Why Logistics is so Important to Supply Chains

6/12/20 10:30 AM

With any business, as you continue to grow and further expand your operation - you will need to find a way to get your product to the consumer within the timeframe that they are requesting. As supply chains become more and more optimized and find themselves in the middle of globalization, locating a reliable and effectively organized logistics process will enable you and your organization to rapidly grow and ultimately increase profitability in the long term. This element of supply chain is not something that may only matter in large-business development, but can also greatly aid smaller businesses. Improving your logistical process is just as important when it comes to improving efficiency within your operation and taking your business to the next level. 

Why Logistics is So Important to Supply Chains

Logistics plays an essential part within supply chain management and it is utilized to plan and coordinate the movement of products in the safest manner - on time. As this concept is becoming more essential to businesses, there are a few key reasons that accurately explain and define why logistics is incredibly important to supply chains and their operation. Therefore, here are a few reasons why logistics is essential and critical to your supply chain. 

Logistics Can Aid With Cost Reduction and Efficiency Enhancement 

As globalization and globe trade is growing rapidly, logistics has found itself at the heart of supply chain. While many only consider the manufacturing process and all of the components required to generate the good/product, a lot of individuals seem to forget the importance of the logistics process. 

With logistic being recognized as the heart of supply chains, businesses leaders around the globe have realized that they are able to reduce their costs through establishing partnerships with other businesses that may offer transportation and warehousing. When a business starts to utilize services to outsource transport and warehousing, also called 3PL, they may improve their business efficiency. If they allow partners to take charge of shipping their goods to end customers, this results in a better reputation and a much stronger brand. 

Logistics Aids With Delivering Product to the Right Place

How does a package or product end up at your local supermarket or your front door? How does product end up arriving within a reasonable amount of time? While consumers do not necessarily know or understand the entire process, they do see the logistical side of it when they see a package is delivered at their doorstep. As these same consumers are continuously buying, they are also becoming more impatient and eager to receive their packages within the timeframe that they request. 

With professionally organized logistics, businesses are able to answer any short-term requirements. Through choosing and establishing an experienced team of professionals, entrepreneurs will ensure quick and safe shipping, warehousing, and delivery of product. This process can be altered to ensure for the most efficient and valuable experience for customers all around the globe. 

Logistics Keeps Your Consumers Satisfied 

Keeping your customers satisfied is a must when attempting to increase profitability within your operation. Without customer satisfaction and long-term commitment to your business, your operation will ultimately fall short in areas it needs to thrive and survive. Satisfied customers are your most precious asset, which is why it is essential to make it a priority to clearly understand customer needs, preferences, and demands, and then ultimately work relentlessly to ensure that their needs are met. When business leaders acknowledge the needs and requirements of their existing and potential customers, they will develop a strategy. Once again, whether your business is small, middle-sized, or large - effective and efficient logistics is an absolute must. 

A software that can aid with these concepts is PlanetTogether’s Advanced Planning and Scheduling (APS) Software. PlanetTogether’s Advanced Planning and Scheduling (APS) Software is a must for manufacturing operations that are seeking to take their operation to the next level in terms of operational efficiency. 

Advanced Planning and Scheduling Software 

Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where these system lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling (APS) helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans.

  • Create optimized schedules balancing production efficiency and delivery performance
  • Maximize output on bottleneck resources to increase revenue
  • Synchronize supply with demand to reduce inventories
  • Provide company-wide visibility to capacity
  • Enable scenario data-driven decision making

Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.

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Topics: logistics

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