Define Logistics Management in Ever Changing Business Landscape

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Globalization and the proliferation of the internet and digital devices have changed the global business landscape. Now companies face a new set of business challenges, like meeting increasing customer expectations and designing sustainable business operations.

The pandemic also brought forth an international logistics crisis, creating a ripple effect in the subsequent years. There was a massive disruption in the supply of critical resources to businesses spanning several industries. This has reinforced the importance of redefining logistics management with changing business landscapes.

What is Logistics in business?

The complete collection of procedures included in transporting commodities, regardless from suppliers to companies or from companies to customers, is referred to as business logistics management. The fundamental idea here is to handle these operations as a single, integrated system.

Several businesses use logistics management in their day-to-day activities. Online retailers, for instance, drop-ship commodities from hundreds of small vendors directly to clients using sophisticated business logistics techniques. Dairy businesses need to use new-age logistics models in their supply chain processes to decide the optimal storage units for their perishable products.

Business logistics and supply chain management

Customers now want their orders to be delivered to the end location as quickly as possible. In fact, 56% of young online shoppers in the age range 18 to 34 want same-day deliveries. Around 96% of consumers interpret "fast deliveries" as dame-day deliveries. Surveys have shown that 80% of consumers wanted their products delivered the same day, and 61% said they wanted them within one to three hours.

This is why it is critical for businesses to plan and optimize their delivery processes to avoid wrong or missed deliveries. Delayed or missed deliveries can lower customer satisfaction, and businesses can even lose customers due to inefficient delivery processes.

Supply chain challenges in changing business landscape

The evolving customer demands and changing ways the businesses operate can bring new challenges for the business's logistics operations. Businesses should be prepared to tackle these issues effectively to remain relevant in today's fast-paced business landscape.

Increasing delivery costs

Last-mile delivery costs can increase significantly due to several reasons. These include missed or wrong deliveries, using longer routes, and visiting the exact location due to inefficient route planning. Businesses can use Mojro's Planwyse to optimize delivery routes efficiently and plan the routes depending on proximity. This will significantly reduce delivery costs.

Sustainability factors

Sustainability is considered an essential element of new-age logistics, Logistics 5.0. People are all conscious of the environment and strive to reduce their carbon footprints in different methods. An efficient supply chain process is crucial to having a sustainable logistics process. Mojro improves vehicle utilization and eliminates unwanted trips, thereby reducing emissions. This will help the companies in reducing their carbon footprints.

Increasing ad-hoc orders

Increasing ad-hoc orders are also a cause of worry for several businesses. Many businesses struggle with choosing whether to send a new vehicle to the location or to redirect one already on the ground. Mojro's Continuous/ Ad-hoc Planning Optimization can help businesses make these decisions by considering numerous constraints like vehicle proximity, resource availability, time constraints, space constraints, and delivery SLAs.

E-Commerce business and changing online shopping environments

Online shoppers now want speedy and efficient deliveries irrespective of their location. This has increased the need for dark stores and lockers in the eCommerce industry, especially online grocery shopping. E-Commerce giants like Amazon have started opening dark stores. The global dark store market is expected to grow several folds by 2032. E-Commerce businesses can use Mojro to effectively plan and optimize the distribution requirements and automate the deliveries to these lockers and dark stores.

Conclusion

Effective logistics management is essential for small and large business logistics to succeed in today's fast-paced world. The logistics industry is constantly evolving to meet the needs of businesses, which means that logistics managers must be able to adapt their approach as well.

By using a future-ready logistics platform like Mojro, businesses can gain greater visibility into their supply chain, reduce costs, and maximize profits while providing customers with a better experience.

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