At times, there are situations when it will be difficult, if not impossible, for an organization to allocate transport services efficiently to the large quantity of goods or products needed to be transported or moved to the warehouse or where it is needed. Furthermore, increase in production of different products around the world coupled with the importation and exportation of different products or goods by different organizations in the world have created additional and structural complexity of cargoes at the seaports. In such times or situations, logistics becomes inevitable so as to capture and manage the movement of these high volume cargoes or goods. Logistics as a vital industry gives support to organizations in the area of controlling the flow and storage of products or goods of the organization into and out of an enterprise operation. These useful functions of logistics industry make it inevitable to the production and distribution of goods and trade. In simple language, logistics is designed to satisfy customer demands. In other words, logistics management plays an important role in planning, implementing, and controlling the movement and storage of goods and services and any vital related information between the producers or sellers and the buyers with the aim of satisfying the customer demands within a specified time. Logistics boost production, distribution trade and retail activities of an organization. Logistics also involves engaging in the task of supplying needed materials to a particular location and at a particular time to consistently back the production of goods and services. Here are the benefits of logistics to your organization: 1. It prevents extra cost on infrastructure: The establishment of any logistics firm with notable investments in the system and infrastructure to enhance smooth operations in the area of distribution and supply in order to give support to any customer or producing company in the area of storage, movement of materials and goods, thereby helping the producing companies to avoid extra expenses in dedicated facilities or infrastructures. 2. It prevents extra cost on fleet investments and maintenance: Engaging the services of a logistics firm gives production companies enormous relief of using trucks and equipment without bearing the direct cost of purchasing them, maintaining them, employing competent staff and drivers to carry out logistics operation, managing safety measures in compliance with relevant regulations, among others. 3. An economical use of space to reduce freight cost: Two or more customers’ freight going to the same particular area can be matched or arranged together by a logistics firm, in full truckloads, in order to reduce customer’s freight transportation cost. This kind of arrangement is more economical with space, time and resources. 4. Logistics industries carry the burden of responsibility during freight transportation for their various customers. They bear responsibility for compensation or any liability incurred, probably due to goods damaged in transit. 5. High capacity to deliver: Logistics industries are often made up of high professionals and highly skilled staff or personnel and with heavy duty equipment, vehicle fleet and infrastructure that enable them to manage freight transportation and distribution on national and global networks. 6. It serves as a means to reduce congestion at sea ports: Logistics industries have the ability to arrest cargoes congestion at the sea ports. They can move high volume of cargoes consistently to desired locations, thereby arresting undue congestion at the sea ports. 7. It can provide ‘just in time’ services within short notice: Logistics Company can also be used to meet urgent demands or distribution of certain products or material.
Nonetheless, with continuous increase in production and international trade, it explains the need for improvement or change in logistics operations and better understanding in the area of inventory management, international customs, currency exchange, security, among others. The big logistics firms such as UPS, DHL, and FedEx among others play an important role in logistics industry. So today we have efficient and safe movement of goods at local, national and international levels through logistics industries. Continuous improvement on safe and timely delivery services are among the core values of logistics services.