Logistics solutions include planning, implementing and controlling the functions of inventory, warehousing, transportation and distribution. It consists of all software systems and activities that enable a company to transfer raw materials and finished goods from point A to point B.
A fourth-party logistics provider designs the logistical blueprint of an organization and provides customized computer software. Logistics solutions aim at atomizing the various components of the production, transportation and distribution. It enables an organization to improve efficiency and cut costs. cargo and freight services
Inventory management involves the use of scientific methods and systems such as Last in, First out (LIFO), First in, First out (FIFO), Just in Time (JIT) and Re-order quantity (ROQ). These methods save time, money and reduce spoilage. An efficient transportation system enables the transfer of raw materials to production sites and finished goods to places of consumption. Warehousing automation systems and software enable the smooth flow of goods going in and out of the warehouse. These functions can also be outsourced to a third party logistics provider. Logistics solutions are also helping the government to implement projects and provide services across the nation.
Service sectors like the aviation industry and the postal department have also started using logistics solutions to offer better services to customers. Even smaller organizations such as schools, colleges and NGOs use some form of logistics to function smoothly. The US Army also uses logistics to enable the movement of men and material. Logistics are also used to distribute relief material and services during times of natural calamities like floods and earthquakes.
As technologies improve, logistics solutions are likely to become affordable to even smaller organizations. Larger organizations have now become dependent on these systems and even a small error system can harm a whole network. Proper control mechanisms should be installed so that the network is not affected by natural or man-made errors.