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    What is the significance of logistics in Tanzania and the rest of the world?

    Logistics involves the process of planning, implementing, and controlling the flow of raw materials and finished goods, and it is there from the point of origin to the end of consumption of any product. It plays a vital role in the economic growth of any country.

    The logistics industry contributes to the economy by creating work opportunities, helping industries do business efficiently, and offering support to most manufacturing industries.

    How is Logistics Significant in Tanzania and the World? 

    Tanzania is a country in East Africa with the 12th largest economy in Africa and the 2nd largest in the East African region. As per a report based on the recent data from the World Bank, the contribution of Logistics to Tanzania's GDP during the last decade is very significant.

    This country relies mainly on the agricultural processing and mining industries. Agriculture contributes approx 24.5% of the country's GDP and almost 85% of all countries' exports. In this scenario, the logistics' role becomes more relevant because export is entirely dependent on the logistics sector. 

    The logistics industry in Tanzania plays an essential role in growing and improving the other industries as well. So here we are going to talk about the significance of logistics in Tanzania and the world. 

    Logistics helps in cost reduction and thus maximizes the profit. This becomes possible due to improved material handling, safe and speedy transportation, convenient location of warehouses, etc.

    Logistics mainly helps in the efficient flow of manufacturing operations. It makes on-time delivery of raw materials possible and results in the proper utilization of these materials and then finished goods.

    Logistics provides a competitive edge to the industry by increasing sales by providing better customer service, which is only possible due to logistics. It helps to arrange for a reliable delivery without errors in order processing of any product.
    Moreover, logistics help in developing an effective communication system for any enterprise as well. Because of the continuous interaction with suppliers and delivery, companies can improve customer service.

    It also helps in inventory management, which is a significant part of production management. How to ensure an adequate inventory can be answered by logistics management.

    Today, all types of industries in the world are dependent on the logistics sector. So it is the essential requirement of any enterprise which has a supply chain.



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