What Is Logistics? Logistics Definition and Examples

The Six Sigma certification scheme is often found within organizations, earning you “belts” as you move from green to black up the certification ladder. It’s typically used in large companies to create paths toward leadership in operations and to maintain a focus on efficiency and quality. The principles in Six Sigma can be extremely helpful for keeping your supply chain lean and agile, and it’s a valuable certification if you’re working in an organization that leans on the Six Sigma method. “Whale’s free zone warehousing service benefits from our experience, expertise, and global standards. Our services are operated by a professional team with specialized knowledge in customs clearance regulations, law, marketing, and warehouse operations,” Mr. Sonchaeng explained.

• FedEx operates an extensive retail network of FedEx Office locations and authorized shipping centers.
• The maturation and development of quantum computing, however, could change this equation significantly.
• Workload distribution was optimized for picking, packing, palletizing, and loading processes.
• Any update on vessel contingencies will continue to be communicated with customers on a case-by-case basis.
• ExxonMobil is exploring how blending classical and quantum computing techniques might solve big, complex, pressing global challenges as it ships liquefied natural gas (LNG).

We explore the world of supply chain logistics and the transformative strategies that are driving logistics from being seen as a cost center to becoming a creator of service-based value. We’ll also look at the core aspects of last-mile delivery optimization, the delicate balance between cost reduction and service excellence, and the important roles of technology and talent. Logistics trends are shaped by significant advancements in technology solutions integrated into business processes. Next-generation logistics technology makes global supply chains more customer-centric and sustainable. Enhanced transparency and traceability in the supply chain provide flexible and dynamic relationships among stakeholders.

Partnering with a 3PL can change your business for the better

Consulting firms—like Chicago Consulting and St. Onge—provide industry-specific insight and can take the headache out of complex global supply-chain management. They also give internal controls on tasks like freight auditing, cost accounting, and inventory management to ensure consistency. Warehouses that store, ship, and handle returns are the most common type of 3PL, with many offering super-fast two-day shipping options. And, if you’re expanding globally, international warehouses can help build a global supply chain. Knowing how to refine product fulfillment workflows is a skill that comes with experience—one that retailers can lend from 3PL warehouses. While sales may not be considered a supply chain component, it’s a critical business function for last-mile logistics companies that can be resource-intensive.

Tasks include creating invoices, printing shipping labels, working with carriers, and handling returns (a process known as reverse logistics). Outbound transportation involves getting finished products from factories and wholesalers to retailers or customers. Let’s dive in and explore some examples of the tasks involved in effective logistics management. With the influence of social media on shopping habits, new trends can come and go in a matter of weeks.

PWC research found 73% of customers globally consider customer experience to be an important factor in their purchasing decisions. Almost one in three customers (32%) would leave a brand they love after one bad experience, while 44% would completely abandon that business after two or three negative experiences. In other words, delivering a great customer experience is just as important – and sometimes more important customer service in logistics management – than the products or services on offer. To meet the requirements of an increasingly demanding operating environment, 3PL organizations are teaming up with AI-driven software providers. To achieve this transformation, companies need to start viewing logistics through a service-oriented lens – requiring an understanding that logistics is not just about moving products but also about delivering experiences.

Third-Party Logistics

For instance, IKEA’s famously unique warehouse layout lets customers pick and transport their orders, reducing the need for staff and storage space. Apple sources parts for its iPhones from different suppliers worldwide, stores those parts until needed, assembles the devices, distributes them to stores and retailers, and serves its ecommerce customers. Because this type of technology is so new and comes with numerous risks involving not only data security but also validity, it makes sense for users to tread lightly. Unfortunately, it is common ChatGPT to see companies that are wholeheartedly embracing AI models, without using necessary caution to protect their customers therefore putting their data and reputation at risk. I have always felt genuinely cared about by people I work with and have seen the company grow and adapt to make it a great place to work for all. Despite always being either a field or remote employee, I have been able to develop great working relationships with colleagues and supervisors, as well as meaningful friendships and mentorships that have spanned many years.

