Logistics

Logistics can be define as is the process of planning, organizing, coordinating and controlling the
efficient and effective physical flow, storage and handling material, goods, services and related
information from the point of origin to the consumption in order, to fulfill the customers demand at
the cost possible. Or logistics is cosine about all activities related with planning, implementing, and
controlling the efficient, cost effective flow and storage of raw materials, in- ,process inventory,
finished goods services and related information between the point of origin of consumption in
order to meet customer requirements. The logistics term migrated to the business sector in 1960s
soon after or when as academician saw potential in the principles of military logistics to the
physical distribution of customer good.

The following are the importance of logistics in business.

Logistics helps in reducing costs and improves efficiency With global trade growing more
popular, logistics has become the heart of supply chains. Business leaders have realized they can
reduce their costs by establishing partnerships with other businesses which offer transportation and
warehousing.
When businesses start using such services to outsource transport and warehousing, they improve
their overall business efficiency, sometimes dramatically. If they let these partners take charge of
shipping their good to end customers, this results in a better reputation and a stronger brand.
By working with highly professional and reliable logistics companies such as A&A, many
businesses have improved their efficiency by providing faster delivery of product. This leads to an
improved customer experience and higher working efficiency in general.
Logistics is the key to success with supply chains
Supply chains are unique networks between businesses that deal with the production, shipment,
warehousing and delivery of products. These networks are very important to businesses as they
largely affect sales and profits. However, without effective and well-organized logistics, supply
chains can’t help your business gain a clear advantage over the competition.
While a good marketing strategy can “open many doors” and attract customers, a reliable logistics
service can help your business build and maintain a positive public. Meanwhile, poorly organized
logistics can lead to losing customers and decreased sales.

Inflows
You need supplies, raw materials and information flowing into your business so you can use them to
create or deliver your products or services. If a delivery comes late or a computer goes down when
you are expecting vital information, your logistics are not working. You either need to become a
logistics expert or hire one to make sure you get what you need on time. If you provide an office
cleaning service, for example, and your cleaning supplies don’t arrive on time, you can’t clean
offices that depend on you.
Build excellent consumer relationship. Business logistics services can help provide products in an
efficient manner. If you have a quality product and efficient delivery system, it is going to build
good consumer relations. This is not only going to benefit the company in the short-term through
monetary gain, but it might also mean more business in the future because of nourished customer
relations. Remember that providing good, quality service is going to be the best way to advertise a
business and cause income to grow.
Generate a finished product. Companies need to make finished products, this means that
companies need to be sure that there are enough raw materials available to do so. A business cannot
make quality products without quality goods. This allows companies to maximize customer
satisfaction and live up to the supply and demand purposes.

Effectively coordinated logistics leads to positive business results

As businesses grow and expand (regionally, internationally or even globally), they become more
reliant on effectively organized supply chains which includes sophisticated logistics. This element
of supply chains is not something that “only matters in large-business development”. It is just as
crucial in terms of improving efficiency and profitability with smaller and medium-sized business
as well.
Logistics plays an essential part in supply chain management. It is used to plan and coordinate the
movement of products timely, safely and effectively.
Customers now not only include your neighbors and local friends; they include people from across
the globe, as well. Regardless of the distance, each customer expects their products to be delivered
quickly and flawlessly. In order to do this, smart businesses hire experienced professionals to align
the pattern of movement of products in the most convenient and practical way.

Logistics helps businesses create value

Providing value to customers does not only refer to quality or quantity. It also refers to availability.
As better logistics makes your products more available to an increasing group of people, wise
business leaders consider it a very important tool in creating value for customers.
Logistics creates and increases the value businesses offer by improving merchandise, and ensuring
the availability of products. In order to provide value, businesses either work on improving their
own logistic activities or rely on professional.
Logistics helps delivering the product at the right time place timely.
Logistics is firmly and clearly within supply chain. However, due to differing customer demands, it
has to be constantly evolving in order to provide better results. Customers no nowadays are more
likely to impulse shop using a smart phone, and be equally as impatient about receiving their order
with professional organized logistics, business are able to answer short-time requirements. By
choosing an experienced team of professionals, business entrepreneurs can ensure quick and safe
shipping, warehousing and delivery of their products to customers. They can incorporate these
services in a way that adds value to their offers, and ensure their products get to the right place on
time.
conclusion logistic in business it involves everything from acquisition from wholesalers and
suppliers to manufacturing,storage and delivery to customers. So that it is imperative for every
business owner to have strong understanding of his logistics system for maximizing profits.
Reference
Title book- logistics and supply chain
Author – Patrick Jonson
Publisher – MC crew hill Education
Year – 2008
Title of book – The hand book of logistics & distribution management
Author – Peter Baker
Year – 2011
Publisher – Replica Press Pvt Ltd
OTHERS
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