Understanding Complete Logistics Company with System and Management

Rancakmedia.com – Here's an understanding logistics company, have you ever heard of the word logistics? and what matters to you when you hear logistics? Surely our minds are immediately fixed on the various items that must be sent, of course.

However, the concept of logistics itself is much more than that. Logistics is directly related to planning and managing the flow of goods and materials for the company itself.

The goal of logistics in general is to arrange goods or materials at their destination in the right condition, quantity and time of course. A system as well as a suitable role for the logistics team in a company is needed to improve its performance and to reduce operational costs.

Understanding Logistics We know a little about logistics, so now we will know what is meant by logistics. In fact, logistics is a set of management procedures that cover from start to finish operations, such as planning, maintenance, and also monitoring the movement process (both goods or certain equipment).

Logistics Company System

Of course there are many components in every system that support the system to keep it operating properly. The following are five components that can support the flow of goods and of course the logistics sector, including:

Definition of Logistics Company

Facility Location

The first component is the location of the logistics facility, which must exist so that the company can determine the planning location and what materials and products to carry. The company also offers different facilities to users, including factories, warehouses and retail facilities.

An excellent and strategic location will provide many advantages for the company. Logistics business certainly wants efficiency, right? It increases efficiency with strategic location.


Don't ignore transportation in the logistics system, because transportation is a very important component. In general, companies have three options to support their transport capacity, including:

Fleet of Personal Equipment to Rent or Purchase

There are special contracts that can be made with transportation experts for transportation order contracts.
The service of a licensed (legally approved) transportation company that already offers transportation from one location to another, for a naturally modified fee.

Naturally, a good logistics system design must first examine many aspects, including cost, speed and consistency, which can affect the quality of transportation services.

Procurement Inventory Management

Inventory procurement management is part of the logistics system, which is responsible for managing the various inventories of goods owned. Must be able to manage inventory effectively until supplies are given or used, strong storage procedures.

Meanwhile, maintaining the quantity of goods to meet the purpose of stock procurement management services in the logistics system.


As we know, this is a very important communication. It is impossible to separate logistics systems from communications. Communication is an activity of exchanging information for the entire logistics process and also for company customers in the logistics system.

Good communication will definitely be useful and will also make work easier. Meanwhile, poor communication will have negative impacts or issues, for example:

Incorrect (incorrect) level logistics trend assessment. This will lead to a shortage of goods in the logistics flow, or even excessive commitment between the company and its suppliers, intermediary customers and final customers.

System performance disturbances resulting in the repair process or lack of or excessive instability.


And storage is the last component. Logistics storage systems cover all elements of logistics activities, including transportation, packing, and also packaging of goods. All of these operational elements relate to supplies to meet the needs of a product or material.

This logistics system is one of the essential things for logistics business players to ensure smooth transactions. Logistics companies with an integrated network of facilities are best placed to gain long-term advantages and may also have an edge over their competitors. This is because the company already has reliable transportation and excellent inventory management.

The Role of a Corporate Logistics Company

Then what is the role of the logistics company? Of course a logistics crew with the ability to operate efficiently can enhance marketing efforts by successfully transferring products to customers. Below is another description of a company's logistics responsibilities:

Marketing Oriented Logistics Company

Logistics has an order in a company that plays a very important role in satisfying its customers. Logistics also has an important role to generate profits for the company.

Logistics Companies Add Value to Time and Place

Of course, every company that wants to progress is not only profit-oriented, but every product requires the best quality, so that the company is able to attract loyal customers. In addition, with a strong logistics system, consumers such as time and place also get added value.

Logistics Company Enables Better Movement of Goods to Consumers

Logistics systems can also generate procedures for delivering the right product to the right place at the right time, under the right conditions, of course. This makes it easier for consumers to benefit from these products even at low prices.

Logistics Company Is An Exclusive Asset

The company must maintain a cheap and effective logistics system. Market share will definitely grow if the company is able to offer its customers products quickly, but cost-effectively. These proprietary assets are not even available to all companies.


Logistics is a set management procedure covering from start to finish of the operation. Logistics role in a company is to maintain the quantity and quality of goods for stock procurement management. Logistics systems can also generate procedures for delivering the right product to the right place at the right time, under the right conditions.

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