Logistics is the process of getting the goods or services from the manufacturer, the mines, or even a farm to arrive safely and securely to the receiver’s warehouse or front door or store. The actual logistics management system starts before the material is prepared for shipping, and the shipping freight rates will depend on the creative manipulation of the delivery schedules that are suitable for the shipper and the receiver, as well as the best modes of transportation and the best routes for delivery.
The concept and later commercialization of logistic management originated with the military and their need to move weapons and other goods to use in battle. With the increase in population around the world, the demand for the distribution of a mass amount of goods and merchandise challenged corporations and organizations to look at ways to be more efficient and cost effective.
Modern Trends in Logistics
Supply chain digitalization is at the top of the list in using logistics to build customer satisfaction and save companies money. This concept is based on the idea of using the latest tech programs to mesh with other physical and digital technologies to redesign their logistic formula.
It is not enough in this modern era to add more hardware and software to the existing system. There has to be a complete redesign of the approach to the logistics question to be prepared for the future.
The Internet of Things (IoT) is the new terminology for the transfer of data from one source to another without the use of human input. It helps companies manage the warehouse, keep track of the inventory, preview delivery routes, and reduce dead mileage. This becomes a critical element of reducing shipping freight rates and is a direct benefit to the customer.
The logistic management system must redesign their practices to stay competitive. The use of AI (Artificial Intelligence) has many uses in the modern approach. This thinking includes the use of gesture recognition instead of a keyboard and mouse, and autonomous vehicles (self-driving cars). All of this is designed to eliminate human error in locating shipments and moving the cargo from one place to another.
Circular Supply Chain
The traditional logistics connected to moving goods was the linear track from the raw material to the manufacturing plant to the consumer. A more modern approach will be to use previously used products as raw materials. This system is known a reverse logistics, and it helps companies reduce administrative and transportation costs, create better customer loyalty, and conserve resources.
Another modern trend in logistics is the use of wearable devices by employees to take inventory and maintain data in real time. Incorporated with the use of the Cloud technology, this allows companies to keep on top of the stock, track the shipments that keep the goods moving to the right locations, and stay in touch with product demand.
Knowledge Work that Goes Global
With the advent of technology and the streamlining of logistic systems, nearly half the work in this area includes complex analytics, planning, and procurement. As businesses go global, this innovation of technology will allow knowledge to work in the supply chain to also go global. Companies headquartered in one part of the world will be able to handle logistics and procurement in a completely different part of the world.
Summary and Final Thoughts
The company that is involved with the logistics of moving freight from one port to another and ultimately to its final destination is faced with the continuing need to keep up to date on the modern techniques being developed for this global task.