Logistics Management

However, the market was not able to consume such quantities, and the customer was not satisfied, because their tastes and preferences were not taken into account. It produced the so-called “bullwhip effect”: more production, more stock and less service. Relations with supplier companies on the other hand, were not optimally utilized. Businesses, in short, were not aware that improving relations with both suppliers and end customers with the means to achieve a higher turnover and lower costs. Currently meet the actual demand of the consuming public is the main objective of most businesses, while minimizing lead times, the amount of goods stored and costs.

To meet these goals many using logistics management method called “pull.” Under this system, market demands dictate the operation of businesses, including logistics. The production is now based on real demand can know, for example, who will be the ultimate consumer of a product that is beginning to produce. Economies of scale has been moved to a more limited production, which reduces the stocks in warehouses and costs required to maintain them. However, the market was not able to consume such quantities, and the customer was not satisfied, because their tastes and preferences were not taken into account. It produced the so-called “bullwhip effect”: more production, more stock and less service fact that many companies, especially SMEs in the Venezuelan case that they have neglected the importance of good logistics, much of this product the absence of sound organizational culture, not to consider its scope, what it represents, apart from not having some with the means to optimize results.