Whereas a third-party logistics service provider targets a single function, a 4PL targets management of the entire process. Some have described a 4PL as a general contractor that manages other 3PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility of a complete process for the customer. In military logistics, it is concerned with maintaining army supply lines with food, armaments, ammunitions, and spare parts apart from the transportation of troops themselves. Meanwhile, civil logistics deals with the acquisition, movement, and storage of raw materials, semi-finished goods, and finished goods. For organisations that provide services such as garbage collection, mail deliveries, public utilities, and after-sales services, logistical problems also need to be addressed.
Logistics is an important link in the supply chain as it facilitates the movement of goods from suppliers to manufacturers and then to sellers or distributors and eventually to buyers. By 集運 , a member of the logistics planning group was able to sense the need and appropriate timing for the proposed system that required a major revision in the business strategy employed by one of the corporation’s divisions. Because of the open lines of communication between long-range planning, logistics planning, and operating managers within the division, it was possible to “sell” the concept both to the division management and to top management. By definition, a plant location becomes outdated before the paint is dry on the facility. This question of location becomes important only when an existing location is at such odds with the company’s logistical needs that economic savings from a move are more than enough to compensate for the economic and psychic costs of the move.
Your strategy should encompass tactics to make the movement of goods work in your favor. Your plan should outline all the steps your company will need to take to bring your strategy to life. It’s important that your pricing be competitive for the geographic area and the industry to turn your inventory regularly and at a good margin.It is also imperative to adjust pricing—up or down—according to demand. To succeed here, companies need continuous insights into profitability ratios and unit margins. While logistics may be coordinated throughout part of or even the entirety of the supply chain, each segment is the responsibility of one entity until it hands off the material or product to another entity in the supply chain.
What you should know about a career in logistics
The surveys point to limited resources, money, and staff time allocated to training, especially in developing countries. Realizing the promise of quality jobs from the growth of logistics worldwide requires a coordinated effort by logistics companies, professional associations, training providers, and policy makers. Through a combination of facilitation, regulation, advice, financial instruments, and land use planning, governments can exert significant influence. At the most basic level, logistics is important because it is a core process that deals with the movement and management of both the people and resources required to keep products flowing from manufacturers to end customers. In order for supply chain organizations to effectively balance supply and demand, manage inventories and ensure customer satisfaction, they need strong logistical processes that have been defined, tested and optimized for maximum efficiency. This involves ensuring that products are delivered on time, that the correct products are being sent, that businesses are able to boast increased value for their customers and that costs for all parties can be reduced.
Despite the spread of automation and new supply chain management paradigms, logistics remains dependent on a rather specific set of skills and competencies, whether for managerial, administrative, or blue-collar jobs, such as trucking or warehousing. This dependence implies that the logistical performance of businesses, industries, and nation states is strongly influenced by the quantity and quality of the workforce. Insufficient resources of a competent and properly trained workforce in logistics adversely affect the quality of service, reduce productivity in sectors dependent on logistics, and ultimately reduce trade competitiveness.
World Bank experts have developed a range of reports and toolkits for practitioners and policymakers to support improvements in countries’ global trade connectivity, logistics performance, as well as customs and border management. The World Bank Group’s projects include the application of technological solutions to support increased transparency and efficiency and to support collaborative border management approaches. Work on this agenda is spread across all regions with customs and border management specialists providing advice and project implementation support as well as practical toolkits and knowledge products. The World Bank Group is strongly engaged in supporting the implementation of the World Trade Organization Trade Facilitation Agreement and the adoption of other international standards.