LOGISTICS A BUSINESS ENABLER FROM A COST CENTER – THE JOURNEY

Logistics refers to the complete process of handling how the resources are attained, warehoused, and transported to their ultimate destination. It is a traditional business that has emerged in the spotlight during the Covid-19 pandemic and matured over time highlighting its importance in various businesses.

Earlier, logistics industry used to be under a tremendous pressure to restate its significance and add value to its client base It ended up becoming a commodity instead of an essential service that was reduced to achieving targets on a spreadsheet, which with time, were becoming lower and. Its’ entire existence was being seen as a cost that needed to be further reduced.

But in the present time, companies view logistics as a business enabler instead of a cost centre. During the early 2000’s logistics teams used to be part of sales, but not anymore. There has been a shift. Today logistics is being observed as cost justified and carved itself out as a business enabler.

Companies now look to drive proficiencies as they are gradually navigating into the high-cost environment. It is no longer viewing logistics as a service at any cost. Rather, it is viewed as being discreet with the services that are required to be delivered. Logistics is no longer the cost that is to be managed, but has jumped towards the revenue generating side.

This shift came at the same time when transporters are moving supplies and goods to more and more destinations and at much greater speeds as in the past. To keep up with the high demands, logistics companies are venturing into new technologies like Cloud, Artificial Intelligence, Machine Learning, and Automation have changed the course of modern business operations. This results in cost savings and at the same time allows the complex and global supply chains to function efficiently.

It is a known fact that customer satisfaction is the key driver of business success, and the modern logistics is playing a very important role in ensuring the same. It helps the manufacturers and stores to sense the demand for all kinds of products across the geographies and ensure the on-time manufacture and delivery of these products.

In conclusion, it would not be wrong to say that “logistics is not a cost centre anymore and has transformed itself gradually into a business enabler”.