Reading N° II - The Importance of Logistics in Business LOGISTIC

TERMS.
Logistics: Logistics is all the operations carried out to make it possible for a product to reach the
consumer from the place where the raw materials are obtained, passing through the place of production.

Transportation system: instrument that allows the rapid transfer of people. Examples of vehicles are
bicycle, motorcycle, automobile, bus, boat, plane, etc.

Economy: The economy is a social science that studies the processes of extraction, production,
exchange, distribution and consumption of goods and services.

Product: Is a thing or an object produced or manufactured, something material that is made naturally or
industrially through a process, for the consumption or utility of individuals.

Customers: people who use or acquire, frequently or occasionally, the services or products made
available by a professional.

Goods: They are called material or immaterial things that, from a legal point of view, are objects of law,
in the same way that, from an economic perspective, they are scarce, limited and, consequently, have a
value that can be defined in monetary terms.

Business: Is any occupation, task or work that is carried out to obtain a profit with a lucrative effect,
through production activities, loading or rendering of services.

Production: Production is, in general, the process of manufacturing, manufacturing or obtaining

products or services.

Companies: Meetings of several people, who in addition to a human element have other technicians and
materials and whose main objective lies in obtaining profits or providing some service to the community,
that is, in this case, the word company acts as a synonym of the company concept.

Product: A product is a thing or object produced or manufactured, something material that is made
naturally or industrially through a process, for the consumption or utility of individuals.

Distribution: is the action and effect of distributing. To distribute is understood to distribute a thing in
the proportion that corresponds to each part.

Market: it is an entity that relates the individual who seeks a good, product or service with the individual
who offers it. Similarly, the market is the physical or virtual place where sellers and buyers go to make
transactions, following the principles of supply and demand.

Operations: are all those activities that are related to the areas of the same that generate the product or
service offered to customers. We could say that they are the “way of doing things within the company”,
such that their activities allow them to provide the service or produce the product that is given or
delivered to customers to meet their expectations.

Inventory: the ordered, detailed and valued relationship of the set of goods or belongings that specify the
assets of a person, community or company at a specific time.

Cost: is the economic expense that represents the manufacture of a product or the provision of a service.
By determining the cost of production, the retail price of the good in question can be established (the
retail price is the sum of the cost plus profit).

Transport: it is the means by which data, objects or living beings are transferred from one place to
another.
Services: as a service we call, in general terms, the condition of serving, that is, of giving or giving
support or assistance to someone using a set of material or immaterial means.

Warehousing: Action and result of the goods stored for a specific purpose.

supply chain: It is the set of activities, facilities and means of distribution necessary to carry out the
process of selling a product in its entirety. This is, from the search for raw materials, their subsequent
transformation, to manufacturing, transportation and delivery to the final consumer.

Process: Process is a set or chain of phenomena, associated with the human being or with nature, that
develop in a finite or infinite period of time and whose successive phases usually lead to a specific end..