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International Forwarding Association Blog » Contract Logistics in Europe » Why is logistics essential for just about every single company around the world?

Why is logistics essential for just about every single company around the world?

The members of the International Forwarding Association have always been working hard to provide the best and most reliable European logistics services possible because they are all aware of the importance of logistics for the overall economy, the international commerce and the wellbeing of the people on the continent.

So, what is logistics, and what makes it so important for almost all other businesses?

Logistics as a term first originated in the military and was used as a term to describe the process of supplying equipment and other army supplies to the different troops and military bases and zones.

As a business concept, “Logistics” was first introduced as a term in the 1950s as the international trade began blooming following World War II.

In modern days, the different businesses use the term “Logistics” to describe the movement of goods from their point of origin to the end point of consumption. The European logistics network provides services such as international freight services, storage and distribution, contract logistics and other similar services which are an integral part of the overall supply chain.

intermodal Logistics


The main types of logistics services offered by the International Forwarding Association

There are various types of logistics services offered by the list of logistics companies from IFA, but there are a few main types which are worth mentioning first, including:

  • Procurement logistics. These include all of the processes necessary for selecting the appropriate suppliers, negotiating contracts, choosing the best offers, ordering and management of the orders for the goods and services in demand.
  • Production logistics. This type of logistics focuses on the control and streamlining of the supply chain flow from the beginning to its end. Production logistics includes layout planning, production planning, organizing and controlling all processes in the supply chain.
  • Distribution logistics. This is the most common type of logistics service offered by the freight forwarders from the European network of transportation. It is the process of actually delivering the ready product to the end consumer. The companies from the International Forwarding Association offer efficient order processing, storage and distribution and international freight forwarding and transportation of the products to the final consumer. Many of the European logistics companies specialize in contract logistics which is an irreplaceable service to many producers and businesses.

Distribution logistics also includes the management and control of the actual air freight in Europe, Sea freight in Europe, railroad and truck transportation, as well as the intermodal transport in Europe, the information, inventory, packaging, fleet management and so on.

  • Disposal logistics. The other term for disposal logistics used by many of the companies from the international freight forwarders association is reverse logistics. This specific type of logistics service offered by many of the forwarders throughout Europe includes the processes related to the return, reuse, and repair and recycling of the materials and products being shipped and sold. The main goal of all international freight forwarding companies from IFA is to reduce the costs for logistics, improve their service, save resources, save money and offer Green logistics services to all customers.

As you can see, the freight forwarders Europe who are members of the European logistics network play a crucial role in the overall economic development of the region and in the prosperity of both the manufacturers and businesses, but the customer and the end clients too.