Supply chain management is closely linked to various other disciplines, to such an extent that people sometimes confuse them. 

Logistics is a vital component of supply chain management, the part that deals with moving products and materials in activities for example transportation, warehousing, and distribution.

On the other hand, SCM addresses a much broader variety of planning processes, involved in deciding which products to generate in the first place, how to make them, and in what quantities, as well as the potential demand for them. Logistics is mostly restricted to the transportation and warehousing aspects.

CHALLENGES LOGISTICS HELPS YOU TO OVERCOME IN SUPPLY CHAIN MANAGEMENT

The following tasks that logistics performs in supply chain management, we’re able to pick out several advantages provided by its correct implementation:

Consolidation of traffic volumes

Transportation prices are one of the largest expense categories in logistics management. They often increase with respect to the distance, batch size, and product exposure to damage. On the other hand, the transportation cost per unit of weight decreases once the lot size increases in the end. Thus, the maximum consolidation of transportation volumes often helps reduce transportation costs.

Minimization of enterprise expenses

The primary purpose of logistics in supply chain management is primarily to improve the entire value of each delivery, which can be identified by client satisfaction. This means that the reduction and optimization of labor resources should be tied to keeping up a specific quality level of customer service. This problem is solved both by reducing the total labor resources and by introducing automation solutions.

Reduction of actual losses

To attain a competitive advantage, an organization must either carry out these activities at lower costs or carry them out in a way that will result in differentiation and price increment. The very first thing to be achieved to effectively solve this issue is to decrease the losses that are associated with the return of products. 

Improving the quality of service

Concerning the quality of service, it is primarily influenced by the speed of delivery of the goods to the end-user, as well as its transportation in proper conditions and within the allowed time limits, Supply Chain Management helps to improve the quality of service so the products reached the customers on time.

Timely response to changing market demands

If your business is in trouble, one should opt for the latest technology to beat the competition. Advanced logistics scenarios also assist in quickly adjusting to changing market requirements and, thereby, maintaining top positions against the backdrop of competitors and staying in demand for the prospective audience.

Conclusion

If you are interested in developing a customized solution for your business, particularly for optimizing supply chains and solving logistics problems, feel free to contact 13SQFT.COM, It is India’s first and largest B2B Digital Platform built especially for warehousing, logistics, and cold chain industries.