subject: What Is The Importance Of Logistics To Shipping? [print this page] Shipping and logistics are concepts that go hand in hand in the freight industry. In fact, logistics are a huge part of shipping and can be handled by the shipping company or can be outsourced. Logistics includes integrating inventory, material handling, packaging, warehousing, transportation, security and information. Freight logistics services can be very beneficial to companies who require transportation of their products. Some of the important aspects of logistics include timing, management, and communication.
Timing
Timing is everything in the shipping and logistics business. Shipments must be picked up on time and delivered to the consignees at the appointed time. Logistics services are necessary to plan and coordinate pickup and delivery schedules so that the transport carrier is there when the shipment is ready and the clients are prepared when the delivery arrives. Large companies have teams of logistics specialists who handle this area of transportation, but smaller companies often find that working with third party logistics companies can save them both time and money.
Management
Logistics is more than just organizing the timing aspects of transporting goods or products, it is an overall management system that organizes the materials and services as well as delivery schedules, tracking and even the financial aspects of payment between the manufacturer, the shipper, the carrier, and the client to whom the shipment is delivered. Services may include the coordination between FTL and LTL loads and can involve a number of different carriers. The management of these resources is even more critical when international or global shipping is involved. Total coordination of all aspects of the transportation of the cargo must occur for business to be profitable.
Logistics management provides visibility to all areas of the shipping business. Whether a business sends small amounts of cargo or massive amounts of cargo, logistics help a business visualize the process from start to finish.
Communication
By having a single entity coordinating the logistics of shipments, communication is less likely to break down along the route. Without communication, the wrong items might be shipped or the wrong quantities or the destination might even be incorrect. Communication may begin at the order desk, verify the initial physical inventory and may include barcodes or other identification devices that allow for complete tracking of the shipment from the warehouse to the carrier to the customer. In this electronic age, electronic communication or e-logistics is more important than ever and is constantly improving.
by: John V
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