What is Logistics?

It is very misleading who thinks that logistics relates only to the transport of goods. The word comes from the Greek language, and means logical reasoning and calculation skills.

Business logistics were inspired by tactics used on the battlefields during World War II.

To win the battles, generals mounted complex schemes to transport and store weapons and supplies.

When the war ended, there was a fierce market-for-commodity dispute and more efficient ways of distributing them.

And it was through these battle tactics that the companies organized to lay out what is logistics.

In general, only logistics represents 10% of the cost of the product. For customers, it is critical to the assignment of value of the commodity.

In addition to this, we also have the phenomena of globalization and e-commerce, which have elevated the importance of logistics to the success of an enterprise.

If you are looking to manage the flow of your products at the lowest possible cost and stand out in the market, you must consider 3PL logistics company.

What is logistics?

Logistics can be defined as the process of efficiently planning, executing and controlling the transportation, movement and storage of goods inside and outside the companies. This ensures that the cycle takes place in an integral manner and delivery times are met.

If you are doing everything right (and we will make sure you are!), After going through the takeoff phase, your business is likely to start growing, and with it, operational challenges will also grow.

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In this way, more challenges appear: how to produce in a shorter time? How to make deliveries faster? How to positively surprise your network of suppliers and your customers?

A good entrepreneur understands that his role is also to do more with less. For this, it is necessary to invest in a good logistics operation.

In order to evaluate the possibility of promoting improvements throughout the logistics chain, it is necessary to measure logistics costs well. They can be classified into:

  • Products, storage and transport.
  • Capital.
  • Coordination of the process, from the manufacturing to the availability of the merchandise at the point of sale (POS).
  • Variations between the predicted and the real, generated by complexity and its management.

The need to improve the quality of the operation, thinking about the customer’s experience and reducing costs, has given rise to business logistics.

After all, it is the logistics that will be responsible for the highest efficiency in your business, helping to bring that highlight to the market!

Keep in mind that the greater the complexity of your business activity, the greater the need to coordinate, in a systemic way, the aspects involved in the production process.

Business logistics, therefore, becomes even more important.

Coordinating the management of inventory, transportation, distribution, suppliers and all other phases of its production process. So the business logistics will propose way to better organize the production processes of your company.

There are three key elements to successful logistics:

  • Investment in efficient communication for your team:

the better the communication between the various members of the logistics chain, the better the chances of improving performance and fluidity of the operation. Before implementing processes, consult your employees to see what the best mechanisms are and how to improve processes.

  • A plan B:

problems can happen, and a number of them can not be controlled. Make sure you have alternatives and ensure good results.

  • Control of the process:

the exchange of information and good communication are essential for this item. You need to be well-acquainted with everything: measure results, understand possible problems and record your results to accompany them in your daily life. Try to check what your company is doing and what it is doing, seeking solutions to optimize the production process.

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