How have logistics services evolved?

How have logistics services evolved?

When we talk about the business market, logistics functions are a fundamental part of its development. Since its inception, the same name has been maintained for very different functions and this has created confusion. Logistics services have used many terms, including: operations, supply chain, supply chain, procurement, transportation, among others.

The definition of logistics is clear and simple; This is a supply that can be implements, food and so on. The appearance of this meaning moves to ancient Greece and the Roman Empire, since at that time, logistics was carried out by military officers in charge of supplying the army.

Because we understand logistics as all the work of supplying and distributing goods, it is stated that logistics has existed since the beginning of time. Currently, it plays a fundamental role in both national shipments and international freight transport.

The great trade routes

Trade has operated since its very origins due to the need to have trade routes. Examples such as The Silk Road, which runs halfway around the world, or trade in the Mediterranean, which encouraged the creation of rowing ships, demonstrate man's inclination and need to carry materials and goods from one place to another with the objective of making the most of them.

Previously, these trips required great efforts on a human and logistical level. Today, these have had a more than challenging evolution and we notice it on many trade routes. Some of these are and were:

The mail

The great civilizations tried by their own means to create systems for sending communications and/or letters. A clear example of this was Europe, as it stood out specifically by having a service that also worked for countries such as: Spain, Italy, Germany, the Netherlands and Austria. This was developed through a post system, with which they achieved revolutionary delivery times for the time.

Steam and railway

The use of steam promoted the creation of new technologies and means of transportation. However, the railway was one of the most important means and routes of the time. Although it is not yet part of the development of the most used modern logistics services , thanks to it, more opportunities and possibilities are inevitably generated to move large quantities of merchandise in much less time.

The Panama canal

Both the construction of the canal and its remodeling have been two great milestones in the history of logistics. Not only because of the influence they had in allowing and promoting new maritime routes but because they also had great complexity in their construction. The Panama Canal and its expansion have transformed the world map of logistics.

Vehicle logistics

logistics business routes currently, vehicular logistics stands out. This is quite common to mobilize company products, moving and many other services. It is used by large capacity vehicles. Food companies use this on a more daily basis, however, any type of product can be transported by this means.

 

What is the objective of logistics?

The main objective of logistics is to place the items in the right place correctly, this means that the logistical actions must be carried out when required and in optimal conditions to achieve, in this way, superior profitability for the company.

Logistics must satisfy demanders with superior service conditions, as well as adequate costs and quality. To do this, good facilities, means of transportation, information technologies, human resources, economic capacity, trustworthy drivers and many more elements will be necessary.

Types of logistics services

50% of consumers shop online and will continue to do so, even after the pandemic. That is, considering this scenario, logistics services must provide a good customer experience. Therefore, it is important to know each item within the universe of logistics and distribution.

  • Parcel: it is one of the most requested logistics services and this involves the necessary packaging of the products in terms of their volume and weight.

  • Product storage: this is a key point, since suitable infrastructure is required to store products. This is one of the services most contracted by logistics companies. Medium and large businesses need it.

How has the digital world been related to logistics services?

Since the 20th century, the arrival of computing has provided great benefits for business owners and customers as well. Logistics hand in hand with technology helps in the ability to measure and control what happens in the supply chain, and in turn, the ability to develop systems to improve it.

Logistics has been experiencing frenetic technological development for years, with the development of sensors, QR codes, traceability systems, route and fleet management, advance notice for delivery to individuals, measurement of performance indicators and many other tools.

Since logistics is considered a key branch of knowledge to ensure the success of companies, most new global companies base their success on improving their supply chain. And what would be the best way to perfect it? thus improving the relationship between its development and the creation of new technologies.

Logistics has gone from having the right product, in the right place, at the right time, at the lowest possible cost and it has been thanks to technology. The storage of items and inventory control will have a more efficient flow. Let us remember that if a company hires logistics services, it has better order and greater profitability of the company in terms of costs and effectiveness.

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