Tuesday, 4 March 2014

The Importance of Logistics and your Company

The term logistics and all the actions involved have its origins in the military. It wasn’t until the 1950s that logistics evolved into a business concept and today the term is used to describe the flow and storage of goods from their origin to the point of consumption.

Logistics and Your Company

Even the smallest of businesses need to find suppliers and this isn’t an easy task. They need to deal with transporting merchandise to their store, their distribution logistics along with the inventory and warehousing. Then there are the reverse logistics and the refusal of their services. While not all small businesses have to deal with all aspects of logistics some medium to large organisations have to deal with everything: procurement, production, distribution and disposal.

For the more complicated logistics actions third party suppliers are often relied upon for inbound and outbound focuses. Third party logistics is when a businesses using an external organisation or an individual to perform the logistics activities that may have traditionally been performed within the business.  A new trend is now involving fourth party logistics, which is when the fourth party will take control of the third party logistics providers but also design, build and run the supply chain solutions required. Then there are the logistics consultation services that can be valuable to businesses. This is when the experts assist by securing suppliers and managing the entire process from production to the distribution of goods.

Even project management deals with logistic processes, coping with various constraints such as time, budgeting and the scope of the business logistics. All businesses, regardless of size require logistics and management plans that will benefit the supply chain and reduces costs. It’s become one of the main functions with a company, especially as the global reach is now more accessible than ever. While it may seem effortless it clearly isn’t, so how do you cope with your logistics?

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