The strategy of carrying the resources and products from their location of manufacturing to the location of consumption according to the need of the market is called Logistics. The idea originally cropped up from the military sector where the requirement was to keep the armed troops regularly supplied with ration, arms and ammunitions, when they moved forth from other base point. In the context of an army, logistic solutions are very important as an army is entirely structured on timely supplies of provisions.
Nowadays, logistic solutions are a necessity for various other sectors such as manufacturing, export-import, wholesaling, customs, etc, in short in businesses demanding mass-scale transportation of goods. As a business, logistics came to exist because of challenges in supplying products to their areas in a global supply chain. Logistics involve organizing according to available statistics and market surveys and implementation of activity forecasts that could generate optimum profits. Furthermore, it provides a cost effective yet result oriented transportation strategy since transportation and delivery of goods is the key component of the logistic process.
The key centre of these supply chain is the warehouse and managing a warehouse, managing its receipts, storage and transfer of materials within where processes like shipping, receiving, loading, picking, unloading and transactions are involved, are main concentrations of logistics. Today inventory planning, cost management and communication technology also comprises a part of logistics solution for transportation businesses.
The high-rising distribution costs are compelling the manufacturers to rush for an effective yet economic distribution plan. For this a proper market assessment of the products in the local markets has to be made. Besides this, the analysis of the set up and design of the logistic centre can also be very important. The re-slotting of distribution centres must be accommodated to comply with the change in market statistics. A logistic planner deals with all these to come up with solution for business houses, keeping a reasonable balance between cost and availability of space, access to transportation in the preferred area and labour costs. The manufactures can be provided with a proper solution only after a comprehensive study of the transport logistics.
The past century saw a decline in need for the standard ways of transport with the emergence of modern systems like JIT, or Just In Time system, which absolutely takes away the intermediaries like warehouses and involves timely deliveries to the customer from the manufacturers. This obviously cuts down on the time and cost linked to transportation and the process of security is also done away with. But where offshoring activities are involved, warehousing is an absolute must. Various factors should be considered before selecting best suited locations for warehousing. In recent days a sophisticated version of warehouse-styled retail stores has come up. The idea of utilising the warehouse dually as storage and distribution depots highly appeals to the modern day manufacturers because apart from reducing the end cost to the buyers, it increases the production sales ratio too.
The impact of internet and e-commerce is also undeniable. Selling over the web takes a great network of shipping and delivery system and the expense of opening a widespread chain of retail outlets can also be saved with the warehouses acting as storage depots only.
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