What is the first thing that comes to mind when you hear the word “logistics”? The word “logistics” is known from the Roman Empire, where employees involved in distributing food were called “logisticians” or “logistics”. Logistics was developed through the development of military affairs. But, nowadays logistics is primarily a management model for optimizing all processes of movement of goods, services, and resources, which contributes to the development of B2B and B2C business.
Logistics contributes to an enterprise to develop efficiently by choosing the right logistics strategy, creating an effective logistics system, rationally organizing the logistics process at the enterprise and solving problems of cross-functional and inter-organizational coordination and integration.
The main tasks facing logistics are as follows:
- selection of transport;
- selection of optimal routes;
- labeling and numbering of goods;
- packaging and storing of goods;
- organizing the optimal and accessible location of goods in warehouses;
- formation of general and combined orders.
Recently, the development of logistics has reached the point where it has been divided into
types. Taking all of the factors and conditions of service provision into account, the main
logistics types are below:
The organization of logistics activities for any enterprise can be carried out in accordance with
one of the four main strategies for the development of logistics services.
- An enterprise or business independently establishes a logistics department whose
functions are to carry out all logistics processes from the purchase of the raw
materials to the sale of products.
- Outsourcing some of the logistics functions to third-party companies, such as
warehousing or transportation that are difficult to implement on their own.
- Outsourcing of all logistics functions, including raw material supply management and
- Close cooperation with a logistics provider who not only provides delivery, shipment
and coordination, but also promotes the product in the retail network.
It doesn’t matter in which area a business is developing, what size it is, or where it is located.
It’s the logistics connections and services that make it complete and competitive.
Logistics services are provided by many companies, there are almost no monopolies in this
market, and high competition means that every customer is important. To understand how to
choose the right logistics company, it is recommended to focus on a number of criteria:
- Vehicle fleet. Possibility to get complete information about the fleet owned by the
- logistics company; the ability to choose the type of transportation that is convenient
- for the client; understanding who owns it; and the ability to meet special
- transportation needs through cooperation with available fleets makes the company
- able to fulfill its obligations.
- Clear guarantees of compliance with transportation deadlines and cargo safety in
- transit. Carrier liability insurance is equally important. The company should have
- clear, well-developed transportation schemes, a well-coordinated team, and options
- for solving even the most complex cargo transportation options.
- Providing a wide range of services and an integrated approach. The logistics company
- assumes full responsibility for your goods at all stages of cooperation: selection of
- transport, route, transportation, storage. Also pay attention to willingness to work with
- non-standard orders, discussing the terms of the contract, which includes all the
- conditions, actions and responsibilities of the parties in emergency situations.
- Value for money. The availability of open cases, feedback from previous customers,
- and a transparent calculation of the cost of services are key factors in
What Are Logistics Services?
- Planning, implementing, and managing actions for the most efficient and effective
- storage and transportation of goods as possible
- Services and solutions of packaging
- Documentation and documentary support
- Importing and exporting regulations
- Freight damage claims
- Managing vendors and partnership
- Risk mitigation