What is logistics and what does it mean? Have you ever thought about this? The role of support is often overlooked. The logistics company is actually a provider of transportation or warehousing services, as well as customs and insurance and such services. A closer look at the subject reveals that different types of logistics contribute to the process of getting the product to the customer or the consumer. In this article, we will talk more about the various components of this process in the field of transportation and transportation and their share in the whole system. Be with Raadi Trading
What is the meaning of logistics?
What processes involve logistics?
Types of logistics
What is a logistics company?
The role of insurance in logistics
The role of customs in logistics
Customer satisfaction and the role of logistics
In the continuation of this article, we will explain and explain these cases. Of course, this article has been written only to introduce and acquaint the audience with these topics, and to study each of these topics in detail, specialized research and study should be done. Stay tuned to Radi Trading Complex.
What is the meaning of logistics?
Logistics is a process that takes place from the time of production or entry of a product, in any level and size, to the market until that product finally reaches the consumer. It does not matter at all what the size of the product is or what kind of use it has, and it certainly includes services of all kinds of logistics. If we want to provide a scientific definition for it, we must say that science is related to the movement and transfer of a product over time and space. Maybe if we want to use an equivalent in Persian for logistics, it is better to use the word support. Any kind of work that is related to supporting a product so that that product reaches the customer and consumer in a healthy and complete way, is in fact under the logistics sub-category and is definitely one of the types of logistics included in it. In fact, support is part of the business of a product that the customer does not see or notice. Instead, it is one of the most important parts of the work process of a manufacturer or importer. If a manufacturer with great effort produces high quality products or if a trader imports a product with all the problems and difficulties, but it is not possible to use the services of a logistics company or different types of logistics separately , Has clearly and seriously wasted its activity and will not get the result of its economic, time and energy investment. In fact, if we want to say in the example that production or assumption of import is the root of an economic activity in this way and its fruit is the delivery of the product to the customer and ultimately consumer satisfaction, then the issue of support plays the role of tree trunk and branch. It is true that the target is not the trunk or branches of the tree, but if they are not, the fruit will not form and the tree will not produce. If we want to explain the concept of logistics in terms of its semantic load, we must refer to its 7 principles. These 7 principles are:
Existence of a commodity or product
Adequacy of quantity and volume and its size
The desired quality of the product or product
Product or product terms
Its location
Time considered
Optimal cost and reasonable size
With this explanation, we try to acquaint you to some extent with our desired topic and concept.
What processes involve logistics?
As mentioned, support services for a manufactured product or an imported product are very similar; But in the following, we will provide explanations separately so that it is easy and simple to understand for people who are not familiar with this process.
Transportation, warehousing and information support process management services are the three main components of various types of logistics. The share of transportation and transportation is about 62%, the share of warehousing and storage is about 33% and the share of process management based on information is about 5%.
If we consider a manufacturing product, the first part of the logistics process is when the product is packaged until it is shipped from its original industrial location to warehouse. In warehouse, when it is stored, registered and measured, it is actually a sub-branch of another type of logistics. Major or non-major distribution of the product depends on its type and application, and based on this, the necessary transportation services are used. In this section and even in the section of warehousing products, issues such as safety and insurance are raised. These topics are entirely based on the type of product and may not be used in some items; But in general, they play an important role in most support processes and types of logistics. If the product in question requires major distribution, it is receiving transportation services from the time it leaves the initial warehouse until it reaches the customer, all of which are activities performed by a logistics or support company.
However, if the product in question is an imported product, it is in the category of support and logistics services from the time of arrival at customs and its clearance stages until the time of transportation and transportation is needed to reach the customer. In this type, insurance and safety matters are not only present, but sometimes they will play a more prominent role; Because imported items are directly related to and dependent on the issue of currency prices. Therefore, the role of safety and insurance in these products may be greater. It is important to note that insurance obligations are the responsibility of the insurance company, but using insurance for the intended shipment is part of the tasks of the logistics department.
Types of logistics
Logistics is generally divided into two categories based on its historical background:
Military section
Civilian
In this article, we mean the civilian type.
Transportation, warehousing and information support process management services are the three main components of various types of logistics. Of course, the share of transportation and transportation is about 62%, the share of warehousing and storage is about 33% and the share of process management based on information is about 5%.
If we look at the types of civilian logistics or support in general, we can divide it into two parts: macro and micro.
