Logistics Management Services: Definition, Types, and Benefits

Logistics Management Services

Logistics management is an important process concerned with product transportation efficiently. from its point of origin or production, to the consumer. That process involves a series of logistics activities such as order processing, customs clearance, packaging, warehouse services, cargo services, and customer service management.

Logistics management services operate around the whole orchestration of supply chain activities. They take the stress of businesses logistics off the shoulders of businesses. Therefore, businesses can focus on more important aspects of their operations such as growth, and profitability.

Almost every importer faces two challenging obstacles: delivery delays due to inefficient rout, and high customs clearance costs. A logistics service provider, like PITCO Shanghai, help international trade companies with fast delivery, and reduction of logistics costs by introducing the best transit solutions, and precise scheduling. 

In this article, you will learn the importance of logistics management, and the ways you can better manage your commerce supply chain.

What Is Logistic Management?

Logistics management is a fundamental part of any supply chain process. It is deeply involved in the supply chain, from product sourcing to customs clearance. It also organizes areas such as inventory management, warehousing, optimization and stakeholder coordination. 

Who Is a Logistic Service provider?

A logistic service provider is a contract out company which offers supply chain management services like warehousing services. It includes 3PL, 4PL and LLP.  

The Logistics manager has a critical role in managing the goods flow. They ensure the goods get to the correct place, in a cost-effective way, and at the correct time.

Access to critical analysis, the ability to make and give value to customers, expertise in new industry technology are some logistics service provider benefits.

The Importance of Logistic Management in Supply Chain

Businesses use logistic management to recognize, and identify the potential problems that are useful in optimizing end-to-end supply chain operation. If you aim to expand your business, here are several reasons why logistic management is necessary.

Faster and Accurate Delivery & Tracking

Consumers want their products to always be in stock and arrive at the destination as quickly as possible. Ideal logistic management services can send the tracking information and other details to customers and keep them prepared ready with the delivery expectations.

Generate Positive Business Outcomes

With The right logistic management, the backside operation of your besiness will look easy. A well-planned logistics process will manage the business toots, transportation, item location and other such services.

The proper logistic management helps businesses minimize costs, optimize operation, and meet customer expectations around speed, accuracy, and affordability.

Better Warehouse Management

The productivity of your warehouse management is deeply dependent on how you handle your logistics. Your logistics strategy should be planned according to the products which you deal with. Your weak and vulnerable points is only identified and improved with a correct logistics process.

Added Value for Your Business

Creating and adding value to your customers is another importance of logistics management. With the correct logistics, you’ll be able to track some aspects like warehouse overloading problems and handle customer hassles due to it. In this way, your products are easily available for the customers.

Keeps logistic costs low

A well-planned logistics strategy can lower the company’s logistics costs and order fulfilment times. It can find suppliers close to the company’s warehouse, and lower the sourcing costs. Choosing only goods that are performing well can also reduce the storage and purchase costs.

Logistics management helps your operations by providing the right resources and technology. So you can find solutions to save on costs.

Types of Logistics Management

Understanding logistics management requires knowing the different types of logistics and how they differ from one another. The most common examples of logistics management are:

Inbound logistics management

The focus of inbound logistics management is on transferring resources from suppliers into the warehouse, and finally to a production facility. Since any disruption in supply can lead to delays in production that reflect the rest of the whole supply chain, inbound logistics management is quite necessary.

Production logistics management

This type of logistics management includes all operations related to the various phases of the production process. It consists of the designing and coordination of different products from various required suppliers, and the movement of goods from production centers to storage.

Outbound logistics management

Unlike inbound logistics management, it refers to the safe and efficient transport process and moves the final product from the storage to its distributors. Outbound logistics management ensures companies that your products reach their final and right destination. Loading, unloading, tracking of finished products, and inventory management are examples of this type of logistics.

Reverse logistics

This is also called “Returns Management”, and is the process of handling order returns. It includes the management of refunds and returns as well as reuse of materials that went unused during production. 

Often, these returned goods are included as inventory, and kept in companies’ stocks, or returned to their suppliers.

