Meeting the objectives of logistics is crucial to ensure that the merchandise leaving the manufacturing site arrives on time and in perfect condition to the end customer. Therefore, the importance of logistics lies in the fact that it allows the different stages of the supply chain to be executed in a coordinated, effective and efficient manner, which generates profitability for the company and satisfaction for the customer, thus producing a competitive advantage in both product quality and service quality.
What is the role of logistics?
Logistics roles in the supply chain refer to the processes that need to be executed in order to achieve the logistics objectives. The main tasks of logistics in order of execution are as follows:
- Demand planning: determining what quantity of products the market demands and at what time, in order to be able to supply the right quantity and at the right time.
- Order processing: all activities related to the processing of purchase orders, from their documentation to the management of guarantees.
- Warehouse management: the company must have rigorous control of everything that enters, rests in and leaves the warehouse, including intermediate processes such as packaging and labelling.
- Product transport: covers everything from the time the product leaves the warehouse and is transported to its destination to the end customer.
- Collection management: determines the customer payment protocol.
- Performance measurement: the level of effectiveness of employees and logistics processes is evaluated using KPIs.
What are the goals of distribution logistics?
Distribution is one of the elements of logistics that makes it possible to have the products the market demands, in the right quantity and at the right time. However, to achieve this, companies need to set more specific and accurate distribution logistics objectives.
- Availability: one of the main objectives of distribution logistics is to ensure that the product is always available to the company, and that it is easy for consumers to acquire.
- Optimise costs: the ideal is to reduce costs to such an extent that the quality of service is not affected. Every change in logistics and distribution should lead to an improvement in processes.
- Reliability: distribution logistics should seek to ensure that all processes involved, such as delivery, are reliable and optimal, guaranteeing the punctuality of each logistical stage, rapid resolution of problems and the highest possible customer satisfaction.
Today it is possible to facilitate meeting distribution logistics objectives thanks to new technologies, that help logistics companies track shipments and fulfil logistics functions in terms of dispatch management, distribution route planning, process analysis and customer satisfaction, among others. You can trust Noatum Logistics to handle you operations and achieving your distribution goals, we offer optimised solutions adapted to each client’s needs.