The supply chain department of a company looks into the entire journey of and flow of goods. From the storage of raw materials to transportation fo finished goods, supply chain management does it all.
Supply chain management was not given much heed a few decades back. But now supply chain management is one the trump card of a company. It the supply chain is modified then becomes a competitive advantage for any company. Because, if supply chain management is done correctly, then losses of raw material or destruction fo finished goods can be reduced. Looking after supply chain basically lowers the cost of wastage and errors.
A supply chain has a lot of components attached to it. It includes proper planning, logistics, data management and many more. Logistics is one of the most vital parts of the supply chain. Logistics include suppliers, managing transition points, delivery, pick-up and many more. This is the reason why a company should hire a proper logistics company to ensure minimal risk of losses during the transition of goods and inventory.
In this post, we will discuss how logistics play an important role in Supply Chain Management.
The Role of Logistics In Supply Chain
Warehouse management and design
Logistics Company plays an important role in managing the storage of all kinds of inventory. Whether it is raw materials or finished goods, Logistics Company need to provide apt storage options for the kind of products they are moving and storage. For example, if the raw material or the finished goods are sensitive to temperature, then the logistics company needs to offer a cold storage warehouse in order to store the items. Therefore, depending on the kind of products, the warehouse has to be designed accordingly.
Proper tracking process
A logistics company is also responsible for ensuring that the correct goods are picked up and delivered to the correct destination. There might be instances where there is multiple pick up and drop points. Hence, an advanced tracking system should be in place to ensure that the correct goods are picked up and delivered at its respective drop points. Every year, companies face huge losses due to the wrong shipment of the products. Proper packaging, code numbers etc. should be done properly to ensure that every shipment is made properly and no confusion is created due to bulk movement of goods.
The expertise of a logistics company is managing the proper transportation of the goods. Pointing out the most cost-effective transportation for every product category at the minimum costs helps a company to improve its revenue figures. For example, in the case of perishable goods, the logistics company needs to organize fast and cold storage transportation facilities to ensure that the goods reach their destination without getting damaged. During such scenarios, the company can send goods by air for long-distance and for a short distance can send in refrigerated units of trucks or train. Whereas in the case of goods like toys or any non-perishable goods, transporting by ship can prove to be a cost-effective method.
These are the reasons why the handling of proper logistics is important for any kind of supply chain management.
CDS Group of Companies (Author Bio)
The CDS Group of Companies offers a full suite of services under one roof, including Warehouse Logistics and Storage, Transportation, Transload, Customs Clearance and Supply Chain services. For more visit our website https://www.cdsltd.ca/