What Is Logistics? Definition and Guide 2023

Agility recognizes that centralization brings benefits, but satisfying local customers or markets is a pre-requisite. Transportation facilities should be configured in such a way that raw materials, components and finished goods are delivered at right time, the right place and at the right quantity/quality with the least cost and time. Under this trend, China has successively introduced corresponding policies to support the construction of logistics parks. If your unique supply chain needs some help, trust a logistics company that’s worked with, well, a lot of unique supply chains.


Both logistics and reverse logistics can significantly affect your supply chain if not optimized for enhanced performance and efficiency. Delivering products and other goods to customers quickly and at a low cost is essential to their satisfaction, but so is processing and handling returns that must go back through your supply chain in the opposite direction. Third-party logistics involves using external organizations to execute logistics activities that have traditionally been performed within an organization itself. According to this definition, third-party logistics includes any form of outsourcing of logistics activities previously performed in house. For example, if a company with its own warehousing facilities decides to employ external transportation, this would be an example of third-party logistics. External 3PL providers have evolved from merely providing logistics capabilities to becoming real orchestrators of supply chains that create and sustain a competitive advantage, thus bringing about new levels of logistics outsourcing.

Improved customer experience:

Containers, packaging, old computers, and inkjet cartridges can also be recovered and recycled in the same manner. The importance of recycling logistics has been increasing in recent years as measures for the environment and to effectively utilize materials such as minor metals. “The CLTD Certification program gave me the opportunity to view my organization’s end-to-end from a new perspective. I now have the experience to think of new ideas that will improve our bottom-line and customer experience.” You will need to go through the validation process again to renew with your current discount level. If you are no longer a federal employee, you can either renew as a professional without a discount or see what other discount plans you may be eligible for.

An alternative is to concentrate all available stocks of slow-moving items at a single location. This requires only one reserve stock for unusually large customer demands and offers greater control over a greatly reduced inventory. In effect, this approach creates a higher volume of sales per stock-keeping unit location for each item by reducing the number of locations at which stock-keeping units are maintained. For 集運 , many managers intuitively have recognized potential economies from the differentiated treatment of various product-line items in their distribution. For example, using ABC inventory methods managers establish more restrictive inventory rules for high-value, low-sales-volume items than for others in a product line. This effort reduces inventory holding costs in relation to a given sales volume.

Logistics: profession and organizations

Vertical integration is a business strategy to take ownership of two or more key stages of its operations to cut costs. A supply chain is a network of people and entities who are involved in creating a product and delivering it to its consumer. Contract logistics is the outsourcing of resource management tasks, such as transportation and warehousing, by one company to a third-party company. Physical metrics used to evaluate inventory systems include stocking capacity, selectivity, superficial use, volumetric use, transport capacity, transport capacity use. EDI is a form of structured documents exchange between business partners.

Logistical chains are full of connecting linkages between various parties in the chain known in logistics as potential ‘handoffs.’ These are all points of potential delays and increase the inventory in the chain, tying up capital. New strategies to organize and control freight movements within cities are required. Never miss out on the latest industry news, expert insights, and promotions. We can help you mitigate risk, improve cash flow, print 3D and a host of other surprises.

Leave a Reply

Your email address will not be published. Required fields are marked *