Internal logistics is, by definition, that part of logistics which refers to the organisation of all material and information flows taking place within the company’s own boundaries. Examples: stock movements in the warehouse, stock management, etc.
On the basis of this principle, it is possible to identify different branches belonging to intra-logistics:
- Internal transport of materials: this includes transport within the storage facilities, between the different production sites. And warehouses of the company in the case of a manufacturer.
- Inventory and information flow management: the company must reflect the physical movement of goods in an information system. That controls stock fluctuations, locates them and manages supplies. This task is usually carried out by specialized inventory management software. Which rigorously monitors product flows, their acquisition and customer invoices.
- Warehouse management: this includes all the operations that take place within the centre. Preparation of orders, management of product locations, receipt and dispatch of goods, etc.
We can therefore see that logistics can be managed internally. However, it requires good control.
Significant advantages of internal logistics
Better control of your logistics flows.
A better control of costs in each position, provided that you have the skills and resources internally capable of this continuous improvement.
An improved logistics quality control. If your company aims to differentiate itself from the competition with personalized parcels, for example.
This is also the best way to have logistics that is more adapted to your type of business.
At the same time, it favors the relationship between the different services. Which becomes an asset that should not be neglected, especially in after-sales management.
Overall, internal logistics allows you to achieve better customer satisfaction. Because you personally monitor the care taken in preparing your orders and you are more responsive to complaints.
The benefits of company logistics
Logistics is important for all the actors in the company because it influences its activity. It is, in most companies, a transversal function that concerns all departments 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 in-company logistics covers both the short term (optimisation of daily physical flows) and the medium to long term (implementation of action plans to optimise production and storage parameters).
Internal logistics management offers many advantages. However, you can achieve similar or even greater benefits by deciding to delegate this part. By delegating logistics you can concentrate on your core business. And above all you can relieve yourself of one of the most difficult parts of your job.
If, like us, logistics is a subject that interests you. Remember to regularly look at this category, we often publish.
We will be happy to discuss this subject with you so contact us or leave a comment.