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Logistics

Sigma Investment Counselors

November 7, 2018

According to Wikipedia, logistics is generally defined as the detailed organization and implementation of a complex operation.  For business, logistics is a general term for the management of the flow of things between the point of origin and the point of consumption in order to meet the requirements of customers.

Manufacturers and providers of goods and services are continuously seeking to provide faster and more cost effective methods of meeting consumer demand.  Some merchandisers are starting to offer same day delivery in selected markets.  Uber has indicated that they are seeking to develop a drone based food-delivery service as early as 2021.  Other companies are also looking at the potential for drone delivery.

Investors should note that transportation costs and efficiencies can be a key variable in meeting demand at a competitive price.

Logistics is also an essential part of managing a company’s supply chain.

All comments and suggestions are welcome.

Walter J. Kirchberger, CFA

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