Logistics in general refers to the movement coordination of people and products so that everything goes smoothly. In a business context, it can also mean a variety of things. The most common use of the word logistics in today’s business world refers to the movement of products from one place to another. A company that sells merchandise for example will need to work with a third-party logistics company to ensure that those products get to the retailer where the customers can purchase them.
Logistics services are the backbone of an e-commerce business, and it plays an important role in generating sales and paving the road for future growth. Therefore, it is important to implement a good logistics strategy with the best logistics infrastructure, processes, and technology in place to make sure that your products are delivered in pristine condition to your customers.
Why are logistics services so important for your business?
Based on the systems and processes you decide to implement, your supply chain can make or break your business. Without proper tracking, inventory management becomes a challenge due to the number of parts that need to be moved. An inventory that’s not managed properly can lead to deadstock and huge transportation costs, or shipping delays caused by out-of-stock products.
Without logistics solutions, you will end up having loose ends that can affect both your profit and customer satisfaction. So, working with a third-party logistics company will streamline the logistical process, reduce risk and maintain your customers happy.
Logistics solutions: 4 essential processes
Logistics solutions consist of a series of processes that work hand in hand to optimize the supply chain, starting with the transportation of goods from the manufacturer to the seller, all the way to the final destination.
1. Manufacturers and suppliers
Purchasing raw materials is the first step of supply chain management, which is administrated by the manufacturer or supplier. A reliable manufacturer tracks the movement of raw materials that are being processed into finished products to make sure that your products are sellable, and have a high quality and an affordable price. Picking the right supplier is essential because manufacturers that are not prompt in delivering a quality product to the seller can slow down the entire process from the very beginning.
2. Third-party logistics and fulfilment services
These fulfilment centres keep the inventory close to the end customer, so every order submitted is picked, packed, and shipped to make sure it arrives fast to its destination. Many businesses depend on 3PL companies for fulfilment services. That way fulfilment and shipping are taken care of.
Another good reason to partner with 3PL companies is their capability of distributing inventory across logistics centres. This helps reduce shipping costs and speeds up delivery.
3. Warehousing facilities
One of the key elements in logistics services is warehousing, and it involves the storing and management of products before they are sold. Warehouse management consists of various key components, including the safety and security of stored items. These essential operational warehouse management systems assist in tracking where products are located, their arrival time, and how long they have been there.
4. Fast shipping
Orders that are shipped to clients fast and precise are proof of how efficiently your logistics operations are managed. Although the carrier is ultimately responsible for delivering goods to their destination, you may choose which shipping options to offer your clients and to which areas.
