Why logistics is important in today’s economy
Logistics plays a huge role within today’s economy. It is estimated that the UK Logistics & Posts Sector is worth 55 billion to the economy and comprises 5% of the UK GDP. The industry also employs 1.7m people.
Just imagine a world where nothing was delivered or transported between places. Not only is logistics vitally important to the distribution industry, it has made distribution prompt and efficient. In fact, (Freight Transport Association), in 2014, 139 billion tonne km of goods were moved by HGV.In this very competitive market, it is extremely useful that companies no longer have to wait for what they need.
Many companies rely on transport and logistics to keep their business strong.
Today, companies have good infrastructure and record keeping, which continues to improve through advancements in technology. As time has progressed, so has the importance of logistics, in fact this rise has brought factors such as warehousing and other facilities closer to large towns and cities. Logistics is affecting businesses within towns and cities, bringing more jobs into these locations.
Logistics is an important part of the supply chain.
It controls the effective forward and reverse flow of goods and services origin to recipient. This means that logistics has an impact on the shipment of goods and how quickly they can get to the consumer, again adding a competitive edge to other businesses.
The trend of third party logistics (3PL) is on the rise.
Globally, the logistics industry has seen an immense growth over the past decade, with 40% of organisations now using 3PL and the industry being said to be worth $750 billion globally, and $174 billion in Europe. This shows an increase in jobs for transporters, warehouse facility owners, and brokers in freight-related jobs.
Technology is making logistics more efficient.
A huge part of the economy that is benefiting from an increase in logistics is technology. A good logistics company will integrate all of the supply chain functions into a digital strategy. They will track orders, vehicles and pallets to gain greater visibility and improve their methods.
This better visibility helps companies to optimise their flow of goods, reduce wait times and manage their costs. Technology is an essential part of logistics and its use is benefiting today’s economy.
If you have any questions about our particular logistics services, particularly 3PL, then please get in touch with our Logistics team on 01353 648222.
Want to find out more about how our logistics solutions could help your business? Visit our logistics page.
Alternatively, call us on 01353 648 222 for more information.