The logistics process involves the delivery of goods from one place to another. However, logistics does not mean the transportation of goods only. Logistics functions in numerous ways in an organization to identify and satisfy the needs of customers.
Organizations that deal with supply chain management need various logistics solutions to ensure the smooth running of their business.
Businesses or organizations need to make sure that their goods reach to its destination at the right time and they may suffer a loss on failing to do so. Logistics help organizations by ensuring the organized movement and storage of goods.
Organizations that deal with supply chain management need various logistics solutions to ensure the smooth running of their business.
Businesses or organizations need to make sure that their goods reach to its destination at the right time and they may suffer a loss on failing to do so. Logistics help organizations by ensuring the organized movement and storage of goods.
Here are 5 ways how logistics functions to streamline the supply chain process of organizations.
Inventory planning and management
Inventory management involves the supervision of inventory (non-capitalized assets) and stock items. It concerns the planning regarding the amount of type & material stored at the various facility location.
Thus, in a nutshell, under inventory management, you plan what type of inventory you will hold, and where and for how long it will be held. It is the core aspect of logistics that increases the efficiency of the logistics operation. A good inventory management strategy enhances the accuracy of inventory orders and offers real-time and monetary benefits.
Warehousing management
Warehousing provides a centralized location or space for your goods and makes it easier to track and manage inventory. It allows organizations to pack and grade their goods as per their customer needs and legal requirements.
An effective warehousing management system offers optimized warehouse space, better control over stock, quicker inventory turnover, and improves customer service.
Material handling management
Material handling involves the movement, storage, protection, and control of goods throughout warehousing and distribution. The process of material handling includes various equipment and automated software to aid the flow of goods, such as conveyors, lift trucks, integrated material handling systems, automated storage and retrieval systems, crane, forklift, dock equipment, and many more.
Material handling equipment offers several benefits like improved inventory management, reduced inventory excesses, streamlined and constant workflow, and increased productivity.
Packaging management
Packaging helps organizations to ensure the maintenance of material in the right condition through the logistics process. Packaging offers some indispensable advantages, from preventing damage, making shipping easier, ensuring efficient storage, and more.
It allows the product to reach its destination in the most economical way possible. Moreover, packaging can also display or convey all the properties or important information of the product to customers.
Transportation management
One of the major functions of logistics is the transportation of goods. It involves the physical delivery of goods from the company to the end customer. The transportation cost depends on inventory management and warehousing. Better is the warehousing and inventory management, more economical will be transportation.
One of the most vital aspects of transportation is the selection of the right mode of transportation, like air, water, rail, and road, based on the speed, reliability, freight rate, size of inventories, and external market influences.
So, this is how logistics functions and promotes the growth of an organization by carrying out effective logistics operations.
