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News, tips and useful content for freight forwarders

6 min read
Logistics News

Apr 10, 2019

Supply Chain Logistics: How it influences Freight Forwarding business

Regardless of the segment, most organizations need to come up with a supply chain logistics process in order to have a successful performance in the market. Do you know what this means? Basically, it means creating an integrated process that englobes all the stages of your company’s operation: from the planning and production phases to the delivery of the merchandise to the final customers.

Without a doubt, supply chain logistics is one of the most important pillars of national and global trade, as it sets a network for your company’s transportation, warehousing, and inventory. Therefore, it is something you should plan carefully and count on a team of specialists to execute.

Your team must know how to, for example, choose the most effective mode of transportation for your cargo, design a warehousing facility, control and manage inventory, as well as how to use Key Performance Indicators (KPI’s) to make processes more efficient, minimize logistics costs and, at the same time, deliver state-of-the-art services.

Main challenges of supply chain logistics

The biggest challenge in supply chain logistics stands on the fact that executives need to oversee and manage multiple supply chain activities simultaneously and make sure that they are all happening according to the expected flow. After all, if one stage goes wrong, it could compromise the performance of the entire operation.

Besides, it is also a challenge to keep clear communication between different parties, especially when the company needs to outsource services like transportation and warehousing with different providers. In this case, it will be the executive’s job to make sure everything is aligned both in-house and with external suppliers.

Aligning customer expectations with supply chain logistics

Customer satisfaction relies a lot on the effectiveness of your company’s supply chain. Said another way, the customer will be the final stage of your supply chain, and how the product gets delivered to them will say a lot about whether or not the logistics processes that took place before that were successful.

In order to meet customer expectations, your strategy needs to be assertive when it comes to quickly managing inventories and safely delivering products. The best way to accomplish this is by using specialized logistics technology as part of your activities. Nowadays, there are several softwares available to optimize your supply chain logistics, such as inventory management systems with barcode scanners or real-time tracking devices.

These tools will not only set your company apart from the competition but also provide your team with more accurate information and an easy way to monitor operations.

In fact, it is the insights provided by inventory management and tracking systems that help logistics executives to have a greater supply chain visibility. By using the right systems, your team can build the right strategies to avoid shipment delays, cargo loss or other supply chain disruptions.

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