What is the purpose of logistics? In reality, logistics is closely related to our lives, just like our most commonly used online shopping. How do products purchased online get into our hands? This relies on logistics, which is just a small part of our lives. Logistics can be close to us or far away from us.Thailand Logistics LineWhat does this tell you about the purpose of logistics?

Previously, the purpose of implementing logistics management was to achieve a predetermined level of customer service at the lowest possible total cost, that is, to seek a dynamic balance between service advantages and cost advantages, and thereby create strategic advantages for the enterprise in competition. According to this goal, the basic problem that logistics management needs to solve is simply to provide customers with the right products in the right quantity and price at the right time and place.

Logistics management emphasizes the use of systematic methods to solve problems. Modern logistics is generally considered to consist of transportation, storage, packaging, loading and unloading, circulation processing, distribution, and information. Each link originally had its own functions, interests, and concepts. The system approach is to use modern management methods and technologies to share overall information among various links, organizing and managing all links as an integrated system, so that the system can provide competitive customer service at the lowest possible total cost. The system approach holds that the benefits of a system are not simply the sum of the benefits of its various local links. The system approach means that for a certain aspect of a problem that arises, all influencing factors need to be analyzed and evaluated. Starting from this idea, the logistics system does not simply pursue the lowest cost in each link, because there is a tendency for mutual influence and restraint among the benefits of each link in logistics, and there is an alternating vulnerability relationship. For example, overemphasizing the conservation of packaging materials may lead to an increase in transportation and handling costs due to their susceptibility to breakage. Therefore, the system approach emphasizes conducting a total cost analysis and avoiding the analysis of suboptimal effects and cost trade-offs in order to achieve the lowest total cost while meeting the established level of customer service.

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