1. The Definition of Logistics
After completing a commercial transaction, logistics will execute the transfer of goods
from the supplier( seller) to the customer( buyer) in the most cost-effective manner. This
is the definition of logistics. During the transfer process, hardware such as logistics
facilities and equipment( logistics carriers) are needed, as well as information control and
standardization. In addition, supports from the government and logistics association
should be in place.
Three major functions of logistics
(1) Creating time value: same goods can be valued different at different times. Goods
often stop during the transfer process, which is professionally called the storage of
logistics. It creates the time value for goods.
(2) Creating location value: same goods can be valued differently at different locations.
The value added during the transfer process is the location value of logistics.
(3) Distribution processing value: sometimes logistics create distribution processing
value, which changes the length, thickness and packages of the goods. Like popular
saying, “ cutting into smaller parts” is the most commonly seen distribution processing
within logistics create added value for goods.
2. Logistics is a new commercial area, developing from the traditional stage to a modern
one. The main differences between these two stage include:
(1) Modern logistics adopts containerization techniques. The goods transfer process
starts with packaging, followed by transportation, storage and distribution. The whole
process is operated under logistics standards. Based on the logistics base module of
600×400mm, from the logistics module of 1,200×1,000mm, and enlarge to the size of
2,591×2,438mm-the size of high×wide of the container. It can be adjusted to the standard
sizes of containers for trains, trucks and ships.
(2) Information technologies are most important for modern logistics. Bar Code, POS,
EDI and GPS systems dramatically improve the efficiency and accuracy of the logistics
activities. Internet further assists the market development, operation and management of
the logistics industry.
3.International Logistics
An increasing number of companies are involving in international markets through
exporting, licensing, joins ventures, and ownership. This trend should continue. With
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