Get to know the vital terms of Logistics and Supply Chain Management.
A commodity is any raw material or basic agricultural product that is traded in large quantities across many marketplaces. These items are often uniform in quality and interchangeable with other goods of the same type, making them an important component of global trade.
Agricultural Products: Wheat, corn, coffee, and cotton.
Natural Resources: Oil, gas, coal, and minerals like gold and silver.
Industrial Goods: Steel, copper, and lumber.
Global Trade: Commodities are central to international trade, requiring extensive logistics networks for transport and distribution.
Standardization: Because commodities are consistent, they are exchanged according to standard requirements, simplifying shipping and handling processes.
Market Volatility: Commodities are often subject to price fluctuations due to market demand, making efficient logistics essential for timely deliveries.
In the end, a commodity in logistics refers to standardized, traded items that serve as the foundation of international trade and necessitate efficient supply chain management to ensure global distribution.
