Logistics services are the full operation of a company’s resources to store, track and transport goods from location to location. When buyers and sellers come to an agreement for the purchase of goods, the need for Logistics services begins.
TRANSPORTATION OF GOODS
Logistics services are sometimes needed internally. Moving goods from a Company’s warehouse to the Company’s factory. Perhaps, sending partially assembled goods to another facility to complete the final assembly. The main goal of logistics services is to achieve customer’s needs in a well-timed, cost-effective way.
TRANSPORTATION VS. LOGISTICS
We need to draw a distinction between logistics services and transportation. Transportation is mainly concerned with the movement of goods from one location to another. Logistics is more complex and needs to factor in the advantages, disadvantages, and the cost of the transportation.
HISTORY OF LOGISTICS
The word “Logistics” was first used as a military term to describe how military personnel gained, stored, and moved supplies. Currently, the term ”Logistics” has become part of the common language. We use the term”Logistics services” in the business sector.
CURRENT DAY LOGISTICS
Companies specialized in logistics services, control and monitor the transportation of goods for so many industries. Some retailers and manufacturers have their own Logistics Departments. A large Company may own many trucks, planes, and warehouses, like Amazon for example. It is noteworthy to mention that large retailers usually possess major parts of their logistics network. Nevertheless, most of the companies depend on third-party logistics providers such as DHL, UPS, and FedEx.
The Logistics executives have the responsibility for taking decisions about storing goods, staying informed about import and export regulations, packaging, containerization, documentation, insurance, and freight damage claims. Logistics management refers to identifying prospective distributors as well as suppliers.
The process of logistics management starts with the accumulation of raw materials to the last stage of delivering shipments to the final destination or the end user. Furthermore, logistics management provides the possibility for facilitating the process of planning and strategy.
The 7 Rs of Logistics Services
This concept is so significant because it offers a comprehensive, simplified definition of the function of logistics services.
(1) Right Product: any company has to look into problems that may appear during transportation. For example: fragile products should have special packaging. Such a matter may affect the choosing of the most suitable transportation mode. On the contrary, a strong product will ease the process of packaging and warehousing transportation.
(2) Right Customer
All products should be delivered to their potential customers. Put simply, the right customer is the one most likely to buy a certain product. The difficulty becomes how to determine, the right customer for every product. Consequently, there is no option expect doing market research to show potential customers.
(3) Right Quantity
It is true that the right quantity plays a major part in logistics. There should be a balance between the quantity of goods and warehousing spaces.
(4) Right Condition
The quality of the goods should be preserved, by any means possible. Moreover, when the end user owns his shipment, it should be received in very good condition.
(5) Right Place
There is no doubt, the final destination should be accurately known. There is no use delivering something to the wrong place.
(6) Right Time
When it comes to logistics services, time is has a key role. It is this factor that makes any logistic company stand out in a crowd. Your shipments should arrive safely and on time.
) 7) Right Cost
The fact that cost is one of the most important factors when choosing a logistics company. It is essential to find a Logistics Company with a competitive advantage.