Today, June 28th is National Logistics Day in the U.S. – the annual day for honoring the hardworking professionals in the logistics sector. As a developer of supply chain logistics software, flexis AG recognizes everyone involved in this vital area which we expect will become increasingly crucial for the global economy.
Logistics and supply chains are inseparable, and as digitalization advances, it will become evident that logistics is key to enabling supply chain sustainability and resilience. For this reason, a good portion of our blog is devoted to logistics topics, but there’s a more extensive connection between flexis, supply chains, and logistics.
flexis focus on supply chain optimization leads to logistics process improvements. If you think about it, every function in a business enterprise ultimately connects to a shipment. We could say all roads lead to logistics, and that’s where companies end up when optimizing the overall business process.
Given logistics’ pervasive nature and growing importance, perhaps the attention granted on National Logistics Day will become more expansive. Let’s consider the role of logistics and why it deserves more attention than just on June 28th.
Logistics is Simple and Complex
Logistics is a broad discipline with many definitions. Here’s a simple definition you may find helpful:
Logistics is the process of delivering the right thing to the right place at the right time.
Accomplishing this goal can be complex. Supply chains organize around it, and the "things" delivered are shipments of materials, data, and capital. These deliveries are a cross-functional effort involving sourcing, manufacturing, transportation, and warehousing.
In the bigger picture, a single product may involve hundreds of supply chains and tens of thousands of companies, from raw material sourcing to final assembly and delivery. Few inventions are as complex as supply chain logistics networks, suggesting there’s nearly infinite optimization potential. This potential can only be tapped through a more intelligent, agile logistics process.
Logistics is Supply Chain Execution
Successful supply chains deliver the right things to the right place at the right time. Hey, that’s the exact definition previously given for logistics.
A supply chain is an extended logistics process - a conglomerate of businesses coordinating operations around the final delivery goal. If you work for a company that sends or receives shipments, you participate in a more extensive logistics process regardless of your function. National Logistics Day is for you.
Logistics Includes Everyone
Logistics went mainstream over the past two years after disruptions gave the general public a first-hand look at the consequences of lockdowns: the right things were not delivered to the right place at the right time.
The news media may have reported on a supply chain crisis but presented logistics problems. Port congestion, driver shortages, and overwhelmed small package carriers became common knowledge as consumers experienced product shortages and delayed shipments.
The global supply chain sustaining modern society is a logistics process, so everyone is a participant in some respect. National Logistics Day includes everyone by default.
Logistics is the Ultimate Answer
Supply chain optimization is logistics optimization. Previous posts in this blog arrive at the same conclusion from different angles.
As digitalization enables supply chain optimization, coordinating execution across multiple enterprises to respond to changing conditions requires agile, interoperable logistics. The answer to the Supply Chain 4.0 Riddle is ultimately found in logistics.
Conclusion
Logistics is not merely an essential function within the global supply chain - it is supply chain execution. The sooner this idea is incorporated into supply chain models and process improvements, the quicker optimization will materialize.
As companies tackle supply chain optimization, we hope the importance of logistics and National Logistics Day will grow. In the meantime, flexis is committed to making logistics optimization easier for our clients and their staff through new software enhancements and partnerships.
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