If a company specialises in manufacturing, it will need to have an organised logistics department so that goods are delivered to customers as soon as possible. In food manufacturing, it is extremely important that thecompany embraces logistics so that its items arrive in excellent condition. If deadlines are tight such as those set by supermarkets, it is imperative that there are no faults with its logistics as this could result in spoiled foods and a lost contract. To build a business, distribution must first be considered.
Distribution networks have to be established
Before a company starts to produce goods, it must establish a distribution network. When there is no demand for the products that an organisation manufactures, it won’t be able to run a profitable empire. Once an organisation has a distribution network, it can then focus on logistics and there are many ways in which it can do so, such as hiring staff directly.
Direct logistics
Logistics is the act of moving goods from one point to another. If a company wants to oversee its logistics, it can purchase lorries to transport goods. As soon as goods are ready to be delivered to customers, a lorry can be loaded. Direct logistics is ideal when delivering goods to the local area but can be difficult over hundreds of miles. However, when customers ask where their delivery is, a lorry driver can be contacted over CB radio or by phone.
Third party logistics
Third party logistics (3PL) is suitable for companies of any size. 3PL is where the movement of goods from one place to another is assigned to a different company. If an organisation doesn’t have any experience in logistics, deliveries might not arrive on time. As a result, a business relationship can turn sour and a contract awarded to another organisation.
By choosing a company that has years of experience in 3PL, an excellent service will be provided throughout. Able to meet the demands of its customers, a logistics plan is made in advance so that the deadlines are met. Flexibility is also key in logistics and a company that specialises in 3PL will be able to adapt their approach accordingly. With a range of Third Party Logistics solutions to meet current market demands, a 3PL provider will have excellent technology at their disposal. Identifying errors as soon as they happen, technology is also utilised so that any faults are noticed in advance and overcome quickly to avoid disappointment.
Technology is the tip of the iceberg because a 3PL provider also employs individuals who have years of experience in logistics. Fully knowledgeable, their experience can help a company to grow because they will advise on how to build an effective logistical network. Embracing the aims and objectives of their clients, a 3PL provider will discuss how to deliver goods from one point to another so that their own customers are satisfied with their services. A 3PL provider can also help their clients with identifying cost cutting measures.
This article was written by Amanda Walters, an experienced freelance writer and regular contributor to Huffington Post. Follow her here: @Amanda_W84