What are the logistics goals?

  • Jul 26, 2021
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Business logistics refers to aggroup of related activities, all involved in the movement and storage of products and information, from raw material sources to end consumers and beyond recycling and disposal. The goals of logistics are to get things from point A to B in a timely, efficient, and cost-effective manner.

This is a relatively new term and concept in modern business vocabulary. Its origins date back to World War II, when the ability to mobilize personnel and material was fundamental to the outcome of the war. The first college-level courses and textbooks related to business logistics appeared in the United States in the 1960s.

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Typically, large retailers or manufacturers own most of their logistics network. However, typically, companies outsource the service to third-party logistics providers (3PLs).

logistics goals

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In this article you will find:

Importance

Logistics is one of the oldest and most important functions in society. Since ancient times, Roman military commanders needed officers trained in logistics to make sure supplies got to the right place at the right time. We continue to use logistics, in fact, we use more logistics now than ever.

Supply chains are getting bigger and more globalized. Logistics is an important study and profession for ensure that products can travel in longer supply chains to achieve the desired goal. Furthermore, logistics is used in everything, whether it is a steel rivet that goes to a manufacturing company or if it is for wheat to produce bread.

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With a strong supply chain operations mechanism in place, you can have better control over the following:

  • Quality of the final products that your final customers would receive.
  • Timely delivery of products and services.
  • Vendor issues such as word repetitions and rejection rates.
  • Revealing the supplier's quality assessment.
  • Time to resolve complaints.

Logistics goals

All worthwhile third-party logistics companies should have a clear set of goals and objectives. These should address the logistics industry as a whole, as well as influence different departments, employees, customers, or marketing efforts, separately. To that end, we will analyze each of them to create a clearer picture of all logistics organizations looking to improve.

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For any supply chain to be effective, it is imperative that third-party logistics companies meet various internal logistics goals and objectives. These logistics objectives as a business level include:

  • Increased efficiency
  • Fast answer
  • Less unexpected events
  • Minimum inventory
  • Reduced cost of transport and logistics
  • Quality improvement

This process recognizes that there is a chain of participants, each of them have in relation to the many requirements regarding the Accuracy of information, punctuality in terms of availability, integrity of security and transport and the care of materials.

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That is why, the phrase Management of the supply chain has somewhat replaced logistics. The "logistics" had the associated military legacy and the "supply chain" was very business-centric. One of the reasons for the different names of more or less the same is due to consulting. Consultants want to sell you their expertise with a topic, and renaming that topic makes them new experts.

As a business owner, you would like to enjoy better quality control, especially in activities that involve suppliers. For example, the application of a minimum quality standard criterion allows suppliers to Find suitable secondary providers and partner with them to meet these objectives.

Eventually, supply chain management allows companies to establish process guidelines. With these guidelines, suppliers can adhere to the company's quality requirements. Some companies also conduct regular audits or verify compliance steps through documentation.

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