As freight volume grows, the need for logistics management rises. We define logistics as the detailed coordination of a complex operation involving people, facilities, and supplies. There are four types of logistics: Supply chain management logistics, distribution and material movement, production logistics management, and reverse logistics and product return.
The purpose of all logistics is to address the many aspects of production including time, cost and quality. The successful coordination of logistics is tracked through production, consumption, storage, and disposal. In other words, each aspect of supply chain management is monitored to achieve an increase in revenue, an improved operating cost structure, an overall reduction of transportation costs, and improved customer service.
Each organization’s management or third part logistics company is responsible for overseeing technical data, personnel, facilities, packaging, handling, storing, transportation, employee training, equipment design, computer resources, maintenance, supplies and support equipment, etc. This is all to diminish error within the shipping and freight industry for better efficiency.