Each of them is considered in the field of micro and macro economics, respectively. Macro-logistics is dedicated to categories such as national, international, commercial and similar logistics, and in such cases is reviewed and described; But micro-logistics is more about the factory or the production and the company, and basically the internal affairs related to the issue of support.
Macro logistics
This type of logistics, such as macroeconomics, deals with support issues such as business. For example, business support can be considered as the basis of macro-logistics. In general, commercial support addresses these issues, as well as the issue of the supply chain at the macro level rather than the enterprise, and sometimes we identify it with titles such as national logistics or extra-enterprise. According to the statement and definition provided by the World Bank, commercial logistics is a set of essential business activities, such as:
Transportation and transportation services
inventory
Integration of commercial cargo
Domestic national distribution systems
Customs and border exchanges
International distribution systems
Macro-logistics is dedicated to categories such as national, international, commercial and similar logistics, and in such cases is reviewed and reviewed.
Business support or logistics can be described as the framework and skeleton of the business. It should be noted that the capabilities and capabilities of a country in the field of global trade in the current situation, the degree of access of traders and that country to the network and logistics company in charge of moving cargo and freight at the international and global level. On the other hand, the efficiency of a country’s supply chains in terms of cost, time and reliability and reliability depends on the specific characteristics and capabilities of the domestic traders of that country. Having quality practical logistics and facilitating trade is significantly and effectively related to economic and trade development, diversification of export affairs, attracting the attention of foreign investors and thus improving the economic level.
Logistics infrastructure such as: roads and highways, rail transport lines, aviation affairs, airports affairs, maritime transport industry and port affairs, as well as logistics services such as: intercity distribution and distribution, intercity distribution and distribution and Finally, international distribution and distribution, customs issues and processes, tracking and tracking of shipments and shipments make up the main areas of commercial logistics.
Wisdom logistics
Along with the development and prosperity of production in the country over the years, micro-logistics has also grown and improved; In other words, production is not possible without logistics services, and these two categories are understood side by side and together. It is safe to say that almost before the 1970s, just after World War II, as industry was growing exponentially, the attention of industry executives and production leaders, years before they knew the necessity and importance of external communications and activities. Have been focused on in-factory logistics. This issue is still a very important and effective issue on production and its characteristics. Today, we can clearly see that large and advanced companies in the field of production and industry at the highest levels of their organizational chart consider the sector as a support and pay special attention to this issue.
Wisdom logistics
Along with the development and prosperity of production in the country over the years, micro-logistics has also grown and improved; In other words, production is not possible without logistics services, and these two categories are understood side by side and together. It is safe to say that almost before the 1970s, just after World War II, as industry was growing exponentially, the attention of industry executives and production leaders, years before they knew the necessity and importance of external communications and activities. Have been focused on in-factory logistics. This issue is still a very important and effective issue on production and its characteristics. Today, we can clearly see that large and advanced companies in the field of production and industry at the highest levels of their organizational chart consider the sector as a support and pay special attention to this issue.
Micro-logistics, which is more focused on the subject of the factory or company, is divided into four categories:
Inbound: Commonly known as procurement, it focuses on the supply of raw materials and parts from suppliers to factories and workshops.
Indoor: In the production process, it focuses on logistical affairs and activities and includes all executive, control, monitoring and management activities that govern the affairs and processes of product maintenance in different stages of raw materials, during the production of goods and the final stage of presentation. The product is from the production line; In other words, all matters related to production support related to the physical and information flow of goods can be considered as internal logistics.
Outbound: This type of support is also known as distribution logistics. Its activity is focused on sending and distributing the final product from the workshop or factory to customers.
Reverse: This type of support actually covers the issue of product recycling; That is, activities that involve products that are defective, defective, or defective.
What is a logistics company?
According to the description provided, you must have a correct view of the subject and the concept of logistics. Awareness of the type of activities related to support and transportation services allows us to choose the best logistics company to use logistics services when needed. By reading the contents of this article, you should have understood about the type of services of a logistics company. It is a company that in the field of imported goods, services after the import of goods from clearance and packaging and in the case of production from packaging to delivery to the seller or customer. Of course, there may be fewer companies that complete all of these steps than there are companies that take on parts of the process. This may depend on the type of product or the scope and volume of work. Usually the main topic of logistics issues is the issue of transportation. On the other hand, it can be the simplest part of the process. It all depends on the type of product and the subject of the service. You can better evaluate the logistics companies providing logistics services by consulting Raadi Trading Site and select them with a better view and more knowledge of their records. The consultants of Raadi Trading Complex are always ready to provide you with advice.
