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Logistics for Efficient Business Operations

7/19/2013 2:13:55 PM | by Anonymous


Logistics is applied by companies to ensure efficiency on their operation. This is especially important to those companies that resource their goods, materials or products from other places. Logistics involves transportation of goods in the right condition at the right place and at the right time. It also includes creating a record of cargoes before the delivery and after it arrived to make sure their number remains intact.


The proper management of business operations is made possible through logistics. It made obtaining of raw materials, transportation of products on every production stages to dissemination of goods to be executed orderly and efficiently. Business logistics, if properly executed, can benefit higher profits and less production time to companies as despite fewer resources have been utilized, same quality of services or goods have been produced. There are seven principles that business logistics management follows. The first on the list is having the right items. Next is getting a hold of them whenever they are required. The third principle is delivering the correct number of items while the fourth one is delivering the items at the right time. The fifth principle includes buying the items at a discounted or right price. Sixth is keeping the goods in proper condition. The seventh and last principle is making sure that the item has reached the right person.


Industries that have proper logistics management can be considered ranking above their competitors. They can keep track the activities within the company which allows them to be cost-efficient and able to provide better service to their clients. Information logistics plays a big role in ensuring the success of a company. A company which employees can effectively communicate with each other wherever they are can make sure that communication barrier would not be a hindrance to smoothly implement a task. Also, having the right information technology enables companies to have the ability to get in touch with customers and suppliers from around the globe instantaneously.


Two industries that can take advantage of the wonders of logistics are those engaged in manufacturing and pharmacy. Manufacturing industries need materials in fabricating their products. Lack of resources would mean discontinuation in operation which means loss in profit and credibility. There is a big possibility that they would not be able to manufacture the number of goods that their clients require them in time.


Health is one of the main concerns of almost everyone. This is the reason why pharmacy is one of the most in demand industry in the whole world. They do not need to pitch sales as one will certainly seek for medical supplies when he needs it. In order to meet the demands of buyers, they need to have constant supply of the fast moving items. Logistics helps keep track of the supplies with higher demands as well as the slow moving items in order to determine which one needs to be in higher or lower volumes for the next delivery. This way, gain will be maximized and loss due to spoilage of medicines will be prevented. Most pharmaceutical supplies have expiry so timely delivery is very important so they can be sold at earliest time possible.

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