What is logistics? What is the role of Logistics in the world economy?

x Are you new to the import-export business and need to better understand what the term logistics is?
x Do you want to know how important logistics plays a role in today's world economy?
x Do you want to connect and cooperate closely with cheap, reputable and safe import and export container transporters?

Logistics has been holding a very important position in the development of the global economy. Proship.vn will share the knowledge you need to know about logistics, answer all questions related to the importance of logistics in the world economy. Along with that, we also give specific examples of logistics so that your business can easily imagine how it operates, how it operates, who is involved, etc. to effectively serve your customers. my job. And if you are looking for a shipping partner, a reliable export/import freight company can consider coming to us to experience the best services we have to offer.

Shipping contact hotline: 

Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247

What is logistics?

What is logistics? Logistics is the process of planning, applying and controlling the flow of goods, services or information related to raw materials (inputs) and final products (outputs) from the point of origin. delivered to the point of consumption, to satisfy consumer needs.

In some respects, Logistic is similar in nature to "logistics" as it is a set of preparatory steps to ensure that all processes take place smoothly, achieve goals and satisfy customer requirements. row. However, Logistics is in a broader category with a workload and roles and meanings that "logistics" cannot fully cover. Therefore, we have the concept of Logistics as above to present the most specific and complete meaning of this field.

The term Logistics has also been recognized in the 2005 Commercial Law, and is transliterated in Vietnamese as logic. Article 233 of the Commercial Law stipulates: "Logistics services are commercial activities, whereby traders organize the performance of one or more tasks including receiving goods, transporting, storing, warehousing, and carrying out customs procedures." , other paperwork, customer consulting, packaging, marking, delivery or other services related to goods as agreed with the customer to receive remuneration .

What is logistics? What is the role of Logistics in the world economy?
Logistics is understood as planning, applying and controlling the flow of goods, services, materials, etc. from the point of origin to the final point of consumption.

* Real-life examples of Logistics:

With the rise of e-commerce and the rapid growth of the online ordering space, logistics has become one of the fastest growing industries in the world. Many organizations have emerged in response to the ongoing transformation of logistics, aiming to optimize supply chains in unimaginable ways. Perhaps the most famous logistics leader to emerge in the past few decades is e-commerce giant Amazon. Although Amazon was initially founded as an online marketplace for books, the company has become a household name globally, changing the way products are shipped and delivered to consumers.

Amazon has become famous for its logistics strategy, which is made possible by the company's global network of distribution, sortation and shipping centers. Amazon's same-day and next-day delivery model is based on a complex logistics framework. Products are shipped to the company's fulfillment centers before being shipped to sortation centers. Once goods pass through Amazon's sortation centers, they are loaded onto multiple transportation modes, which may include the Company's own fleet of delivery trucks and planes.

LATEST UPDATE PICTURES OF CONTAINER PROSHIP LOGISTICS TRACTOR

What is the role of Logistics in the current world economy?

The role of logistics in the world economy

Once you understand the definition of what logistics is, understanding the role of Logistics in the world economy is also really necessary. The inevitable trend of today is the globalization of the world economy. The vibrant development of the global market has caused trade between countries and regions around the world to increase strongly and will naturally lead to new needs for transportation, warehousing, and other services. Ancillary services... The role of logistics is therefore also becoming increasingly important. Logistics is an effective tool used to link international economic activities, ensuring highly effective production and business activities.

The application of a global logistics system has optimized the circulation cycle of goods production from the input of raw materials to the distribution of final products to customers, overcoming the negative effects of effects of space, time and production cost factors on international economic activities, thanks to which these activities are always "sticky" together and carried out systematically and effectively. high fruit.

Logistics development contributes to expanding international business markets. The logistics system acts as a "bridge" to help bring goods to new markets according to set time and location requirements. Therefore, with the support of the logistics system, the power of many companies has gone beyond the geographical borders of many countries. On the one hand, business manufacturers can dominate the market for their products, on the other hand, the international business market is also expanded and developed.

