The logistics role is central and essential. It is about ensuring the most efficient handling of goods. As well as the optimisation of storage, transport and distribution to customers.
Logistics is important for all players in the company because it influences its business. It is, in most companies, a function. Transversal which concerns all services and allows them to be linked as efficiently as possible. It is part of the value chain.
Logistics is a real tool for competitiveness which aims to improve the coordination of the company’s services and to mobilise them to pursue a common objective: customer satisfaction. In certain sectors of activity, logistics can be a competitive advantage.
The objective of company logistics is both short term: optimisation of daily physical flows. And medium term: implementation of action plans to optimise production and storage parameters.
The vast majority of companies focus on the development and production of their products and services to meet the needs of their customers. However, if these products do not reach the customer effectively, the company will fail. This is the main role of logistics. If products are not produced and shipped on time, customer satisfaction may decrease, which affects the company’s profitability and long-term viability.
The 5 main roles
Logistics has five main roles, here they are:
Inventory management: know how many goods you have and the types, and if you need to remanufacture the inventory if its in high demand for exemple
Warehouse management: know where the products are in real-time in order to be shipped
Transportation: when and how your goods are and in what condition
Operations that include packaging as well as material handling.
Tracking goods which is the most crucial part as they are being distributed/transported to the customer. You need to know where they are in real-time. An important part for customer service.
As you will no doubt have understood, the role of logistics is essential. Especially for a company that wants to develop fully. And above all, it must not be neglected.
Nevertheless, you should also understand what the word logistics means. You’ll find out by reading this article.
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