Question

In a short paragraph please answer the following question thank you

Intro to Logistics

Explain how logistics has changed in the last 20 years from a silo type process to a coordinated system approach (orchestra)?

Answer 1

The logistics are defined as the coordinated movement of goods and resources from one location to another location. It could be the movement of raw material from supplier to the manufacturing facility. It includes transportation of finished goods to the distribution point or the warehouse. It could also be delivery of product from e-commerce company to the end customers.

20 years back all activity was manually conducted and the road transport system, the rail, sea transport, and air transport used to work in isolation or it operated as separate entities in a silo-type process. Back in the nineties, most logistics companies were heavily segmented. Warehouse agents were not even in touch with transportation companies. There was no single point service. The logistics worked like a buffet meal where you could pick and choose the shipping line, the warehouse company, the transport agent etc.

Today logistics is provided as an integrated solution to retailers and manufacturers. Logistic companies like FedEx take care of end-to-end logistics. They take care of individually customized client requirement. They provide a warehouse for the finished goods, transport them to the distributor worldwide. They also ensure the goods are delivered in the agreed timeframes. The Just in time inventory is based on an efficient logistics solution. The company also offers online tracking for the clients and help to manage their inventory online. The client can track his package movement on an hourly and daily basis till it's delivered to the clients' specificied location.

The global expansion is also because of the solutions provided by the logistics companies. The companies can source the raw material from the least expensive and best quality manufacturers from any country worldwide without worrying about getting the product delivered. The synchronization of technology, system, and transportation has ensured that goods are transported globally effectively and efficiently.