Logistics contributes to reducing costs, perfecting and standardizing documents in international business. In practice, each transaction in international trade often requires the use of many types of cumbersome papers and documents, consuming a lot of costs and greatly affecting the speed and efficiency of international trade activities. international. Logistics has provided a variety of comprehensive services that not only overcome those weaknesses but also upgrade and standardize documents as well as reduce office workload in goods circulation, thereby improving efficiency. international trade results.

In addition, the development of electronic logistics will create a revolution in transportation and logistics services, the cost of papers and documents in goods circulation will be reduced to the maximum level, and quality will be reduced. The increasingly improved quality of logistics services will further narrow the spatial and temporal barriers in the flow of materials and goods. Countries will move closer together in production and circulation.

What is logistics? What is the role of Logistics in the world economy?
Logistics and Logistics Services play a very important role in today's digital technology economy, helping to connect trade, production and business,... and many other related activities.

The role of logistics in Vietnam's economy

  • Linking activities in the national economy:

Logistics is the basis of economic activities of production, business and distribution to closely connect them with each other. If these activities go smoothly it will encourage the development of manufacturing industry and if they stop they will restrict trade. between regions and host countries, having a negative impact on all production and life. Therefore, when the efficiency of logistics activities in the economy is affected. A partially improved economy will improve the efficiency of the social economy.

  • Strengthening regional economic relationships:

Logistics is one of the factors that strengthen relationships in the international economy. In particular, the role of logistics in the economy and integration with the development of transnational corporations (TNCs), trade and investment activities are promoted more than ever. In addition, these TNCs implement a global logistics system that also helps ensure effective production and business activities, limiting and maximizing the effects of time, geography, natural conditions and society to commodity production.

  • Modernizing the supply chain in the context of the digital economy:

The pandemic has highlighted the need for digitalization and technology such as autonomous mobile robots and real-time analytics tools. Physical supply chains need to evolve simultaneously and must automate tasks and deploy technology for complex decision-making. Vietnam has seen a series of mergers and joint ventures between domestic and foreign logistics service providers as well as partnerships in the logistics sector.

  • Enhance national competitiveness:

Effective logistics activities help improve national competitiveness. The development of logistics can lower transportation costs, lower product prices and shorten delivery times, enhance delivery capacity and take the lead in production, sales and distribution activities. Along with the development of logistics is the ability to attract investment capital. Investors will give priority to countries with good development conditions, not only in terms of infrastructure, but also due to the level of development. development of logistics activities.

Once you have a deep understanding of the role of logistics and the role of logistics in the economy, it will partly help companies find solutions for implementing logistics activities. From there, optimizing all aspects of production will improve the company's business performance in particular, and the entire economy in general.

Shipping contact hotline: 

Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247

What are the criteria for evaluating the effective performance of Logistics?

For countries, the effectiveness of logistics activities can be evaluated through the following criteria:

  • Logistics costs compared to GDP or import-export turnover;
  • Percentage of businesses using outsourced logistics services;
  • Revenue of logistics services compared to GDP;
  • Average time to process administrative procedures related to goods;
  • Logistics service revenue growth rate.

For businesses, the effectiveness of logistics activities is evaluated through the following criteria:

  • Time to receive and complete a service order (the shorter the time, the higher the efficiency);
  • Number of people involved to complete a service order (the fewer people, the more effective);
  • Average cost to complete a service order (the lower the cost, the higher the efficiency);
  • Customer satisfaction level (demonstrating the quality and reliability of the service).

>>See more: Common terms in the Logistics industry

Proship.vn – The most professional, cheap, and most reliable transport unit, import and export of goods by international rail container

According to news from the Ministry of Industry and Trade, in the first 11 months of 2022, the total import-export turnover of goods is estimated to reach 673.82 billion USD, an increase of 11.8% over the same period last year, exceeding the results of 2021 (668.5 billion USD). USD). Of which, exports are estimated at 342.21 billion USD, up 13.4%; Imports are estimated at 331.61 billion USD, up 10.1%. In November 2022 alone, the total import-export turnover of goods is estimated at 57.58 billion USD, down 1.2% over the previous month and down 7.8% over the same period last year.

