Logistics plays a vital role in supply chain management. Moving further, it establishes famous brand identity. Your business automatically gains maximum attention if your supply chain system is smooth. This means it gets more customers and generates more revenue. Five elements of logistics are enlisted in the blog.
What are the Five Elements of Logistics?
The five elements of logistics include storage handling, packing, inventory, delivery, and information handling. Efficient handling of warehousing is vital for your business. Hence, all the elements require maximum attention. Five aspects of logistics are discussed below:
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Storage Handling
Storage handling has taken the spotlight. In elements of logistics, efficient storage handling counts a lot. One should have a proper system of storage management. All the logistics should be taken care of by the administration. Sound warehousing is important for all the manufactured and raw goods.
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Packaging
Then comes packaging. After you are done with gathering all the goods under one roof, then move towards packaging. Pack your goods with great care to avoid any breakage in the transportation journey. Moving from one place to another, you realize that the goods are very delicate, and a slight break sometimes leads to the spoilage of the goods.
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Inventory
Now comes inventory. Inventory management has great importance in logistics. When it comes to the movement of goods from one place to another, you also see the stock. The inventory contains all the necessary products for the manufacturing of new products. The store deals with all the manufactured and raw goods that a country has in its possession.
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Delivery
Then comes delivery or transportation. Transportation has great significance when it comes to logistics. Logistics is majorly all about transportation. Efficient delivery of products from one place to another is necessary to smoothly maintain the supply chain system. Delivery should always be handled with punctuality.
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Information
Control always comes with pertinent information. If a user has less information, there are high chances of inconveniences. Hence, the logistics team should have proper knowledge about the carrier and shipper to maintain an efficient system and avoid inconvenience.
FAQs
Q. What are the major elements of logistics cost?
These costs include:
- Inventory costs
- Carrying costs
- Administration costs
Q. What are the 3 types of logistics?
The three types of elements of logistics include:
- Procurement Logistics- this includes transportation of raw materials from location to destination
- Production logistics- this deals with the movement of goods that are required in the production system. These include product management, shipping, and distribution in factories.
- Sales Logistics- this deals with the movement of manufactured goods to retailers and all the places where they are promised.
Conclusion
Here we see five logistics elements, including storage, handling, and packaging of the goods. Then comes the inventory management and proper execution of the transportation system. Later it is coupled with appropriate control via information. All these factors combine to make up the five elements of logistics.