Almost every business relies on the supply chain to ensure better business performance, and supply chain functions depend heavily on logistics to perform efficiently. Logistics constitutes a significant part of supply chain activities that also include freight-forwarding, warehousing, and delivery. Interestingly, logistics has a role to play in all the functions.
To understand how logistics forms the foundation of the supply chain, this article should be a must-read.
It begins with the purchase order
The most crucial document in supply chain transactions is the purchase order, which flags off the journey in the supply chain. It consists of placing an order on third parties for the procurement of items that travel through the supply chain module while adding value in each stage until it reaches the final phase and converts into finished goods. Timely release of purchase orders coupled with proper logistical support from Nanning logistics service providers ensures the timely arrival of materials.
Adequate storage space ensures a steady supply of raw materials to maintain the momentum of the supply chain. A lot depends on the proper monitoring of stocks and their timely replacement. Again, logistics come into play to maintain a smooth flow of goods from and to the warehouse to ensure that material is always available but without straining the space and budget. The right logistics helps to maintain a balance between budgeting and marketing opportunities by maintaining optimal inventory.
Warehouse at the center
The warehouse is at the center of supply chain activities and the control room for all logistical operations. Whether moving raw materials to production or dispatching finished goods to customers or other warehouses, there are logistics embedded in all the activities. How efficiently logistics will play its role depends on several factors like the size and location of the warehouse, layout, and design.
Tricks of transportation
When talking about logistics, can transportation be far behind? Transportation is not only integral to logistics, but it is what keeps the supply chain moving. By far, transportation is the most impacting aspect of logistics, and a lot depends on it in determining the outcome. Even the slightest disruption in transportation can have a massive impact on logistics that adversely affect the supply chain. Faster delivery at optimal cost depends on the transport infrastructure, and the mode of transport is also essential to meet with the delivery requirements.
Transport and material handlings are the heart and lungs of logistics. Even the most efficient transport system can prove ineffective if material handling is subpar because it can damage goods during delivery and defeat the purpose of timely delivery. Inefficient material handling can delay shipments, and damages increase incidental costs. Ensuring appropriate material handling is essential to strengthening logistics.
The packaging is another aspect that plays a critical role in logistics and supply chain. Logistics involves the distribution of products in proper industrial packaging to ensure its safe delivery that has a bearing on the logistical performance. Besides providing the safety of products during handling, appropriate packaging also saves storage space.
An efficient information sharing system in the logistical module ensures better performance.