Question

How does logistics add value in the economy? How does logistics add value for firms? What, if any are the differences? (Please give a new answer, thanks)

Answer 1

Logistics plays an important part within the economy of today. Many businesses depend on transportation and logistics to stay strong.

Companies today have strong infrastructure and record keeping which continues to develop through technology advances. As time has progressed, so has the importance of logistics, in fact this rise has brought factors like warehousing and other facilities closer to big cities and towns. Inside towns and cities, infrastructure affects industries, bringing more employment into those areas.

It regulates the successful forward and reverse flow of origin to recipient goods and services. This means that logistics impacts the shipment of goods and how quickly they can reach the consumer, adding another competitive edge to other companies. Over the past decade, the logistics industry has seen huge growth worldwide, with 40 per cent of organizations now using 3PL and the industry claiming to be worth $750 billion worldwide, and $174 billion in Europe. This indicates an rise in employment in freight-related work for hauliers, warehouse owners and brokers.

Technology is a huge part of the economy which benefits from an increase in logistics. A good logistics firm will integrate all functions of the supply chain into a digital strategy. They will track orders, vehicles, and pallets in order to gain more visibility and improve methods. This improved visibility helps businesses optimize their goods flow , reduce waiting times and manage their costs. Technology is an important part of logistics and today's economy benefits from its use.