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How the Logistics Industry Impacts Our Everyday Lives

How the Logistics Industry Impacts Our Everyday Lives

July 23, 2020

The logistics industry impacts our economy and everyday lives more than one would think. According to Statista’s recent data, third-party logistics contributed $213.5 billion of revenue in the United States in 2018, while the trucking industry contributed nearly $800 billion. More recently, the industry is nearing $2 trillion of the United States’ Gross Domestic Product (GDP).
 
Before diving in further, let’s revisit the definition of logistics in a broader sense. Logistics is the detailed coordination of a complex operation involving many people, facilities, or supplies. However, this description can vary greatly depending on a specific industry and/or an individual’s professional focus. In short, logistics encompasses the physical process of accumulating resources, positioning said resources, and distributing the final product. This commercial enterprise intersects with nearly every industry imaginable.
 
Industry
Many industries depend primarily on logistics, specifically industries like healthcare, medical, pharmaceutical, manufacturing, and many others. In the medical field, for example, many devices and medications are needed to arrive in a sanitary and time-sensitive state. A trusted third party should handle shipping procedures with care, ensuring emergency supplies, and sometimes even more sensitive items, such as organs and blood, will get to where they need to go as quickly and cost-effectively as they can.
 
In an industry such as manufacturing, companies need to receive materials on time and in some cases, quickly, at the last minute. Having a reliable company for expedited shipping will reduce the risk of project delays.
 
Drivers
The truck drivers that accompany citizens on the roads are a critical part of this country’s infrastructure. For example, there are certain products, like fresh and frozen meat, vegetables, and fruit that require a quick delivery time for essential human needs.
 
Everyday millions of products travel billions of miles in order to reach their final destination in a timely manner. The efficient nature of logistics enables customers to purchase these goods at the ideal time. And this is increasingly important with an astonishing 99% of U.S. consumers saying ‘fast delivery’ is important to them when making online purchases.
 
E-Commerce
Transportation and logistics play an exponentially increasing role in e-commerce. Anything that can be found in a shop was once loaded in a truck and transported from one location to another. If there was not a robust logistics network, purchasing items across the nation would be impossible. Because of the intricate interstate system, each state is able to specialize in certain products and services.
 
In 2019, e-commerce was responsible for around $3.5 trillion in sales and is expected to hit $4.9 trillion by 2021. In the United States alone, e-commerce represents over 10% of retail sales and that number is expected to grow by nearly 15% each year. Establishments are tasked with providing customers with the most effective and efficient logistics options to receive shipments as quickly as possible. Consumers' needs for instant gratification is a major cause in price increases.
 
Notably, Atlas Logistics® has provided commercial logistics services for decades. As a division of Atlas World Group, Inc. (parent company of Atlas® Van Lines), the brand is known for quality and attentiveness to customers across every industry served. Its partners and associates expect fairness, financial stability, and creative thinking to solve problems.
 
For more information on Atlas Logistics services visit https://www.atlaslogistics.com/services.