October 01, 2014
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What is logistics? A recent study defined logistics as: That part of the supply chain process that plans, implements and controls the efficient flow and storage of goods, services and related information from the point of origin to the point of consumption, in order to met the customers’ requirements. Today's modern, efficient warehouses/distribution centers are the heart of logistics, and provide control, efficiency and velocity for goods moving through the system.

A bit broad, but the elements that make up the modern logistics industry continue to evolve as the breadth of value added services warehouse logistics providers offer does. This expansion has been accelerated by three vital trends in the new economy:

  • The general trend toward outsourcing,
  • The previously unprecedented growth of e-commerce and
  • The importance of the partnership aspect of the manufacturer/marketer-logistics provider relationship.
A recent study found that 95 percent of the U.S.’s chief executives believe they should have some form of logistics strategy, and nearly 50 percent of the nation’s CEOs are currently incorporating supply chain planning into their overall business strategies.

One thing is certain: no matter how logistics is defined, the function accounts for 8.7 percent of the total U.S. Gross Domestic Product ($910 billion in 2002). It is growing dramatically in terms not just of services provided and outsourced but in terms of volume. The industry’s 3PL provider element (that most closely served by IWLA) alone counts for more than $78 billion and is estimated to be growing by 15-20 percent per year. Its benefits include:
  • Reduced need for personnel
  • Reduced transportation and distribution cost
  • Improved customer service
  • Improved cycle time
  • Free-up capital in manufacturers’ and marketers’ non-core areas
We hope this primer adds to your understanding and appreciation of the remainder of the IWLA website and value added warehouse logistics services outsourcing.

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