According to several experts, logistics is the operative word for the companies of the future. But what exactly is logistics and how does it affect project management?

According to many, logistics is just the movement of goods. But this is a narrow view. The physical handling of merchandise is logistics. In general, this would include the transport of goods by sea, air or rail.

But there is more than this. In a much broader sense, logistics involves physical layout, plant location, purchasing, and even waste disposal. Effective logistics involves proper management and planning, accurate forecasting, inventory management, transportation, loading and unloading supervision, customs clearance, cargo insurance, stowage supervision, and storage. In short, logistics is the timely, accurate, and efficient delivery of items to the place and person to whom they need to be shipped.

Since many projects these days depend on the timely delivery of inventory, proper logistics support is an important necessity. In any case, companies spend approximately 10-35% of their total revenue on logistics. That in itself is evidence of the importance of logistic support in project management. Globalization, the free market and high competition have made it imperative for companies to deliver and receive with the precision of a clock and on time.

Any project is a time-limited assignment. Delays caused by faulty logistics not only cause lost revenue, but also lead to lost reputation and customer satisfaction. These are priceless assets, which are almost impossible to recover once lost. That’s why experts say proper planning is the key to great logistics.

For big-name companies, project logistics involves managing and handling large shipments globally. These shipments would involve heavy equipment, oversized cargo, and cargo that is completely time sensitive or requires a high degree of security. In order to offer complete project logistics, companies usually carry out feasibility studies and propose customized and adapted solutions. This is the mark of a great logistics expert.

Some projects involve complicated requirements. It is up to the logistics team to orchestrate even the most complicated supply chains. To be viable and successful, a good logistics partner must bring several qualities:

– They must be competitive in their price offering the turnkey solutions that the project requires

– Route optimization should be a priority

– Complete planning and end-to-end solutions should be provided without any hassle

– You must provide single points of contact for all services through strategically located centers.