Specifically, in the first 11 months of 2022, Vietnam's trade in goods with Asia reached 437.79 billion USD, an increase of 12% over the same period in 2021, continuing to account for the highest proportion (65%) in total import and export value of the country. The value of import and export between Vietnam and other continents is America: 142.33 billion USD, an increase of 13.6%; Europe: 69.53 billion USD, up 5.2%; Oceania: 16.5 billion USD, up 29% and Africa: 7.56 billion USD, down 2.2% compared to 11 months of 2021.

Quickly grasping the constantly increasing demand for import and export of goods from the market over the years, PROSHIP.VN provides the market with a full package of forwarding services - import and export of goods by Vietnam railway - China, Mongolia, Kazakhstan, Inner Mongolia, Russia, Germany, Italy, Poland, Netherlands, Belgium,... and many other potential markets with a commitment to accuracy, high safety, affordable prices, Train schedules are fixed throughout, supporting you in all the most important stages to ensure smooth and convenient customs clearance. Proud to be one of the leading units in the application of spontaneous refrigerated containers in Vietnam and specializes in the international rail container transportation business to serve your businesses nationwide.

The staff (consultants, loading and unloading department, driving team delivering goods to Yen Vien Station, Dong Anh Station, Song Than Station,...) are all professionally trained, always agile and enthusiastic. and carefully to ensure the quality of goods exported to foreign markets. If your goods are fragile or perishable, they will be closely inspected by the supervision team before packaging, baling, etc. The company also supports other Logistics Services such as Import-Export Services. consignment, warehousing services, etc. Here, the Vietnam - International two-way shipping price list will be publicly listed and the price offered is all-inclusive, without any other fees that cause difficulties. for your work.

In order to increase the convenience of Vietnam - International and European two-way freight transport services, Proship also increased investment, adding about 50 high-walled H-cars with open roofs specializing in transporting imported phone components. from China, Containers, 170 P cars transporting petroleum and liquid goods, 150 Mc cars transporting all kinds of containers, 15 Mcc cars transporting refrigerated containers, 20 NR cars transporting cars, …invested enough to meet the fixed and increasing needs of shippers, domestic and foreign enterprises.

What is logistics? What is the role of Logistics in the world economy?
Proship is confident that with its available capacity, it will effectively carry out import and export shipments by international rail containers, building trust for customers.

Proship items are shipped, imported and exported on Vietnam - International routes

* Some main export product groups:

  • Phones of all types and accessories;
  • Other machinery, equipment, tools and spare parts;
  • Computers, electronic products and components;
  • Footwear;
  • Textiles;
  • Seafood;
  • Wood and wood products.

* Some main imported product groups:

  • Other machinery, equipment, tools and spare parts;
  • Computers, electronic products and components;
  • Phones of all types and accessories;
  • Group of raw materials and accessories serving the textile, garment, leather and shoe industries (including: cotton, textile fibers, fabrics of all kinds, raw materials for textiles, garments, leather and shoes);
  • Petroleum of all kinds;
  • Complete cars of all kinds.

The customers Proship has been targeting

  • Corporations, domestic and foreign companies that need to transport goods;
  • Factories, projects, general agents and services for domestic goods, international import and export;
  • Small and medium-sized enterprises have a need for international rail transportation and import-export for the fastest time and the smallest cost savings.

Proship transports all types of goods by rail container

  • Bulk cargo containers: Used to transport bulk cargo (cement, grain, ore,...);
  • General cargo containers: Used to transport dry goods and general goods;
  • Tank container: Used to transport liquid items (oil, chemicals, gas, alcohol, etc.);
  • Ground container: Used to transport oversized and oversized goods, iron and steel, etc.;
  • Open-roof container: Used to transport goods, machinery and equipment;
  • Specialized containers: Used to transport specific types of goods, such as cars, livestock,...;
  • Insulated container: Used to transport goods that require a stable temperature during transportation (can be hot or cold).

Mode of transport - delivery of import and export goods by rail

  • Transporting goods by rail from Station to Station;
  • Transporting goods by rail container from Station to Warehouse;
  • Transporting goods by container from Warehouse to Warehouse;
  • Other accompanying services if requested by the customer.

