The key to modern life: Logistics

The key to modern life: Logistics

Logistics is one of the most important industries for world trade. A development in logistics directly influences all markets around the globe. Thousands of planes, ships, trucks, and other vehicles are carrying your next living room furniture or your next meal from remote corners of the world to the store next to your house. 

At a micro scale, the warehouse management and management of courier services enables you to receive your product. Any company that can manage a warehouse well can give lower prices to their customers and deliver products in shorter amounts of time. Amazon is seen as the best in this regard. Together with big data solutions, they ship products to a warehouse closest to you before you even order them. It gives Amazon an edge that no other firm has. 

According to E&Y, manufacturers and distributors in the industrial sector are under severe pressure to increase the productivity and performance of their warehouse operations in the face of growing cost, complexity and customer demands. 

The warehouse management challenges are particularly acute while manufacturers struggle to seize new market opportunities globally, improving their customer focus, increasing operational efficiency and even engaging in new product and service life cycle management activities. 

As customers become increasingly demanding and supply chains increasingly global, profitability of manufacturers and distributors is at risk. If the warehouse operations are inadequate, it will be increasingly difficult to address rising customer expectations and seize new market opportunities. 

E&Y’s Central & Southeast Europe IT Advisory leader Alper Karaçar states that key problems undermining warehouse management performance are: Realization of value in terms of return on investment (ROI), Excessive labor cost, and efficient warehouse operation. All of which can be solved by implementing correct IT strategies. 

After a business deals with warehouse management, then comes the management of the fleet. In order not to keep customers waiting, you need to use small cars or motorcycles in the city to navigate. If you have many shipments at the same time, you would need tens or maybe hundreds of vehicles. 

It means that the firm would have high sunk cost and a huge capital investment budget. There is a Turkish startup that promises to make things easier in fleet management. Pit Start has its own couriers and acts as the logistics division to major e-businesses in Turkey especially if they need same day delivery. This way, the businesses don’t need to hire drivers or invest in capital more than they should.  

From enormous ships to little motorcycles, the logistics industry is ever present in our lives. The firms that can cut down on costs and find new opportunities like using startups such as Pit Stop will foster Turkey as well.