The economy is growing, the competition in the market is increasing. Therefore, businesses increasingly want to do logistics effectively, to increase competitiveness in the market. If you are also learning about Logistics but do not really understand what Logistics is? What are the problems related to Logistics?. What is Logistics? How’s the job? Refer to the sharing below?

What is Logistics? Share the most detailed Logistics ever

Logistics? From the world’s point of view

According to the US Logistics Administration Council (LAC – The US Logistics Administration Council):

“Logistics is the process of planning, implementing, and controlling the movement and storage of raw materials, in-process goods, finished goods, and related information from the procurement of raw materials. until it is consumed, in order to satisfy consumer demand”.

What is Logistics? Is the entire logistics of the product
Logistics? Is the entire logistics process of the product

Or more simply, what is Logistics? Logistics is all the processes related to the formation of a product such as: packaging, packaging, labeling, storage or warehousing, transportation or preservation of goods…

Logistics? From Vietnam’s point of view

According to Article 233, Commercial Law 2005, What is Logistics?:

“Logistics service is a commercial activity whereby a trader organizes to perform one or more jobs including receiving goods, transporting, storing, storing, customs clearance, other paperwork, customer consultation, packaging, marking, delivery or other services related to goods as agreed with the customer for remuneration”

Logistics in Vietnam has not yet found any words that can most fully describe the meaning. Therefore, we still temporarily call in foreign language Logistics service, transliterated in Vietnamese as logical service.

What is the meaning of Logistics?

As mentioned above, Logistics is an extremely important factor related to a product. So Logistics has many meanings, one of which can be mentioned as follows:

  • Logistics determines whether the product can be produced when the customer needs it or not.
  • Logistics determines how much the product will cost after reaching the customer. The lower the cost, the lower the price and this will attract a large number of customers.
  • Logistics is an important factor in deciding where products will be delivered.
  • Effective logistics saves time, money and effort. Besides, it helps to bring higher profits for businesses.
Logistics is the determining factor in product cost
Logistics is the determining factor to product cost

What are Logistics Types?

According to Article 3, Decree 163/2017/ND-CP, currently provided Logistics services include 17 types as follows:

1. Container handling services, except services provided at airports.

2. Container warehousing service belongs to sea transport support services.

3. Warehousing service is a service that supports all modes of transport.

4. Delivery service.

5. Cargo agency service.

6. Customs clearance agency services (including customs clearance services).

7. Other services, including the following activities: Bill of lading checking, freight brokerage services, goods inspection, sampling and weight determination services; receiving and accepting services; Transport document preparation service.

8. Wholesale and retail support services, including inventory management, collection, collection, classification and delivery of goods.

9. Cargo transportation service belongs to sea transportation service.

10. Cargo transport service belongs to inland waterway transport service.

11. Cargo transport service under railway transport service.

12. Cargo transportation service belongs to the road transport service.

13. Air freight services.

14. Multimodal transport services.

15. Technical analysis and verification services.

16. Other transportation support services.

17. Other services agreed upon by the logistics service provider and the customer in accordance with the basic principles of the Commercial Law.

Logistics services offered include 17 different types
Logistics service provided includes 17 different types

What is the Logistics Process?

Currently, based on the product formation process, Logistics is divided into 3 main processes as follows:

Inbound Logistics (Inbound Logistics)

This is the first and prerequisite process to form a product of the business. This process will include the activities of purchasing and storing necessary materials from suppliers.

For logistics to be effective, all these materials need to be transported and stored on time and on schedule. Besides, making sure these ingredients are still of the best quality. But calculated with the smallest possible costs.

Outbound Logistics (Outbound Logistics)

Next is the Output Logistics, also known as the storage and distribution of products to agents, wholesalers, and retailers.

In this process, enterprises must also calculate to optimize transportation methods, distribution locations, warehousing costs… to minimize the costs for the production of products. Keep the product from being overpriced.

