5 Crucial Activities Involved In A Logistic Service Company

Businesses need logistic operations that are carried for the physical distribution of goods from one place to another. From the manufacturer, goods have to be transported to the distributors, retailers and lastly to the end consumers. Logistics plays a very crucial role in supply chain management.

However, logistics is not just transporting goods from one place to another, there also are other activities involved in it. Running an in-house logistics department for a company can be a complex process. Outsourcing supply chain operations to a logistic services company is a beneficial move. Also called as a third party logistic provider (3PL), they offer various solutions for receiving, storing, packing and transportation. 

Let’s take a closer look at some of the functions of a logistic service provider. 

5 Functions Of A Logistics Company 

Order processing and handling 

Logistics start with order processing and handling of raw materials. When there is a rise in demand, the manufacturer receives the order of a specific product. Logistic companies handle the transportation of the materials from the manufacturer to the warehouses and various other locations. 

Order processing mainly starts with the commercial department in an organization. The organization provides details to the transporter of the pick-up and drop locations. However, if you are planning to outsource such operations, you need to worry about anything. They have everything covered. 

Material packaging 

Packaging of the product is essential. It is the responsibility of the logistics department to transport the products securely to the end customer. An established and experienced logistic service provider is equipped with all the packaging materials for your good. 

Logistic services help transport products with strong packaging to avoid any breakage or spillage and transfer huge volumes of the product safely from one place to another.

Warehousing

Warehousing plays a prominent role in logistics. Logistic companies provide warehousing facilities to companies depending on their market locations. Moreover, having a warehouse near the market or the distributor provides access to easy delivery of goods. 

The location of warehouses also reduces the pressure on the parent warehouse. If there is a fluctuation in the product demand, these warehouses can take the pressure off the deliveries. They can become interdependent to ensure the delivery of goods to consumers.

Within the warehouse, material handling takes place. It is the movement of goods that involves packaging, order processing, unloading, loading and more. Although it may sound like a mundane task, these are important tasks that are continuously taking place in any warehouse.

Inventory Management 

Inventory management is one of the most important functions of logistics. Having control over the inventory saves you from a lot of trouble. For instance, seasonal products such as winter clothes have a specific demand time. Manufacturing and distributing just the needed amount of products in the market requires control over the inventory. 

Excess production can lead to taking up more storage space, and over time the products might get damaged. Therefore inventory management is necessary for logistics for saving cost, space and time.

Transportation 

Transportation is one of the major logistics activities which requires more resources and revenue. It involves physical delivery of goods from the company to the distributor/dealer to the end customer. A logistic service provider provides customized transport solutions depending on the inventory size. 

The better the warehousing and the inventory management of a company, the lower is the transportation cost for the company. Outsourcing your supply chain operations to a third party logistic company can provide seamless movement in your company.  

Conclusion 

If you are looking for logistic services in India, visit Mega Freight Movers Ltd. Mega offers full-fledged logistics solutions for your goods with reliable and affordable services. Visit their website for more information on their services and locations. 

For further queries, get in touch with us. 

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Created on Mar 16th 2021 09:26. Viewed 266 times.

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