Southeast Asian Logistics: What are the seven elements of logistics?
2025-03-07

- Transportation function element: Transportation involves a high level of technical expertise. Decisions such as the choice of transportation mode, transportation vehicle, and the optimization of transportation routes are of great significance for reducing logistics costs and improving logistics efficiency.
- Warehousing function element: This includes activities such as inbound and outbound operations, inventory counting, storage, and custody. Warehousing mainly serves three purposes: Firstly, it ensures the value and usability of goods. Secondly, it preserves goods for necessary processing activities before distribution. Thirdly, it provides inventory support for production and marketing.
- Loading, unloading, and handling function element: It is crucial to reasonably select loading, unloading, and handling methods and equipment, and to minimize the frequency of such operations. This helps to save logistics costs, reduce goods damage and losses, and improve economic efficiency.
- Packaging and reinforcement function element: The most common form of packaging for logistics transportation is palletizing. Palletized goods are convenient for loading, unloading, and handling, which can greatly improve efficiency and also reduce goods damage and losses. Therefore, in the logistics process, many goods are palletized.
- Distribution processing function element: Distribution processing is an important characteristic of modern logistics, an important value – added service in logistics, and also an important trend in the development of modern logistics. The main purpose of distribution processing is to make up for the insufficient processing degree in the production process of manufacturing departments such as factories, so as to better meet the specific needs of customers or users.
- Shipping and distribution function element: Distribution is closely integrated with commercial flow. The close combination of commercial flow and logistics is an important guarantee for the success of distribution. Distribution almost encompasses all logistics function elements, such as sorting and picking, loading, unloading and handling, packaging and processing, and information processing.
- Logistics information service function element: The information service function mainly plays the following roles: minimizing inventory, accelerating the speed of order picking, improving the efficiency of loading, unloading and handling, enhancing transportation efficiency, reducing errors in order processing, and preventing incorrect shipments.