Why Do We Need Logistics?

Why Do We Need Logistics

Today people often use the services of truckload carriers. They all try to offer high-quality services to attract customers. The main specializations of these companies are cargo transportation and logistics. When we hear about the shipments, we understand what we are speaking about. But the term logistics sometimes is not clear. So what is it? And why do we need it?

The term ‘logistics’ appeared in the 1970’s. It was created thanks to the market economy development and the necessity for cost optimization. 

Transport logistics is a science combined of theoretical studies and practical application of knowledge. Being used in complexes, they help to organize the shipment transportation appropriately and profitably. 

What is logistics used for?

The main aim of logistics is to organize transportation at the highest level. This science helps to find the shortest and safest ways of delivery. In such a way, time and other resources are saved. Thanks to logistics, the production process becomes more automated. The percentage of delays is almost minimal. 

Depending on the sphere, logistics can be transport, commercial, industrial, storage, marketing, informational, etc. Every kind has its peculiar features. At the same time, they have common features, as the same laws are applied to any economic activity.

Transport logistics is one of the main spheres with which transport companies deal. The task of logistics is to optimize the transportation services, minimize the risks and improve the indicators which can lead to maximal profit.

Optimization of the transportation services includes the whole complex of different actions. Specialists do the following:

  • choose a few routes to deliver shipments (one route is the main, and others are spare);
  • look for the opportunities to minimize the transportation revenues;
  • plan the shipment transportation from the package to the moment when the recipient gets the cargo;
  • choose the proper vehicle and expeditors;
  • prepare documents that can differ because of the various types of cargo and states;
  • provide proper storage conditions;
  • control the moving and storage of cargo.

Transportation logistics is the most important sphere which provides the integrity and replaces the cargo. One side (the shipper) sends the shipment and the other (recipient) gets the delivery. Usually, transportation logistics combines and harmonizes all processes which provide such service in the complex. 

For example, in the USA logistics has a strategic value. Local producers can be thousands of miles from the potential buyers. The American wide and variable transportation system shifts responsibility to the logistics specialists. At the same time, it helps to combine different types of shipment transportation and to plan them differently. 

As you have already known, logistics as a science makes a service qualitative. Also, the revenues and time for cargo delivery become minimal. Thanks to logistics, the company’s activity is realized quickly and coordinated.