What is logistics: definition, origins and what it is about
Logistics, in its evolution through time, has deep roots dating back to ancient civilizations and complex resource management systems. The term itself, derived from the Greek “logistikos,” was originally used by the Greek military to describe the art of organizing and distributing resources in the field of warfare.
However, the modern concept of logistics gained relevance mainly in the business context during the 20th century.
After World War II, the economic boom led to exponential growth in international trade, and corporate logistics emerged as a key discipline for ensuring the competitiveness of companies on a global scale.
Logistics is a vital component in the business environment, playing a crucial role in the efficient management of the flow of goods and information.
As opposed to a narrow view that identifies it exclusively with the transportation of goods, logistics embraces a wide range of interconnected activities aimed at ensuring optimal management of the flow of goods.
What is Logistics
Logistics can be defined as the discipline that deals with the effective and efficient planning, implementation and control of the movement and storage of goods, services and information, from the point of origin to the point of consumption.
However, it is essential to overcome the limiting notion that logistics is reduced exclusively to the transportation of physical goods.
Logistics goes beyond transportation
Contrary to the misperception that logistics is synonymous with transportation, it extends far beyond this single dimension. In fact, logistics is a multidimensional field that encompasses several interrelated activities.
The different activities of logistics:
- Data Flow Management: Modern logistics involves advanced data management, using technology and information systems to monitor and optimize information flows.
- Economic Strategy: Logistics is not only about moving goods, but also about developing economic strategies. This includes supplier selection, route optimization, and cost management.
- Warehouse Goods Management: A crucial element of logistics is the efficient management of goods in warehouses. This involves rational stock arrangement, accurate inventory monitoring, and effective coordination of warehouse operations.
- Replenishment of Goods: Logistics also involves the replenishment plan for goods, ensuring that they are available at the required times and quantities.
- Handling of Goods: This involves the planning and execution of handling operations, ranging from internal logistics to loading and unloading.
- Verification and Shipment of Goods: The final stage involves the verification of goods, ensuring that they meet specifications, and shipment in a safe and timely manner.
Integrated logistics
Integrated logistics represents the holistic approach to logistics flow management. By synergistically combining the different activities mentioned above, it aims to achieve a comprehensive and coordinated view of the logistics process. In this context, it becomes crucial to consider the main role played by third-party logistics services, also known as 3PL (Third Party Logistics).
Third-party logistics providers, which specialize in managing specific stages of the supply chain, offer companies the opportunity to outsource some or all of their logistics activities. This approach allows companies to focus on their core competencies, while 3PLs professionally handle functions such as warehouse management, transportation, inventory tracking and other logistics processes.
The use of 3PL services not only simplifies the complexity of operations, but also allows for a greater degree of flexibility and adaptability to market fluctuations. Integrated logistics, therefore, is not only limited to internal management of activities, but also embraces strategic collaboration with specialized external partners.
Outsourcing logistics services not only optimizes individual stages of the supply chain, but also helps reduce overall costs and increase the overall efficiency of corporate logistics.
In an increasingly dynamic business landscape, the adoption of 3PL solutions becomes a crucial element in ensuring total commodity management and greater agility in responding to the changing needs of the global market.
Logistics: integrated measures for business development
In conclusion, logistics goes far beyond the only transportation of goods. It is a complex discipline that requires interdisciplinary skills and an integrated vision to ensure business success through optimal management of the flow of goods and information.
Logistics is not just an operational process, but a strategic lever that can determine a company’s success or failure in the increasingly competitive global marketplace.
