4 REASONS WHY LOGISTICS IS IMPORTANT TO YOUR BUSINESS.
WHAT IS LOGISTICS?
Logistics is the process of planning and executing the efficient transportation and storage of
goods from the point of origin to the point of consumption. The goal of logistics is to meet
customer requirements in a timely, cost-effective manner.
Want to know the reasons why logistics management is important in keeping pace with
customer demands and outperforming competitors?
1. Provides quality customer satisfaction
Satisfied customers are vital and help define a business' true success. Good logistics
management creates reliable strategies that help provide superior services to meet customer
demand. Additionally, a business would be able to get repeat orders through the creation of
goodwill for the supplier every time a better and/or timely delivery is met.
2. Improves efficiency
Creating visibility into a company’s supply chain can further improve production efficiency.
Business management can utilize the analyzed data and tracked movements of goods in and
out of a business from a transportation management system for process optimization and
avoiding potential disruptions.
3. Key to a successful supply chain
Logistics is an important element of a successful supply chain that helps increase the sales and
profits of businesses that deal with the production, shipment, warehousing and delivery of
products. Moreover, a reliable logistics service can boost a business' value and help in
maintaining a positive public image.
4. Ensures seamless delivery
Logistics management is key in successfully delivering your products at the right place on time.
Additionally, professionally organized logistics help ensure fast and safe shipping, warehousing
and delivery of products to customers by choosing an experienced team of professionals.
Functions of logistics
Transportation and warehousing are the two major functions of logistics.
Transportation management focuses on planning, optimizing and executing the use of vehicles
to move goods between warehouses, retail locations and customers. The transportation is
multimodal and can include ocean, air, rail and roads.
Warehousing, or warehouse management, includes such functions as inventory
management and order fulfillment. It also involves managing warehouse infrastructure and
processes — for example, in a fulfillment center, where orders for goods are received, processed
and fulfilled (shipped to the customer).
Customs management, or global trade management, is often considered part of logistics since
the paperwork to show compliance with government regulations must often be processed where
goods cross national boarders or enter shipping ports.