The word ‘logistics’ is many times confused with military operations. However, Logistics has transformed into a greater and broader importance in modern times. According to several sources, Logistics is said to have originated with military officers holding the title ‘Logistikas’ who were responsible for financial and supply distribution matters. Today, Logistics has evolved from military to mainstream society how we manage the flow of goods and services between the points of origin or manufacture and the points of use or sale in order to meet the supply and demand of consumers. freight forwarder
Logistics is the center stone encompassing all aspects of transportation, supply chain, warehousing, fulfillment, and distribution. Logistics is embedded into every product we handle and consume from the chair we sit in, the clothes we wear, to the apple we eat. The expense of logistics is a major cost variable in pricing goods and services.
The world’s competitive marketplace is keenly attuned to Logistics. Logistics has a direct impact on corporate profits. In the last ten years or less, logistics analysis and logistics procurement has moved from manual pencil spreadsheets to computerized modeling software. The accessibility of logistics modeling software which was once limited to large corporations is now available to mid-size and smaller shippers; and manufacturers. Small companies can compete successfully with the big corporations on a level logistics playing field. The volume incentives big merchandisers receive from carriers and freight forwarders can be minimalized through tactical decisions in cargo routing, handling, and strategic partnerships.
Logistics modeling software provides the competitive edge, greater visibility and insight into logistics costs allowing decisions makers to be proactive instead of react to changes in global events and transportation trends. The cost of logistics modeling software is many times compensated through logistics cost savings and better relationships. The one mistake that most shippers and manufacturers fail to do is form a strategic partnership with a logistics modeling software provider. A logistics software provider who has global transportation expertise and dynamic programming resources can offer their clients more than just software. You can buy the most expensive car but if you do not have the best instructor and the top mechanic you will not get the performance. Long ago Burlington Northern Air Freight had the slogan “People, not Planes Deliver.” Logistics software is the same way. The capabilities and functionality of the software is very important. However, it’s the software people and their logistics knowledge that Delivers opportunities and cost-savings.
We live in a global logistics environment “Subject to Change”. An earthquake can paralyze supply chain logistics. A local incident can shut down major transportation supply routes. The cost of goods and services; profit margins are instantly influenced by fuel surcharges, currency rates, security concerns and political unrest.
Peter Drucker, one of the best-known and most widely influential thinkers and writers on the subject of management theory and practice said ‘The best way to predict the future is to create it.” However, many don’t start worrying until they are in a difficult predicament. A strategic partnership with your logistics software provider allows the modeling of logistics scenarios to anticipate Change before it happens. Logistics Modeling Software creates a proactive future with predictable consequences.
Copyright 2011 Nick Matyas. Nick Matyas is the Vice President of Strategic Init