What is logistics?

The word "logistics", which was originally a mathematical term, has taken on a new meaning in modern society and is used to define the process of rational organization of the delivery of goods and services. Until recently, in this sense it was used only in economic theory, but today it has become very widespread and even fashionable.

Logistics is a part of economic science and a business area that helps to optimize the process of circulation of products, services and goods between producers and consumers. Given the excess of supply over demand in many areas, the only way to stay on the market is to optimize storage and transportation costs, streamline the production, marketing and service of enterprises. This is what logistics is doing. The main goal of logistics described above is divided into many tasks: in the process of optimization, the type of vehicle is selected; routes are defined; transportation, packing, labeling; inventory management; prefabricated orders are formed and so on. Logistics also includes customs management. Such an extensive field of activity allowed us to divide this theory into several types. The concept of "logistics" includes the following areas: transport, information, logistics, supply and inventory, warehousing and marketing. Each is engaged in cost optimization in the relevant field. So, the logistics of stocks involves accounting for products in warehouses and monitoring stocks. Transport brings to perfection the process of cargo delivery by choosing the best route, suitable transport, professional driver. Logistics supply ensures optimal storage and delivery of raw materials, information - effectively distributes the flow of information. Different companies choose for themselves different logistics systems depending on the specifics of the activity. It is enough for some to work with databases in order to optimize costs, while other enterprises use systems aimed at warehousing or supply activities. It is important that each system ensures the fulfillment of the main tasks and includes all types of logistics necessary for the successful implementation of the company.