What is modern logistics?

In March 2001, the six Chinese ministries and commissions issued a notice on "Several Opinions on Accelerating the Development of Logistics", which defined modern logistics as follows:

The entire process of effective flow of raw materials, finished products, and related information from the starting point to the destination. It combines transportation, warehousing, loading and unloading, processing, organization, distribution, information, and other aspects to form a complete supply chain, providing users with multi-functional and integrated comprehensive services

Interpretation of Modern Logistics by the Third Production Office:

Modern logistics is a product of economic globalization and rapid development of information technology. The traditional logistics industry includes transportation, warehousing and distribution, freight forwarding, and multimodal transportation. However, with the rapid development of economic globalization and information technology, as well as increasingly fierce competition, the logistics industry has gradually evolved into logistics service businesses undertaken by enterprises themselves, including raw material procurement, transportation, warehousing, and processing, sorting, and distribution of finished products. Therefore, in a broad sense, modern logistics industry includes traditional concept logistics enterprises and commercial circulation enterprises, covering the entire process of effective information circulation of raw materials (or finished products) from the starting point to the end point. It organically combines transportation, warehousing, loading and unloading, processing, sorting, distribution, information, and other aspects to form a complete supply chain, providing users with multi-functional and integrated comprehensive services. This new modern logistics method is not only an inevitable requirement for the perfect and complete service concept of global economic integration, but also an inevitable choice for information technology to change traditional trade models.

The logistics industry in modern economy is an operational and management mechanism that utilizes modern information technology to store, trade, and unload goods. The rapid advancement of information technology has played a driving role in the development of modern logistics industry. Among the several basic conditions that promote the accelerated development of the logistics industry, e-commerce is the most important factor. The rise of online shopping and the improvement of credit systems have led to an increasing demand for corresponding goods delivery services. Experts predict that logistics and distribution in the 21st century are the key to grasping the market.

The current international trend is for modern logistics enterprises involved in transportation, warehousing, loading and unloading, packaging, circulation processing, distribution, and information processing to gradually develop towards scale, networking, and utilizing information technology to provide low-cost services to customers. Researchers believe that the future operation mode of e-commerce is based on information exchange between computer networks, where suppliers, manufacturers, and customers exchange goods orders and other business content through information networks. Distribution centers and logistics enterprises directly connect production, wholesale, retail, and sales processes. The modern logistics industry can not only enable more enterprises to operate without warehouses or fleets, and more goods to be unloaded without stopping or leaving any land, but also improve the efficiency of existing transportation facilities and achieve efficient and low consumption logistics processes.

Modern logistics is relative to traditional logistics. It is based on traditional logistics, which utilizes computers for information networking and scientific management of logistics information, thereby accelerating logistics speed, improving accuracy, reducing inventory, and reducing costs, thereby extending and amplifying the functions of traditional logistics.

From the above explanation, it can be clear that modern logistics is the process of using information means to control the logistics process and achieve economic goals. Under practical conditions, an important basis for measuring the level of modern logistics is the level of informatization in the logistics process.