Logistics plays an important role in the growth of industry. Here are its responsibilities.
- Order fulfillment: – This has to do with completing the orders of prospective customer in a short period of time. Indeed, transportation and logistics would be any integral part of completing the order since they directly impact delivery.
- Traffic and Transportation: – It manages the inbound and outbound movement of goods.
- Warehousing and Storage: – A number of ware housing decisions directly impact logistics and transportation. For example, how many warehouses are needed? Where should they be located? How large should they be? How much inventory should each accommodate? These and more are what a logistics firm does in order to provide efficient storage facilities to it various customers.
- Industrial Packaging; – Transportation directly determines the type of packaging needed. However, logistics firm plans the exact method of how each type of product will be transferred from one place to another and store properly in the shelf and making space for the new stock.
- Purchasing: – When purchase is made the distance and the quantities purchased directly affect the transportation cost hence, logistics are highly integrated.
- Demand forecast: – Accurate and reliable fore casting is essential for effective inventory control.
- Materials handling: – They have best practices to handle materials most especially during transportation so that they are not damaged.8
- It plays important role in inventory control for its customers.
- It provides customer service. Logistics plays an extremely important role in ensuring that customers get the right products at the place at the right time. Transportation, warehousing, forecasting, inventory control and so on, have a direct impact on customer’s satisfaction.
Major Aspect of a Logistics Firm
There are two aspects of logistics that are considered as the most important part of logistics. They make logistics firm more meaningful and efficient in its operations. These most apparent aspects are warehousing and transportation.
Warehousing and Storage
Warehousing is defined as the storage of goods, raw materials, semi-finished goods and finished goods. This includes wide spectrum of facilities and locations that provide warehousing. It is a point in logistics system when goods are stored on certain amount and for different reasons till the time they are needed. This is a point where a logistics company is different from a transport or haulage company. A logistics firm provides transport services and storage facility for its customers. Unlike transport firm which is only dominant in transport service. A logistics firm without a storage facility is meaningless. Such a firm will not attract prospective customers hence; it will be difficult for such firm to survive in a competitive environment.
Transportation involves the physical movement or flow of goods from one area to the other. In logistics the transportation system is the physical links that connects customers, raw materials, suppliers, plants, warehouses, and channel members. Without this link which is transportation, logistics firm will not be effective. It is an integral part of logistics. If a logistics firm must be efficient enough then transport system cannot be separated from it. Transport plays an important role in logistics operations. Therefore, it is inevitable link in logistics.