What is Logistics Business? Definition, Types, and How It Works

Ever bought something online and wondered how the package could arrive at your doorstep in two days? Behind it is logistics services. Where there is a process of organizing, moving, and storing goods from the point of origin to the hands of the buyer, starting from procurement, storage in warehouses, packaging, to delivery. 

Logistics businesses can be small, handling only dozens of packages per day, or large, like expedition companies that handle tens of thousands of packages per month. This article will discuss more clearly what logistics business is, its types, and how it works.

Definition of Logistics Business

Logistics business is an endeavor that manages the entire journey of goods from shipment to reaching the end consumer within an agreed time estimate. There are four main tasks:

1. Procurement 
   Goods are purchased or collected from suppliers.
2. Storage
   Goods are stored in warehouses with organized stock data.
3. Packaging
   Goods are wrapped to ensure safety during transit.
4. Delivery BGoods are delivered to customers, stores, or other warehouses.

In essence, the right goods must arrive at the right place, at the right time, with the agreed cost.

Types of Logistics Business

Logistics can be categorized from several perspectives. The three most commonly used are:

1. Based on the direction of goods

• Inbound logistics
  Incoming goods, such as raw materials from suppliers to factories or stock from distributors to stores.
• Outbound logistics
   Outgoing goods, which are from warehouses to buyers.
• Reverse logistics
  Returned goods, such as returns or damaged items.

2. Based on who manages it

• Self-managed
  Business owners have their own fleet and warehouses.
• Third party (3PL)
   Businesses outsource warehouse and delivery matters to logistics or expedition companies.

3. Based on transportation mode

• Land
  Trucks, vans, pickups, and trains.
• Sea
  Ships, suitable for large inter-island shipments.
• Air
  Planes, faster but more expensive.

In Indonesia, many deliveries end on land routes. Because, no matter how far goods move by sea or air, the final part is still delivered by vehicle to the destination address.

How Logistics Business Works

The flow is roughly like these 6 stages:

1. Order received. Can come from online stores, direct customers, or routine orders from regular stores.
2. Goods prepared. Warehouse team picks the goods according to the order, then checks the quantity and condition.
3. Goods packaged and labeled. Address and tracking number are attached at this stage.
4. Goods transported. Goods move from the warehouse to the sorting center or directly to the destination city.
5. Last mile delivery. Couriers deliver goods from the nearest warehouse to the buyer's address.
6. Goods received or returned. Buyers can check their package. If something is wrong, the goods are returned via the return route.

The last mile part is often the most exhausting. The distance is short, but the points are many. For example, on a regular day without any promotional events, one courier with a vehicle delivers to 30  points per day. In 26 working days, that's about 780  points per month. The vehicle must be ready to go every day.

Vehicles Supporting Logistics Business: Daihatsu Gran Max Blind Van

For land deliveries over short to medium distances, many business operators choose the Gran Max Blind Van.

This vehicle has a closed body without windows at the back. This makes the goods more protected from rain and dust. There are several features that assist daily operations:

• Closed cargo space.
  Packages, packaged food, or merchandise are not exposed to the weather and are safer from prying eyes.
• Flat cargo floor.
  Arranging and unloading goods is easier, especially if you load and unload multiple times a day.
• 1.3 and 1.5 engines.
  Options for urban and intercity use.
• Cabin for 2 people.
  Sufficient for the driver and one crew member.
• Affordable price
  Starting from 180 million.

You can use it for distribution to stores, package deliveries, or catering orders. For the latest specifications and variants, check directly on the official Daihatsu product page.

Gran Max is also a familiar name on the road. According to