All logistics activities are activities to achieve a goal, namely the availability of the right object at the right time and place. Thus, the company is required to carry out a series of logistics activities, such as:
Procurement process
Production activities (manufacturing support)
Distribution(physical distribution)
The purpose of logistics in detail is divided into 3 points, namely:
1. Operational Objectives
The purpose of logistics is related to the supply of goods that must be fulfilled in the future. This is related to the stock of goods needed in the market must be appropriate, so that there is no shortage or excess of goods.
Therefore, to avoid things such as a shortage or excess of goods, the logistics management must take care of this. This is especially true for areas with hard-to-reach access
2. Financial Goals
Financial objectives are related to the effectiveness and efficiency of logistics activities. With the effectiveness and efficiency of logistics activities such as procurement, delivery, storage, and others so that company expenses can be more efficient.
Every industry or organization certainly wants the maximum possible profit and minimum possible loss. Therefore, maximizing things related to logistics is very important for company finances.
3. Security Purpose
Next is the goal of security. In this case, what is very closely observed is the condition and safety of an object or product. Therefore, logistics must have good security procedures.
The logistics party must carry out good packaging, good storage, and safe delivery. This must be done to ensure the safety of the object or product.
In practice, logistics activities usually have performance standards that must be achieved. The level of performance that must be achieved in logistics activities is the formation of a balance between the quality of service expected by customers and all costs incurred to achieve company goals.
According to Bowersox, there are 2 main aspects that must be ensured in the level of logistics performance, namely
The service aspect is the level of company service to consumers.
Aspects of expenditure (cost), is the payment issued by the company to fulfill services to consumers.