Logistics and Chemicals

Logistics and Chemistry With this issue of our publication, we are beginning a new article series. In this series, we will examine logistics and supply chain management, particularly through its applications in the chemical sector. If you wish, let us begin now with the fundamental concepts and origins of logistics.

Fundamental Concepts

Logistics can be thought of as the process of coordinating a series of distinct activities. In 1991, the Council of Logistics Management, a trade organization based in the United States, defined logistics as "the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customer requirements." Of course, this definition represents a more commercial perspective. In fact, logistics was originally a military-based term used to refer to how military personnel obtained, stored, and transported equipment and materials. Logistics refers to the transportation of products or services to a designated location at an agreed-upon time, cost, and conditions. The wars of ancient Rome and Greece form the foundation of today's logistics systems. Rome developed a highly efficient logistics system to supply its legions. Military officials called "logisticians" were responsible for ensuring the supply and allocation of resources so that soldiers could advance efficiently. Throughout the Middle Ages, detailed supply systems, roads, and warehouses were used. Fortresses and castles became warehouses supported by the economy of the surrounding rural areas. During the Industrial Revolution, logistics developed greatly with the addition of railways and ships. World War I further increased industrial capabilities. The internal combustion engine led to the widespread use of motor vehicles. World War II was characterized by dramatic advances in transportation and communications. U.S. shipyards performed at an unprecedented pace to expand maritime commerce (a fleet of U.S. civilian-owned merchant ships engaged in trade or the transportation of goods and services within and outside U.S. navigable waters). After World War II, logistics shifted from warfare to commerce. The physical distribution of products began with a focus on mobilization-ready activities. Loading orders, product distribution, storage and warehousing, production planning, and customer service are now important aspects of the logistics process. Today, the term "Logistics" is now widely used in the business sector, particularly by companies in manufacturing industries, to refer to how resources are handled and transported throughout the supply chain. In the process that began as a way to move products from point A to point B, a massive industry called logistics was born. Many companies now rely on outsourcing some or all of their supply chain management activities, which has led to the development of third-party logistics companies for efficient transportation.

Understanding Logistics in Management and Operations

In simple terms, the purpose of logistics management is to have the right amount of resources or inputs at the right time, deliver them to the right place under the right conditions, and hand them over to the right internal or external customer. An efficient supply chain and effective logistics procedures are necessary to reduce costs and maintain and increase efficiency. Poor logistics leads to untimely deliveries, failure to meet customer needs, and ultimately harm to the business. The concept of business logistics has undergone transformation since the 1960s. With the global expansion of supply chains, the increasing complexity of providing companies with the materials and resources they need has led to a requirement for specialists in supply chain logistics. In the modern era, the technology explosion and the complexity of logistics processes have given rise to logistics management software and specialized logistics-focused firms that accelerate the movement of resources throughout the supply chain. One reason large online retailers dominate the retail environment is the overall innovation and efficiency of their logistics throughout every link of the supply chain. Generally, large retailers or manufacturers own a significant portion of their logistics networks. However, most companies outsource the function to third-party logistics providers (3PLs). These companies specialize in logistics and serve manufacturers, retailers, and other sectors that have large transportation needs. While some have the full range of infrastructure from aircraft to ships and trucks, warehouses and software, others specialize only in specific areas of the process. In our next issue, we will examine these processes in detail, particularly through their applications in the chemical sector and related industries. Compilation and Translation: B. Serhat Cengiz Bibliography • https://www.hdcusa.com/news/history-of-logistics-distribution-and-supply-chain-management • https://www.techtarget.com/searcherp/definition/logistics • https://www.investopedia.com/terms/l/logistics.asp#citation-2 • https://www.britannica.com/topic/logistics-business • Image source: pixabay.com/