The success of the
logistics industry depends on the promptness with which the products can be delivered to a particular destination or to a client. Time and location are two factors which can either make or mar the logistics industry. The logistics industry is governed by technology, integration, globalization, legislation and confederations.
Formerly, warehousing facilities and logistic facilities were situated in remote areas like water port, beside rail tracks and those places in towns or cities which were not treaded up on by many. However, these sites shifted to rural areas and other localities.
The logistics industry has experienced several changes over the years. These changes can be attributed to the growth in the retail industry and the manufacturing segments.
Impact of Logistics Industry on Economy:
Industry reports suggest that in the year 2002, revenues earned by the logistics industry equaled USD$910 billion. As much as USD$571 billion was earned as revenue from transportation, USD$ 298 billion was earned from warehousing, USD$41 billion was from services related to logistics industry. Federal Reserve recorded a growth of 4% in the gross domestic product or the GDP in the year 2004, owing to revenues earned by the logistics industry. With the advent of latest and sophisticated know how, the logistics industry has a bright future ahead.
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