WHY “LOGISTICS” IS IMPORTANT? ENLIGHTENING WITH ITS HISTORY!

DUNES CARGO > Blog > Blog > WHY “LOGISTICS” IS IMPORTANT? ENLIGHTENING WITH ITS HISTORY!

Any successful business person will not fail to acknowledge the crucial significance of effectively organized logistics. They would have understood that implementing flawless logistics is a key element in keeping pace with customer demands and outperforming competitors.

Whatever the magnitude of your business, you will want to grow and expand well. That possibly means expanding on a regional, international or global level. Whatever your business or operation area or industry, logistics can help cut down the costs and time you spend to move goods from one point to another.

How and when did the word “logistics” made its way?

The word is a combination of “logic” and “static” in the Latin context. Logistics was initially used in the arena of defence application. Nevertheless, the word gained its recognition during and post World War II and later was applied to as a scientific theme. Only in 1960 did the US business class saw the relevance of logistics in their growth and has been proven to do so till date.

Logistics is defined as the efficient planning and execution of all kinds of products, services, and information flow in the supply chain from the initial point to the last point to meet client’s demands, including transportation, storage and control. Logistics acts as the binding force of suppliers with their customers with the flow of information as well.

With rapidly growing globalization was its never-ending market!

Several enterprises started exporting and importing more in the 1990s, and transportation has become a crucial factor for businesses in terms of cost and timely deliverance.

Transportation is another key factor in order to maintain one’s name in a competitive market. The use of different options of transport depends, without a doubt, on three parameters: the distance to cover, the supply of transport and its final objective. And so it is necessary to evaluate the expenses to make sufficient profits.

Not only should that transportation be efficient: expediting delivery at the final stage requires the entire supply chain to be more effective. The finest solution in terms of costs and benefits is that companies create alliances and get their carriers to be strategic partners. This is very important as it assumes that transport is indeed strategic. Currently, the only real differentiator in today’s market is service, and transportation is a vital part of that achievement. Without it, customer loss is nearly a guarantee.

Logistics expenses are a considerable part of many companies’ expenses; so many use external resources to reduce such costs. In the era of globalisation, everyone has become a potential buyer, every agency has become a potential supplier, and even medium-sized agencies discovered its possibilities. The objective of purchasing is to provide cheap raw materials with the fastest and lowest expenses, and the ultimate goal is to find the shortest and most cost-effective method to sell the products.

The potential rise of an individual country’s economy is an added advantage for players.

Whilst each country has become a potential market, the need to have intercontinental logistics for effective supply and sale of products, the logistics industry has seen a 20% raise. Logistics companies have also explored the stock market platform and are thriving over the years.

A productively implemented logistics strategy is relevant for companies who are dedicated to keeping service levels at the highest levels possible in spite of changes that occur in the supply chain network. Remember, the ultimate aim of any logistics strategy is to deliver the customers the right product, at the right quality, at the right cost, at the right time and in the right place—while spending as little money as possible.

Last but not the least, the logistics industry is growing dynamic and companies around the globe are beginning to embrace the digital revolution and appear on track to consolidate their digital requirements so as to grow in different horizons.

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Dunes Cargo has hands-on management, local port knowledge and experience, and expresses a desire to build a long – lasting service relationship. We always try to go the extra mile to make sure that your shipments arrive / depart on time.

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