A thorough understanding of logistics helps keep businesses running smoothly and profitably. Business logistics encompasses the entire process of getting products or services from their point of origin to the consumer and everything in between, and it’s an essential part of modern commerce. With the right education, understanding logistics can be easier than you think. Here’s an in-depth guide to business logistics that covers everything from basic principles to the underlying science behind how supply chains work.
What is Business Logistics?
Business logistics is the movement of goods and services from points of production to points of consumption. In other words, it’s the whole process required to get your product or service from the point where you make it (or buy it) to the person who buys it.
It includes considerations for supply chain management, freight forwarding, packaging, inventory management, warehousing and distribution as well as outsourcing these functions. Your business plan should have a section that covers logistical concerns like these if they’re important for your business. Remember though: when developing your logistics strategy, you need to include not just what you’ll do but how much money you’ll spend and whether that expense will pay off in terms of profitability over time.
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