What Is Logistics?

For many years, there was no such thing as a specialized logistics position at most companies. However, once businesses starting shipping their products outside of their regions, logistics becomes a major part of the company. People who work in logistics need to be creative in terms of trying to keep costs down for the company as well as figuring out quick and easy ways for companies to alert suppliers when they need more products Barcode labels and laser printer labels have really made life easier for those in logistics. Now, when a product's code is scanned it can alert the supplier immediately that one unit has been sold/left the retailer or company. Keeping up with how many codes have been scanned helps forecast when a new shipment will be needed and how fast the units are leaving the retailer or company. All of this and more is part of the job of someone working in logistics.

Most business schools today offer specialized degrees in logistics and transportation of goods. The degree involves the usual business curriculum with an emphasis on looking at numbers and cost of transportation as well as how to make the whole system more effective. Those studying this type of degree need to be able to help companies cost cuts and be as reliable as possible to the people they supply their products to, not only for their own sake, but for the retailer or other business they are selling to as well. Logistics involves forecasting in terms of when a company's clients will need more products. Now, students also have to learn about various laws involving products and transportation outside of the U.S. This is a new realm for students as companies continue expanding their companies around the globe.

An example of the job of someone in logistics would be working for a cola company to get the cola product to the grocery stores across the nation and in some cases around the world. The cola company wants to get their product to the selected grocery stores as quickly and efficiently as possible so as to avoid stock-outs. A person working in logistics would figure out how to transport the product for a little as possible, the timing on the shipping of the cola (because if done too late, then there is the risk of a stock out), and to figure out the best way for grocery stores to let the cola company know when they need more product.

Logistics has become an important part of American companies even since shipping across not only the country, but also across the globe began. It is important for everyone to understand the importance of logistics as our economy becomes much more global. Businesses in the United States are just now really starting to expand globally, which will include much more work for those in logistics. It will be quite the challenge for those in the field to adapt to the global market with all of the different transportation laws and regulations that will be in effect. One thing is for certain; however, the future of logistics looks to be very bright.