WHAT IS MODEN DAT BUSINESS LOGISTICS AND DIFFERENT TYPE OF LOGISTICS:
Ajith Watukara - MBA, BSc - MASCI-Australia - CCMP-USA
Global Supply Chain Leader - Transformation & Operations | Lean Management Experts | Certified Digital Transformation Catalyst | Six Sigma Master Black Belt | Corporate Adviser & Trainer | Recruiter
Logistics is the science of figuring out how to procure, store, and transport goods in the most efficient manner. The term was first used during wartime to describe the mobilization of troops and supplies, but logistics now encompasses the movement of all types of goods, information, money and people.
Logistics experts model and analyze networks and the flow of objects, then recommend solutions that organize and control the flow. In the ecommerce world, that means managing the flow of raw materials and finished goods through the supply chain. If that’s not your cup of tea, you can always partner with a 3PL.
As a leading third-party logistics companies strives for efficiency and speed to optimize fulfillment for our ecommerce clients. It’s not just the flow of merchandise, but the flow of information.
We create partnerships and integrate technologies that connect many independent entities together: ecommerce storefronts, payment systems, inventory and order management systems, freight and shipping companies, reverse logistics (RMA) providers, and all the helpful third-party apps that enable ecommerce to flow.
Logistics and Distribution Center powerful fulfillment software processes orders, tracks shipments, eliminates bottlenecks, makes inventory management easier, and provides real-time data to all stakeholders.
#. Different Types of Logistics:
Logistics is logistics wherever it’s applied, but you’ll see different terminology depending on what’s flowing and which direction it’s moving. In the ecommerce and retail industries, these are the most commonly mentioned types of logistics.
1. Supply Chain Logistics:
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This is the broadest term covering the entire supply chain from shipping raw materials to delivering finished products to customers. Powerful enterprise systems handle this task for large companies, while a single inventory manager might handle this task for a startup.
2. Distribution Logistics:
This type of logistics focuses on moving goods closer to the retailers and other businesses that sell or use them in large quantities.
The art of distribution logistics is in maintaining sufficient inventory levels in each region to fill demand, while minimizing storage costs and dealing with unpredictable events like pandemics and ships getting stuck in canals.
3. Fulfillment Logistics:
This type of logistics focuses on handling thousands of incoming orders from multiple sales channels, processing orders quickly and accurately through the fulfillment pipeline, and routing and shipping orders to customers’ doorsteps most efficiently.
4. Reverse Logistics:
The opposite of fulfillment logistics, reverse logistics focuses on efficiently handling returns for ecommerce businesses. The objective here is to limit losses while retaining loyal customers. Some fulfillment logistics providers also handle reverse logistics.
5. Third-party Logistics:
(3PL) is a service offered by companies who handle logistics for other companies who can’t or don’t want to handle it themselves. There are third party logistics providers that handle distribution logistics (such as DHL and Ryder), and others that handle fulfillment logistics.
6. Transportation Logistics:
This type of logistics is the province of freight carriers and small-parcel shipping companies whose entire business model is moving things from A to B. These companies deal in large shipping containers that move goods by ship or rail, and/or efficiently manage fleets of planes, trucks and delivery vans, while tracking the contents.