What Is Logistics - DSers eCommerce Basics


Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination.

What Is Logistics

Logistics is the process of planning and carrying out how things are stored and moved from where they are made to where they are used. Choosing potential distributors and suppliers and evaluating their efficiency and accessibility are all part of logistics management.

Why Logistics Important

Although timely, undamaged package delivery has always been crucial for the whole supply chain, it has recently become even more critical as omnichannel commerce—with its same-day home or retail delivery of personalized goods bought from smartphones—becomes increasingly popular.

To fulfill the need for faster, more convenient delivery of a wider range of products, suppliers, distributors, manufacturers, and retailers have had to enhance their logistical procedures.

Cycle of the Logistics Process

Let's now discuss the logistics cycle. The procedures that make up a logistic cycle are as follows:

  • Serving clients

The logistics department's primary goal is to assist consumers by getting them the necessary things. 

  • Product Choice

The appropriate product selection is crucial to the success of any logistics system. The system of the supply chain is immediately impacted.

  • Quantification

Quantification is the process of obtaining the material from the supplier or producer. You are aware that it may sometimes happen to get an order in significant quantities or an unanticipated need for supplies.

  • Inventory Control

The storage and delivery of items is the function of inventory management in the logistics management system. Once there are enough of the things, they are put in storage until a customer wants to buy them.

  • System for Logistics Management Information

The LMIS (Logistics Management Information System) is the process that is responsible for the appropriate items being delivered in the right amount, at the right location, and at the right time.

  • Shipment Period

When a customer buys something from you, you must dispatch the goods quickly and thank the customer. 

The effect of your quick reaction on the consumer is positive and demonstrates the flexibility of your service.

  • Punctual delivery

Honoring your commitment to fulfilling customer orders on schedule is crucial if you accept their business.

  • Cost of Transportation

You must choose the quickest route that will save on gasoline costs to improve the efficiency of your logistic service.

If a manufacturer or distributor were the heart, logistics would be the veins that carried blood to all the various body sections in response to needs.

The trucks and their drivers are responsible for the delivery service's effectiveness. Therefore, you should remember the essential logistics indicators if you are operating or preparing to launch a logistics business.

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