As the world’s largest resource for data on emerging companies, the SaaS platform enables you to identify relevant technologies and industry trends quickly & exhaustively. Ecosystems simplify the supply chain, improve collaboration, and deliver better business results. With contingencies that include large fleets and uncertainties such as weather and demand fluctuations, many optimization challenges in shipping operations can’t be precisely solved exactly using classical computers. Each step in the process is complicated by the need to create, prepare, package, ship, and unpack the product at each of its successive destinations but it can result in lower costs when it’s done effectively. Logistics operations is an essential part of the supply chain and refers to the process of moving finished goods, starting from the manufacturer, and moving to the end user.

Even the smallest home business needs a system for categorizing product SKUs, whether the “warehouse” is a garage or a spare room. Inbound transportation refers to acquiring raw materials or goods from wholesalers and production facilities. For example, a car mechanic might need to coordinate the delivery of various parts from suppliers to their garage.

The karaoke products company estimated the change would eliminate $2.8 million annually in fixed rent expense and labor costs. Once customers have chosen the desired service, they can schedule a pickup or drop off their package at a nearby FedEx location. The company offers shipping options, including next-day delivery, international shipping, and customized logistics solutions. You can foun additiona information about ai customer service and artificial intelligence and NLP. FedEx’s tracking system provides real-time updates on package status, allowing customers to monitor their shipments throughout delivery. In the late 1990s and early 2000s, FedEx faced new challenges as the rise of e-commerce transformed the retail landscape. These strategic moves helped FedEx capitalize on the e-commerce boom and solidify its position as a leader in the industry.

A full-service 3PL will also manage your return and exchange processes, as well as the customer service that goes along with that. When the pressure of shipping and fulfillment is taken off your plate and handed over to the experts, mistakes are less likely to occur. A good 3PL should also be able to provide reports and analytics, which lets you manage the process remotely and help you make better business decisions in the future. With an existing network of fulfillment centers around the world and pre-negotiated carrier contracts, 3PLs may be less vulnerable to global shipping and fulfillment disruptions.

In addition, the software supports the decision-making of fleets over time by predicting conditions such as demand, weather, and traffic by employing machine learning techniques. UAE-based startup Fleetroot offers an IoT platform for companies to control and manage their fleet. Fleetroot offers fuel management solutions to fleet managers by providing fuel consumption and wastage reports. The platform helps monitor the performance of a vehicle and sends critical alerts to the system using sensors and devices embedded in the vehicle. For this in-depth research on the Top Global Logistics Trends & Startups, we analyzed a sample of 901 global startups & scaleups. This data-driven research provides innovation intelligence that helps you improve strategic decision-making by giving you an overview of emerging technologies in the logistics industry.

Retail network

Lastly, autonomous vehicles are automating last-mile deliveries and elastic logistics ensure resilient and flexible operations. An important part of logistics is the steps taken in order to maximize customer satisfaction. This includes elements such as demand planning, order fulfillment, inventory management ChatGPT App and customer service operations. These elements ensure that the goods consumers need are stocked and orders are fulfilled in a timely manner. FedEx’s business model is built on offering a comprehensive suite of logistics services that cater to the diverse needs of businesses and individuals.

Transforming logistics from a cost center to a value creator is driving business impact, with a focus on last-mile delivery, cost optimization, and leveraging tech and talent. This shift is shaping supply chains and changing the way businesses approach logistics management. The platform’s use of blockchain further ensures end-to-end data transparency, increasing stakeholder trust across the supply chain.

With Maersk E-Commerce Logistics, we want to empower brands and retailers to pursue a direct-to-consumer model which is seamlessly integrated with their existing B2B supply chain. To do so, we offer E-Delivery and E-Fulfilment products that help our customers  reduce complexities, save time, avoid high costs and sell more regardless of the season. The broad range of value added capabilities provided under the SCM services can help achieve your business objectives with reliability, speed, agility, resilience, cost efficiencies and sustainability. Our expert supply chain teams can handle your logistics process, allowing you more time to concentrate on your core business.

You’ll also need to know how to manage the purchasing process, set up and use the R12 Oracle Purchasing software, and navigate purchase orders. The exam covers topics such as navigating in R12 Oracle applications, introduction to Oracle Applications R12, shared entities and integration as well as the fundamentals of Flexfields, Multi-Org, and Workflow and Alerts. It also covers topics such as purchasing, suppliers, document security, routing and approval, RFQs and quotations, approved supplier lists and sourcing rules, requisitions, and automation. The SCOR-P endorsement from ASCM validates your knowledge in the Supply Chain Operations Reference (SCOR) model and methods. The SCOR model is a supply chain approach that helps link SCM to business goals, metrics, processes, and other internal departments and stakeholders.

