What Are The Functions Of Logistics – Logistics management is interconnected with supply chain management and together they create a complex network of logistics processes that serve customers.
Since logistics goes beyond physical distribution, logistics has multiple roles and tasks. There is some controversy about how many logistics functions there are, depending on whether you group similar logistics functions or not.
What Are The Functions Of Logistics
In this guide, we will talk about six functions of logistics that reflect its role in the supply chain.
Unit 1 Functions Of Logistics
All logistics functions, regardless of the size of the organization they serve, fulfill a specific role that supports the movement of goods or services. Let’s see what these roles are and how they all come together in the transportation management process.
The logistics functions below are listed in chronological order rather than in order of priority for logistics management. That is why the actual transportation and movement of goods is last on the list.
Any delivery process can only work if an order processing system is in place. Order processing systems differ between companies – from Shopify to ERP. In any case, it aims to support the fast and efficient processing of data that initiates transport operations.
A customer-facing solution, whatever it may be, must be in sync with your Transportation Management System (TMS) to deliver goods on time and meet customer standards.
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Regardless of the setting, order processing sets the tone for managing the entire transportation: storage, distribution, customer service, delivery analysis and the store itself.
Pro tip: Set up a Zapier integration to connect any order entry system (even Google Sheets) to your shipping software. 2. Inventory management
Inventory management is one of the logistics functions often grouped under the warehouse/warehouse umbrella. For the purposes of this guide, we distinguish between inventory and inventory management processes.
Warehouse refers to the storage of finished products in a warehouse. To support the transportation and delivery process, inventory management requires knowledge of inventory accounting, ensuring safety, forecasting demand for goods and, of course, reordering inventory.
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Warehouse logistics remains at the border between inbound and outbound logistics, as it encompasses supplier relationship management (inbound logistics) and order fulfillment (outbound logistics).
Therefore, inventory management is an important part of supply chain management and must be used effectively. This means careful data-based assortment planning and just-in-time stock.
Inventory management is a natural extension of warehouse operations. While warehouses cover all locations and therefore all inventory needed to fulfill orders, warehousing is limited to tracking the movement of inventory within the warehouse.
Both warehousing and warehousing require sophisticated tools to support core operations and help reduce costs through automation. Especially if your company ships from several warehouses and needs a complex logistics solution.
Outsourcing Logistics Functions
One of the biggest order fulfillment trends in 2023 is micro-warehousing and micro-delivery. By strategically placing inventory in small warehouses located in densely populated areas, retailers plan to reduce transportation costs and encourage more pickups.
Since automatic routing and route optimization can be done with unlimited starting points, microfilling can be very cost-effective. You can handle warehouse transportation operations and delight your customers with timely deliveries.
Packaging includes all activities and functions carried out to prepare goods for handling and transport to and from customers – especially in the case of reverse logistics and returns. Packaging is one of the most important logistics functions because it determines the success of the shipment.
First, the packaging must comply with security and customs regulations, which may interfere with delivery services.
Defining A Logistics Strategy For Your Organization
In addition, it is important that the packaging meets your storage and vehicle needs, as well as durable materials and other green logistics requirements.
Cargo handling is one of the most important logistics functions that cannot be overlooked when talking about logistics functions. It is closely related to packaging and determines logistics costs in a very real way.
Getting the packaging and handling methods right is the foundation of physical distribution. It is equally important for safe storage and transportation.
No company wants ever-increasing shipping costs because couriers have to make multiple trips to one customer to get the right order.
Illustration Of Common Logistics Functions.
There are many things you can do to improve your logistics cargo handling functionality and significantly reduce your shipping costs.
QR or barcode scanning is a cost-effective way to increase delivery success. By implementing a free barcode scanner app, you give your courier the tools to scan all items in a shipment to ensure they go to the correct address.
Route optimization and fleet optimization help reduce the cost of each shipment by maximizing logistics resources.
For example, by collecting all the information about your fleet capacity and the driver’s working hours, the route optimization algorithm n creates the fastest and cheapest routes without storing vehicles.
What Are The Purpose, Functions And Principles Of Logistics?
Local delivery Local delivery is a way to minimize the cost of each delivery and improve customer service at the same time.
By upgrading to a contactless and paperless system, you meet the demand for contactless delivery and at the same time solve the huge logistical challenge of getting your customers to their place of residence at the agreed time.
Last but not least is the transport itself. Naturally, transportation is one of the most important logistics functions, if not the most
It is needed at every stage of the supply chain, and how companies build their transportation management and operations systems determines the success of their supply chain management.
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We have discussed many important aspects of logistics operations. From storage and warehousing to material handling and fleet optimization. Let’s take a look at more logistics functions that help companies improve their customer service and increase the number of successful deliveries.
Route optimization with ETA Route optimization is automatic and load-bearing route planning that uses your fleet and driver resources in the best possible way.
Estimated Time of Arrival (ETA) is available as a dynamic time for recruiters in the back office and as a fixed time for customers, meaning they are more likely to be home on time.
Real-time vehicle tracking and delivery notifications are essential to putting the user at the center of the delivery process, which greatly improves customer service – not to mention your shipper can see the real-time location of all drivers on the move at all times.
Functions Of A Warehouse Management System
Proof of delivery (POD) is a document created by your delivery management system once a product or products have been shipped from the warehouse to the customer’s home.
With a system like , you can get your customer’s custom POD as soon as the product is delivered to their door. Your driver can also collect electronic signatures and take photos, which are also part of the POD.
A shipper portal, where your loyal customers can log in to add, track and manage their orders independently, is an invaluable part of any supply chain management process.
Is a customer portal where shippers can log in and help you complete your logistics tasks. before you go
What Are Logistic Channels?
There are many logistics functions because there are different types of logistics functions. All of them support data processing, storage in different warehouses, product and material handling, customer service and much more related to physical distribution.
I hope this blog post gives you an overview of the role of logistics in supply chain management and the related tasks it performs.
If you are interested in any of the logistics and business solutions listed above, try it for free or book a demo to see our cost-effective transportation management system in action.
#1 All in One Shipping Management Software Unlimited route optimization Real-time tracking & Live ETA Paperless proof of delivery 50+ powerful features Book demo As marketing logistics is a combination of marketing and logistics, the marketing logistics function is interconnected with the marketing element of the logistics system.
Information Flow Of Different Logistics Functions
By simply combining the 4Ps of the marketing mix, marketing logistics aims to achieve optimal customer satisfaction. It includes the 4Ps and the planning, implementation and management of operations such as transportation, storage and so on to achieve the ultimate customer service.
The first important task of marketing logistics is to deliver the right product to the right customer. Product delivery includes understanding the customer’s demand, producing the desired product and delivering it within the time requested by the customer.
Providing the right product is an important task and part of marketing logistics. Since customers must be different individually, so are their logistics needs, so the logistics manager must take into account the customer’s logistics needs when delivering products, or he can also choose third-party logistics (3PL).
Price is an important factor of a product because it ultimately brings value to the product. Among the first four parties of the marketing mix, price is the only factor that drives profits for business firms.
Three Ways Cognitive Analytics Can Transform Supply Chain Functions
When pricing a product, marketing logistics must set a fair, reasonable and correct price for the product. Because several factors influence pricing decisions. One should know the cost of production, customer expectations, customer spending habits, delivery distance, cost of marketing activities, etc.
Promotion in marketing is an unforgettable task. Promotion is an interesting topic in marketing logistics. When a product has been introduced to the market, the product must know the target customer,
