Published 07 May 2022
Supporting Activities of Logistics
Production planning is differentiated as packaging, facility (location) selection, storage and purchasing as well as other supporting activities. These activities are described below.
Detailed Transportation Services:
Although transportation is the main service area of the logistics industry, transportation, which is considered within the scope of supporting logistics activities, includes all other details that companies need in this process, rather than the standard transportation of cargo from one region to another. All services provided for the delivery of the cargo to be transferred during transportation from one point, to take all necessary security measures during the transfer and delivering the cargo on time are considered within the scope of transportation services. The preparation of the documents needed during transportation will also prevent the complications that may be experienced.
Production planning ensures that the available resources are used effectively in order to meet the product need in the market. Therefore, it is closely related to the concept in question. The aim here is to produce the product in the desired quantity, time and quality in order to meet the anticipated demand or the orders placed for a particular product. At this point, production planning is the planning process related to the effective and regular organization and integration of production inputs such as manpower, raw materials and materials, machinery and tools so that the products can be produced efficiently at the requested amount and at the desired time. Its success is highly dependent on production planning and scheduling.
From a technical point of view, packaging means ensuring that products are protected with the most suitable material that can best meet consumer needs and cost-effectively. In other words, packaging; is the covering of the products with a partially or completely disposable material that protects the products, and facilitates their transportation, storage, sale and use124. The rise in consumer values, electronic business applications, cost reduction, supply chain management, environmental issues and globalization will confront businesses as key trends and forces in the packaging industry over the next decade125.
Facility (Location) Selection
An important decision point among the logistics functions is the determination of spatial locations such as factories and warehouses in order to carry out logistics activities effectively. Taking the materials to be used in production into the production process and transferring the produced products to the market in order to present them to the consumers brings forward various forms of transportation. Access to transportation facilities at the desired time, extent and place are issues that can provide a separate advantage to businesses. In addition, transportation costs vary according to region. All these situations are among the issues to be considered in terms of facility location127.
The main purpose of the storage activity, which ensures that the goods are protected under suitable conditions from production to sale, is to create time utility and to balance supply and demand. Warehousing has a significant impact on the efficient execution of the logistics process. There is a great need for warehousing in the logistics process. The main reasons for this requirement are as follows:
• Some goods are produced seasonally but are consumed throughout the year,
• Some goods are produced regularly but consumed seasonally,
• Goods are stored in order to protect them from possible shortages or due to expected price increases,
• Storage is made in order to benefit from quantity or price discounts,
• Perishable goods are stored before being shipped to the market129.
Storage activities, which are of great importance in terms of reducing transportation and production costs, balancing supply and demand, and contributing to the production and marketing process, include the selection of the warehouse location and the determination of the warehouse layout130.
Customer service is one of the most important factors that increase or decrease the value of a company on the consumers' side. For this reason, it is aimed to further improve and reach the best levels of communication between customers and businesses around the world.