Know the 4 types of Logistics and their relevance for your company

by | 24/02/2021

3 minutes to read

Understanding the different types of logistics and operations in this complex area is directly linked to the planning of this sector.

If you are starting out in the field and feel lost in the face of so many terms, this post will help you understand the different types of logistics and utilities for your company

Enjoy the reading and deepen your knowledge!

What is the relevance and why is it important to understand the different types of logistics?

Throughout history, different types of logistics have been organized by different nations that came to be seen as a field of study only with the Second World War.

It was a moment that demanded an agile supply of supplies for the soldiers.

Thus, the idea was brought to the business context that when planning logistics has two main objectives: to reduce costs and to increase quality.

These two actions allow the company to maximize profits, have a competitive advantage, in addition to opening doors to new possibilities.

OK! But why should we understand the different types of logistics?

Understanding the types of logistics helps in good planning and management that aims to efficiently integrate these areas.

The idea is to coordinate the entire process from the purchase of supplies, production to delivery to the final customer, with a view to total optimization.

As a result, the customer gets a better shopping experience.

These results can be easily achieved with the help of new technologies for the sector.

Now let’s get to know the 4 types of logistics!

The 4 types of logistics you need to know!

1. Supply Logistics

It deals with the management of the raw material needed to manufacture the product.

Here, the important points are:

. Ensure the right amount of supplies as required;

. Seeking quality and better prices for the purchase of material;

. Stock, preservation and disposal of material;

. Management of administrative processes.

2. Production logistics  

It coordinates the process and the space required to manufacture the product.

It seeks to control the flow of materials from the factory to the company, intermediate storage as much as foreseeing external demand to avoid waste.

3. Distribution logistics  

Its main function is to ensure the appropriate amount of material in the right place and time.

It focuses on the following steps:

. Stock monitoring;

. Loading and unloading of cargo;

. Transport, freight and delivery management;

. Scripting of deliveries and Monitoring.

4. Reverse logistics  

It is a sustainable practice that provides for the proper disposal of its inputs and their reuse, with the objective of reducing the impact on the environment.

Reverse logistics is expected to reduce raw material costs and improve market visibility.

Now that you know the 4 types of logistics, it is time to reflect on how these areas are in your company and the possibility to optimize and integrate these sectors.

The results can go beyond improving processes, bringing quality and customer satisfaction with a good shopping experience.

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The VMI Portal is a portal of news and information on systems of collaboration between suppliers and customers, which is growing continuously. The idea is to promote and disseminate the concepts of Supply Chain Management (SCM) and Vendor Managed Inventory (VMI), among other topics.




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