Logistics and Innovation

WHAT IS LOGISTICS?

In the history of logistics, there is the military first. In wartime, soldiers’ food, drink, health, communication services, road conditions, etc. Topics are also used. Realizing that there is a greater need for the logistics sector, the global started to use the logistics field. Logistics started to be expanded under sub-headings in later times. Supply chain transportation, business responsibility, production purchasing, finance, shipping, warehousing, inventory, goods handling, technology, packaging, etc. areas continue to be divided into different business divisions. Logistics, which is a comprehensive field, includes not only transportation and product management, but also human relations and good communication. Logistics is a sector in which a supply chain is created by addressing geographical conditions. Logistics also means “back service” according to TDK. It is the effective and efficient planning and implementation of transporting all kinds of products, services and information flows from the origin to the destination in order to meet the needs of people. Logistics; is to have the right amount at the right time, at the right price.

DEVELOPMENT HISTORY AND STAGES

  • 1940 – 1960: Logistics establishment phase
  • 1960 – 1970: The concept of logistics and gaining importance
  • 1970 – 1980: Change of priorities in logistics and start of modeling
  • 1980 – Present: The age of technical change and economic forces
  • Increasing efficiency in cost management,
  • Providing a strategic efficiency approach in planning,
  • Time management concept gaining importance,
  • Producing appropriate solutions and alternative solutions according to the changing conditions of the developing time,
  • Rapid development with technological investments and infrastructure.

Logistics provides benefits for the products to reach the customers in the fastest way, for the fast and quick processing and storage of the raw materials. It gives the opportunity for businesses to have a long life and to gain a cost advantage and profit. And it cannot do this alone, it does this by dividing logistics into certain sub-branches, and since these sub-branches need R&D, those who act with innovation generally win. We cannot deny that adaptation and changing conditions have a payoff as well as a payoff. Let’s examine the sub-branches they adapt to under these conditions:

Supply Chain: It is the physical movement and management of raw material between suppliers.

Physical Distribution: Refers to the transportation operation and organization.

Packaging: It is the covering of the produced products with protective coating products to the satisfaction of the end user.

Customs Clearance: It is the realization of the procedures determined by the state in foreign sales or purchases.

Storage: It refers to the physical storage of the products. It is the collection center of the produced services or products before distribution.

Stock Management: Decisions are made on how many products or services are available in the warehouse area, how long it will be delivered to consumers, when it should be shipped again, and the time to enter production.

WHAT IS INNOVATION?

Innovation is the application of new creative ideas or inventions in accordance with the environment and conditions by making them suitable for economic areas. In other words, the process of creative solutions presented for the solution of visibly open needs. In fact, sometimes there are new initiatives by turning the crisis into an opportunity. Innovation is keeping up with the changing situations in the developing age, where it is necessary, and looking for the opportunities that it can turn into itself. It is the management of the business with the exchange and creation of ideas. Innovation is not just the production of knowledge, it is the application of knowledge whether it benefits the society or not. It is not a move according to innovation to act without thinking about the welfare of the society, even if it helps to turn the crisis into an opportunity and create new business opportunities. Innovation is not an invention. Rather, it is a product that exists today, taking service and adding new effective features to the product and putting it at the service of humanity again. The important thing at this stage is that the new feature that has changed is active. It is a unique feature. Innovation process: It is a whole formed by technical, economic and social processes.

Production: It can be defined as efforts to increase the quantity or benefits of goods and services to meet human needs. For this reason, production is separated from the concept of manufacturing; Because manufacturing, unlike production, is simply an effort to increase the number or utility of a good.

R&D: Research and development is defined by the OECD as “creative work carried out systematically to increase knowledge and the use of this knowledge to create new applications”

Design: The creation of a plan or object, architectural and engineering drawings during the construction process. Used as both a verb and a noun, “to design” describes the process of creating and developing a plan for a new product or object.

Knowledge: Knowledge is the information formed by the combination of experiment, experience, interpretation or idea. Knowledge is a high-value form of information ready to be applied in social events, decisions and actions. Knowledge is personally organized information and is often a combination of experimentation and experience.

Relationship: a mutual interest, bond between two or more things.

Risk: Risk is the value determined according to the probability of damage that may be caused by dangerous situations. The probability and severity of the hazard determine the degree of risk. Risk refers to the uncertainty involved in the implemented activities. This uncertainty can have positive or negative consequences.

Performance: Performance is the effort, effort, maximum energy, knowledge, competence and job satisfaction that a person or group shows in order to reach the goal and target on the job they are working on. It can also be defined as the degree to which a targeted task achieves expected objectives in accordance with predetermined standards.

