In the narrow sense, logistics refers to the warehousing and transportation of business processes. In recent years, with the rapid development of the regional economy, the scattered, inefficient and high-cost logistics activities have been transformed into logistics resources to complement and integrate with each other. 

Modern logistics activities from the production, trade and consumption of the process of differentiation, became a specialized new economic activities. 

Compared with the traditional logistics industry, the main changes of modern logistics are: the traditional logistics industry for the various sectors scattered and single operation, modern logistics industry will be systematic, integrated, providing a full range of one-stop service; extensive application of information technology, the use of advanced computer Network facilities handling order management, order processing, warehousing management, freight, delivery and customer service; the use of industry expertise, skills and talent, the traditional logistics functions to integrate, expand and upgrade. 

Modern logistics is through warehousing, transportation, distribution, and other comprehensive management so that the entire logistics process to shorten the time and reduce costs, so the modern logistics business operations in the process of the status of the more important, the main reasons:

 (A) shortens business processes

  The manufacturers to master sales channels and profits, and gradually to the downstream integration, the establishment of the phenomenon of the system within the sales department is increasingly common, so that the middle reaches of the wholesalers or middlemen living space gradually compressed, or even replaced by manufacturers or retailers, the formation of business processes Shortening.

  (B) the rise of chain stores

  In order to enhance competitiveness and expand the scale of sales to reduce the cost of sales, enterprise chain operation can not only expand the scale of business, but also can strengthen the penetration of the market and sales channels.

  (C) the market of small profits but quick turnover strategy

  In the case of market oversupply, price competition often leads to lower interest rates, so to strengthen the cost control has become a business survival and development of the road. While it is becoming increasingly difficult to reduce the cost of production processes, there is still considerable room for reductions in logistics. 

E-commerce, that is, through the Internet, to achieve the transaction, including business-to-business and business-to-customer transactions, online transactions is only one of the steps of the transaction, the transaction can be successfully completed and competitive, the key is whether the goods quickly transported to the user. 

The rapid development of modern logistics industry over the past few years has been fueled by the booming electronic trade. The report also pointed out: the traditional business operators often have to self-logistics business, engaged in procurement, inventory, delivery and other work, the result is difficult to focus on core business, but also because the backlog of inventory and increase operating costs. Therefore, the modern enterprise management will use the form of outsourcing, the non-core business, that logistics business to the third party logistics service company, to reduce the procurement staffing, reduce inventory, save storage costs and save the investment required to establish the relevant processes, So as to help enterprises to improve efficiency, reduce costs and enhance competitiveness.