Whyis logistic important ? Introduction Duringthe Second World War logistics played an integral role: Effectively, themovements of all an army to Europe is ahighly skilled exercise in logistics. It should include many materials stuff(such as weapons, foods ), human displacement, transportation selection andtiming.
Surprisingly is only in the recent history that business organisationhas started to recognise the crucial impact on logistics management on theircompetitive advantage. Theglobalisation of exchanges and the integration of e-business and logistics isthe new trend in the global arena. Firms and customers make business efficientthrough the use of the internet, as well as e-commerce. Despite the ICT systemsin transportation, physical delivery is also crucial because it accomplishesthe transportation process in the logistics. The cost of transport logisticsand operation management can be higher, built remains the most necessary systemin the supply chain.
Online transportation has converted activities intoautomated, reducing costs, increasing product specialisation, increasingefficiency, as well as increasing organisational. Tounderstand the importance of the logistics in the business industry, we build atwo-part plan. In the first part, we will remind some key point of the logisticprocess and transportations modes, to better understand the importance of thisstrategy. Then we will explain the significance of this process with somerelevant explanations. Inthe beginning, logistic represent one of the most important branches of themilitary operation which deal with the procurement, some supply and themaintenance of equipment. It serves aswell the process of planning, implementing and controlling the efficient but aswell efficient flow and storage of goods, services which are related to someinformation based on consumer requirement. Logistichas strongly evolved with the development of new technologies, incorporatingthen many different kinds of transportations. These advancements allow human tointeract with each other around the world, and open business internationally.
An advanced and well-equippedtransport system will always yield decisive logistics in an organisation.Perhaps, a well-developed transport system in operation logistics has thepotential of providing efficient logistics, promote service efficiency, andreduce the cost of operation. In dealing with transport systems, bothprivate and public sectors need to come togetherTheland Based logistic represent the oldest form of transportation because, in thepast, people were moving principally on foot or using animal strength to getfaster. Nowadays, the land Based logistic include Road transport (such as atruck, cars), Rail transport (train) and pipelines essentially used in Rusia. TheSea-Based logistic has become made exploratory and mapping of the worldrealistic and possible.
It allows transportation for an open trade worldwideprocess. The most used ships are the cargo/container ships. The newtechnologies had helped to develop more efficient boat and ensure it safelyunder extreme condition.
: From a logistics perspective, sea basing willtransform a set of vessels into floating distribution centres. Vital components of sea basing includeselective offloading capabilities in high-space-utilisation environments,ship-to-objective logistics via high delivery, and vessel-to-vessel cargoreplenishment.Theair-based logistic is the newest one, used to carry cargo and passenger in thefastest way possible.
A lot of military forces around the world use air transportationto get supplies to their ground forces. Air Logistics Group, is, for example, the world’s leadingcargo General Sales & Service Agent (GSSA).Air Logistics provides a varietyof outsourcing solutions to airlines, enabling them to achieve a cost-effectivepresence.Within the EU alone, the freighttransport and logistics sector employs 6 million people and has an added valueof some €15 billion. Freight transport and logistics influences virtually allindustrial and public sector activities and affects every citizen s daily life. Firms already acting in this market hasto reorganise their logistics function to survive the increasing amount ofcompetition such a fast-growing market. Building an efficient distributionnetwork requires consideration of several parameters: transportationfacilities, warehouse localisation, customer’s demands and requirements, etc. Transportationbased logistic is crucial.
No new firm can operate without providing for themovement of its raw materials and its finished products. A business dealingwith import and/export situation can directly arrange its land, ocean, and airshipping of international cargo. These three primary logistic transportationbased represents a significant tool nowadays for businesses to develop themselvesinternationally and reach a new market. The mission of logistics management isto plan and coordinate all the respective activities necessary to achievedesired levels of delivered service and quality at the lowest possible cost.
The scope of logistics spans the organisation, from the management of rawmaterials through to the delivery of the final product.6-Link As a Business, you will one day want to growand expand on a regional, internationally or a global level. In every case,logistic will be a vital tool which will help you to cut the cost and timespent on moving product from one point to another. Effectively, looking a theexcellent transportation modes, according to the price, the distance and manyothers characteristics may seem easy but required a lot of knowledge. Small businesses must for example, as welldeal with finding suppliers, and often they need to deal with transportingmerchandise to store. The owner of a small company is in charge of conductionthe distribution logistic with inventory and warehousing, a supply chain thatcan represent a challenge in your business expansion strategy. Asupply chain is adequately complex and sensitive as there are depending onalways changing customer demand. However, a supply chain cannot be efficient ifthe transportation based is not efficiently organised.
It’sthe reason why logistics is a vital factor in the quality of any supply chain.The transportation mode can improve the supply chain by decreasing the wast ofmaterials and times (which we all know, cost money). On time and at the rightplace represents are the critical point for any business which wants to besuccessful and logistic is there use to plan and coordinate the movement ofproduct, in precise timing, a careful safety and in an efficient way. Indeed,regardless of the distance, every single customer expects their products to bedelivered quickly and in sound quality. Logisticrepresent the critical factor of the supply chain. It represents the uniquenetworks between businesses dealing with production, shipment and delivery ofproducts.
Those elements are relevant for the company because they mostlyaffect sales and profits. A reliable logistics service or strategy is essentialto a business for maintaining its positive public image and customersatisfaction. A satisfied customer is the most precious tool for a company,which need to be enforced by a perfect logistic strategy. Logistic managementis also fundamental for creating some visibility into a company’s supply chain:For example, the advanced transportation management system can analyse thehistorical data and track real-time movement of goods into a business. Thisinformation can be used to optimise the process and avoid disruption. Manyleaders have realised that they could reduce their cost by establishing somepartnership offering transportation and warehousing.
By working with theprofessional logistic company, many businesses have improved their efficiencyby accelerating their delivery process. Logistic costs can account for asignificant proportion of total values in the industry; it is critical thatthey are carefully managed. Activity-based costing methods provide somesignificant advantages in identifying the real value of serving different typesof customer or different channels of distribution. Conclusion Logisticsand the management, therefore, play a key role in and have a significant impacton, both the well-being of a company and the economy of a country. Theobjective of logistics is to consistently supply the correct quantity of theexact product to a customer, in the right condition and at the required place,time and price. The effectiveness and efficiency with which a company and itslogistics function achieve this have a significant impact on thecompetitiveness and success of the business. Therole of logistics in a company’s overall strategy is vital, as are theprocedures withinthe logistics function itself