In addition of these 4 key types, there are other type of logistics such as:

3PL Logistics

A 3PL, or third-party logistics, assists companies to store and transfer goods for sales. It also helps businesses improve their supply chain and logistics strategy. This type of logistics includes order fulfillment, warehouse storage, inventory management, and return processing.

4PL Logistics

4PL logistics, or the fourth logistics, is an operational method in which a company out contracts all of its supply chain management to an external logistics service provider.

Green Logistics

Green logistics, or sustainable logistics, refers to any business attempt that reduces the environmental effect of the logistics network and delivery. It guarantees a strong profit, without risking customer satisfaction, or the wwii- being of the Earth.

The Process of Logistics Management 

Logistics management is a process which involves logistic operations. Here is an overview of the logistics management process.

1.Warehouse Management

Warehouse management has a fundamental role in excelling in the market. You can minimize labor costs by using warehouse automation. The location of your warehouse is also effective in fast delivery.

2. Order Processing & Fulfillment

Order processing consists of receiving an order, ensuring payment requirements have been met, controlling the production capacity, and preparing the order for transportation. Ensuring the stock inventory is updated whenever an order is done, and transactions of documents are the other aspects of order processing and fulfilment.

3. Material Handling

Material handling is the movement of goods in a stock. The stock layouts need to be planned carefully in order to find them easily. This is more important for big warehouses. 

4. Packaging

Packaging is another activity in logistics management. A well packaging focuses on storage space efficiency, breakage prevention, packing cost and ease of handling, as well as aesthetics aspect. Such packaging can help companies reduce costs and simplify its logistics management process.

5. Transportation Management

Products are delivered from warehouses to the target customer through transportation process. Transportation process is very expensive. So, it should be planned carefully. Choosing the most efficient transportation schedules and methods may reduce manufacturing costs.

6. Inventory Management

Keeping an inventory of products at the stocks is costly and risks the companies’ profitability. Inventory control aims to measure customer demand to keep the inventory at a satisfied level. Some manufacturing methods like just-in-time manufacturing let businesses manage their costs.

The key benefits of Logistics Services

Logistics management directly impacts a company’s profitability, it’s best not to leave that impact to chance!

Below are the six main benefits of logistics management:

Transparency

 Logistics management brings more visibility to the supply chain. This helps businesses manage costs, reduce inefficiencies, identify supply-chain problems, plan demand, and gain insights into market opportunities.

Overhead Reduction

 By continuously overseeing inventory and reducing excess costs in areas like transportation or storage space, logistics management enables companies to lower their overhead.

Improved Customer Experience

 Excellent customer experience (CX) is a driver of repeat sales. Accurate, and timely delivery of orders improves the customer experience. This finally leads to boost brand loyalty and future sales.

Loss Prevention

Logistics management prevents losses in several ways. Real-time inventory accounting allows your business to know exactly how much stock is available at any moment. The companies can also track the movement and current location of goods. Therefore, inventory can’t be moved or diverted without notice. 

In addition, effective logistics management services prevent spoilage by optimal storage and transport conditions—such as temperature and humidity control.

Support for Growth

 A professional logistics services forecast demand by precise evaluation of inventory needs, ordering transportation, and storage. Additionally, they assist companies to fulfill more customer orders on time by providing the best logistics solutions.

Maintaining Competitive Advantage

 On-time and accurate delivery of orders is a key element of customer experience. A strong CX encourages repeat purchases, enhances brand reputation, and drives word-of-mouth referrals that attract new customers. Logistics management helps companies consistently deliver orders when promised, thereby reinforcing their competitive edge.

The PITCO Shanghai Trade consulting Team is Here to Help!

 Persian International Trading (PITCO Shanghai), with 14 years of experience in global markets, including China and Iran, offers specialized logistics management services. We aim to understand your business and build lasting relationships with you and your team.

Whether you are looking to add a new warehouse to your existing operations, growing and need to increase your distribution efforts, or starting a new company, PITCO Shanghai has the solutions to meet your supply chain needs.

Contact us today to discuss your current and future warehousing and logistics needs. We will work together with you to understand your requirements and develop a solution that will set you up for future success.