World Without Logistics

Introduction:?

Imagine you wake up in the morning, and head to the kitchen to grab a cup of your favorite coffee, but what you see instead is an empty pot!?

You quickly grab your coat to make a run to the grocery store to pick up your beans. The moment you step out, you take pause to check for the delivery of your favorite superhero figurine that you had ordered weeks and weeks before, but all you see is an empty mailbox.?

While you dejectedly close the mailbox, you get a glimpse of the trash can from the corner of your eye; you see that the trash has not been taken out. And right there in that very moment, you realize that the whole world has come to a halt.

Sounds almost apocalyptic, right??

Relax, it's not. It’s just what our world without logistics would look like - Complete chaos.?

Logistics is a part of our everyday life

Today, we live in a very fast-paced world, where everything is almost instantaneously available at our fingertips. You want something in some part of the world, which was literally impossible, some years back now can be done with utmost ease.?

We’re addicted to instant gratification, where we can literally order anything from Amazon and have it on our doorstep within 48 years. But all of this wouldn't be possible without the intricacy of the logistics world.?

From buying groceries to starting a business all of it cease to exist without logistics. It keeps the world moving.

How logistics has transformed businesses?

The very essence of a business is to exchange goods or services for money or trade.?With global trade growing more popular, logistics has become the heart of supply chains.?

Logistics plays an essential part in supply chain management. It is used to plan and coordinate the movement of products timely, safely, and effectively.

Whatever the size of your business, you will want to grow and expand. That probably means expanding on a regional, international or global level. Whatever your business location or industry, logistics can help cut the costs and time you spend moving products from one point to another.

Without logistics, no business would be global, and every country will have to rely on manufacturing everything on their own, not only will this result in higher utilization of resources but it would also lead to lower economic growth, employment rate, and lower GDP.?

Global trade would be non-existent and so would be quality of life. Logistics makes global trade possible due to which the exchange of goods and services is made possible.?

Logistics helps businesses create value

Providing value to customers does not only refer to quality or quantity. It also refers to availability. As better logistics make your products more available to an increasing group of people, wise business leaders consider it a very important tool in creating value for customers.

Logistics creates and increases the value businesses offer by improving merchandise, and ensuring the availability of products. In order to provide more value, businesses either work on improving their own logistic activities or rely on professionals.

The exchange of commodities is an exchange of goodwill between countries?

If there is a point on which most economists agree, it is that trade among nations makes the world a better place.? In today’s global economic system, countries exchange not only final products but also intermediate inputs. This creates an intricate network of economic interactions that cover the whole world.

Every continent is blessed with its own set of natural resources powered by manmade resources available in that region. Without logistics, the exchange of goods between countries would not exist. It plays a greater role than we realize, in the past trade between countries has resolved issues between them. This creates a sense of collective collaboration and sense of reliability between the two governments, allowing things to run in harmony.??

International trade allows countries to expand their markets and access goods and services that otherwise may not have been available domestically. As a result of international trade, the market is more competitive. This ultimately results in more competitive pricing and brings a cheaper product home to the consumer.

One great example of this is the recent moment as one-of-a-kind intercontinental translocation of cheetahs from Namibia to India. India's high commissioner quoted it as a "goodwill ambassador for India-Namibia relations" and for the conservation of wildlife all over the world.??

The project involved the historic translocation of 7 cheetahs - 5 female & 2 male to India in Kuno national park located in Uttarpradesh. The honorable prime minister of India, Narendra Modi addressed the event on his birthday welcoming these cheetahs to Kuno.?

The success of this batch of animals will be the touchstone of India’s initiative to be home to four wildcats — the tiger, lion, leopard, and cheetah.

How has air freight transformed global trade?

Global shipping is a complex system encompassing multiple transport modes and routing options. Air freight provides fast transit for importers who need it – but it comes at a premium price.

Since the advantage of air freight is much shorter transit times, cargo must move quickly through an airport. The time for cargo operations depends on four factors: customs clearance procedures, cargo inspection procedures, the efficiency of cargo handlers, and the layout of storage facilities.

One of the major sectors air freight has completely transformed is pharmaceuticals.?

When it comes to moving pharmaceuticals, time is of the essence. Its importance has never been more evident than during the COVID-19 pandemic. Over a year into the biggest vaccination campaign in history, more than 12.7 billion doses have been administered across 184 countries, according to data collected by Bloomberg.?

What was the key role of air freight in the shipping of vaccines?

When shipping pharmaceuticals, it is absolutely essential that temperature is maintained. Most pharmaceuticals ship at 55 to 77 degrees Fahrenheit to ensure product stability. This is where the cold chain comes in handy. Cold supply chain logistics refers to shipping, storing, and distributing refrigerated and frozen goods.

