The word “logistic” originated from the combination of logic (logic) and static (Latin) in the Latin language.
Logistics is primarily a military term, so the first applications were in military areas. However, the word’s main importance was first understood during World War II and then started to be viewed and applied to logistics as a scientific subject. After World War II, many U.S. enterprise businesses recognized the importance of logistics and started to take advantage of logistics services beginning in 1960 and continuing to the present.
The definition of logistics is as follows: The efficient planning and implementation of all kinds of products, services, and information flow in the supply chain from the starting point to the end point to meet customers’ needs, including transport, storage and control. The logistics of supplying materials and information within the supply chain is the bridge between suppliers and customers.
With the increase in globalization in the 1990s, companies started to import and export more, and transportation has become an important factor for businesses in terms of cost and timeliness.
Businesses gave importance to transportation in order to maintain their existence in a competitive environment. However, length of distances and the importance of time management have been competitive factors, and businesses must act by integrating various transportation systems. As a result, control of transportation systems has become an important factor. Companies have considered transportation as strategically important in order to maintain the speed of their activities and avoid losing their market share.
As a result of the never-ending drive to maintain competitiveness, the field of “logistics management” has emerged, which includes all stages of transportation.
Logistics costs are a significant part of many companies’ expenses, so many businesses have long explored using external resources to reduce logistics costs. In a globalized world, everyone has become a potential buyer, every company has become a potential supplier, and even medium-sized companies have the chance to find a customer or supplier in every country. The aim of purchasing is to supply cheap raw materials with the fastest and lowest costs, and the end goal is to find the shortest and most cost-effective way to sell products to the whole world.
While each country has become a potential market, supply and sales opportunities between countries have resulted in the need for logistics, allowing the logistics industry to reach growth rates of up to 20% each year.
With the supply chain becoming more important, supply chain departments within companies were created, while logistics companies started to provide complete service solutions from planning to stock management. With all of these developments, a complete logistics and supply chain management industry has emerged and is booming. At MTS Logistics, we hope it will continue for many years to come.
