Why do businesses need Logistics?

Logistics Advice for Business

Logistics is the intricate process of planning, implementing and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, services and related information from point of origin to point of consumption while conforming to customer requirements.

More simply, it is the premeditated effort of getting the right product to the right place at the right time in the right condition and at the right price to satisfy customer demand.

For a lot of manufacturers, retailers and service providers these days, logistics is a sophisticated, technology-driven process that demands an enormous investment of resources and time. It delivers a lean system of production and distribution to the organization leaving the client to focus on strategic rather than operational issues.

By making the supply chain a single entity, rather than discrete tasks, logistics give companies a competitive edge: it fine-tunes their systems, allowing them to get it all right. Thus, integrated logistics lowers inventory costs, helps improve customer service, affords greater flexibility and reduces capital investments.