Logistics Basics

Do you know what logistics exists for or what it do for the costumers?

Take a look of these important things 📝

This is the cornerstone of our entire business 💡

Logistics exists to support the efficient and effective flow of goods, services, and information from the point of origin to the point of consumption, with the goal of meeting customer requirements and supporting business operations. By managing the physical and information flow in the supply chain, logistics helps to ensure that products are delivered to customers in a timely, cost-effective, and reliable manner.

The role of logistics in serving customers can be summarized in four points

Timely Delivery: By managing the transportation and storage of goods, logistics helps to ensure that products are delivered to customers on time, thereby enhancing customer satisfaction and building customer loyalty.

Cost Savings: Logistics helps to minimize the costs associated with the production and delivery of goods, such as transportation and storage costs, through the use of efficient routing, loading and unloading, and inventory management.

Improved Product Quality: By managing the storage and handling of goods, logistics helps to ensure that products are protected from damage and maintained at the required quality level, thereby enhancing customer satisfaction.

Increased Flexibility: By managing a flexible and responsive supply chain, logistics helps to ensure that customers can receive products in a timely manner, even in the face of changes in demand or supply chain disruptions.

What about the distribution?

Logistics has the objective of delivering exactly what the customer wants at the right time, in the right place, and at the right price. In planning for the delivery of goods to customers, marketers have usually looked at a process termed physical distribution, which refers to the activities used to move finished goods from manufacturers to final customers. Physical distribution activities include order processing, warehousing, materials handling, transportation, and inventory control. This process impacts how marketers physically get products where they need to be, when they need to be there, and at the lowest possible cost.

In logistics, the focus is on the customer. When planning for the logistics function, firms consider the needs of the customer first. The customer's goals become the logistics provider's goals. With most logistics decisions, firms must compromise between low costs and high customer service.

Did you know that...

In recent years, the use of technology, such as transportation management systems (TMS), warehouse management systems (WMS), and supply chain management software (SCM), has revolutionized the field of logistics, making it easier to track and manage the movement of goods and resources.

Overall, logistics is a complex and ever-evolving field that requires a deep understanding of supply chain management, transportation, warehousing, and distribution. It plays a critical role in ensuring that products are delivered to customers efficiently and effectively, and is an important area of expertise for businesses of all sizes.

What are the objectives of logistics?

Make sure you keep these six points in mind! 💭
1 To ensure the efficient and effective flow of goods, services, and information from the point of origin to the point of consumption, in order to meet customer requirements and support business operations.
2 To minimize costs associated with logistics activities, such as transportation, storage, handling, and inventory, while maximizing the value received by customers.
3 To support sustainability initiatives, such as reducing carbon emissions from transportation, minimizing waste through efficient use of resources, and using environmentally friendly practices in all logistics activities.
4 To manage risk associated with logistics activities, such as the risk of damage to goods in transit, the risk of stockouts or excess inventory, and the risk of supply chain disruptions.
5 To achieve a high level of coordination and collaboration among all stakeholders in the supply chain, including suppliers, manufacturers, distributors, retailers, and customers.
6 To provide reliable and timely delivery of products, thereby enhancing customer satisfaction and building customer loyalty.