Everything is service logistics Ought not draw much attention. Traditionally however to carry out the logistics needed to own a lot of infrastructure, expensive equipment and software , all of which required a large investment.
For example, companies invested in building large distribution centers in materials handling equipment, such as conveyor belts, forklifts, etc., automation equipment picking in large trucks, etc. And, of course, the software that integrates the management of all these elements.
This, incidentally, was a major barrier for small businesses who were trying to succeed in a very competitive world. How could they get all these resources? Outsourcing solves part of the problem. You can engage a 3 PL, a logistics provider third. For example, a company that handles the storage of my products, or transport, etc.
However, the computer systems required to integrate and coordinate all logistics operations tend to be very expensive and inflexible, so often do not interact very well with 3 PL, nor with my suppliers and customers. What can be done to solve the problem without making large investments?
More than 50 years ago Theodore Levitt argued that people do not buy the product, but that product service provides you. This concept is what is finally entering strongly in logistics.
The idea is quite attractive for companies only pay for what you will use when you are going to use. No need to make large investments, and therefore also concerned that obsolete equipment and systems. Simply contract the services of a modern provider if the current is not able to modernize.
This started in the computer world with what is called Software as a Service, or SaaS. The idea is that the company providing the software , rather than sell, offer it as a service that operates over the Internet.
This possibility is attractive to a user undertaking because it does not have to risk investing large sums in buying or developing a system that may not solve their problems better or obsolete.