Logistics and warehousing are both part of the supply chain management for a business. In the case of warehousing, the primary focus is on safe storage practices or goods in a building. Logistics is seen as the functional aspect of storing and delivering goods kept within a warehouse. Every warehouse is built to offer not just a safe storage space but also a central area for all goods to be in a single place. This storage strategy makes logistics simple for a company.
Cannot be Independent of Each Other
Companies that offer logistics provide warehousing as a service too. As neither can be independent, an entity in this field is a logistics and warehousing company. With warehouses and logistics working in tandem with each other, businesses can get safe storage and delivery and have the technical prowess to handle end-to-end user requirements. These end-to-end requirements include activities from checking goods availability to goods delivery.
Logistics deals with the inward and outward movement of goods, especially from a warehouse. Both finished, and raw goods are tracked through the help of logistics. Goods related to internal movement and transportation are covered here. The warehouse is the commercial structure where goods are stored, received, and distributed. A person who manages the warehousing business handles receipt, unloading, order picking, and storage of finished goods.
Role of Warehousing in a Company’s Logistics
- Execute Quality Assurance Procedures- All products stored within a central warehouse must have their exact weights, sizes, numbers, and configurations recorded correctly. Storage in the central warehouse ensures that the correct parts are delivered at the correct time and location. Product or container verification checks have increasingly become important despite being more expensive and complex. Reading codes from containers or products and visual verification checks are examples of conventional quality control methods.
- Transportation– This is easily the most crucial aspect of logistics as it permits the movement of goods from the supplier to the buyer. In most cases, the buyer does not get products directly from the supplier. Goods must be transported from their manufacturing location to their final destination. Consolidating means of transport allows companies to save money on logistics, which is particularly important for companies that ship goods over short distances.
- Customer Service– Providing products in a specific location and at a specific time is a logistical service. By nature, customer demand is unpredictably variable, so suppliers will not be able to predict out-of-stock situations. It’s also crucial for supply warehouses because planning a manufacturing schedule becomes easier, resulting in faster fulfilment of orders.
- Product Quality- Every customer expects to get the highest-quality product. Businesses are known to create their products in batches, and this work is done in facilities on contract. While placing orders, customers often request unique commodities in different quantities. Warehouse storage can help reduce the time taken for products to roll out, thereby ensuring that finished goods of good quality are dispatched on time.
- Smooth Flow of Goods- Warehouses ensure that they make the process of flow of goods, smooth, which is very important during seasonal fluctuations.
- Protection From Unforeseen Events– Problems such as suppliers not having any more goods, strikes, and transportation delays are real. Delays in raw material supplies may bring the manufacturing process to a halt. Similar unexpected events may occur in a distribution warehouse. If items are damaged during transit, the efficiency with which orders are fulfilled will be impacted negatively.
Role of Logistics in Supply Chain Management
Logistics ensures the movement of goods and services across an organization. Even reports and documents which track movement till an item reaches the customer is part of logistics. The branch of supply chain management handles the different transport means that move inventory from one area to another. Warehousing is one of the functions of logistics.
An easy explanation of logistics is that is the subset of supply chain management, which also includes delivery, manufacturing, product and inventory planning, and materials management. As mentioned above, it is only concerned with efficient delivery of goods. Therefore, tasks such as warehousing and packaging, and stock management are part of logistics.
Has Been Around for Long
The term logistics has been in widespread use since several centuries. Various activities centered around transportation management have been covered by it. The complexity of modern business processes and interactions was what led to supply chain management.
Automation in the Logistics and Warehousing Industry
Coronavirus made organizations aware of various flaws in their supply chains. Supply chain disruptions harmed businesses in almost every vertical and sector. Businesses were primarily concerned about meeting demands. This has led to automation for the warehouse, which is at the center of the supply chain.
Through higher accuracy, better work conditions, greater efficiency, and quality use of human resources, warehouse automation gives the necessary impetus to the supply chain ecosystem.
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