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Integrated Logistics Solutions Help Your Business Better

September 6, 2010

Logistics is the statistics of commodities and resources from manufacturing units to the consumers in respect of their demand in the local markets. This method was devised originally for armed forces to maintain constant supplies of basics like arms, ammunitions and ration since they had to move ahead from their base points and the supplies had to be delivered. This is because an army without a proper logistic solution of when and how to transmit resources to its units is actually defenceless.

Today, logistics solutions are a necessity for various other sectors including manufacturing, export-import, wholesaling, customs, etc, in short in businesses requiring mass-scale transportation of goods. The concept of logistics as a business came up due to the increasing complexities of supplying commodities to the target areas in a globalised supply chain. It essentially includes planning and implementing activity forecast for business houses regarding an efficient supply chain management based on statistics and market trends. The strategies provided are cost effective and result oriented for transfer and delivery of goods, as these are the main focus areas of logistics solutions.

A warehouse management system forms the central kiosk of such a supply chain, controlling the receipt, storage  and movement of materials within a warehouse and involving processes like transactions, shipping, receiving, picking, loading, unloading, etc. Today inventory planning, cost management and communication technology also constitutes a part of logistics solution for transportation businesses.

The high-rising distribution costs are compelling the manufacturers to rush for an efficient yet economic distribution plan. An assessment of market for the demand of a product on a regional basis is the basic input for logistics. Then a slotting analysis has to be done to decide upon the distribution centre design, layout and setup. There must also be an accommodation for re-slotting of distribution centres complying with the changing market statistics. A logistic planner handles all these to come up with solution for business houses, keeping a reasonable balance between cost and availability of space, access to transportation in the desired area and labour costs. For the best possible solution for a manufacturer, a thorough analysis of the transport logistics is a prerequisite.

Throughout the 20th century traditional methods of transport logistics has been declining, giving way to modern techniques like Just In Time (JIT) system which delivers goods directly from the suppliers to the customers end without involving the intermediary step of warehousing the products. This reduces the cost of transportation, time required to complete the task as well as he security risks involved with the process. But in cases where off shoring is required, warehousing distribution is a necessity. This is why any logistics planner has to keep in mind all the factors before he can come up with the best possible location for the warehouses. Also nowadays, the recent version of warehouse-styled retail outlets has gained enormous popularity in the market. This dual utility of warehouses to serve as distribution and storage depots serves good to the manufacturers as it helps in reducing the costs for the buyers and enhances the ratio of sales Vs production.

The impact of internet and e-commerce is also undeniable. Selling over the internet requires a good network of delivery system and the cost of opening a widespread chain of retail outlets is also saved with the warehouses acting as storage depots only.

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