Definition of Business Logistics

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One of the most important parts of running a large business is making sure that the supplies and products you need are in the right place at the right time. If the supply chain is not in sync, the business will suffer as a whole. Business logistics deals with controlling the movement of business resources and supplies.

Planning

  • One of the important aspects of business logistics involves planning. In this stage of planning, a company uses supply chain management professionals to determine the most efficient route for goods and services to flow. The ultimate purpose of logistics is to move goods and services from the point they originate to the customer with a smooth and timely flow. For this to happen, the decision-makers in a company must sit down and determine the best way to move these items from one point to another.

Implementing the Plan

  • After a logistics plan has been created for a business, the company must then implement it. The company must take the plans and invest the appropriate amount of resources to make it happen. For example, the company may need to build or purchase a distribution facility in another city to make sure the products are handled and shipped in a timely manner. The company may need to invest in a new digital inventory system so that it can know where shipments are at all times.

Adjustments

  • Another part of business logistics involves altering and adjusting the plan to increase efficiency. The business has to continually monitor how goods and services get from one point to another. If the company is not meeting expectations, it must invest additional resources to shorten transportation times. This requires a company to rely on the assessments of its supply-chain managers and logistics professionals. Improving an existing supply chain can sometimes require large investments on the part of the company.

Inventory Control

  • Being able to control inventory is another essential function of logistics. Logistics does not only involve moving inventory from one point to another, but it also involves managing stationary inventory. A company needs to know how much inventory it must keep on hand at all times. If the company knows exactly how quickly it can get goods when they are ordered, it can predict how much inventory to keep in its warehouse. This helps avoid delays and keep customers happy.

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