Register now or log in to join your professional community.
The companies who are having group of related or non related projects in different different locations
Every company requires logistics, the difference is what would be the cost of setting up inhouse logistic department.
When the cost of logistics department is higher than the cost of the project/product/services, companies would not prefer to have logistic department, inturn will outsource logistic.
Eg: Al Ghannim started their operations in saudi arabia using ecommerce. the delivery of product is handled by a local logistic company in saudi arabia.
First Army <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
Logistics in thest century touches every aspect of the company's daily operations and has grown into a business specialty of its own. Understanding the demands of strategic planning and coordination and making use of new and better tools to do so would have probably been beyond Tony's reach. Scheduling manufacturing and making certain that each step of a process has all of its prerequisite needs fulfilled is an enormous task that requires intimate knowledge of engineering, computerized system design and process controls. While complex software programs perform much of the logistics function, human interaction is as important today as it was in the time of Tony and his dirty white t-shirt. The biggest difference being that today the shipping department might have+ offices around the world, many of whose employees might find it rather difficult to communicate with each other under normal circumstances. Tony knew everybody by his/her first name. To understand the impact of global logistics, it might be useful to consider the following:
Logistics is essential for the company's competitive strategy and survival. This is an important point that too often gets lost in the shuffle to overlook seemingly small but crucial details. Lee Iacocca brought this to our attention when he went to Chrysler and started confronting people about various issues. Many observers agree that Iacocca highlighted the critical role of the cost accountant within the corporate structure of a publicly traded company. Of course, he had mixed emotions about this. Cost accountants or what many also call management accountants perform a very thankless task: they do internal management audits. One goal of this type of audit is to provide information about the cost of goods sold so that the outside accounting firm responsible for providing public disclosure can have accurate information. Iacocca used the cost accountants to force many different departments and divisions in Chrysler to communicate with one another in order to find ways to lower the cost of goods sold and increase profits. His own vision of logistics played a key role in Chrysler's eventual turnaround.
Which does not!
All companies/ shops/ business require and logistics needs even if no dedicated logistics office was there.
I would infect ask the question which company does not need logistics. Even the service industry like banking/ BPO / Hotels also require some Logistics support may be in the movement of documents and staff.
Logistics can be outsourced but can not be avoided for any of the company irrespective of its nature except few which deals in intellectual work like legal firm or consultancy.
Mostly contracting companies and also manufacturing companies need "LOGISTICS".
Companies who are involved in the delivering of goods to the customers either goods or services.