Why Is International Logistics Important in Today's Business Practic
Why is the international logistics management importance in today’s business practice?
Definition
Logistics management is that of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods service, and related information from the point-of origin to the point of consumption in order to meet customers’ requirements.
Logistics’ role in economy Logistics play a key role in the economy in two significant ways. First, logistics is one of the major expenditures for business, thereby affecting and being affected by other economic activities. If logistics expenditures are high, this would translate into higher prices for consumers, lower profits for businesses, or both. The result could be a lower overall standard of living and/or a smaller tax base. Thus, by improving the efficiency of logistics operations, logistics makes an important contribution to the economy as a whole. Second, logistics supports the movement and flow of many economic transactions: it is an important activity in facilitating the sale of virtually all goods and services. To understand this role form systems perspective, consider that if goods do not arrive on time, customers cannot buy them. If goods do not arrive in the proper place, or in the proper condition, no sale can be made. thus, all economic activity throughout the supply chain will suffer. One of the fundamental ways that logistics adds value is by creating utility. From an economic standpoint, utility represents the value or usefulness that an item or service has in fulfilling want or need.
The role of Logistics in the organization
In recent years, effective logistics management has been recognized as a key element in improving both profitability and the competitive performance of firms.
The marketing concept, as mentioned above, is a “marketing management philosophy which holds that achieving organizational goals depends on determining the needs and wants
Definition
Logistics management is that of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods service, and related information from the point-of origin to the point of consumption in order to meet customers’ requirements.
Logistics’ role in economy Logistics play a key role in the economy in two significant ways. First, logistics is one of the major expenditures for business, thereby affecting and being affected by other economic activities. If logistics expenditures are high, this would translate into higher prices for consumers, lower profits for businesses, or both. The result could be a lower overall standard of living and/or a smaller tax base. Thus, by improving the efficiency of logistics operations, logistics makes an important contribution to the economy as a whole. Second, logistics supports the movement and flow of many economic transactions: it is an important activity in facilitating the sale of virtually all goods and services. To understand this role form systems perspective, consider that if goods do not arrive on time, customers cannot buy them. If goods do not arrive in the proper place, or in the proper condition, no sale can be made. thus, all economic activity throughout the supply chain will suffer. One of the fundamental ways that logistics adds value is by creating utility. From an economic standpoint, utility represents the value or usefulness that an item or service has in fulfilling want or need.
The role of Logistics in the organization
In recent years, effective logistics management has been recognized as a key element in improving both profitability and the competitive performance of firms.
The marketing concept, as mentioned above, is a “marketing management philosophy which holds that achieving organizational goals depends on determining the needs and wants