What are logistics services? The term ‘logistics services’ refers to the way in which an entity manages the flow of resources between two determining points; the point of origin to the point of consumption. Logistics is always done to meet some requirements. These requirements may be that of the customers or the business entity. In other words, It refers to the shipping and delivery services of corporation.
Individuals who provide logistics services perform a variety of services and as such, there are a few main fields that will fall under the same umbrella. These main fields are:
Procurement logistics services:
This field of logistics services takes into consideration the different activities surrounding market research, order controlling, requirements planning, decisions about whether to make or buy, ordering and supplier management. As was mentioned before, logistics is generally done in order to meet certain requirements and targets. As it relates to procurement logistics, the targets of procurement logistics are maximizing efficiency by focusing on core competences, subcontracting while managing the autonomy of the company or minimizing procurement costs while maximizing security within the supply process.
The main idea of distribution logistics services is to deliver the finished products to the customer. There are certain vital steps involved in distribution logistics. First, the order is processed, then it is warehoused and then it is transported. The fact that the time place and quantity of the product is different from that of consumption is the reason behind the need for distribution.
It is the link that connects procurement logistics to distribution. In it, the available production capacities are used to produce the products that are needed in the distribution logistics. The activities that are related to production logistics focuses mainly on matters related to layout planning, organizational concepts, production planning and control.
Disposal logistics services:
Activities related to disposal logistics are generally seen as ‘clean up’ activities. This is because they focus mainly on reducing logistics costs and enhancing the services that deal with the removal of waste produced.
This is about the reuse of products and material. Simply put, reverse logistics involves moving goods from their regular uses and destinations to alternate destination which may include proper disposal or the capturing of value.
Green logistics services:
Green logistics refers to activities that are geared towards reducing the ecological impact of other logistics related activities. Some activities that fall under green logistics include path optimization and vehicular saturation.
It (Reliability, Availability, Maintainability), is a combination of both business logistics and military logistics. This sort of logistics focuses mainly on very advanced technological systems, which require Reliability, Availability and Maintainability, in order for them to be effective.
Logistics services span a variety of areas and the activities related to logistics play an important role in the balancing of the flow of resources from the production area to the consumer.