As we know that the Industries, Financial Institutions, Service Sectors and Agriculture Sectors are taking a major role in the growing economy. But without a market these industries and sectors can not do anything. So a developed and large market is also highly important for any developed or developing economy.
If we have a rich and large market with all the developed industries and sectors. But these all are not able to do any good performance without the help of Logistics & supply Chain. Logistics sectors connect all the industries and sectors to market and provide a good and smooth supply chain of product and service to the end customer.
Transport, warehousing, Shipping, Airways, pipeline, container, MTO, Freight Forwarders, Supply Chain, Logistics etc are smoothing the availability of commodities to the end consumer and also make availability of raw materials to the manufacturing industries. For agri sectors the logistics is not only helpful for agro products connectivity to its end users. But logistics also help agri sectors to bring agri equipment, organics and fertilizers.
So we can say that Logistics is the sector which plays a central role in the economical development. It works like a centre forward player of any hockey or football team. The efficacy of all the sectors of the economy completely depends upon logistics sectors. Smoothness and proper supply chain by logistics sectors makes a successful role of industries and other sectors. Also good logistics & supply chain industries make the economy powerful and successful.
Logistics sector has to update itself from time to time with the modern way of transport, business, information technology, software, skilled staff and managers. Logistics sectors are actively taking part in 4th generation industrial revolutions. Logistics sectors are always ready to accept the 5th generation of industrial revolutions.
For always an upgrade and update in logistics services it is important to remove waste from logistics activities. To remove the waste Analysis process will help us to find out the place and ways of waste. After a proper supply chain analysis and logistics analysis we have to use the process of lean logistics to remove the wastage. Removing the waste from logistics will help us to improve and smoothing the logistics flow and it will be good for economical growth for sectors, industries and also for the economy.
So it truly said that Logistics & Supply Chain management is the real acid test for any of the managers in the economical and industrial activities.
This is the time of the fourth industrial revolution. It is the time of Data Warehousing, Digital Network, Digital Analysis Software, Digital Monitoring of Logistics & supply Chain, Realtime Information of Moving Cargo. Information Logistics, Software Supply Chain etc.
Modern information technologies and softwares needs logistics and supply chain solutions for itself and also it helps traditional logistics to improve its efficacy and update for 4th industrial revolutions.
Most of the people are not correctly aware about the real difference between Logistics and Supply Chain. Both are correlated like other management streams of marketing and sales, H.R. and personal, finance and accounts, production and product. These management terms are looking the same with its individual identity.
If you want to know more about the difference between Logistics & Supply Chain, then please see the slide show given below.
Now come to our main topic that Logistics is the backbone of the economy. Yes it is true, because logistics is the term and activities which connect the products, commodities and services to its end users. It means you can say that it brings the market and consumer to the origin of any product, commodity and service. Logistics helps to maintain a proper and smooth supply chain of products, commodities and services. Logistics helps to maintain a raw material supply chain to manufacturing industries. Human logistics helps to connect skilled workers to needful industries. Distribution Logistics helps ready products, commodities and services to move near its end user.
So you can say that logistics plays a major role to connect end user or any potential market to the origin of any product. In simple word Logistics is also defined as the process of managing the journey of resources from its origin to final destination or from origin to consumption. In the way of journey of resources it has to be handled in proper manner and then all legal and scientific handling process has to be followed. So warehousing, material and cargo handling, documentations, local and international rules & regulations, transportations, containerization, packaging etc are the parts of logistics process. It is important to remove waste from logistics management process, so analytical process and applying lean logistics is a major part of our logistics process.
So it is truly said that "logistics is backbone of the economy".
Logistics has many topics to study like Inbound Logistics, Outbound Logistics, Industrial Logistics, Supply Chain Logistics, Shipping Logistics, Air Logistics, Human Logistics, 3PL, 4PL, Warehousing, Traffic, Lean Logistics and many more topics. We will discuss all the topics in our coming post.
It is my request to all readers of this post which topic you want to discuss in my next post and also share your thoughts about “how logistics is backbone of the economy”. Hope you will share your thoughts.