LOGISTICS AND INSURANCE
Logistics is the process of planning and controlling the distribution of goods and services. It refers to the
• transport;
• warehousing, and
• the stock management, that is the control of goods and stock,
The advantage of an efficient distribution industry that manufacturers and retailer don’t have to hold large stocks of
materials because they can rely on their suppliers’ ability to meet their needs when required.
Over the last year, the effects of globalization led to the creation of large logistics companies with worldwide
operations that a result in a reduction of costs and transport time.
IT IN DISTRIBUTION – TRACKING AND MONITORING- AUTOMATED WAREHOUSES:
Modern information technologies help companies to plan their chains of distribution more effectively than in the
past; the tracking systems helps manufacturers control stock levels easily and they cut down the overproduction.
Companies can monitor their product's during distribution using an identification tag that make it possible for
manufacturers to track goods and helps companies to always identify the location of their products.
In modern automated warehouses, the process is faster, cheaper and more reliable, in fact the robots can sort
goods which are then transported to the delivery area.
TRANSPORT
It's a fundamental part of logistics. The most important thing for international trade are the speed, safety and cost-
efficient transport system
Generally large companies are independent in the distribution of their goods, while medium and small firms may use
a forwarder that take care of all import – export operations
Over recent years the introduction of containers has facilitated the transfer of goods that can now be transferred
easily from planes or trains. This form of transport is call ‘intermodal carriage’.
When selecting the mode of transport, the companies have to consider many factors, like
the product like the size or weight and the level of fragility,
The distance they must travel and the time
The cost of transport like the transport mode or packaging
The customer like their importance
And the external factors like taxation
Companies are investing in technological innovation to find how to reduce the cost of delivery, and nowadays they
are trying two new methods that are drone delivery and self-driving cars, for example, Amazon recently started
drone delivery service.
