The Pros of Investing in Logistics Parks Project
You’ve probably heard the term, ‘logistics.’ In today’s world, the term refers to the movement of products and supplies. Are you aware that U.S. businesses spent about $1.63 trillion on logistics in the year 2019? This number is going to go up in the coming years.
There are existing logistics parks in India too, and the nation is realising the importance of such logistics parks.
Have you ever thought about the pros of investing in a logistics park project? Well, in this article, we will be sharing the advantages of logistics parks. But before that, let’s shed light on why logistics in general is crucial.
What is Logistics, anyway?
As we mentioned before, logistics is the movement of goods from point A to point B. There are two functions – the first is the transportation of goods and supplies, and the second is the related warehousing.
The movement of goods from buyer to seller is done in an organised manner. Logistics managers have to oversee everything and control all the complex steps involved in the process. You would need several certifications to be a logistics manager. The professional must keep the road conditions and weather updates in mind. Let’s say there is a shipment of dairy products like cheese, milk, and other goodies, and they arrive spoiled because the refrigeration had a problem; then the responsibility and blame go on the logistics team. Suitable warehousing and customer satisfaction must be kept in mind by the logistics team.
Logistics management software allows businesses to make the best shipping decision, manage costs, and track the movement of supplies and goods.
Why is Logistics Important?
Logistics is about the movement of goods, but the effects go beyond supplies. When you are in the business field, success in logistics means lower costs, increased efficiency, high production, improved inventory control, customer satisfaction, better use of warehouse space, and supplier satisfaction.
A company’s success depends on logistics, so one has to oversee the whole process and ensure everything goes smoothly.
What is a Logistics Park?
Now that you understand what logistics means, it will be easier to grasp the meaning of a logistics park.
A logistics park is an industrial space specifically designed for managing, storing, distributing, and transporting supplies and goods. Companies that operate from a logistics park use them to package, assemble, process, and even manufacture light products. Companies also use these parks to serve and cater to local, international, and even regional markets.
What are the Advantages of Modern Logistics Parks?
Modern logistics parks are well-connected to different modes of transportation, so your goods and supplies will reach the intended market. These parks are linked to different transportation or the one that best suits your needs.
The best locations to consider for a logistics park include international airports, national hubs, and seaports. The parks near seaports make the shipping process much more accessible, cheap, and quick. A logistics park near an airport makes exporting and importing via plane easier. National hubs that are near railways help you get the advantage of easy transportation via land.
Logistics parks are also serving the community in various ways. When there are more businesses, there will be more jobs for people around. Employment is necessary, especially in a country like India, where there is an increase in population.
Reduction of costs is a benefit, but the logistics parks serve the community. Communities will appreciate a nicely built logistics park because it brings value and money. Logistics parks are useful because they can house different businesses all at once, creating the demand for more jobs. These are not just given to people with higher education – there are job opportunities for skilled labour too.
Some logistics parks have labour accommodations, retail spaces, data centres, and more that attract many employees. Employees can now save time, money, and effort. They can use these accommodations and come to work daily without having to spend on transportation.
Does it also help the environment? Absolutely! When you use a logistics park, the traffic reduces, and you are able to access environment-friendly transportation such as railways. Let’s not forget that fuel consumption also goes down significantly.
We believe that India has a lot of capabilities. Skilled labour is readily available, and with logistics parks, people can also be hired. So, the question of poverty may not exist in a few years. Imagine a nation where everyone finds a job and is employed in industrial and logistics parks.
The existence of logistics parks is most certainly important and useful for society. Thus, we can say that logistics parks offer more advantages, and their existence is a must.