Why are Logistics Facilities Important?

Logistics facilities are places or facilities used to support logistics activities, namely the process of managing goods or services from upstream to downstream. Logistics facilities can be warehouses, terminals, ports, airports, stations, toll roads, or other facilities that facilitate the movement, storage and distribution of goods or services. Logistics facilities are very important because they affect the efficiency, effectiveness and quality of logistics activities. Good logistics facilities can save costs, time and resources, as well as increase customer satisfaction and business performance.

Factors for Selecting Logistics Facilities

There are several factors that must be considered when selecting or designing logistics facilities, including:

Customer needs

Logistics facilities must be in accordance with customer needs and expectations, both in terms of time, quantity, quality and cost. For example, if customers want fast delivery, the transportation facilities used must have high speed and reliability.

Product characteristics

Logistics facilities must be able to handle products with different characteristics, such as size, shape, weight, value, sensitivity, and so on. For example, if the products sent are perishable goods, then the warehousing and distribution facilities used must have a strict security and supervision system.

Location and distance

Logistics facilities must be in strategic locations and easily accessible to customers, suppliers and business partners. Apart from that, logistics facilities must also pay attention to the distance between these facilities, in order to reduce transportation costs and time.

Capacity and flexibility

Logistics facilities must have sufficient capacity to accommodate varying products and demand. In addition, logistics facilities must also have the flexibility to adapt to changing market and environmental conditions. For example, if there is a surge in demand or a decrease in supply, the logistics facility must be able to increase or decrease its capacity as needed.

Technology and innovation

Logistics facilities must use the latest technology and innovation to improve the performance and quality of logistics services. For example, logistics facilities can use information systems, automation, robotics, internet of things (IoT), artificial intelligence (AI), and so on to speed up logistics processes, reduce human errors, increase data accuracy, and provide real time information to customers.

Types of Logistics Facilities

Logistics facilities are the facilities and infrastructure used to support the process of managing goods or services from upstream to downstream. The types of logistics facilities available include:

Warehouse

A goods storage place that functions to maintain the availability, quality and safety of goods. Warehouses can be divided into general warehouses, special warehouses, transit warehouses and distribution warehouses. A general warehouse is a warehouse that can store various types of goods without requiring special requirements. A special warehouse is a warehouse that can only store certain goods that require special requirements, such as temperature, humidity or cleanliness. A transit warehouse is a warehouse used to store goods temporarily before being transferred to another means of transportation. A distribution warehouse is a warehouse used to store goods that are ready to be sent to customers.

Terminal

Place of departure and arrival of transportation equipment which functions to move goods from one mode of transportation to another. Terminals can be divided into land terminals, sea terminals and air terminals. A land terminal is a terminal that serves land transportation equipment, such as trucks, buses or trains. A sea terminal is a terminal that serves sea transportation equipment, such as ships or ferries. An air terminal is a terminal that serves air transportation equipment, such as planes or helicopters.

Harbor

A ship service location that functions to connect land areas with sea areas. Ports can be divided into commercial ports, fishing ports, tourist ports and military ports. Commercial ports are ports used for trading goods between countries or between islands. A fishing port is a port used for fishing or mariculture activities. Tourist ports are ports used for tourism or recreational activities at sea. Military ports are ports used for national defense or security activities at sea.

Airport

An aircraft service point that functions to connect land areas with air areas. Airports can be divided into international airports, domestic airports, regional airports and local airports. International airports are airports that can serve flights between countries or between continents. Domestic airports are airports that can serve domestic or inter-provincial flights. Regional airports are airports that can serve flights between cities or between districts. Local airports are airports that can serve flights between villages or between sub-districts.

Highway

Land transportation routes that function to connect various locations on land. Highways can be divided into toll roads, national roads, provincial roads, district/city roads and village roads. Toll roads are roads intended for high-speed motorized vehicles and are subject to usage fees. National roads are highways that connect the national capital with provincial capitals or other large cities. Provincial roads are highways that connect the provincial capital with the district/city capital or other large cities in the province. Regency/city roads are highways that connect the regency/city capital with activity centers in the regency/city. A village road is a highway that connects a village with other villages or with other highways.

Railroads

A land transportation route that functions to transport goods or passengers by train. Railways can be divided into electric railways, diesel railways and steam railways. Electric railways are railways that use electricity as a power source to move trains. Diesel railways are railways that use diesel fuel as a power source to move the train. A steam railroad is a railroad that uses heated water as a power source to move the train.

Pipe

Underground transportation lines that function to transport liquids or gas. Pipes can be divided into water pipes, oil pipes, gas pipes and waste pipes. Water pipes are pipes used to transport clean water or drinking water. Oil pipelines are pipes used to transport petroleum or its derivative products. Gas pipes are pipes used to transport natural gas or artificial gas. Waste pipes are pipes used to transport liquid or solid waste.

Why Logistics Facilities Are Important

Logistics facilities are one of the factors that determine the success of an activity, both business and social. Logistics facilities include everything related to the provision, transportation, storage and distribution of goods or services required by activity actors. So why are logistics facilities important? Here's why:

Increase efficiency and effectiveness

With good logistics facilities, goods or services can be delivered on time, in the right quantity, at the right quality and at the right price. For example, if a company sells food products, good logistics facilities can ensure that the products are not damaged, stale, or expired when they reach the customer. This can increase customer satisfaction and loyalty, as well as avoid losses due to products that do not sell or have to be thrown away.

Reduce operational costs and increase profits

With good logistics facilities, the costs of procuring, transporting, storing and distributing goods or services can be minimized, thereby saving expenses and increasing income. For example, if a company uses modern and integrated logistics facilities, the company can reduce fuel costs, warehouse rental, labor, insurance, taxes, etc. This can increase profit margins and company competitiveness.

Increase competitiveness and reputation

With good logistics facilities, activity actors can provide satisfactory service to customers or beneficiaries, thereby increasing loyalty, trust and a positive image. For example, if a social organization uses reliable and fast logistics facilities, then the organization can distribute aid to people in need more effectively and efficiently. This can increase the credibility and recognition of the organization in the eyes of the public and related parties.

Support sustainable development

With good logistics facilities, activity actors can reduce negative impacts on the environment, such as air pollution, waste and greenhouse gas emissions, as well as increase positive impacts on society, such as welfare, employment opportunities and empowerment. For example, if a company uses environmentally friendly and socially responsible logistics facilities, the company can reduce fossil energy consumption, reduce plastic waste, reduce carbon dioxide emissions, and contribute to the surrounding community through CSR (Corporate Social Responsibility) programs. . This can increase the added value and green image of the company.

Logistics facilities are one of the important elements in logistics activities. Good logistics facilities can provide many benefits for businesses and customers. Therefore, logistics facilities must be selected or designed carefully and wisely according to market needs and conditions.

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