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What Is Logistics and How It Relates to You

If your company manufactures and distributes products, you’re probably already dealing with logistics, whether you realize it or not. It’s a process and practice that lives in many business areas but primarily resides within the shipping and distribution aspects of product sales. 

Today, many brands don’t spend enough time considering how logistics impact your company. Understanding how logistics impact your brand is an in-depth process, but knowing the basics is something that can massively improve the quality of your products and services. 

What Is Logistics?

Fundamentally, logistics is the practice and process of moving supplies, goods, and products in a maximally efficient and effective way. It involves itself in every step of the product manufacturing and distribution process. It starts with the initial goods and supplies that go into creating the products. It communicates the manufacturers’ needs and then orchestrates the way that the raw materials are transported to the manufacturers. It does this by finding the most efficient way to move the materials and then which avenue they’re going to use to get the raw product to the place it needs to go. 

After that, it works with the manufacturer to understand how much product they can create and uses that information to manage and orchestrate the next step of the shipping and distribution process. That usually means getting the manufactured products to a warehouse, and then by extension, to a physical warehouse for online distribution or a brick-and-mortar store that can function as the point of purchase for customers. 

That’s just one way that logistics is generally used in a business context. Fundamentally, the logistics process spreads into many different areas of the distribution process. Logistics workers schedule, plan, and execute any inbound and outbound shipments of products, goods, or raw materials. Logistics workers work within warehouses and help to operate and manage warehouse operations, personnel, and inventory levels. Logistics workers provide a sense of direction and to staff concerned with product distribution and order fulfillment. 

Chiefly, the main task of a Logistics executive is to make sure that shipping is done in a way that is inexpensive, cost-effective, and serves both the consumer and the company as best as possible. They make sure that shipping has the lowest possible cost but the highest possible quality. This can help save companies money in lots of areas, from customer support, product design, and warehouse functions. Logistics takes a very messy world of having to ship and relocate all kinds of goods and products. It focuses on making sure that everyone involved, from the corporate staff to the factory workers to the end consumers, is highly satisfied. 

How Can You Benefit from Logistics?

Logistics has a substantial impact on many aspects of a company. Because it reaches many places in the supply chain, it can touch on a lot of areas that can affect quality and costs for the company. It is something that can save lots of money at the bottom line for a company, no matter the size. 

For larger companies, massive amounts of details go into creating a smooth logistics process for the company. The company needs to coordinate with suppliers that might be around the world, know exact levels of stock inside massive warehouses, and often ship to hundreds of thousands of customers on a daily basis. And that’s just part of the problem. It’s never an easy task to logistically manage a large organization, but when you have professionals working together to create a better logistics system for your company, it saves a lot of headaches. 

For smaller companies, logistics is still incredibly important. Many small companies don’t put a lot of effort into their company’s logistics, and that leaves lots of room for error, product failures, and mistakes. When a smaller organization works on increasing its logistics, it can quickly lead to much higher productivity and success levels. Good logistics teams set their companies apart from the competition because they make sure everything happens quickly and efficiently. 

The more you improve the efficiency and cost percentages of how your organization procures raw materials and turns them into finished products in the hands of a consumer, the more the company will be able to make higher profits. Logistics is all about trimming the unnecessary aspects of shipping and distributing items, and streamlining the processes into a system that is as efficient and cost-effective as possible. It takes the insight and research of a high-quality logistics team to make that happen, but it’s an incredible investment that will give your company massive benefits in both the short and long terms. 

What Does Running Logistics Look Like?

Operating logistics is a massive and time-consuming process. Its focus is to know where everything is, all of the time, and to make sure that it gets from place to place as efficiently as possible. It may seem fairly simple on paper, but it’s a very complex process that requires know-how in many different areas of distribution and manufacturing. 

A large focus of logistics is getting the initial goods from the supply plant to the manufacturing locations. Often, materials for various products have to be sourced from places all over the globe, which can create hiccups and headaches for many different areas in the supply chain. Often, the entire process of manufacturing can be found overseas as well, which in and of itself results in a lot of needing to communicate and function with people and organizations that are in entirely different places in the world. 

Logistics can also have a lot to do with creating efficient and effective shipping lines to clients and customers. Especially for a small business that ships directly from its headquarters and warehouses, it can be difficult to be able to do logistics to get products to consumers promptly. Having to outsource the shipping to other companies can be a difficult and expensive process, leading to higher costs for the company and longer least times for products. 

How Can I Implement Logistics Into My Company?

Getting professionals who are masters of logistics can massively increase the effectiveness and efficiency of a company that feels like it has longer than optimal timelines when getting products to their customers. 

It’s not always easy to have a good logistics team, however. Many smaller companies don’t have the bandwidth to hire a logistics expert, so they’re left with whatever the corporate staff can handle. While that’s potentially the cheapest option, it’s also how that tends to leave a lot of room for accidental unprofessionalism, mistakes, and lack of clarity between the company and their customer base. 

For companies that need a better support system for their logistics, it often makes sense to outsource logistics management. Here at Harper+Scott, we have professionals on our team that excel at working with other companies on their logistics processes. We have skilled logistics experts who work with us, and they can help you and your company become as efficient and professional as possible. We love to watch the game change for people’s companies, so don’t hesitate to reach out to us on our website

Conclusion

Logistics is a massively important part of running a business, no matter how big or small. A good logistics team can make or break the general customer satisfaction of your company, which can create a massive effect on how the company itself runs. It’s best to ensure your brand’s success by making sure that your company has people at the helm of logistics that know how to make a successful supply and distribution pipeline. If you need any help in your business, always remember to reach out to us at our website. We take every opportunity to make things better, and so if you need our help, let us know! 

Sources

http://blog.ajilon.com/supply-chain-2/logistics-break-into-the-industry/

https://martechtoday.com/how-changes-in-logistics-and-the-supply-chain-will-impact-customer-experience-244760

https://www.businessknowhow.com/manage/logistics.htm