In today’s business world, especially in physical goods distribution, logistics is no longer just a supporting activity but a strategic asset.

Understanding logistics functions is key to maintaining a smooth, efficient flow of goods from producers to consumers while maximizing business profitability.

Logistics is the art of managing goods and information in an integrated way, covering procurement, storage, maintenance, distribution, and disposal. With a well-integrated system, business owners can monitor and control the entire supply chain.

Effective logistics operations help reduce operational costs, improve customer satisfaction, and strengthen competitiveness.

7 Key Logistics Functions That Support Business

1. Transportation
 

It’s not just about moving goods; it’s about choosing the best mode of transport (land, sea, or air), optimizing routes, and managing fleets to ensure safe and efficient delivery.
 

Timely transportation helps maintain the company’s reputation and minimizes losses from delays.

2. Warehousing
 

Storage ensures goods are available when needed, preventing stockouts and overstock.

Efficient warehousing requires accurate inventory management to prevent items from being misplaced or forgotten.

3. Maintenance
 

Includes proper packaging, protection from impact, and suitable storage conditions (e.g., temperature or humidity control). Good maintenance reduces the risk of damage or unsellable items.

4. Cost management
 

Logistics isn’t just about operations; it’s also about controlling expenses. This includes analyzing transportation, storage, packaging, and other related costs.
 

Efficient logistics helps reduce distribution costs and boost profit margins.

5. Disposal
 

Not all goods last long in the supply chain. The function of discontinuing or deleting goods includes obsolete, expired, or unsold goods.
 

Methods may include recycling, destruction, or selling scrap. Proper disposal keeps inventory clean and compliant with environmental regulations.

6. Risk management
 

Every supply chain faces risks such as:

loss
damage
bad weather
delays, etc.
 

Logistics must identify potential risks and create mitigation strategies, including insurance and real-time monitoring.
 

A responsive system ensures quick action when disruptions occur.

7. Distribution planning
 

This strategic function determines when, where, and how goods are delivered. It includes scheduling, demand forecasting, and route planning.
 

Well-planned distribution is crucial for perishable goods or urgent deliveries.

Optimize Logistics with the Right Partner
 

Understanding these functions helps you choose a logistics provider that truly supports your business needs. Look for a partner that does more than just deliver goods, but also one with capabilities in shipping, warehousing, risk management, and supporting technology.
 

A recommended logistics company is SELOG, a subsidiary of PT Serasi Autoraya (SERA) and part of the Astra Group.

With over 20 years of experience, SELOG offers comprehensive logistics solutions, including Trucking, Shipping, Freight Forwarding, Warehousing, and Project Cargo.

SELOG’s services are supported by cutting-edge digital technology Astra Fleet Management Solution (AstraFMS), which makes customers’ business easier, more effective, and more efficient.

Through AstraFMS technology, SELOG offers a comprehensive solution for vehicle and transportation management in Indonesia powered by information technology.

For more information about SELOG services, visit www.selog.astra.co.id or contact (021) 26605333.

Follow SELOG on Instagram @selog_astra and LinkedIn SELOG to stay updated on the latest logistics industry insights.