Key Points of Logistics System Designing (1 of 4)
_June 23, 2020_
Logistics problem needs to be solved from a systematic point of view. The core of system theory is the whole concept. Every logistics system is an organic whole instead of simple combination of different parts. A system is not able to operate with every part independent from each other. A system can only operate when every part cooperates with each other. Every component has its unique function that benefits the whole system.
BHD Vietnam will share some key points of logistics system designing:
- Time and space
Transportation and delivery means space shift of goods while storage embodies goods’ time value. These two factors together with loading, carrying, processing and packaging are practically all logistics activities.
Time and space are most important dimensions of the whole system in which all activities happen and produce value. Logistics activities happens everywhere human can achieve. Logistics system operates in air, on ground, in water and even through pipe.
When raw material price fluctuates or in short supply, storage department needs to purchase material in advance to ensure enough stock. When customer needs to shorten production time, storage department also needs to prepare goods in advance otherwise they may lose the business opportunity. All these activities embody time value. Transportation and storage are two key points in logistics activity, so are time and space.