Why your business needs logistics

Author: Devloop
 Time to read: 4m
Why your business needs logistics

Logistics is simply the management of processes of transfer of goods or services from suppliers to consumers. Moreover, the transfer should be carried out in the optimal time on favorable terms.

It is difficult to imagine modern logistics without information technology. Thanks to the collection and processing of large data sets, automation, arises, accelerating information exchange - IT solutions have become the main tool to increase the transparency of business processes, optimize costs and increase productivity.


The main tasks of logistics

To fully understand why logistics is needed it is necessary to find out what tasks it solves:

  • Maintaining the optimal amount of stock.
  • Managing of storage - creation of warehouses, wholesale bases, management of processes of movement in the warehouse or between points of storage, sorting, packing and packing of the goods.
  • Transportation of goods and services (choice of route and mode of transport, calculation of the optimal cost of transportation).
  • Tracking the location of cargo, as well as solving problems which could be arised on the road.

How to calculate logistics for your own business

The logistics component of costs depends on many factors:

  • urgency;
  • risk of loss or damage;
  • delivery distances;
  • the size and weight of the package for delivery.

Dependence on the sizes of the product. The calculation of international delivery is usually based on the price indicator (in hryvnias or dollars) in terms of weight (kg) of delivery. This is provided that the load is quite heavy and compact. If you order the supply of bulky goods of high quality and therefore quite expensive but light, then the so-called "volume" weight is taken into account (here the cost of transporting goods directly depends on the volume they occupy on board an aircraft or other vehicle)

The cost of goods. Of course, if the shipment is very cheap then the logistics component grows. Sometimes this increase can be critical to the cost structure, price and level of competition. And the price is influenced by the type of transport delivery: the cheapest - sea (container), the most expensive - air.


Alternative. In the current reality it is not necessary to go for a product to a specific place because you can order the same product online and such delivery will be at a fixed, pre-agreed rate.



Competitiveness. It is always important to remember that careful management by managers and / or business owners of the structure of logistics costs and compliance with transportation deadlines and the integrity of the parties from damage / loss / theft are important conditions for competitiveness.


"Amazon and the trade aggregator Alibaba are considered world trade giants today. Both sites work on a partnership  program. They provide a trading place for their own goods and mainly for partner goods. Rozetka is the largest online store in Ukraine which  uses a similar business model. This model is often called a marketplace, i.e. the above aggregators give you as an entrepreneur access to their "showcase" of goods. A commission would be at least 15% for this service.

That’s why if you have and sell a product or service then to improve the profits of your business, you need a platform, i.e. your online store. And our specialists will help you with this.


The introduction of logistics principles in the work of transport organizations can ultimately affect not only the quality of customer service but also reduce costs and increase profits. We will help to calculate the optimal cost of transportation, tracking the route with modern and high-quality software.


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