Why logistic is very important

Supply chain management: Logistics is an important link in the supply chain as it facilitates the movement of goods from suppliers to manufacturers and then to sellers or distributors and eventually to buyers.

A supply chain is essentially a series of transactions. If logistics fails, the supply chain fails and transactions grind to a halt. A prime example: bare shelves in grocery store dairy aisles even as farmers dumped milk as supply chains broke during the pandemic. A supply chain is a network of businesses involved sequentially in the production or distribution of goods or services. In short, logistics is generally a one company issue while the supply chain is a multi-company issue.

While logistics may be coordinated throughout part of or even the entirety of the supply chain, each segment is the responsibility of one entity until it hands off the material or product to another entity in the supply chain.

Typically, a logistics management system includes inbound and outbound transportation management, warehouse management, fleet management, order processing, inventory control, supply and demand forecasting, and management of third-party logistics service providers. Logistics best practices vary depending on the nature of the business and its product decisions. Consider the variances in the following examples. Its logistics priorities include demand planning, selecting suppliers that consistently deliver on time and on budget, fast intake of materials upon arrival and efficient material handling.

Once final goods are manufactured, priorities shift to packaging the finished product and transporting it to distributors, wholesalers, retailers or other customers. Manufacturers need to manage true end-to-end logistics from procurement to receipt to manufacturing to packaging, storage and transportation to a buyer. If the manufacturer has a direct-to-consumer model, it may use a supply chain as a service provider to get its products to the end customer.

In the second example, a boutique clothing store orders stock from designers and manufacturers. The items are first unitized—broken down from bulk commercial packaging to individual consumer packages. Barcodes are added, then items are sorted, packaged and shipped to the store or a nearby warehouse. Logistics for the retailer begins with intake of goods and continues through the movement of those goods to their final destinations, which in this case is a brick-and-mortar store, not the final customer.

In a second retail scenario, some or all of the goods are sent to an order-fulfillment center, where they are processed and shipped to the end customer, who likely made the purchase online. In a third scenario, the retailer redistributes its in-store inventory to other stores where demand for the product is higher to avoid discounting and taking a hit to profits. Or, the retailer may know from its analysis that demand is sluggish everywhere for certain products.

In that case, the more quickly it marks the stock down or sells to a retail discounter at a reduced bulk price the more likely it is to recoup much of its investment. Logistics in this scenario entail inventory control, demand planning, pulling, packing and shipping products between stores, moving some items to sales racks, and shipping a bulk distribution in a transaction with a third-party seller.

Good logistics management creates reliable strategies that help provide superior services to meet customer demand. Make an enquiry Get in touch and one of our experts will be glad to assist you as soon as we can.

Type of enquiry General enquiry Career enquiry Sales enquiry. With professionally organized logistics, businesses are able to answer short-time requirements. By choosing an experienced team of professionals, business entrepreneurs can ensure quick and safe shipping, warehousing and delivery of their products to customers.

They can incorporate these services in a way that adds value to their offers, and ensure their products get to the right place on time. Supply chains are unique networks between businesses that deal with the production, shipment, warehousing and delivery of products. These networks are very important to businesses as they largely affect sales and profits.

Meanwhile, poorly organized logistics can lead to losing customers and decreased sales. Satisfied customers are the most precious asset for any business. They are the main drive for the supply chains in each of the three phases: manufacturing, marketing and logistics. For this reason, it is a priority for each business owner to clearly understand customer needs, preferences and demands, and then work relentlessly to meet them.

When successful business leaders acknowledge the needs and requirements of their existing and potential customers, they develop a strategy. Whether the business is small, middle-sized or large, strategies rely on effective logistics. In Stock Logistic , as a logistics operator that manages import-export traffic from any point in the world, quality is a fundamental point that marks our national and international activity every day.

The speed of delivery, the state of the product, the communication with the client or the correct management in warehouses and transport are areas in which we work. Process excellence is closely linked to quality. Supply chains must work with impeccable professionalism to make processes flow in order to improve services. Ultimately it is to align them with the overall strategy of each company.

It is a matter of always working with the greatest predictability to avoid unforeseen events or variations that may affect the final result.