How To Revolutionize Your Supply Chain?

Logistics & FulfillmentMay 29, 2024
How To Revolutionize Your Supply Chain?

What is logistics 

Logistics, the backbone of SCM, encompasses the movement, storage, and distribution of products throughout the supply chain network. It's not merely about transporting goods from one location to another; it's about orchestrating a seamless flow of materials to meet the demands of production and distribution. From sourcing raw materials to delivering finished products to customers, logistics plays a pivotal role in ensuring the wheels of commerce keep turning. 


The logistics function 

Logistics is the bridge that connects an organization with its suppliers and customers. Unlike sourcing, which focuses on upstream activities, or marketing, which concentrates on downstream efforts, logistics operates on both ends of the spectrum. It collaborates with sourcing to streamline inbound material flows and works hand in hand with marketing to ensure outbound products reach customers in a timely manner. 


The evolution of logistics 

The roots of modern logistics can be traced back to military operations, where the efficient movement of troops and supplies was vital for national defense. Over time, logistics principles migrated to the business world, evolving from physical distribution in the 1960s to encompass the entire supply chain in the 1990s. Today, logistics extends its reach beyond traditional boundaries, embracing concepts like just-in-time inventory management and lean practices. 


The Impact on Organizations 

Logistics exerts a profound influence on organizational operations, serving as the linchpin that synchronizes production schedules with material deliveries. Whether it's managing inbound materials for manufacturing or coordinating outbound shipments for distribution, logistics is the silent engine that drives operational efficiency. From reducing inventory costs to optimizing production schedules, logistics touches every aspect of organizational performance. 


Benefits of Using Logistics Software 

Adopting logistics software brings various advantages to your supply chain, including: 

  • Improved performance and reduced operational expenses. 
  • Accurate order tracking resulting in enhanced customer service. 
  • Inventory optimization, leading to reduced carrying costs. 
  • Decreased lead times and faster order fulfillment.
  • Streamlined logistics processes, minimizing errors and risks. 


Key logistics tasks 

Transportation, storage, material handling, packaging, inventory control, order fulfillment, and facility location are among the core tasks handled by logistics professionals. Each task plays a crucial role in ensuring the smooth operation of supply chain activities. Whether it's selecting the optimal mode of transportation or designing efficient warehouse layouts, logistics professionals are tasked with making critical decisions that impact the entire supply chain ecosystem.