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April 2, 2023

Reasons Why Logistics Is So Important in Supply Chains

Reasons Why Logistics Is So Important in Supply Chains

by Tom K / Friday, 03 May 2019 / Published in Blog

Having a plan for logistics in supply chain management is extremely important to your success as a business, as well as to your customer satisfaction. There are many factors involved in creating an effective logistics plan, which includes automation, delivery time, and coordination. However, even if your business is successful there is always room for improvement. As your business grows you need to find ways to streamline logistics planning processes so you can be successful. Here are some tips that show the importance of logistics and supply chain management, and where you can get the help you need.

Logistics Strategies Generate Positive Business Results

An experienced third-party logistics partner can make the back end of your business appear effortless. They will bring good logistics strategies to the table that are efficient, clear, and measurable. It’s easy for transportation operations, roots, and item locations to become a mess, so having a strong logistics plan can prevent issues from happening in these areas. Your logistics strategy should be designed to coordinate your goals and policies with your transportation and distribution partners. It should be adaptable to changes in your supply chain to avoid your customers from being affected. A good logistics strategy should include the following to provide positive business results:

  • Ensure the right people in your organization are aware of changes in the supply chain
  • Involve the right number of warehouses or distribution centres
  • Measure the frequency that products should leave each warehouse or distribution center
  • Regular reviews to find out if the logistics partnerships are working well for you and your customers
  • Regular strategy revisions for optimization

Logistics Help Businesses Create Value

Key logistics strategies do more than promote positive results for your business. These strategies also create value for your customers. The better you are at making your products more available to your customers, the more valuable you can make your commodity. Raising demand also raises the value on certain items as they become available on a global scale. Be sure to review your strategy when issues negatively impact your customers. By dealing with issues on the distribution or transportation side, you can add value for them. If issues like warehouse overload continuously impact certain customers, you can adjust to provide better service and resolve this problem.

Logistics Reduce Expenses for Effective Cost Accounting

Another big challenge in supply chain management is operating costs. These can be challenging to manage in your cost accounting procedures, but with a good logistics program, you can maintain these costs and reduce expenses in areas like climate control, warehousing, and transportation. A good logistics strategy can also eliminate larger expenses entirely, so you can take more to the bank.

Logistics Improve Warehouse Management

The more effectively you can manage your logistics, the better your warehouse management will be as well. Your warehouse operations are highly dependent on the type of goods. If you distribute perishable goods like food, your logistics strategy should develop a warehouse inventory plan that minimizes the wastage of goods. By working with a third-party logistics provider, you will have full visibility of the priorities and weak points in your business so that you can create effective solutions.

Logistics Strategies Strengthen Customer Loyalty

Your business may already be able to attract new customers through your robust marketing strategy; however, it is important to boost your logistics strategy to strengthen your customers’ loyalty. If you generate new leads but fail to make them repeat customers, your business will not grow as you plan. You need to make sure you consistently get your orders in on time and resolve customer issues quickly. You need to make yourself a dependable company in order to maintain your customer base and have a steady stream of revenue. A solid logistics strategy guarantees that you can repair areas in your supply chain that are not dependable enough for your customers.

Logistics Plans Help You to Deliver Products on Time

Did you know that late deliveries can lead to a loss of customers? Companies like Amazon thrive by offering same-day shipping and getting their products to their customers on time or before. They provide tracking information so customers can prepare for the arrival of their orders and this feature helps them measure their expectations. By working with a third-party logistics provider, you can stay competitive and meet your customer expectations. On-time delivery should be one of your primary goals. Making sure your products arrive to your customers on time is affected by several factors which include lead time management, inventory management, and supplier management.

Lean Supply Solutions Provides Logistics Management Support

There are many benefits to working with a third-party logistics provider that offers logistics management support. When you partner with an organization like this, you will be able to focus on your core competencies while they take care of the back end of your business. Working with a 3PL provider can help you deal with the challenges of a growing business, whether you are a small- or medium-sized organization. With a 3PL provider’s supply chain services in your hands, you can benefit from their efficiency and talent. A 3PL provider will also offer you many advantages such as supply chain management software and technology that increase visibility and communication between you and everyone in your business network.

If you are looking for the right company to partner with, Lean Supply Solutions is the answer. We rise to the challenge of meeting our clients’ needs through our services which include product fulfillment, warehousing and distribution, e-commerce fulfillment, warehouse pick and pack, order fulfillment, and more. To learn more about outsourcing your supply management in Toronto or to ask any questions, contact us today.

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Tagged under: supply chain management, third party logistics

About Tom K

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