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Effective supply chain management is part and parcel of a successful business, regardless of the industry. Statistics have shown that 57% of businesses believe supply chain management gives them an edge over competitors. And the success of your supply chain management strategies greatly depends on logistics management. Logistics deals with the organization of the transit and storage of commodities from the manufacturer to the final consumer. It focuses on finding the most economical way of acquiring, storing, and transporting resources to a specific destination to meet client expectations.
Logistics & supply chain management
The role of logistics in supply chain management is multipronged. Logistics comes into play at different stages in supply chain management. Some key roles logistics play in a company's supply chain include:
Goods sourcing
The procurement of the right goods and raw materials by a business involves a significant amount of logistics. This involves finding and evaluating a supplier, estimating backorder delays, shipment costs, warehousing costs, and extraneous fees.
Transporting commodities from one location to another form a necessary logistics process in supply chain management. Before deciding on the best route, logistics managers consider many factors like distance, shipping costs, shipping mode, route condition, and availability. For effective supply chain management, route optimization is essential.
Order fulfillment
This logistics process in supply chain management involves receiving customer orders, processing these orders, and sending the products to the clients. According to a survey, effective logistics is crucial to make deliveries within the stipulated time, especially with 80% of clients wanting same-day shipping.
Packaging
This is an essential logistics process in supply chain management. It involves choosing the ideal packaging material for a commodity to ensure product safety when transported from one location to another. Additionally, customers evaluate brands based on how the things they order are packaged.
Demand forecasting
Logistics plays a vital role in managing unforeseen circumstances in supply chain management. Additionally, it guarantees companies can handle the strong demand for specific products and develop intelligent choices by anticipating client behavior.
Return management
To reduce avoidable waste, managing returns is just as crucial as fulfilling orders. Logistics also deals with working client returns in supply chain management.
This is a critical component in deciding customer satisfaction in supply chain management. It enables businesses to respond instantly to clients without bottlenecks or delays.
Conclusion
Logistics and supply chain management are essential for the success of every business. An automated logistics optimization platform like Mojro can help enterprises with every stage of their logistics processes with AI-driven solutions. This can help companies to achieve better productivity, efficiency, and profitability.
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