ESCUELA ESPECIALIZADA EN

INGENIERÍA ITCA- FEPADE

MEGATEC REGIONAL
ZACATECOLUCA

Module: Adquisición de Vocabulario En

Inglés Aplicado a Situaciones Logísticas

Elaborated by: Lic. Carmen Nelly Yánez de Ceròn

April, 2023
 WEEK 1
INTRODUCTION
TO LOGISTICS

COMPETENCES:
 To talk about Logistics.
 To know about Logistics importance
 To learn Logistics roles and types
 To learn verbs used at Logistics field

Read the next information about Logistics, make a

summary and new vocabulary

https://www.techtarget.com/searcherp/definition/logistics
What is logistics
Logistics is the process of planning and executing the efficient
transportation and storage of goods from the point of origin to the point
of consumption. The goal of logistics is to meet customer requirements
in a timely, cost-effective manner.

Originally, logistics played the vital role of moving military personnel,

equipment and goods. While logistics is as important as ever in the
military, the term today is more commonly used in the context of moving
commercial goods within the supply chain.

Many companies specialize in logistics, providing the service to

manufacturers, retailers and other industries with a large need to
transport goods. Some own the full gamut of infrastructure, from jet
planes to trucks, warehouses and software, while others specialize in
one or two parts. FedEx, UPS and DHL are well-known logistics
providers.

Typically, large retailers or manufacturers own major parts of their

logistics network. Most companies, however, outsource the function to
third-party logistics providers (3PLs).

https://imm.ac.za/tag/types-of-logistics-
management/#:~:text=There%20are%20four%20main%20types,aspect%
20of%20the%20supply%20process.

LOGISTICS – What is it and why is it so important

The world we know wouldn’t function as smoothly without the logistics

industry. Everything you buy in the store had to get from the supplier to
the retailer at some point. Building material had to be transported to site
before a structure was built and food is transported from the supplier to
the retailer.

The term “logistics” was originally used by the military to describe how it
obtained, stored and moved its equipment and supplies. The term as we
know it remains the same but with the rise of consumerism and
subsequent growth of more complex supply chains, it has evolved. It
refers to the process of coordinating and moving resources such as
equipment, food, inventory, materials and even people from one location
to another
Functions of logistics
Transportation and warehousing are the two major functions of logistics.

Transportation management focuses on planning, optimizing and

executing the use of vehicles to move goods between warehouses, retail
locations and customers. The transportation is multimodal and can
include ocean, air, rail and roads.

Not surprisingly, transportation management is a complex process that

involves planning and optimizing routes and shipment loads, order
management, freight auditing and payment. It can also extend to yard
management, a process which oversees the movement of vehicles
through the yards outside manufacturing plants, warehouses and
distribution facilities. Carrier management is an important aspect since
the price, availability and capacity of transportation carriers can vary
widely.

Logistics companies typically use transportation management system

(TMS) software to help meet the demands of transport-related logistics.
There are also niche applications, such as yard management systems.

Warehousing, or warehouse management, includes such functions

as inventory management and order fulfillment. It also involves managing
warehouse infrastructure and processes -- for example, in a fulfillment
center, where orders for goods are received, processed and fulfilled
(shipped to the customer). Most companies use warehouse management
system (WMS) software to manage the flow and storage of goods and
track inventory. Most vendors of enterprise resource planning (ERP)
software offer TMS and WMS modules, as well as more specialized
components for inventory management and other logistics functions.
Customs management, or global trade management, is often considered
part of logistics since the paperwork to show compliance with
government regulations must often be processed where goods cross
national boarders or enter shipping ports.

Artificial intelligence (AI) and driverless vehicle technology will play

important parts in how logistics operates in the future. Some logistics
providers already use AI to better track packages and predict transport-
related problems in the supply chain.

Meanwhile, autonomous vehicles, such as driverless forklifts, delivery

trucks and drones, are likely to become more commonplace in
warehouses, in warehouse yards and on highways.

Why logistics is important

While on-time delivery of intact packages has always been important
throughout the supply chain, it has become even more mission-critical in
recent years as omnichannel commerce, with its same-day home or retail
delivery of customized products ordered from smartphones, becomes
more common.

Suppliers, manufacturers, distributors and retailers have had to improve

their logistics processes to meet the demand for quicker, more
convenient delivery of a wider variety of goods. They also have had to
better integrate their processes and systems to improve supply chain
visibility.

Inbound vs. Outbound logistics

The two main categories of logistics are inbound logistics, which refers to
all the processes of the gathering, handling, storing and transportation of
inbound materials, and outbound logistics, which involves the collection,
maintenance and delivery of products to the customer.
The other categories of logistics are:

 Third Party Logistics: a company’s use of third-party businesses to

outsource elements of its distribution.

The other categories of logistics are:

 Third Party Logistics: a company’s use of third-party businesses to
outsource elements of its distribution.

 Fourth Party Logistics: a company’s ability to outsource the entire

management of its supply chain to another company.
 Green Logistics: the process of minimizing environmental damage done
by logistics operations

 Digital Logistics: digital logistics management systems that enable

the optimization, visibility and collaboration between stakeholders
in the end-to-end supply chain.