Logistics output is product warehousing and distribution
Logistics output is product warehousing and distribution

Reverse Logistics ( Reverse Logistics)

Finally, the reverse logistics process. In the process of producing and bringing the product to the consumer. Certainly we cannot avoid that the product will be defective or broken.

Therefore, businesses need to calculate additional costs to recover these products for treatment, destruction or recycling..

What are the opportunities and challenges of the Logistics industry?

When participating in business, especially applying Logistics, businesses today will have many development opportunities. However, there are also many challenges.

What is the opportunity of Logistics industry?

  • Currently, there are many foreign enterprises investing in Vietnam, creating favorable conditions for the development of the Logistics industry.
  • Developed transportation system: inter-provincial road system, many deep-water seaports, long coastline, railway system and international airports… days of investment and development. Facilitate the development of the logistics industry more and more easily.
  • International border gates are increasingly applying open door policies, convenient for goods trade.
  • Information technology is developing day by day, thus creating conditions for domestic and foreign exchange and goods exchange more and more convenient, easy and cost-effective.
Advanced trade and exchange of goods
Advanced trade and exchange of goods

What is the challenge of Logistics?

  • Most of the enterprises in Vietnam today are small and medium enterprises. Therefore, low capital and slow technology development make it difficult for businesses to compete with foreign companies.
  • Skilled, highly skilled and well-trained labor is still scarce today.
  • The application of software in goods management and warehouse management is still low.
  • Most companies tend to import and export goods abroad. However, human resources who are proficient in foreign languages, especially English, are still not high.
Human resources are still limited in foreign languages
Human resources are still limited in foreign languages

What is Logistics?

After understanding what is Logistics? Surely many people still do not understand that if they finish studying Logistics, what jobs will they be assigned to do?

However, as we all know, Logistics is also known as logistics tasks. Therefore, when doing Logistics, you will probably do jobs such as:

What is Import-Export and Logistics staff?

In this position, employees typically perform tasks such as:

  • Finding customers in the fields of import and export, domestic transportation or OCE.
  • Receiving advice and information for customers using the service.
  • Access, consult, quote service for customers. Besides, taking care of customers after the sale.
Advise customers on products and services
Advise customers on products and services

What is a Logistics Purchasing Officer?

  • Continuously updating information on the prices of raw materials in the market.
  • Looking for quality, reputable and competitively priced suppliers.
  • Always ensure enough materials for the company’s production and business activities.
  • Contact shipping lines to order.
  • Updating the shipping situation.
  • Updating the situation of inventory chemistry, inventory according to the company’s regulations.
  • Processing international payments for orders from abroad.

What is a logistics officer

  • Prepare legal procedures for goods before exporting or importing.
  • Ensure the accuracy of the procedures and documents of the goods.
  • Drafting and negotiating the terms and conditions of the contract.
  • Solve problems arising in import and export of goods.
  • Store records and documents.
Processing, storing records and documents about goods
Handle, store documents and documents about goods

What is logistics international payment officer?</h3 >

  • Setting up debt to customers.
  • Follow up and update debt collection with customers.
  • Accounting related payment transactions.
  • Make payment records for customers.
  • Inventory and tracking of input invoices, VAT invoices.

What is a logistics field worker?

Those who directly go to warehouses, go to seaports and airports to do customs clearance.

  • Do customs clearance procedures, import goods at Customs Sub-Departments.
  • Implement the process of delivery and receipt of goods at the border gate.
  • Direct communication with customers during the goods transaction.
  • Understanding goods and documents before going to the border gate.
Field staff clear customs clearance for goods
Field staff do customs clearance for goods

What is Logistics freight forwarder?</h3 >

  • Receive shipping documents from the company or customer.
  • Carry out procedures for freight forwarding with carriers at ports.
  • Perform plant and animal quarantine, inspection, quality control and medical procedures according to the requirements of each shipment.

What is a logistics customer service representative?

  • Regularly update the status of freight to inform customers.
  • Update new products or new products to potential customers.
  • Customer care about product and service feedback.

Above are the shares to help us better understand what Logistics is. Besides, understand the importance and effective way to do Logistics to bring businesses the most huge profits.