Currently, the logistics industry is playing an extremely important role in the development of the global economy. So what is logistics? Which service industries are included in the logistics industry? Find out with 1ST Shipping right in the article below.
1. What is Logistic concept?
Logistics is known as a commercial activity. This is the process of planning and implementing the delivery of goods from the point of production to the point of consumption in the shortest time. Logistic operations usually ensure the lowest cost effectiveness and customer satisfaction.
2. Learn Logistic and Supply Chain Management
Logistic Management: is part of Supply Chain Management. Logistic refers to the activities that occur within a company such as purchasing, delivering raw materials, packaging products, and transporting goods from the place of production to the distributor.
Supply chain management: is a large network of external organizations that work together to provide products to customers such as product suppliers, warehouse providers, shipping service providers.
3. Importance of Logistics in Business
In business activities, no matter how good your product is, but it does not reach the right consumer at the right time, it is still a failure. Therefore, Logistic is extremely important in the economy. Logistic occurs from the beginning to the end of a supply chain. The more efficient the materials are purchased, transported, stored until they are put into use, the more efficient the enterprise will have a competitive advantage and high profits. At the same time, the activity of coordinating resources appropriately to supply raw materials in a timely manner also helps businesses to be more profitable.
For customers, when the products are delivered in time, they can improve satisfaction and ensure profits for businesses.
4. Types of logistics services are popular today
Currently, there are many types of popular logistics services known:
– Sales logistics move products from the manufacturer to the hands of the consumer.
– Purchasing logistics is raw materials and spare parts
– Production logistics is the source of raw materials inside a factory
– Recovery logistics is the net profit stream
At this point, 1ST Shipping has provided you with the concept of Logistic, the types of services of Logistic today.