Difference between logistics and supply chain

management
Logistics management is an important component of supply chain management
(SCM). While the terms are sometimes used interchangeably, logistics focuses
on moving products and materials as efficiently as possible. In contrast, SCM
encompasses a much broader range of supply chain planning (SCP) activities,
such as demand planning and sales and operations planning (S&OP), and supply
chain execution (SCE), including strategic sourcing and transportation
management.

Sometimes, the terms inbound and outbound logistics are used to denote
logistics for goods arriving at or leaving a facility, respectively. One important
category is reverse logistics, the logistics processes needed to return a product
for servicing, refurbishing or decommissioning and recycling.
https://www.keyence.com/download/download/confirmation/?dlAssetId=AS_10
7018

Types of Logistics

Types of logistics management

There are four main types of logistics management: supply, distribution,
production and reverse logistics. Each type focuses on a different aspect
of the supply process.

Supply
Supply management involves the planning and coordination of materials of
products that are needed at a certain place and time to support the
receiving company’s production of activity.

Distíibution
Distribution manages how a supplied and stoked material is distributed to
required recipient. It involves the loading, unloading and transportation of
material, the tacking of stock and accountability of use, which is the decoding
of how the material is used and by whom.

Production
Influent says that production logistics manages the stages of combining
distributed supplies into a product. This can involve the coordination
required in a manufacturing or assembling process.

Reverse logistics
Lastly, reverse logistics involves the return of material and supplies from
a production process. It plans for the removal of excess material and its
re-absorption into a stock supply. For example, if there are bricks left
over on a building site, it will be removed and returned to the supplier and
reclaimed as stock.

Why logistics is so important

Logistics is an integral part of any company, especially those that produce

and distribute products and materials. Having said that, the logistics industry
is important for the following reasons:

It helps to create value. Providing value extends further than the quality of a
product, it also refers to its availability. Effective logistics management
ensures the continued availability of products and materials to consumers,
thereby creating and increasing the value a business offers.

It helps to reduce costs and improves business efficiency. By partnering with

other businesses that offer transportation and storage, companies can
reduce their operational costs while maintaining and increasing business
efficiency.

It ensures the timely delivery of products to the correct location. Good

logistics management ensures the quick and safe shipping, storage and
delivery of products to customers.

In short, logistics is about providing the right goods to the right recipient in
the right quantity at the right place at the right time. In an article by NHFS, a
shortage of skilled workers is cited as one of the challenges in the South
African freight industry along with climate change and regional connectivity.

Logistics Fields.
 Procurement Logistics: Procuring Raw Materials and Parts.
 Production Logistics: Materials Management, Distribution in
Factories, Product Management, Shipping.
 Sales Logistics: Delivery from Warehouse to Wholesalers,
Retailers, and Consumers.

Logistics Fields
Logistics can be split into five types by field: procurement logistics,
production logistics, sales logistics, recovery logistics, and recycling
logistics. Each of these is explained in detail, but first we should learn
about logistics fields and types. For recovery logistics and recycling
logistics, both types are the same up to the recovery of goods from
consumers, but recycling logistics is the type that recycles the goods that
are collected

Procurement Logistics: Procuring Raw Materials and

Parts

Procurement logistics is the flow of goods when the raw materials and
parts necessary for manufacturing are procured from suppliers. This field
did not attract much attention before, but now that small-lot production of
a variety of models is the main type of production, many firms are
actively pursuing production by procuring the necessary materials in only
the necessary amounts at the necessary times (the shift to just-in-time
production) because it is directly connected to reducing inventory costs.

Production Logistics: Materials Management, Distribution

in Factories, Product Management, Shipping

Production logistics is the flow of goods that includes the management of

procured parts and materials, distribution inside a factory, product
management, packaging, and shipping to warehouse. Delivery
management, warehouse dispatch management, and shipping
management can be optimized and the state of delivery vehicles can be
managed by smoothly linking procurement logistics and sales logistics
described later.

Sales Logistics: Delivery from Warehouse to Wholesalers,

Retailers, and Consumers

Logistics typically refers to sales logistics. In the past this was mainly
delivery from delivery centers and logistics warehouses to distribution
points such as wholesalers and retailers. But now direct delivery also
makes up a large amount of this volume due to online shopping and e-
commerce. Whether delivery through delivery centers and logistics
warehouses or direct delivery from production sites, higher efficiency in
transportation and delivery and shrinking inventory are indispensable for
delivering the necessary goods to the necessary people in the necessary
quantities at the necessary time. This also contributes to improving
customer satisfaction.

Recovery Logistics: Recovering and Recycling Products,

Containers, and Packaging

If the flow of goods from production to consumption by procurement

logistics, production logistics, and sales logistics is described using the
circulatory system of the body, it would be said to be forward logistics.
On the other hand, recovery logistics or reverse logistics is the flow that
recovers and recycles products, containers, and packaging that have
fulfilled their role. Similar to recycling logistics described later, emphasis
is being placed on this flow in recycling-oriented societies.

Recycling Logistics: Recovering and Recycling

Recyclable Products and Containers

Typical examples of recycling logistics are recovering and recycling

empty cans, plastic bottles, and old paper. Containers, packaging, old
computers, and inkjet cartridges can also be recovered and recycled in
the same manner. The importance of recycling logistics has been
increasing in recent years as measures for the environment and to
effectively utilize materials such as minor metals.