Institutional: To put it simply, corporate; It consists of criteria such as adhering to certain principles, acting within certain rules and making decisions, and taking action by calculating every move in advance.

Finance: Basically, finance represents money management and the process of obtaining the necessary funds. Finance also encompasses the oversight, creation and study of the money, banking, credit, investments, assets and liabilities that make up financial systems.

Marketing: all activities such as promoting a good, a product, a service, determining the market situation and needs, acquiring and retaining customers

INNOVATION PROCESSES:

Step 1: Identification. Discovery process; It starts with expressing the problem in a way that encourages creative solutions.

Step 2: Generating Ideas.

Step 3: Development.

Step 4: Application.

INNOVATİON TYPES:

  1. Product Innovation
  2. Marketing Innovation
  3. Service Innovation
  4. Organizational Innovation
  5. Business Model Innovation

Product innovation: Innovations in the field of product innovation cover every concept from the offered features to the quality of the product. Innovations in this field revolve around complementary products and services that can add real value to a core product. It can include both improvements to existing product segments and completely new features. The key point in product innovation is to try to add significant value to the product, as we stated in its definition. It should be based on the development of innovative products or product features.

Marketing innovation: product or service is the same but the way the marketer presents it is important. It includes a very wide range of tasks, particularly all activities related to customer and market orientation and enabling the successful marketing of a new product or service. It includes a very wide range of tasks, particularly all activities related to customer and market orientation and enabling the successful marketing of a new product or service.

Service innovation: the type of innovation that involves the creation and introduction of new services for customers. Service innovation revolves around the customer experience and begins with service-related innovations. Innovations in this area enhance the capabilities of your product or service, whether by making it easier to use, highlighting overlooked functionality, or fixing common problems. Even if the services are not actively sold as in the manufacturing companies, they can be used for logistics, complaints, sales consulting etc. continues to provide services such as This is where innovation comes in when it comes to differentiation and customer enthusiasm.

Organizational innovation: When they think that organizational structures can no longer adapt to new business models, new business processes, are insufficient at certain points and limit themselves, companies may want to change their organizational structure completely and have a structure that is open to innovations and adapts quickly to different applications. At this point, innovative work carried out on the basis of departments, employees and hierarchy within the company is also called organizational innovation.

Business model innovation: The business model is a phenomenon related to how the company delivers the product or service it offers to the consumer and how it generates income from it. For example, the purpose of Bitaksi application is to provide a service, but while providing this service, a new business model is offered.

WHAT IS INNOVATION AND LOGISTICS?

It is a system that has been implemented in order to balance the differences in supply and demand points. While innovation deals with the generation and development of ideas, logistics deals with its production, demand and distribution part. In a competitive market, innovation is the brain of the sector, and logistics is the development and production part. Innovation is inevitable in order to improve the functions of logistics, which is the favorite player of competition and trade, to accelerate it and to reduce its costs. In the world that has evolved into developing technology and production diversity, we need innovation more and more. This field, which was not so popular in the past, is now on the top list. It is possible to implement innovation at all stages of the cycle from the starting point to the ending point in order to ensure sustainable competition and to ensure that the impact of logistics functions, which have a great impact on the formation of commercial power, on competitiveness continues uninterrupted. In this period when the competition in the national and international markets is getting harder for companies, the logistics industry, which is an important auxiliary player of all sectors, is trying to change and improve itself day by day in order to provide faster and more effective service in the competitive environment. Production, consumption and transportation will never stop in a world where everything is likely to stop. They are trying to accustom themselves to this culture by opening their doors to innovation for change and improvement. Innovation in logistics is very important in terms of ensuring customer satisfaction by adapting to technology and moving forward without losing its place in the market in changing market conditions. Innovation is bold action, logistics is supporting it. Making a difference at the point reached today depends on companies to go to different ways of improvement, to provide benefits that will create added value, and therefore to “innovation” in logistics management. The most important factor for logistics companies to provide a sustainable growth, profitability and competitive advantage is that they should not only focus on the general principle of the company, but also with all employees, “Solution Oriented, Improvement and Development”, and this is where innovation, that is, the thinking part, comes into play. Making the analysis is in the part of the drawing according to the demand. Logistics and innovation are all kinds of services related to logistics, from the simplest to the most complex, that can be new and beneficial for a certain customer group, and doing this together provides business convenience. Logistics and innovation, which are complementary business segments, prioritize the customer base and act according to the supply and demand curve. Logistics companies want to provide comprehensive service in the production and consumption part, and in this case, innovation comes into play with the R&D department. Comprehensive logistics and innovation can be defined as any logistics-related service, from basic to complex, that appears new and useful to a particular focus group.

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