The term "logistics" has been in use since the late 1930s, yet few people understand the exact concept of this term. The first time the term "logistics" was used was in the military. Logistics was the supply and transportation of goods for troops for the army. After the Second World War, businesses and organisations adopted the word and expanded the services and complexities involved in logistics. The term was later used to indicate the supply of business materials and goods across global supply chains. Today the term "logistics" is even more diverse. The term is now used in business circles for the efficient, quick and cost-effective flow of the transportation of goods with regards to all arrangement processes, billing processes, shipping processes, documentation processes, storage processes, packaging processes as well as the management of these areas and more across different supply chains.
Let’s define logistics
Logistics is mainly defined as an industry that is responsible for managing, implementing, controlling and monitoring the transportation of loads, supplies, products and goods between different locations. There are quite a few different categories listed in the logistics sector including all of the following;
Procurement Logistics – this type of service is responsible for the entire procurement process of logistics. They will negotiate delivery contracts, partake in activities such as market research, monitor supply management, take control of orders and order controlling, arrange for additional services such as documentation, packaging, monitoring, insurance and much more.
Production logistics – This type of service focuses on the supply chain and only partakes in services from the point of entry to the delivery point.
Distribution logistics – This sector focuses on the delivery of product to the customer and can include various services such as order processing, transportation services, transportation arrangements, scheduled arrangements, warehousing and this sector also handles transportation services through various transportation methods.
Disposal logistics – This sector is also known as reversal logistics. They are involved in operations that involve themselves in the reuse of products and materials. Their main focus is to save natural resources and to renew products.
The importance of logistics to your company
Any business, large to small is affected by logistics. The logistics company processes your orders, ensures that the right products or goods are loaded, can arrange insurance in case disaster strikes, arranges delivery and pickup times, places the order at available and affordable freight services, handles all paperwork and eventually ensures that goods are shipped from point A to point B as safely, affordably and quickly as possible. Individuals benefit from logistics because these companies act on behalf of large organisations like large e-commerce stores and arrange for the delivery of your product to your doorstep. They also serve businesses because they arrange for the transportation of products and goods for companies who depend on reliable service, timely deliveries, good quality transportation modems and effective planning and monitoring.
Logistics are a crucial part of our economy and a very important service to consider whenever you need to transport goods in the quickest, most affordable and safest way. Freight Brokers Australia specialises in healthcare logistics, making sure the delicate and fragile medical items reach the destination safe and sound.