Today customer is the king. And to satisfy these customer the first and foremost priority of any company is customer satisfaction. It is the customer service satisfaction that defines company’s business growth and profitability. One of the factor influencing it is a better logistic system. An improved Logistic solution reduces shipping costs and ensure timely delivery of goods.
Logistics is a vital aspect of supply chain management. It primarily involves scheduling, carrying out and management of goods and services from one place to another.
Logistics aims to align the complexities involved in transportation, shipping, warehousing, product planning, inventory management and customer service. Logistics Management is considered as a critical blueprint of the supply chain management. It is all about managing, coordinating and monitoring resources needed to transport the products in a cost effective, smooth, timely and reliable manner.
How Logistics Help in Improving Efficiency and Reducing Costs
Today in this 21st Century, logistics has become an integral part of supply chain management. In the last two decades, logistics management has affected product movement to meet consumer demand. It is only due to effective supply chain management that Companies could lower costs and increase productivity and boost overall performance.
Companies these days have tie up with suppliers, shipping services and warehouses to reduced overhead costs and faster delivery. A thorough understanding on how logistic work demands strategic planning, while emphasising on the speed of products being produced and delivered to end consumer.
Simplifying the process of communication and services between all the departments can create a workflow blueprint reducing the costs and improving the complete company performance. Savings can be made by reducing warehousing costs and purchasing based on availability forecasts, improved inventory management, consistent shipping and most importantly timely delivery to the end-user.
Keeping Customers Informed
Today due to improved SCM, customers get to know about their ordered shipment through online tracking information. They also get information like when the products was shipped, how it was shipped and who has shipped it. Customers are also provided with contact numbers whom customer can directly contact avoiding any miscommunication between customer and company.
Logistics management is an essential factor in the success of any manufacturing concern and has a direct impact on growth and performance. Right from customer service to delivery on time, to resolving order-related issues, a company should hire a logistics management service provider to increase revenue, improve customer care, reduce overall transportation cost, and improve operating cost structure.
The role of the warehouse is more properly viewed as a switching facility as contrasted to a storage facility.
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