Logistics mixture of transportation, inventory, information, warehousing, packaging, material

Logistics is
the business of the movement of goods between the starting and the ending point
to meet customer and company requests. It includes the mixture of
transportation, inventory, information, warehousing, packaging, material
handling and often security. 1  While the supply chain management is the mixture
of all the activities related to the movement and change of goods from raw
materials to the end consumer. The logistics and supply chain mission it is to
have the right product, in the right quantity, in the right condition, to the
right place, at the right time, for the right cost. Logistics is very
significant in today’s economy, for example, the distribution industry
increased its efficiency by having a quick distribution. Can you think of a
world without delivery or transportation between places? Nowadays, lots of
companies depend on logistics and transport to maintain their firm strong. I
find myself at the forefront of this technological revolution, which is helping
companies to have the advantageous infrastructure and good record keeping,
making logistics importance increase. It is because of this that my topic
question is a significant one to study. ‘What is the importance of Logistics
for a company?’ I would like to further investigate this subject and understand
the factors which logistics contributes to companies.


Ordering online is so easy nowadays all around
the world, but it is
now seen as being a significant part of the company. As a twenty-year-old, I find myself ordering with my computer much more often and I find myself constantly expecting the company to delivery
me the good in a unique way. It
is for this reason that company’s partnerships with extra businesses which
offer transportation and warehousing to cut their costs. This enhances as well
significantly their general business efficiency because their business partner
will take the full responsibility of shipping their goods to the customers,
providing faster delivery of the product. Therefore, there will be an improved
customer experience and higher working efficiency in general, which develops a
better reputation and a stronger brand. A survey called Delivering Consumer Choice
proved this because 96% of buyers
stated that a ‘positive delivery experience would encourage
them to shop with a retailer again’ 2

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I find myself
constantly expecting products to be delivered quickly and flawlessly. Do you?
Nowadays, logistics is across the globe, the delivery of products can satisfy
as wide a range of customers as possible without considerably increasing costs,
arranging a good mass customization and quick response. In order to do this,
companies hire professionals to make sure the movement of products is done in
the most convenient and practical way. As companies nurture and develop, they
become more needful on effectively organized supply chains, to build and
maintain a positive public image. Supply chains deal with the production,
shipment, warehousing, and delivery of products. These networks are significant
to companies as they influence profits and sales.  The same survey shown
that 66% of buyers purchased goods from one retailer instead of another since
the delivery services propose was more attractive. In contrast, 51% stated that
they had stopped the online order because of weak delivery choices.3 Therefore,
without a good and efficient logistics, supply chains can’t support your
company achieve a competitive advantage and it can lead to losing customers and
decreased sales.


Logistics adds
value to companies providing quality, quantity, and availability. I must
periodically stop and ask myself, how many products are delivered daily? A good
logistics would provide availability of the product to everyone, astute
companies consider it a very important tool in creating value for customers.
Logistics makes and improves the value companies offer by improving merchandise
and guaranteeing the availability of products. Currently, with the use of this
incredible technology, we are easily given the opportunity to impulse shop
using a smartphone and be just as impatient about receiving the order. I find
myself constantly ordering a product by the internet expecting to receive it
within the next 2 working days. Consumer demands and approaches are
revolutionizing as fast as technology; therefore, logistics has to be
constantly evolving in order to provide better results. In the survey, 82% of
shoppers stated that it was key that retailers communicate every fulfilment and
delivery stage. 45% track order status using their smartphones while the rest
85% use their email to stay updated. 4This
service adds value to their offers, and ensure their products get to the right
place at the right time, giving a good image of the company.


Logistics is
an integral part of company strategy. Satisfied customers are the most precious
asset for any business. It is the key driver for the supply chains in all of
the phases, such as manufacturing, marketing, and logistics. Hence, it is the
main concern for all company’s owner to clearly recognize customer preferences,
needs, and demands, and then work persistently to meet them. If the good
arrives damaged or it arrives late are you willing to buy again from that company?
A bad delivery service harms online sale and brands. Nowadays, consumers will
not hesitate to communicate their dissatisfaction with a delivery experience;
in fact, 40% of shoppers in the survey confirmed they’d posted on social media
their woes. Besides, 56% said that a negative online comment would influence
their decision on whether to buy from that company. For this reason, the
company’s owner recognizes the needs and requirements of his current and
potential customers, in order to, develop an effective strategy. No matter if
the company is small, middle or large-sized, strategies depend on effective
logistics, to generate revenue and improve profits.


logistics is
important in trade it can possibly be one of the most important features to the
success of companies. Trade increase comparative advantage by specializing
in goods where countries have a lower opportunity cost, there can be a growth in
the economic welfare for all countries. In addition, the Increased competition
from abroad will be more an incentive to reduce costs and increase efficiency. Since
1945, world trade has increased by an average of 7%, causing this to be one of
the important contributors to economic growth and standards of living. 5 As a
matter of fact, since we leave in a global environment the capacity to
communicate efficiently can be a challenge. Even though if they speak the same
language there can still be misunderstandings because of cultural
differences. Customers demand a good clear communication in all the purchasing
journey. From the survey conducted, 83% of buyers expect to see delivery
options clearly showed on the identical web page as the product they want to
order. 93% of buyers wants to receive an email confirmation that their order
had been received. Last but not least, 88% said they track the status of their
online order. 6
Therefore, the understanding of the current impact of globalization on
cross-culture communication is vital for organizations pursuing a competitive
advantage in the global market.


In conclusion, there are several factors that shows
how logistic is important to companies, such as cutting costs and increase
efficiency which make a better reputation and a stronger brand to the
businesses. Nowadays we live in an entirely competitive world,
therefore its significant to maintain a positive public image and a competitive
advantage, logistic ensure businesses to achieve it.  In light of how effortlessly I, and almost anyone
today enjoying the fruits of technology, it is difficult
to stay always updated, however, logistics is something regularly evolving this Is why it adds value to
companies providing quality, quantity, and availability. Logistics is a truly powerful
strategy that should not be underestimated, it helps to generate
revenue and improve profits. logistics boost comparative advantage in
international trading improving the economic growth and standards of living. However,
the understanding of the current impact of globalization on cross-culture
communication is vital for companies in order to have a good clear
communication with their customers. At first glance, all
of these factors may not appear to people and
because of this, I used a secondary soure to prove the evidence
in my essay. We should embrace the idea that
logistics is part of companies and that without them they would benefit from
all of the advantages that they contribute in.