Logistics Essays Example

Logistics relates to the way resources are mobilized and stored in advance in places where they are needed. For instance, a retailer has to effectively plan to ensure that various goods he sells in his store are adequately stocked so that they are always available for his customers. Every business involves logistics: having the right thing at the right place at the right time. All business organizations face logistic challenges because they rely on the services of various agents to ensure their products or services are available at the right place at the right time for their customers.
Companies depend on men and materials for manufacturing and selling their goods. Availability of timely raw materials is greatly challenged by various logistic services. For example, companies dealing with fast moving consumer goods depend on supply chain management that mostly relies on road transport. A company distributing various consumer goods to retail sellers either relies on its own fleet of vehicles or an external transport company. Lack of funding by a local government may lead to poor road infrastructures that adversely affect the timely transportation of goods to the retail outlets. The ever increasing traffic on the roads near urban cities further intensifies the problem. Therefore, companies distributing consumer goods to remote places have to face logistic challenges. Similarly, various factors like a hike in fuel price, a local political issue, a boycott by truck operators or a natural calamity would adversely affect transportation and timely supply of goods. This results either in the goods getting damaged or reaching after an undue delay. For instance, highly perishable commodities like vegetables and milk products get wasted in transit. Very commonly, orders ultimately get cancelled because of such logistic challenges.