The Importance Of Logistics & Warehousing In A Business

Posted by Jason Tindley on 11-Apr-2019 10:00:00

The Importance Of Logistics & Warehousing In A Business

An efficient transport, warehousing and distribution network delivers a competitive edge and crucial customer satisfaction. It’s the part of the operation that fulfils the sales contract and the needs of customers. Therefore it must be constantly monitored to keep it lean and streamlined.

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Best practices in logistics and warehouse management include:

  • Supply Chain Strategy and Management – Each stage in the supply chain represents a risk and a cost. Devising the correct strategy makes the chain resilient and safeguards your business.
  • Distribution Network Analysis – Changing how your products get to customers and locations where they are stored/staged is a game changer for many businesses.
  • Transport Strategy – Optimising everything from fleet usage to routing and load sizes extracts the maximum value for the lowest cost.
  • Warehouse Design – Reduces cycle times and fulfilment costs for this expensive asset, while maximising space and labour productivity.

Why It’s So Important

The demands of the market are constantly changing, and the competition never stands still. A well-run operation can deliver several benefits to a business:

1) Faster deliveries – Speed of delivery is now a selling point and an important differentiation factor. You impress the customer and retain their business when your warehouse and logistics consistently deliver accurately and on time. Retail businesses also win plaudits on social media and review sites.

2) Growth potential- Being agile and responsive to market demand builds new sales avenues. Doing so needs facilities that can adapt at speed. Well-run and efficient logistics and warehousing operations are key to achieving this.

3) Increased stock visibility - Knowing what you have and where it is in the supply chain, enables you to:

    • Minimise shrinkage, overstocking and out-of-stock scenarios
    • Respond quickly to changes in demand by stocking more popular products
    • Achieve better order fulfilment
    • Improve forecasting and ordering

4) Superior quality control - Quality awareness in the warehouse processes raises customer satisfaction levels by:

    • Improving the overall speed of fulfilment
    • Helping to minimise returns
    • Focusing on the quality of each order picked and packed
    • Highlighting areas for improvement and streamlining

Your Next Steps

As an established logistics consultancy, we have the expertise and experience to help you maximise your operations. Use the valuable information in our free Warehouse Productivity Guide - How To Design & Run An Efficient Warehouse as a free starting point. To speak to us directly please call 01285 640038.

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Topics: Warehouse Management System, Logistics Planning, Transport Planning, Warehouse Productivity

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