of Logistics & Distribution Management. 6th ed. London: Kogan Page
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