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Logistics refers to the systematic flow of resources from the point of origin to the right destination. Business logistics involves putting an item in right quantity at the correct time and place (Waters, 110). This is meant to deliver the expected benefits to the organization (Waters, 111). For efficiency purposes, business logistics should involve all the industrial sectors so as to achieve the main objective of the company (Rushton, 266).
Previously, location was a significant element in business. Proper location of business guaranteed fruitful business. However, things have changed today since business is done globally with markets opened everywhere. The world has developed an ability to deliver things where they are needed at the right time. It has enabled business entities to reach out and keep in touch with their customers. Logistics has made business ventures to expand the market for their goods and services.
They do not target a limited number of consumers. Instead, they have changed their focus by reaching out to the global market. This in return has enabled the companies to maximize their profits. Due to logistics, organizations are able to make their customers satisfied by creating a suitable supply chain, which has saved money for many of these businesses. Consumers develop confidence with a supplier who is consistent in production.
They are able to get products at the right time, when needed. The confidence makes them stick to the company, making the organization develop, raising from one level to another. Satisfaction of clients should be a priority to the company staff and management. All the stakeholders should work hand in hand to ensure that consumers’ needs are met. Logistics has separated success from failure. It is a powerful tool that has erupted to improve service, and lower costs in the global economy. Logistics has caused a change in the functioning of companies.
The world is experiencing a lot of competition today. Business ventures are expected to come up with new innovations because consumers’ demands have increased. Everything starts at the reception when the client enters the business premises. Firms that serve clients half-heatedly may lose customers since the rate of competition is high. Such customers may opt to buy from firms that treat them with courtesy.
Therefore, business logistics has taken center stage in the operations of the company. The actual delivery of goods is sensitive to buyers and the willingness and promises to deliver no longer rule them. This suggests that the leading business ventures in providing products to the clients at the right time and place will benefit (Tate 9). Those that do not take priority in putting clients’ interest first are on the road to failure. Firms with effective systems in place achieve success, which proves that logistics is a driving force that brings positive results.
The chain of supply is identified as a route that connects the producer and the user. A delay on the part of any partner may affect the whole system of the chain. The improvement of technology has facilitated consumers to make orders when needed. This, on the other hand, has equipped production firms to ensure that clients are served when demand arises.
As mentioned above, commodities sold and delivered on time save several things. Therefore, business ventures should look out for the most convenient ways of operating to ensure low costs.
Works Cited
Rushton, Alan. International Logistics and Supply Chain Outsourcing: From Local to Global. USA: Kogan Page Ltd, 2007. Print.
Tate, Karen. “The elements of a successful logistics partnership”. International Journal of Physical Distribution & Logistics Management 26.3(1996): 7-13. Print.
Waters, Donald. Global Logistics: New Directions in Supply Chain Management. USA: Kogan Page Ltd, 2010. Print.
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