What are Pre-Production Logistics Activities?

Pre-production logistics activities refer to the process of the manufacturing company procuring all the products it needs for the production process from other companies and transferring them to its own internal units. At this point, it is important for businesses to choose the right suppliers and ensure that the logistics of raw materials are carried out within the necessary plans.

Pre-production logistics activities refer to the process of the manufacturing company procuring all the products it needs for the production process from other companies and transferring them to its own internal units. At this point, it is important for businesses to choose the right suppliers and ensure that the logistics of raw materials are carried out within the necessary plans.

If the transfer of the procured products does not take place within the planned conditions and time, the company will have to reduce its production capacity, leading to losses. In addition, products that cannot be produced on time may cause the company to face various issues with contracted institutions, so the planning of pre-production logistics processes must be carefully managed.

Finding Suppliers
The first step in the flow of pre-production logistics activities begins with the supply request. Depending on the organization's purchasing process, this step can be done electronically, in writing, or by phone. The stages of activities are as follows:

» Identifying and analyzing needs:
Pre-production logistics activities begin at this stage. Certain goods and services are needed for a department or unit to function. Raw materials, semi-finished goods, and necessary equipment for production are identified by the purchasing unit.

» Supplier analysis and selection:
This step involves creating a list of potential suppliers for the required needs. Suppliers are evaluated based on criteria such as price, quality, reputation, reliability, and customer service. Wrong supplier selection can cause delays in the entire production process.

» Contract process:
Contracts can be detailed and should take into account payment terms, guarantees, and legal clauses. Once the contract is completed, the purchasing process continues.

Purchasing
The purchasing process continues with order, invoicing, and delivery. Payment is made once the order is confirmed.

» Documentation:
All documents are recorded for accounting purposes, helping to facilitate future audits.

» Storage for production:
Pre-production logistics processes conclude with storage. Materials should be stored under appropriate conditions, and inventory records should be maintained accurately.