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What is "Production Logistics"?

Published 18 Dec 2021

What is "Production Logistics"?


What is production?

The term production is a term borrowed from Latin that describes the economic process of manufacturing, manufacturing, manufacturing, processing or processing, in the framework of which workers produce economic or consumer goods from materials.

In terms of business organization, production is an operational function that generates operational services, i.e. goods or services. As a value-added process, production encompasses all processes involved in the provision of services - including all related economic issues. So it is no wonder that the production process with all upstream, downstream and downstream processes is the focus of a company's theoretical production considerations. The essential characteristics of products are the production processes used, whereby a systematization can be carried out according to function-related criteria, individual production-related functions, factor-related criteria or organizational function summary.


What is "Production Logistics"?

The term production logistics as part of production and logistics describes the planning, management and control of internal transport, transhipment and storage processes in business administration. It is closely linked to the other logistics modules. A core of the production logistics is formed by the layout planning.

Production logistics characterize the phase between procurement logistics and sales logistics. Production logistics can be understood to mean the planning, control and implementation of the transport and storage of raw materials, auxiliary materials, operating materials, purchased parts, spare parts, semi-finished and finished products and the related supporting activities within the production system of a company.

The task of production logistics is to control and monitor all stocks and movements of goods within the production sites. Production processes should be supplied with the required production factors in terms of type and quantity as well as spatially and temporally coordinated.

The aim is to ensure the optimal combination between the flow of information, material and value during the continuous improvement of the production process. Improvements, simplifications and savings are to be achieved in the production area.


Procurement logistics

(English. Procurement logistics) describes the entirety of the logistical tasks and measures for the preparation and implementation of the flow of goods from the purchase of goods to the transport to the receipt of goods.

Source: logipedia / Fraunhofer IML


Sales logistics

Logistics includes all tasks for planning, controlling, providing and optimizing processes along the value chain. Sales logistics encompasses the complete consideration of all process processes of the distribution policy that play a role in the transfer of goods. It is therefore also called distribution logistics. Due to the direct connection to the goods transhipment point, the term (sales-side) marketing logistics can also be used for sales logistics.

The task of sales logistics

is the external market supply. It acts as a link between production logistics and the inquiring customer. The basic distribution processes are:

• Administrative order and order processing

• Storage and provision of goods

• Picking

• Packaging and shipping

• Transport and handover

The goal of sales logistics

is a company's long-term livelihood security. By achieving a sustainable competitive advantage, companies want to create a unique selling proposition and achieve above-average success. In general, the main aim is to minimize distribution costs while at the same time maintaining a level of delivery service.