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2022
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07
The Six Major Functions of Logistics
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①Transportation and Delivery
Transportation and delivery refer to moving goods from suppliers to demanders. This accounts for about 60% of logistics costs. Transportation, also called primary transport, refers to long-distance bulk transport (from point A to point B). Delivery, also called secondary transport, refers to short-distance small-quantity transport (from point A to multiple locations). In today's globalized society, the main modes of transport are trucks, ships, airplanes, and railways. Currently, truck transport accounts for about 90% domestically, transporting approximately 5 billion tons of goods annually.
②Storage
The storage function refers to activities that use storage facilities such as logistics centers to adjust the time difference between producers and consumers. It also includes activities to maintain the value of goods stored in logistics centers. With the development of frozen and refrigerated warehouses, the storage function has rapidly improved. Types of logistics centers include inventory-type logistics centers (Distribution Center, DC), transfer-type logistics centers (Transfer Center, TC), and food processing centers (Process Center, PC).
③Packaging
Packaging is the beginning of logistics work. Products produced on the production line are freshly made and unpackaged, making them unable to be loaded onto trucks for delivery. Therefore, to deliver goods to consumers intact, packaging is necessary. It can be said that the packaging method affects the efficiency of the entire logistics activity and is very important.
④Loading and Unloading
Loading and unloading refer to handling goods in warehouses and logistics centers. There are six operations in loading and unloading that greatly affect logistics efficiency and quality. These six operations are stocking, loading/unloading, handling, storage (shelving), sorting, and consolidation (picking, etc.). 60-70% of logistics time is spent on movement. Unnecessary loading and unloading operations increase logistics costs.
⑤Distribution Processing
Opening received full-case goods and repackaging them according to consumer demand quantities for shipment. This process of changing the packaging state of goods upon arrival to a packaging style that meets customer needs is called distribution processing. In other words, it is the operation of adding "added value" to products. Originally performed by manufacturers and retailers, considering the costs, it is now done by logistics centers.
Relabeling of imported pharmaceuticals and wine, quality inspection in the clothing industry, price tag creation in various department stores, insertion of bookmarks in books, gift wrapping, and other distribution processing tasks are all completed in logistics centers.
⑥Information Processing
Logistics centers hold a large amount of information. It is necessary to correctly manage data received when orders are placed, as well as information on goods status from sorting to shipping day, delivery day, and during transportation by shipping companies. Especially in logistics centers handling up to tens of thousands of items daily, to manage accurately, it is essential to effectively utilize warehouse management and transportation management information systems, as well as advanced material handling and loading/unloading equipment, to create an efficient management system that clearly tracks the location of goods before they reach consumers.
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