The role of insurance in logistics
As mentioned, logistics is part of the supply chain management process. In a way that is planned, implemented and controlled from the beginning to the time of consumption in order to estimate the potential needs of the customer or consumer. The integration of parts of economic activities and business cycles and the cooperation of economic and service enterprises, the need for the presence of risk management and consequently the issue of insurance, to identify potential risks for enterprises including production, import and service, is increasingly evident. Due to the nature of the risk of this type of activity, which is economic, insurance will also act in the field of protection, guarantee and financial support. For this reason, examining the risks of current affairs in this type of activities is a heavy and important task of insurance companies that are parties to the contract of the logistics company. Such risks are twofold; Because if all the risk is on the insurance companies, it will naturally create a big problem in the process. For this reason, comprehensive and complete reviews should be done by the risk management department in order to provide some instructions that are done by reviewing and analyzing the risks and risks, to codify and regulate the conditions for performing various logistic processes of the desired cargo.
As mentioned, logistics is part of the supply chain process and its management. In a way that is planned, implemented and controlled from the beginning to the time of consumption in order to estimate the potential needs of the customer or consumer. One of the points that should be considered is to create an attitude in the managers of enterprises towards the requirement to use insurance and different levels of risk management. Since logistics is a very broad and dynamic issue, it needs continuous and codified studies. Over time and changes, the situation will definitely change, and naturally, without considering the different conditions and risks, proper management of logistics services, such as transportation services, does not seem to be possible.
What is the role of customs in logistics?
The role of customs in logistics
Basically, the word customs is a Turkish word meaning rights belonging to trade and exchange of goods and is expressed in English with the word Customs. The World Customs Organization defines the meaning of the word customs as an international term as follows: Customs is a governmental organization responsible for enforcing customs law and Receipt of duties and taxes on entry and exit, as well as import, transit and export of goods. This term also refers to any part of the customs organization or its main offices or subdivisions. In other words, in the general term of the people, any of the legal components and import and export duties, import and export control or any other case within the scope of customs powers and functions is considered as customs. Based on the definitions provided, it can be said that customs is a financial and economic organization that has taken on an organizational and special form based on the requirements of the time and the will of governments. According to the provisions mentioned in the law, the duty of matching export and import with the regulations imposed for the entry and exit of goods into the country is the responsibility of the customs department. The following tasks are mentioned:
The legal requirements in the export and import of goods are fully observed by the operators subject to the entry or exit of goods.
Full compliance with the provisions of the law regarding prohibitions or restrictions.
Exemptions and discounts provided by law in case of observance of paragraph by paragraph of legal materials related to import or export affairs. Receive tolls and expenses imposed by law correctly and completely.
Customs is a government organization that is responsible for enforcing the customs law and collecting import and export duties and taxes, as well as importing, transit and exporting goods. There are different ways to import goods to each country. Companies providing transportation services of goods intended for import enter the country’s customs borders by land, sea and air. When the goods enter the country and cross the border, they enter the customs cycle. Obtaining a customs license and a green customs card and clearing goods is part of the logistics process. Other transport processes, and in some cases packing and shipping, are other components of the process, which are briefly described in other sections.
Customer satisfaction and the role of logistics
As we have mentioned since the beginning of this article, the most fundamental issue in the process of civilian support is the sale or delivery of the consignment to the consumer. If any of the processes mentioned in the sections above in the text of the article are not done well and correctly, it will have a direct and undeniable effect on the purpose of this cycle. The customer or the consumer is the main target of the economic issue of this process. The health of the product and maintaining its quality throughout the logistics process will ensure customer satisfaction and therefore payment by him. The results of the logistics company’s activities and the provision of logistics services all depend on this issue. The continuation and establishment of this process and related activities are entirely dependent on the continuation of the issue of production or import; But production and imports themselves depend on the demand and needs of the domestic and sometimes foreign markets. If there is no market satisfaction with the goods or the type of logistics services provided, all of these jobs and professions will be severely damaged and will eventually shut down and stagnate. By stating all these reasons, we will find that the issue of customer satisfaction is a fundamental and decisive issue and in fact guarantees the life of economic and commercial activities and related matters.
In this article, we tried to create a general and comprehensive view of the subject of logistics in the reader and while defining it, to explain its importance in economics and business. If you need advice or information about the type of services provided by companies active in this field, you can contact Radi Trading Group and use our services to introduce and guide in this field. Hope you found this article useful.
