Logistical

Logistics activities

Logistical activities can be divided into three main areas: order processing, inventory management, and freight transportation. Modern freight transportation relies heavily on fleet management to improve efficiency and safety. Traditionally, order processing was a time-consuming activity, but with new technologies such as bar code scanning and computers, the availability of stocks can be checked in real time. The purpose of having an inventory is to reduce the overall logistical cost while improving service to customers. Having a stockpile of finished goods beforehand can reduce the frequency of transportation and cope with the randomness of customer demands. However, maintaining an inventory requires capital investment and maintaining a warehouse. Freight transportation is a central part of logistics and allows access to broad markets. Transportation policies and warehouse management are closely intertwined.