LogisticsIn business and industry, logistics is the managed flow of information, goods and other services between producers and consumers. To supply effectively and make profit raw materials and products must be available in the right place at the right time. Take orange juice as an example. The picked oranges must first be transported from the field to a location for sorting and packing. Next they may be moved to a processing plant to be juiced and concentrated. The concentrated juice then travels overseas to the final country of consumption. At another processing plant the juice is rehydrated, pasteurised and packaged. The juice cartons are then shipped to the depot of a retailer, where the stock is added to orders for individual stores before, finally, being transported to the store for sale to the public. During this process the raw ingredients and product will be transported a minimum of five times! This helps us to understand why a processed, packed product is so much more costly than the value of a piece of fruit picked from a tree. As logistics makes up a large proportion of the overhead costs for a lot of industries it is crucial that it is carefully managed to be as efficient as possible. A fleet of vehicles and drivers must be just the right size to minimise costs, but ensure the product can be moved to the factory or customer at the right time. High fuel costs and government charges have a significant impact on companies that must move goods, so investment into a streamlined logistics plan is essential. | Menu
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