The Key Players in the World of Business Logistics

Establishing a logistics company in the Philippines is a great feat considering the topography the country has. But the undisputed fact still remains; the real challenge logistic companies always face are the customers who have the power to make or break them. Without this important component in the supply chain, a logistic company is no longer needed in the picture.

Customers are hard to please. Period. Even the “nicest” customer has a specific preference on a certain product that needs to be satisfied. It always bores down to a certain industry that manages the whole supply chain – the area of logistics. On the other hand, without a logistics company, a family won’t be fed; a house won’t be build; roads and bridges won’t exist; and a whole nation won’t arise.

Logistics came from the Greek word logistikos, meaning skilled in calculating. According to Encyclopaedia Britannica, the term was first used in the military in the 18th century by Antoine-Henri Jomini, and he defined it as “the practical moving of armies” which he meant the moving and sustaining of military forces. So we could say that the first customers of this certain branch of military science were the soldiers who needed a constant supply of food and ammo whenever they’re on a mission.

In a business or retail sense, the Council of Supply Chain Management Professionals (CSCMP) defined it as “… that part of Supply Chain Management that plans, implements, and controls the … the storage of goods … between the point of origin and the point of consumption in order to meet customers’ requirements.”

The whole logistics industry comprises of several players that work hand in hand to complete this goal. They must work as a team because a community with hungry stomachs would be a big problem, for example, if no one will deliver food supplies in the market or grocery store.

Here’s the team in no particular order:

• Warehouse = a place where goods or supplies are stored for future use. You can imagine what it often looks like; lined-up with racks, pallets, crates and heavy-duty lifting equipment.

• Distribution Center = sometimes used interchangeably with warehouses, a distribution center is more dynamic than warehouses. It doesn’t just act as a storage facility. It offers services such as transportation, packaging, and order processing.

•  Freight Forwarders = helps importers/exporters find and book carriers (via land, air, or sea) to transport cargoes within or across borders of a country. Freight forwarders must be knowledgeable on Philippines’ customs regulations as well.
•  Custom Brokers = they know the “language” of customs regulations and laws, and understand shipping regulations in a specific country. The goal of a custom broker is to secure a clearance to be able to export/import goods.

• Order Fulfillment Technologies = order fulfillment is the delivery of customer’s orders on-schedule without damage or defects. It is now made more complicated because purchasing a product can come from different channels such as online stores. An order fulfillment technologist oversees this task in real-time.

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