Part Of A Thriving Business

Introduction

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:

procurement
distribution
warehousing
transportation
information
production
customs
complex

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
product shipment.
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
decision-making.

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
Containerization
Documentation and documentary support
Insurance
Storage
Importing and exporting regulations
Freight damage claims
Managing vendors and partnership
Risk mitigation