The importance of Logistics.

Logistics are vital to any successful business, the efficient control and flow of goods can increase a company’s profitability.

From the smallest business upwards companies are involved in logistics, this may be delivering to a shop on the high street, an industrial unit or into a distribution centre. Equally they have deal with issues of stock control for manufacturing or distribution.

The way a company deal with its logistics can vary greatly and can be a fairly simple process to the more complicated which often involve the use of an outside supplier be that a contractor or a 3PL (Third-party logistics) provider.

Third-party logistics (3PL) execute logistics activities that have historically been performed within an organisation themselves. If, for example, a company decides to export its product, it may hire a person or organization to help with distribution logistics.

Alternatively, there are consultancy services that specialise in Supply Chain and Logistics. Such a company (or individual) may help in the sourcing, production or distribution of goods. They will look at the supply chain which includes every party involved in the production and consumption of goods and services, from concept to fulfilment. It is vital that every link of the supply chain is pro-active, efficient and cost effective.

A consultant can offer advice in many areas of the company’s activities:

· Sourcing.

· Inbound logistics

· Packing.

· Documentation.

· Outbound logistics.

· Technology

Consulting firms will be able to offer expert advice to the supply chain process to increase productivity or decrease the amount of excess inventory.

Working as, or in partnership with, a freight forwarder, can procure the services of third parties who will perform the packing, storage, transport be that by air, sea, road or land transport, and handle customs clearance of the goods.


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