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What is the concept of logistics? What is logistics doing?

Release time : 19th April 2021Views : 404

What is logistics? Simply speaking, logistics is commodity circulation, but with the development of economy, logistics is not only commodity circulation itself, it refers to a wide range of activities, including commodity transportation, storage, distribution, loading and unloading, storage, logistics information management and so on.


The concept of "logistics" first appeared in the 1950s. With the rapid development of economy, logistics has also developed rapidly. However, it has just been said that the meaning of logistics has developed from simple "goods distribution" to comprehensive management integrating logistics, information flow and capital flow, which has become the most economical and reasonable comprehensive service mode in the international transportation industry.


What is logistics? The definition of authority is: logistics is a process of planning, executing and controlling in order to improve the efficiency and efficiency of the flow and storage of raw materials, work in process and finished products, as well as related information from supply to consumption. This is the definition of logistics given by American Logistics Management Association in 1985.


What is logistics? What are the classification of logistics?


Logistics industry refers to the physical flow process of goods from the place of supply to the place of receiving. Logistics industry is a collection of activities that organically combine the basic functions of transportation, storage, loading and unloading, handling, packaging, circulation and processing, distribution and information processing according to the actual needs. According to the concept of logistics, there are four main categories of logistics industry

(1) Logistics business of hardware facilities, such as warehouse and wharf;

(2) Transport based logistics business, such as air and sea transportation business;

(3) Software information based logistics business, design computer logistics software and management guidelines for logistics enterprises;

(4) Logistics enterprises with financial basis, including those who go through customs declaration and other documents for transportation companies.


With the rapid development of logistics and the rapid progress of science, modern logistics has emerged in recent years. So what is modern logistics?


Compared with the traditional logistics, the so-called modern logistics mainly refers to the whole process of effective flow of raw materials and finished products from the start to the end and related information. It organically combines road transportation, warehousing, loading and unloading, processing, sorting, distribution and information to form a complete supply chain and provide users with multi-functional and integrated comprehensive services.


In modern logistics, information plays a very important role. The flow of goods to accurately and quickly meet the needs of consumers is inseparable from the flow of information. The timely return of funds is also inseparable from the feedback of relevant information. Through the rapid, accurate and real-time flow of information in the logistics system, enterprises can quickly respond to the market, so as to achieve a virtuous cycle of business flow, information flow and capital flow. Modern logistics is a series of complicated and precise activities. To plan, organize, control and coordinate this activity, we can't do without the support of information technology.