Each of the COVID-19 vaccines has a different profile, but they all have one thing in common: the need for cold-chain storage.? A slight change in temperature, even of just 2 degrees, can ruin pharma products. This is why temperature-regulated shipping is important.

Ranging from around –70°C (–94°F) during specialized shipping to around 2 to 8°C (36 to 46°F) when administered. Cold chains played a vital role in distributing these vaccines around the world in the most efficient way possible. One can only imagine what would have happened in absence of the cold chain.?

Let’s take a closer look at what other industries are impacted by the air freight supply chain.

Seafood industry - The art of moving seafood from the ocean to your plate.?

If you have wondered how you’re able to relish a delicacy such as salmon fish anywhere in the world is because of air freight logistics. From the ocean to your plate it’s a long journey for any kind of seafood.?

Moving it between continents is an extremely difficult task riddled with numerous challenges along the way. The major one is maintaining the quality of the product in transit. All of this only is made possible through cold chain logistics.?

Seafood also plays an essential role in feeding the world's growing population. The U.S. seafood industry is a powerful economic driver. Nationally, it supported 1.2 million jobs and added $69.2 billion to the gross domestic product in 2017.?

According to FMI,? The global Seafood market is expected to reach a market valuation of US$ 110.2 Bn by the year 2022, accelerating with a CAGR of 3.6% by 2022-2032.?

Not only it satisfies your palate but the industry is also responsible for huge economic drivers and employment in many countries.?

E-commerce shipping? - From phone to your home?

We live in a world today where half of our lives rely on the internet, we can not imagine the world without it. With the advent of the internet, E-commerce shipping was born, making it possible to buy anything from anywhere in the world and have it available to you within 2 days.?

Not only has this revolutionized the lives of consumers but also of business owners, making it possible for them to thrive anywhere in the world and the quickest way to reach your doorstep is through an airplane.??

It’s almost like a magic trick, seems so simple at the surface yet extremely complex underneath and this magic is incomplete without the beauty of logistics. The magic trick is mastered by many market leaders such as Amazon, FedEx, DHL, etc.?

Automobiles - the making of your dream car

Logistics is a vital element for the automotive sector. A light vehicle can have between 15 and 20 thousand components; an average of 60 and 70 thousand pieces. The production and assembly of each of these elements require, in turn, the assistance of a long network of suppliers. And it also requires a distribution circuit.

Considering the dimensions of the Mexican automotive industry, the logistical challenge is highly complex. The sector represents 3.8% of the national GDP and 20.5% of the manufacturing area.

The automotive industry handles large volumes of inputs and finished products. As a result of the magnitude of its processes, automotive production involves various companies, both manufacturing and services. In the coordination of all processes and agents lies the importance of logistics for this sector.

Bringing a vehicle into the hands of the customer involves coordinating activities and timelines of various manufacturers and suppliers of all levels. From assemblers to suppliers of materials and accessories and distribution services, everything requires highly organized logistics.?

Thus the making of your dream car is an art of collaboration made possible by the beauty of supply chain management.?

Logistics fosters the feeling of oneness and humility.

The beauty of logistics is that allows collaboration between different countries, it makes all feel like a community. The participation of which fosters a sense of oneness and dissolves borders between the two. We have witnessed countless examples of the same, when a country goes through hardship, the neighboring countries step up to aid help. It fosters a sense of humility between us, these trade treaties between countries help us understand their culture more intimately.?

One living example of this was witnessed during the pandemic itself.?

How logistics will shape the future?

Transportation and logistics today are all about time, accuracy, and transparency. Consumers want clear insight into where their goods are, and when they’ll be delivered.

This new era of logistics is based essentially on digitization, or more precisely on the automation of business and logistics processes, and the networking of devices and companies with one another. Especially in challenging times like the present, it is vital to identify threats along the supply chain and eliminate them immediately.?

For the transportation and logistics industry, connectivity is key. Collaborative robots, drones, and advanced sorting and tube systems will respond directly to the needs of consumers. 3D printing will reduce long-haul distribution. Data will make returns management, warehouse logistics, and distribution smarter, faster, and more efficient. Robots will be ready to deliver on demand. Biometric identification will make deliveries nearly failproof. And apps will deliver real-time information to customers that is highly accurate and convenient.??

In conclusion,?

The world without logistics would be very bland, making so-called ‘basic items, like coffee, inaccessible. Today, thankfully, logistics do exist and coffee is not only accessible but also expected in everyone’s cupboard.?

Let logistics look after the mundane, and be grateful that these systems have you covered and allow us to evolve and grow into a brighter more connected world.?