What is the Purpose and Function of Logistics and Transport?

Logistics or Physical distribution is a company activity that helps in goods distribution. Through logistics, goods transportation is made from the company to the middleman or sometimes the end consumer. Logistics may be the means to the transportation of goods, but the meaning of logistics is not only transport.

Logistics have many different functions or logistic activities:

· Order processing: This part is the responsibility of the company’s commercial department. Here don’t confuse order processing with order manufacturing. The commercial team take orders from customers and places the product in the warehouse.

They inform the warehouse department about the order units and other necessary things. If the customer has completed his payment, the commercial team has to make the entry.

· Materials handling: Material handling is depended on the warehouse department. Because it’s their responsibility to process the orders efficiently.

In the company warehouses, there are thousands of products stored. If you misplaced any of the materials, when the material related product order will come, it’s not possible to search every material in the warehouse to find out the one material. Now you know how vital material handling is.

· Warehousing: In the case of high demand products, the manufacturing must always be on point. When demand is high, manufacturing and order processing should be fast. Otherwise, the product market can be taken by other products.

If the distance between the warehouse and the dealer or distributor’s place is not so much, then the order processing will be faster and will get immediate deliveries.

· Inventory control: Inventory management is the most critical factor in logistics. Sometimes your loss or benefit depends on it. To manage inventories properly, you should research the current demand first.

Because if you produce extra or fewer units than the demand, your company will run on loss for that period.

· Transportation: The physical delivery of goods is called Transportation. It involves goods movement from warehouse to dealer and from dealer to the end customer.

Transportation is the heaviest segment of logistics. One mistake in transportation can destroy all of the goods, as well as proper transportation, reach the goods in the hands of the customer efficiently.

The companies who have an international market, use Air freight transportation.

It helps to process its global shipping efficiently. Here the company logistics needs to invest in International air freight forwarder so that they can efficiently plan an international shipment. It also helps to navigate all the freight documents along the way.

Transportation is entirely dependent on warehousing and inventory management. Excellent warehousing can decrease transportation costs and risks.

· Packaging: Packaging is a massive responsibility for the logistics team. Because inadequate packaging can damage the product.

There are two types of packaging. One is to make the product presentable as well as attractive to customers, and other is the transport packaging to protect the product from any damage.

International transportation

Companies who have a global market, Air freight transportation is the easiest way to reach their international customers. A company needs to invest a handsome amount of money in air shipping. Here international air freight forwarder takes all the burden of communication required along the way and assists you to buy simplifying the shipping process.

So clearly, air freight transportation is one of the essential parts of the logistics, which needs much more attention than the other product transportation systems.