The cost of transporting import and export goods by rail depends on several factors

  • Goods to be transported: What types of goods need to be transported, and what are the characteristics of each type of goods?
  • Quantity of goods to be transported: How many bales, how many tons and how many cubes?
  • Shipping dimensions: Include Length x Width x Height?
  • Shipping time: Provide estimated shipping time?
  • Place of receipt and delivery: Where do you provide the address for receipt and delivery? Do you require door-to-door delivery?
  • Some other information: Loading and unloading fees for both departure and arrival ends, crane fees, picking up goods, VAT,...

Support services come when sending import and export goods here

  • Support packaging and packaging;
  • Support loading and unloading goods at the warehouse.
  • Support door-to-door delivery of large volumes of goods;
  • Free storage (if storage time is not too long).

Transport time for import and export goods by rail container depends

  • Departure/Arrival Station location is in City Center, Inland or Countryside;
  • Type of goods transported: Some special goods or limited goods will have longer shipping times because of the necessary procedures and documents;
  • Shipping time: Holidays (employees are off); weather conditions, disease control situation,...;
  • Procedures and documents: Quarantine, inspection, providing import and export customs documents,...

Collection, pickup or delivery locations in Vietnamese provinces and cities

  • Northern region: Hanoi, Bac Ninh, Ha Nam, Hai Duong, Hai Phong, Hung Yen, Nam Dinh, Thai Binh, Vinh Phuc, Ninh Binh, Hoa Binh, Son La, Dien Bien, Lai Chau, Lao Cai, Yen Bai , Phu Tho, Ha Giang, Tuyen Quang, Cao Bang, Bac Kan, Thai Nguyen, Lang Son, Bac Giang, Quang Ninh,...;
  • The South: Ho Chi Minh City, Ba Ria - Vung Tau, Binh Duong, Binh Phuoc, Dong Nai, Tay Ninh, An Giang, Bac Lieu, Ben Tre, Ca Mau, Dong Thap, Hau Giang, Kien Giang, Long An, Soc Trang, Tien Giang, Tra Vinh, Vinh Long, Can Tho,...;
  • Central region: Da Nang, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien Hue, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, Binh Thuan,...;
  • Central Highlands region: Kon Tum, Gia Lai, Dak Lak, Dak Nong, Lam Dong, Buon Me Thuot,...;
  • Or from large industrial parks in Vietnam: Phuoc Dong, Duc Hoa III, Nhon Hoi Binh Dinh, My Phuoc 3, Tan Khai, Minh Hung, Dong Xoai, Tan Phu Trung, Ham Kiem, Binh Thuan, Bau Xeo, Loc An - Binh Son, Giang Dien, An Tay, Bim Son, Long Duc, Du Long, An Hoa; Long Huong, Tam Diep II, Tram Vang, Cat Trinh, My Yen – Tan Buu – Long Hiep; Khanh Phu, Ba Thien 2, Nhon Hoa, Yen Phong II, Cong Hoa, Dong Anh, Soc Son; Ascendas – Protrade, ITAHAN, Ong Keo, Long Khanh, Dau Giay,…

Types of papers and documents that shippers need to provide when transporting import and export goods

  • If the order is a dangerous or flammable or explosive item, permission from the competent authority is required;
  • For small items transferred in large quantities, documents of origin and origin are required. Used retail goods do not need to prove origin;
  • For shipment items, Company goods need export papers. If you have relevant documents, even better;
  • For large orders with a signed shipping contract, an invoice will be issued based on the information in the contract;
  • Customers need to issue VAT invoices and provide information about their Company for small retail goods.

Above is the knowledge you need to know to better understand what the term logistics is and the role of logistics in today's world economy. Individuals and businesses who want to learn about this issue to support their business in the long run or those who are new to the field of Logistics, import and export of goods should read this article. . Proship.vn Company is proud to be a specialized unit in providing solutions for sending large quantities of goods by Asia-Europe International Railway, ready to meet all your requirements. For further details, please contact 0909 344 247 for advice and the best service quote.

Shipping contact hotline: 

Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247

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