Logistics management emphasizes the use of systematic methods to solve problems

Logistics management emphasizes the use of systematic methods to solve problems. Modern logistics is usually considered to be composed of various links such as transportation, storage, packaging, loading and unloading, circulation and processing, distribution, and information. Each link originally had its own functions, interests, and concepts. The system approach is to utilize modern management methods and technologies to share overall information among various links, organizing and managing all links as an integrated system, in order to provide competitive customer service at the lowest possible total cost. The system approach believes that the benefits of a system are not simply the sum of the benefits of their various local links. The system approach means that for a particular aspect of a problem that arises, all influencing factors need to be analyzed and evaluated. Starting from this idea, the logistics system does not simply pursue the lowest cost in each link, because there is a tendency for the benefits of each link in the logistics to influence and constrain each other, and there is an alternating and vulnerable relationship. For example, overemphasizing the conservation of packaging materials may lead to an increase in transportation and loading and unloading costs due to their susceptibility to damage. Therefore, the system approach emphasizes the need for total cost analysis, as well as analysis to avoid suboptimal effects and cost trade-offs, in order to achieve the lowest total cost while meeting the established level of customer service.