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Logistics Operator: Functions and Types

 The logistics operator is the service entity that is responsible for providing support to companies in the transport, storage, shipping and distribution of products from the supplier to the buyer or final consumer; of course, for a certain fee.


Logistics operators own trucks to collect and move cargo, and they also own wagons and trains to move cargo long distances overland. They own and operate airplanes or ships to transport large loads through the air and ocean to other continents.


Logistics operators are an important factor in the commercial success of companies engaged in commercial activities at the national and international level. They play an important role in achieving competitive advantages for business entities directly involved in buying and selling in international trade.


Logistics operators have become an integral part of companies' supply chains and business plans.


Features

The main objective of involving logistics operators as providers of logistics services is to facilitate the operation of companies that deal with buying and selling internationally, with regard to the organization of shipping and / or delivery of products. .


As business processes and entities in international trade become more complex, it is increasingly difficult to manage all activities on your own. Logistics operators are qualified to manage certain areas of business operations.


Some logistics operators do not own equipment, but act as intermediary agents to organize all transport. They are part of the supply chain that moves cargo. Among the main functions that a logistics operator can have, the following stand out:


Order processing

It refers to all activities related to the receipt of material requisitions by the company's departments, the verification of the offers by the suppliers and, finally, the transmission of the purchase orders to the selected suppliers.


Material handling

It is responsible for verifying which procedures and material means should be used for the mobilization of materials and products within the different warehouses ( raw material, finished product, parts and components), and between these warehouses and the customers' points of sale.


Product packaging

Decide which forms of protection and systems are going to be used for the products to avoid possible damage to them, such as packaging, packaging, use of labels, assembly, packaging, among others.


Transportation of materials and products

Decide which means of transport should be used and make route plans to define the route that the material will travel.


In addition, it is in charge of organizing more efficient itineraries, structuring the terms of deliveries, taking care of all the formalities to be carried out at customs, providing access to the transport service and specializing in matters related to transport services.


Storage

You must select both the characteristics to be met and the required size of the warehouses, as well as perform tasks such as weighing the materials, their handling and classification in the warehouse, and dispatch.


Inventory control

It is responsible for establishing the variety and quantity of products that should be available to satisfy deliveries to customers.


You must also control both the quantity and quality of the stock and monitor the expiration of the products in stock .


Types

Purchases

The logistics operator carries out activities such as market research, requisition planning, manufacturing or purchasing decisions, supplier management, order generation and control of these orders.


The objectives of a company to require a purchasing logistics operator are: to maximize efficiency by concentrating on its core business and to minimize purchasing costs while maximizing security within the supply process.


Distribution

The logistics operator's main task is to deliver the finished products to the customer. It consists of processing orders, storing the product and carrying out the delivery transport to the customer.


Distribution logistics are necessary because the time, place and quantity of production will differ depending on the time, place and quantity of consumption.


Ground transportation

If the cargo is part of an assembly or is a finished product, it must leave its point of manufacture and move to your point of sale or final assembly plant.


For operations within a country or between contiguous countries, this means using a logistics operator for ground transportation, whether by truck, rail, or a combination of both.


Aquatic transport

The ships owned by logistics operators form a steel bridge that transports products to and from different countries.


Water transport logistics operators include carriers that use inland waterways to move cargo. Transportation by this route is carried out by tugboats, push boats and barges.


Air Transport

Large air transport logistics operators, such as Federal Express, can provide product receipt and delivery services.


They are intermodal and use two different modes of transport: land transport and air transport. Cargo that was originally picked up by a truck at source is brought to its destination using an aircraft.


In such a move, a cargo plane quickly covers the greatest distance. However, the size and weight of the shipment is limited by the capacity of the aircraft.


Bulking agent

When customers seek more cost-effective means of moving cargo, they may decide not to deal with a single logistics operator.


In this case, the client can take the services of a logistics operator as a freight forwarder to schedule the movement of the cargo with one or more logistics operators.


The freight agents will contact different logistics operators to negotiate the transport, thus organizing the collection of the cargo from the origin to the loading dock, transfer it to the destination dock, carry out customs procedures and deliver the cargo at the final destination .


Reverse logistics

There are logistics operators to carry out all those operations related to the reuse of products and materials.


The reverse logistics process includes the management and sale of surpluses. Likewise, of products that buyers return to sellers.


Reverse logistics represents all operations related to the reuse of products and materials.


It is the process of planning, implementing and controlling the efficient and profitable flow of raw materials, inventory in process, finished products and their related information, from the point of consumption to the point of origin, in order to recapture their value or property.



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