When structuring your company’s plans, it’s important to know the fundamental processes and concepts so that everything goes well. The logistics management is essential for the proper functioning of everything, and for that it’s important to understand the logistics chain.
Polyexcel prepared for you this and other articles with the basic concepts of integrated logistics management. Read on to learn more about the logistics chain and its importance, and don’t forget to check out our other texts.
What is the logistics chain?
In a simple way, the logistics chain is the sum of stages and processes that move the products or goods from the supplier, passing through the manufacturer and reaching the customer who has entrusted.
That is, a chain covers the procedures of storage, transport and custody of products. We can exemplify the term of it when a product arrives at the supermarket, the customer who entrusted it or the next industrial stage of production.
However, the logistics chain is focused only on the transport of artifacts, goods and raw materials, from production to the customer. But it’s common to confuse logistic and supply chain.
Difference between chains: logistics and supply
The main difference between logistics and supply chain management is that the supply chain organizes all the sourcing, storage and shipping processes of the company. It analyzes the quality of raw materials, organizes the integration of services and sectors and ensures fast delivery for the consumer or next step of production.
The logistics distribution chain should only worry about the transport of these elements for the next stage, that is, it carries the raw material for production, the product soon for storage and dispatch it for the customer.
Importance of the logistics chain
A company’s logistics chain is essential for deadlines to be met and for you to successfully deliver your goods and products for the next steps. But logistics can generate interesting market and behavioral data for the company, enabling insights and analysis to ensure a good performance of the company in the market.
Read some of the logistics chain’s powers:
- Identifies fluctuation in product supply and demand;
- Manages the company’s inventory,
- Controls and plans the fleet and transport rotation.
Results of a well-used chain
If logistics and transport management is well structured, it is possible to generate and observe the data above and optimize everything process. This has a positive impact on the company, from its economic sector to fleet distribution, for example.
This data allows the company to read them and perceive where it should be organized to have a better optimization of costs, management of its inventory and even itself of people involved in the process.
The main results that can be obtained with the chain can be divided into:
- Control of the movement and flow of products and goods;
- Effective distribution of human resources in the fleet,
- Optimization of transportation and delivery costs.
Keep learning all about logistics
Know all the tips of a process make it better understood and put them together for your own company. Thinking about that, we have separated for you our article on logistics 4.0.
In it you can see how digital integration can benefit companies and create interesting insights and generate analytical data for all sectors of your business. Click here and read all about logistics 4.0.