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What is Freight Logistics Management?
Logistics management is a supply chain management component that is used to respond to customer requests by planning, controlling and implementing the efficient movement and storage of information, goods and services from source to destination. Logistics management helps companies reduce costs and increase customer service.
The logistics management process begins with the accumulation of raw materials until the last stage of delivery of the goods to the destination. Respecting customer needs and industry standards, logistics management facilitates process strategy, planning and implementation.
A brief history of commercial logistics
In the past, “logistics” has been largely associated with military campaigns. Procurement, maintenance, transportation of materials and personnel along supply lines were part of what is now called logistics. During World War II, the participating armies developed and used various models of logistics systems to get the materials to the right place when needed. Currently, the term logistics is widely used to define the activity of material, technical and medical insurance of troops (feeding, equipment, supply of equipment and materials of all kinds), including transport and accommodation. In the age of globalization, along with industrialization and development of trade, the logistics has acquired new values with many benefits for the administrative and organizational processes of the business world.
For example, facing dramatic changes in the mid-1980s, the commercial maritime industry adopted logistics management strategies and solutions to optimize costs and keep pace with competition. The companies that have adapted have come up with cost optimization solutions, have adopted more complex and at the same time optimized supply chains. In this sense, companies have come to coordinate in detail the complex operations that involve many people, facilities, diversified goods – this is the definition of logistics.
The Shipper and His Role in the Transport Process
Shippers are the suppliers and manufacturers located at the base of the chain. They can organize the transport and logistics activities inside the companies or they can outsource these activities to the specialized transport or logistics companies. The increasing complexity of distribution in many sectors has accentuated the role of logistics service providers. They plan, coordinate and manage activities and, in many cases, are involved in transport activities. Their role is to develop and implement efficient logistics concepts. Logistics service providers are generally very innovative in the application of information and communication technologies to better respond to continuous market changes due to competition and changes in consumer behavior.
Freight forwarders entrust carriers with the task of moving a load over a certain distance to a pre-agreed point. According to their field of activity, shippers are mainly found in industry and distribution. Freight forwarders have a number of transportation-related objectives, including:
- cost reduction
- reduction of delivery and production terms
- depletion of stocks
- improving customer service
- the flexibility of the logistics service in order to respond better customer needs.