Published 15 Dec 2021
We all know how important organization is in logistics. It is necessary to plan the processes with their details and possibilities, go through these schemes and, if necessary, carry out some controls. Supply logistics also includes the activity processes between suppliers and manufacturers. Let's take a closer look.
What is supply logistics?
Supply logistics is the planning of raw materials, goods and services for the target product to be produced. Materials purchased for a business or organization i.e.
It deals with processes like receiving, transporting, delivering and storing the products to be used in the production line. It is very important for the parties as it aims to keep the service provided at the maximum level by carrying out the procurement process with the fewest errors and implementing it most profitably. Especially for production and sales companies.
Why is supply logistics important?
With its supply logistics function, which handles the processes between supplier and manufacturer, it represents one of the most important links in the supply chain because it shows the starting point of the logistics processes. It creates solutions for the use of resources / raw materials that are required for the manufacture or assembly of the target product, controls and manages these steps. It is therefore imperative to define delivery logistics as the backbone of the supply chain.
The items included in a sales contract include minimum and maximum order quantities, delivery time requirements, delivery expectations, and delivery locations. We see how important the communicative competence of those working in this area is as well as the importance of procurement logistics, which includes contracts and negotiations with material suppliers.
What role does supply logistics play in production costs?
With the right supply logistics management, it is possible to keep spending at the lowest possible level. Since communication is the basis of procurement logistics, the negotiation, as already mentioned, also includes offers and contracts. It reviews all the possibilities and options for the purchase and ensures that the final agreement is reached. Here, too, the solid understanding, persuasiveness and communication skills of experts in supply logistics come into play.
At the same time, thanks to inventory management, planning and storage processes, uncertainties and unforeseen problems can be avoided. This lowers production costs and eliminates the risk of property damage that can occur in the next few links in the supply chain.