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What does logistics means?

What does logistics means?

Today we hear the word logistics more and more often. This term was initially used in the military field (relating to the movement and supply of armies), later being extended to economic activity and other fields.

Gradually, more and more companies have understood that they need a specialized department to deal with this field of activity, in the last decade becoming aware of the role and importance of logistics in ensuring a high degree of satisfaction of customer requirements and an appropriate level to fulfill the company's objectives.

Logistics can be defined as the process by which the transfer and storage of materials, components and finished products is managed in a strategic manner starting from the suppliers, until the moment the products reach the consumers.

The historical evolution of logistics - the definition of logistics and its role

The term logistics is relatively recent in the economic vocabular of companies, but in other fields logistics has existed for a long time. It was used for the first time in the military field. Military leaders were the first to give a new use to the word logistics. Logistics is seen to be part of the art of war, being considered the practical application of the art of moving troops.

For the military, logistics includes the means and arrangements that allow the application of strategic and tactical plans. Strategy decides the place of action, and logistics brings the troops to that place. Ever since Ancient Rome, the term "logiste" meant the intendant in charge of providing the army with everything needed to wage a war, and the term "logisteo" expressed the administration - the management of the flows necessary for military success, the "logista" being the officer in charge with the organization of the site for the Roman legions.

Applied to the activity of a company, logistics consists of a permanent research, which aims to optimize the existing means in order to control the flow of information, the flow of raw materials, materials and products. All developments in military logistics have been taken up with applications in supply, production and distribution of goods.

The evolution of the logistics concept and practice is not limited to simply replacing the phrase physical distribution with the term logistics. The appearance of logistics, as it is perceived today, was the result of a series of stages that followed each other from the beginning of the 1950s to the present.

The concept of logistics has evolved depending on the economic environment in each country, being the result of a series of stages that have followed each other over the years and up to now.

There are different types of logistics - the breadth and variety of a logistics company's services are represented by party logistics or PL. Third-party logistics, being perhaps the most popular form (3PL). The shipper or company maintains control of the supply chain in a 3PL arrangement, while the 3PL provider looks for ways to streamline the supply chain. 3PLs frequently handle shipping and warehousing, among other things.

Supply chain management (SCM) is an important aspect of every business today. Surprisingly, the first person widely recognized for using SCM is Henry Ford, who designed and built his factories to manage his inventory and transportation as easily as possible.

Later, the term Supply Chain also appears - in 1982, Keith Oliver, a consultant at Booz Allen Hamilton, coined the term "supply chain management" in an interview with the Financial Times. It took some time to catch on with the public. It gained popularity in the mid-1990s, when a number of articles and books were published on the subject. It gained popularity as a management buzzword in the late 1990s, and operations managers began using it in their titles with increasing frequency.

Today logistics has a major importance in the architecture of a company, just like production.

Total Technologies can help you optimize your logistics operations and streamline all your processes through automation. Call our consultants with confidence, who can guide you on the path to automating your warehouse, tel +40 372 317 714.