The company specializes in express transportation, offering expedited delivery of packages, documents, and freight through its extensive network of aircraft, ground vehicles, and global distribution centers. Celonis has enjoyed considerable success tackling the supply chain management challenges at the heart of reverse logistics, for retail and beyond, for some time. The Celonis platform has been used to drive real-time data, process intelligence, and targeted action to provide retailers (and others) with optimized cross-docking, inventory management, and order management processes. Take, for example, DHL’s EUR 14.2 billion supply chain division, which has leveraged the Celonis technology to improve throughput at its warehouses. Workload distribution was optimized for picking, packing, palletizing, and loading processes.

Upon completing the course, you’ll need to pass a 100- question multiple choice exam, which can be completed online within a two-hour time frame. If your certification isn’t maintained within five years, it will expire before the 10-year mark, and you’ll be required to retake the exam. For every year your certification is suspended, you’ll need to submit an additional 15 professional development points.

Since the pandemic, most people are far more aware of the role and importance of supply chain management in their everyday lives. Disruption and shortages meant we caught a brief glimpse of that network of organizations and processes overseen by logistics management professionals that we rely upon to provide us withwell, everything. Software helps companies track and manage inventory, plan delivery routes, automate warehouse operations, and more. Technological advancements in AI and automation make many logistics processes more efficient and autonomous. As businesses grow, formal warehouse management systems become necessary to maintain order processing speed, especially as floor plans expand and stock volumes and employee numbers increase. Open AI’s phenomenal ChatGPT program and similar generative AI models, such as AutoGPT and other AI Agents, can be used in logistics with the most impactful use cases around automating workflows and customer experience.

The Tree Map below illustrates the 10 emerging trends in logistics that will impact companies in 2025. The Internet of Things (IoT) enables real-time tracking and monitoring of goods and assets to enhance supply chain visibility and efficiency. AI powers predictive analytics, route optimization, and demand forecasting solutions, reducing costs and improving decision-making. Logistics companies are also integrating robotic systems and other automation systems to streamline fulfillment, warehousing operations, and last-mile deliveries. The Association for Supply Chain Management (ASCM), formerly known as the American Production and Inventory Control Society (APICS), offers a number of certifications to demonstrate your SCM skills. The ASCM Certified in Logistics, Transportation, and Distribution (CLTD) certification is designed for those looking to improve efficiency in distribution and warehousing in order to optimize the overall customer experience.

You can take the three exams in any order but to qualify, you need three years of full-time SCM experience in a position that isn’t clerical or support. To maintain and renew your certification after four years, you need to earn 60 hours of approved continuing education credits. If you already passed ISM’s CPSD certification (see below), you don’t have to take the foundation exam for the CPSM certification, since it’s included in both. If you aren’t already a member, the cost of the non-member fee for the exam also includes one year of ISM Direct membership.

I think Mondelēz offers many ways to stay connected that I have leveraged over my tenure. I mentioned ERG involvement earlier but think they’re a great avenue to network with colleagues regardless of location and function. It also gives a creative outlet to lead initiatives you are passionate about or create something new to fill a need!

And the same can be said for other certifications as well, according to salary data from PayScale. Certifications can be a lucrative path for technology professionals, boosting you above the competition when it comes to salary packages. Despite consistent success, Whale continues to enhance its capabilities and scope of services to align with market changes and meet the evolving needs of each customer, especially in warehousing and free zone warehousing services. A 3PL relationship is a relationship between a brand and a separate company that fulfills (prepares and delivers) customer orders on their behalf. Some 3PL relationships are embedded, meaning the 3PL partners with the brand and their supply chain more closely to avoid failures. A 3PL will send order confirmation to customers, as well as confirmation of shipping and delivery.

The flow of manufacturing costs is most relevant to businesses that produce products that require many parts from several vendors. A clothing manufacturer might need deliveries of fabric, zippers, trim, and thread that must all arrive at the same time. They must be stored at the business’ expense if some supplies arrive too early and the machines stand idle while they wait if some arrive late.