Why Logistics Management Is Essential for Business Success
Logistics performs a significant role in supply chain management, which adds to a company’s success and overall customer satisfaction. There are several factors involved in coming up with an efficient logistic plan. It includes a delivery schedule, automation, and coordination.
Every business, big or small, has a share of logistical problems. For small businesses, challenges may include fluctuation in demands, matching competitor’s service level, and inventory imbalance. However, that is not to say bigger companies do not undergo the same challenges.
Let us say you are a local restaurant offering delivery service. For you to guarantee your 30 minutes delivery time from placement of the order, your business uses motorcycles for transportation. That way, you could easily maneuver your way on the streets, beating traffic.
To avoid unnecessary delays and hassles, especially during peak hours, it is a must to check your motorcycle. If you have some issues with your motorcycle battery, you can always order online for quick replacement and faster delivery.
Making sure your customers’ orders arrive at their doorsteps on time or even earlier will result in a positive customer experience. Such experience will result in repeat business, and your repeat customers could even become loyal advocates, promoting your business to friends and family.
Logistics: A Brief History
Logistics is a term that originated from the military. It meant the procedure of providing equipment and supplies to military troops. Somehow, it means the same thing today ━ the process of efficient transfer and storage of goods from one place to another, from supplier to consumers. It was during the 1950s that people began using the word logistics as a business concept. Global commercialization, boosting supply chain demand, was the upshot of the Second World War. The method of supplying raw materials to businesses became more complex. Currently, the demand for businesses in improving their logistics management is greater than ever. In this fast-paced world, the younger generations wanted everything to be instant, including shipment. Amazon’s two-day shipping strategy served as a framework for companies wanting a competitive edge.Logistics versus Supply Chain Management
Most people interchange the meaning of logistics and supply chain management. Nevertheless, there are several crucial distinctions between the two. Supply chain management comprises the company’s broader process of managing and supplying merchandise until it reaches the end customers. In a supply chain, there could be several logistics companies committed to assisting in ensuring that the supply chain runs smoothly. On the other hand, logistics deals with the internal company process of transporting, distributing, storing, and delivering products. Each logistic operation is only accountable for a small self-contained segment of the supply chain. In a nutshell, logistics is a subset of supply chain management.Logistics: Why It Is Important to Your Business
These are the top reasons why good logistics management is essential for your business.Gives Competitive Edge
An excellent business logistics and supply chain management can turn any company into an efficient and effective shipment and distribution machine. With a custom-fit and outstanding logistics adjustment, there will be lesser problems ensuring a seamless shipment of merchandise to customers. By providing that, you showcase a distinct competitive edge against other businesses.Cost-Efficient
By partnering with a third-party logistics company, your business can reduce, or even eliminate, overhead expenses for staff, equipment, and storage space. Other than that, you save your company from daunting taxation requirements and paperwork that comes with logistics management. Farming out your company’s logistics allows your team to focus more on the heart of your business.Improves Customer Experience
Let us say you are a local restaurant offering delivery service. For you to guarantee your 30 minutes delivery time from placement of the order, your business uses motorcycles for transportation. That way, you could easily maneuver your way on the streets, beating traffic.
To avoid unnecessary delays and hassles, especially during peak hours, it is a must to check your motorcycle. If you have some issues with your motorcycle battery, you can always order online for quick replacement and faster delivery.
Making sure your customers’ orders arrive at their doorsteps on time or even earlier will result in a positive customer experience. Such experience will result in repeat business, and your repeat customers could even become loyal advocates, promoting your business to friends and family.