Role of Logistics in Business: Significance, Impacts, and Challenges

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Section 1..........................................................................................................................................3
Literature Review........................................................................................................................3
Significance of Logistic market...................................................................................................3
Impacts of logistic on the performance of retail sector...............................................................4
Challenges faces by Logistic sector.............................................................................................4
Section 2..........................................................................................................................................5
2.1 Identify the Logistic industry sector......................................................................................5
2.2 Background data on the context of Logistic industry............................................................6
2.3 Explain the perspective on the research.................................................................................6
2.4 identify two areas that will take research forward.................................................................6
Section 3..........................................................................................................................................6
3.1 A statement of three research objectives...............................................................................6
 What is the significance of Logistic market?.......................................................................7
 What are the impacts of logistic on the performance of retail sector?.................................7
 What challenges faces by Logistic sector currently?............................................................7
3.2 Explanation on chosen research approach.............................................................................7
3.3B A detailed plan for gathering secondary data......................................................................8
Section 4..........................................................................................................................................9
Ethical Consideration...................................................................................................................9
CONCLUSION..............................................................................................................................10
References......................................................................................................................................11

INTRODUCTION
Logistic refers as a procedure of planning and conducting the efficient transportation and
storing of inputs from the source of origin to last consumption. The main objective of the
logistics is to fulfil all needs of users within timeframe as well as in cost-effective manner.
Logistics plays efficient role within business such as it influences value of the company offers by
increasing merchandise and provides assurance for the availability of resources or products. In
this research will discuss about role of supply chain manger within organization (Barron and
West, 2017). There will be applied some effective approaches like qualitative and quantitative to
collect informative data in this research project.
Section 1
Literature Review
Significance of Logistic market
According to Gandhi, Shaikh and Sheorey, (2017), logistics sector gives hugs
contribution in uplifting UK’s companies. Logistic market also become major source of the
success of other businesses. However, this sector already become quite competitive along with
other small companies but large-scale firms gets great benefits to generate high profit margin on
the products. For example, MNC’s gets raw products at lower cost with good quality which
automatically reduces operational cost. thus, MNC’s enables to sell it’s products at lower cost
and generate revenue on each products. That’s why UK’s government takes various initiatives to
enhance accessibility of logistic all over the world.
However, Hüseyinoğlu, Sorkun and Börühan, (2018) have criticized over the above
stated fact in their published research papers that logistic industry posses’ various risk as well
such as it leads interruption in the product flow. Other risks are economic, social, governmental,
climate factors and threats of terrorism. For example, logistic industry act as intermediator
between business to business and customer to consumer. Supply chain of logistic companies are
responsible for the transporting of input from the point of origin to point of consumption. So, in
such case threats of terrorism situation is quite common. Logistic companies have wide supply
chain to transport raw material to the manufacturing industry then transport from wholesale to

retail industry, in last final customers. To handle wide chain of supply is time consuming
process. In addition, logistic industry needs skilful suppliers who can effectively deal with
business and others. It is another major issue of logistic industry.
Impacts of logistic on the performance of retail sector
As per the view of Özcan, Mondragon and Harindranath, (2018) logistic industry
impacts on all business sectors performance positively. Specially it has boost revenue of the
retail companies. Retail companies needs logistic companies who can transport products from
one location to another across the world. There are various retail companies in UK which enables
to generate high profit margin on each product. the reason behind is that UK’s government has
invested large capital to enhance accessibility of this sector around the world. Logistic sector is
not only enhanced growth of retail companies but brings high employment opportunities. So,
government takes initiatives to bring high availability of logistic companies in the UK country.
This initiative enhances employment ratio that automatically enhance GDP rate of country. Due
to high availability of suppliers in the UK gets profitable opportunities to the retail companies
such as they can recruit large number of suppliers who are willing to work on low wages or
supply products at lower cost with high quality Which automatically improves revenue of these
companies in the UK.
However, Tom Duncan, (2019) have quoted in their published articles that logistic
industry brings negative impact on retail sector performance as well. For example, there has high
shortage of skilful suppliers in the UK market that reduces productivity of working. Due to
limited availability of skilful and talented staff unable to generate high profit margin on the
products by the retail companies in the UK market. To gain high quality products have to pay
high cost to the skilful suppliers which enhance operational costs of products. So, retail
companies have to rise cost of the products that directly impact on selling revenue of the
company. From the above analysis can be analysed that logistic industry impacts on retail sector
performance as well.
Challenges faces by Logistic sector
As illustrated by Shahbazand et.al., (2018) there are numerous challenges that faces by
logistic sectors such as shortage of skilful suppliers in the logistic sector. Logistic companies i.e.
DPD group, Ceva logistics, City Sprint do not offer optimum salary to the suppliers due to this