Leveraging logistics & transportation for efficient supply chains

Suppliers, manufacturers, distributors, and customers are only a few stakeholders involved in the supply chain management process, which is multifaceted and interrelated, necessitating close coordination and cooperation among all parties. Logistics and transportation, which play essential roles in the operation of a supply chain, are required for the timely and effective transfer of commodities and products from one site to another. 

These two activities are in charge of getting the right commodities to the right places on time and in good condition. Logistics in supply chain management can impact the overall efficiency of the operation, from stock management to shipment coordination. In this blog, we’ll look at how logistics and transportation fit into supply chain management and how they affect KPIs like efficiency, performance, and customer satisfaction.

Logistics in supply chain management

Supply chain management would be incomplete without logistics. Logistics is the process of moving items and materials from one location to another, and it involves more than one form of transportation. Some of the most important functions of logistics in a supply chain are as follows:

1. Order processing

Logistics plays a crucial part in the supply chain, from when an order is received until it’s processed. The key to efficient logistics is controlling the entire process, from taking orders to fulfilling them. Today, technological advancement in order processing is critical to the success of any organization, no matter how big or small. Thanks to a well-oiled logistics infrastructure, orders are processed, packaged, and shipped successfully.

2. Demand forecasting

Regarding managing the supply chain, logistics demand forecasting can help foresee the need for materials or goods ahead of time. The market is influenced by various external factors, which can only be mitigated through careful planning and timing. Forecasting models assist organizations in making sound decisions by predicting client demand and quickly fulfilling orders. As a result, utilizing cutting-edge technology, such as advanced analytics and robust databases, can assist your firm in taking the next step forward.

3. Quick response

Client inquiries must be resolved as quickly as possible by logisticians. Fleet owners can have greater control over their supply chain, allowing them to serve their consumers better. As a result, firms may respond to customer orders more promptly and correctly. Instant client service makes a successful company model. Meeting a customer’s needs in the present world is significantly faster thanks to the employment of cutting-edge technologies.

4. Information and control

Data-driven logistics operations are important supply chain procedures. It is critical to monitor and manage operations to make better decisions. Obtaining meaningful information for the operation of a workflow can assist firms in achieving transparency throughout the supply chain.

Information and control are extremely valuable for accomplishing strategic goals and boosting the logistics industry’s future. Understanding and analyzing logistics operations tend to simplify management processes because it assists organizations in keeping track of day-to-day activity. Monitoring the flow of information might, thus, assists firms in developing holistic supply chain management.

Role of transportation in supply chain management

Responsibility	Description
Critical Role	Logistics and transportation are critical to ensure the timely delivery of products at the lowest possible cost.
Coordination	Logistics and transportation management requires coordination of all activities involved in the movement of goods.
Transportation Modes	Transportation modes should be selected based on product characteristics, cost, and delivery time.
Efficient Routing	Efficient transportation routing can minimize transportation costs, reduce lead times, and improve customer service.
Logistics Management	Logistics management involves inventory management, warehousing, packaging, and material handling.

The most important component of a supply chain is transportation. It entails delivering things from the beginning to the finish of a supply chain. Transportation must be managed efficiently for a supply chain to be considered effective. This includes ensuring that the transportation and logistics strategy is dynamic and responsive to market demands. Supply chain transportation management comprises transporting a product from a supplier to a client or a distribution shop through road, rail, pipeline, air, or sea.

1. Better inventory flow

Effective transportation management keeps your inventory small, making stock flow through your warehouses considerably smoother and more efficient. Improving the flow of items into and out of your warehouse can help you save money on storage and transportation while shortening the overall lead time (the time it takes to receive goods after placing an order.). Effective logistics management can help reduce lead time by ensuring that products are delivered promptly and efficiently.

2. Reduce costs

Transportation in a supply chain can reduce expenses. The majority of the logistics budget is spent on freight and gasoline. Moving things from one area to another via one or a combination of means of transportation is an expensive endeavor. 

With the correct data, shippers can gain insights into freight movements and other elements likely to affect transportation costs to various destinations. This gives them a greater understanding of the transportation ecology and how it affects the supply chain.

3. Local fulfillment and distribution

A supply chain distribution network is a linked system of warehouses and transportation hubs that receive stocks of items before distributing them to customers. It connects the maker with the final consumer directly or through a retail network.

With changing consumer demand, a fast and dependable distribution network is essential. The proximity of a distribution network to the client and its infrastructure are two of its most important components. Smart transportation facilitates the right connection of various components.

Become a professional in logistics & supply chain management 

Taking up a course or earning a degree in logistics and supply chain management from MAHE is a wonderful way to break into this fascinating and growing field. The MAHE postgraduate degree in logistics and supply chain management will provide a solid foundation in the procedures and infrastructures required for efficient and successful item distribution and data exchange.

You will learn about the benefits and drawbacks of various modes of transportation, such as trucking, train, sea, and air, and how to choose the best one for a certain shipment. You’ll also become acquainted with the many technologies and tools in logistics and transportation optimization, including transportation management systems, supply chain planning software, and warehouse management systems.

If you want to impact how organizations operate positively, you should consider getting a degree or completing a course in logistics and supply chain management from MAHE.

Conclusion

Transportation and supply chain logistics management are vital in taking items where they need to go. Professionals in these industries are intimately familiar with the processes and procedures required to ensure on-time, cost-effective, and trouble-free shipment delivery. Professionals who get an MBA degree or take a logistics and supply chain management course have the knowledge and skills needed to compete in this fast-paced business. Check out our courses today!

Key takeaways:

• Logistics and transportation play a critical role in supply chain management, ensuring that products are delivered to customers on time and at the lowest possible cost.
• Effective logistics and transportation management requires coordinating all activities involved in the movement of goods, including planning, execution, and monitoring.
• Transportation modes, such as road, rail, air, and sea, should be selected based on product characteristics, cost, and delivery time.
• Efficient transportation routing can minimize transportation costs, reduce lead times, and improve customer service.