About Business Logistics

Business logistics involves the control, organization and coordination of all the processes regarding acquisition of products (raw, semi-finished products for production, final products for delivery…), production, storage and distribution of the final products. The objective is to do such coordination in the best way possible so as to minimize cost, time, and be able to supply all demand.

A good example of a firm with good logistics is apple. It was the first company to introduce air transportation (in 1997, while other companies just did transportation by boat), its good customer services that helps to identify consumers needs and provide them with the products that they expect, its capacity to predict demand and ensure supply (stores selling directly to consumers and communicate with the supply chain and give advise about changes in demand allowing to make adjustments), its strategic alliances with suppliers and also, and very important, its control over almost all the stages in the supply chain (integrated supply chain used as a comparative advantage)

McDonalds can also be mentioned. The relevant issue here is the type of logistics they follow; they succeed in their delivery chain management being it 100% outsourced. The key factor is the coordination and good relationship between employees, suppliers and franchisees, which is based on trust. All have to do, individually, their best so as to help the other’s success. For example, suppliers are in charged of ensuring good quality products, leaving the restaurants/franchises to just focus on customer care. Another key factor is the group-believe in the long term, which leads to innovation research.

Marta Suarez