Supply chain management is one of the best strategies for reducing the cost of economic transactions, which includes the integration of business processes from the end consumer to the primary (main) suppliers. Accordingly, logistics is also a set of activities such as transportation, warehousing, consolidation of commercial loads, customs clearance of goods, domestic distribution systems and payment systems that are carried out by government agencies and the private sector.
In fact, logistics refers to that part of the supply chain process that plans, implements and controls the storage and effective and efficient flow of goods, services and related information from the point of origin to the point of consumption, in order to meet customer needs. The results of numerous studies show that global trade is guided by a network of global logistics activities and the existence of a competitive network of global logistics services forms the backbone of international trade.
Among countries with the same per capita income level, countries that have performed better in logistics have experienced at least one percent higher growth in GDP and two percent higher growth in trade. Therefore, today the logistics sector is recognized as one of the main pillars of economic growth of countries. The poor state of the logistics network in each country increases the costs of doing business and reduces the ability of countries, especially developing countries, to join the global supply chain.
In one of its latest studies, the World Bank has defined logistics as a network of services including physical movement of goods, cross-border trade and intra-border trade, which includes the following activities:
Transportation (various modes), warehousing, consolidation of commercial cargo, customs and loading and unloading docks, domestic distribution systems, insurance and service centers and insurance coverage
Ultimately, logistics is about placing resources at the right time, in the right place, at the right cost, with the right quality
The most important measurement indicator for the logistics sector is the Logistics Performance Index (LPI). This index is a multidimensional index and has been calculated biannually by the World Bank for nearly 160 countries since 2007, and with its help, trade logistics is measured for countries both domestically and internationally. The LPI sub-indicators are: Efficiency of the goods clearance process / Quality of logistics infrastructure / Ease of sending international shipments / Competence and quality of logistics services / Ability to track and trace shipped goods / On-time delivery of goods Index scope
