Moving products and services efficiently from one place to another requires logistics management.The same supply chain-management strategy is used in global logistics – only the number of variables is amplified.One of the best definitions of business logistics is the process of planning, implementing and controlling the effective and efficient flow of goods and services from point of origin to point of consumption.
The advantages for developing effective global logistics are numerous, new market revenue opportunities are most prominent, but there may also be an increase in economies and lower cost resources for everything from components to labor. Centralizing global production is one of the best ways to reduce unit costs and resource budgets. The challenge comes in establishing relationships with international supply chain partners, or building a global sales organization.It is not enough to put all parts in place to maintain quality control over long distances, which sends the products to the end user at a reasonable price.
The longer the supply chain, the more vulnerable it may be to damage caused by weather, equipment failure, or other obstacles.
While the global logistics network can be analyzed, visualized, and optimized with sophisticated simulation software, this is a procedure that will always, be more reliable in human resources than machines to do the job.