Why All Businesses, Big or Small, Rely so much on LOGISTICS?

Are you starting to see why logistics is so crucial to the success of your business?

4 main areas of logistics:

Logistics doesn’t begin and end with one process or organization.  In other words, it doesn’t take place all under one roof. There are

1.       Procurement: This is the first step in the supply chain, and it isn’t production. First, you need to conduct market research, make purchasing decisions, select suppliers, and negotiate contracts. What makes procurement run smoothly? Logistics.

2.       Production: Now you’ve got to design and produce the goods. This means organizing and planning (logistics) the layout and production of your product so that the whole process is streamlined and efficient.

3.       Distribution: Now your goods and services are ready to be distributed to your customers. You’re dealing with processing, storing, and transporting; while documenting every step of the way.

4.       Disposal Logistics: It doesn’t end with the consumer. Logistics is obsessed with reducing cost and eliminating waste. With disposal logistics, also called reverse logistics, you look for ways to reuse and recycle scraps and byproducts of the supply chain.

Whether you’re dealing with apparel, software or something else , you need logistics. A large corporation might deal with all four areas of logistics, but even a small company usually works with suppliers and distribution.