So, how does logistics really work?
Logistics refers to the supply chain management system that is used by a business in order to meet customer demands for goods. It includes all of the research, planning, controlling and implementing of transportation and storage of either information or products. Logistics encompasses the entire consumer system, from the ordering process and inventory management at the place of origin all the way to the delivery of the product at its final destination.
The goal of a logistics system is to enhance the customer service experience and to reduce the expenses incurred by a business. Logistics systems also help with inventory control and delivery response times. Most of today’s modern logistics are controlled by technology that monitors every aspect of the system.
Logistics in the ideal world works by having the desired item in the right amount at the correct time. The item must also be at the right place, for sale at the right price and in the right condition for the customer to accept it. Business logistics are used in all industry sectors.
When a customer orders an item, the inventory management system identifies where the item is located. The item or items are then packed for shipment. A tracking system uses a QR or bar code placed on the item or its packaging in order to track it throughout the transit and delivery processes. The real-time monitoring system allows a business to provide customers or stores with updates as to the expected delivery time of the item. The place where the item will be delivered is based upon the consumer’s demand. Once the item arrives at its destination, it is inspected and then accepted by the person who ordered it for a private transaction or placed upon the store shelf or a business transaction.
Logistics also incorporates some aspects of warehousing. In some cases, factories over-produce items which are then either stored in a warehouse or purchased by another business and then stored in that company’s warehouse. When the supply at a retail location runs out, the fulfillment logistics system requests a resupply from the warehouse. Some private orders may be filled directly from one of these warehouses.