Logistics services can be simple and complex at the same. It plays a determining role in successful order implementation. Let's find out more about these roles:

Order processing

The logistics department is responsible for processing all the orders placed by the customers. It is essential for a fast and effective flow of information that surrounds the delivery process.

Inventory management

Inventory involves stocking finished goods in a warehouse or storage facility. Inventory control and maintenance are required to support the transportation and delivery processes. The stocked goods should be stocked according to the demand or future predictions. Above all, they should be kept safe.

Warehousing

Warehousing is an extension of inventory management. Unlike inventory, warehousing is limited to tracking stock movement within a warehouse and not all locations. Operations take place on the individual warehouse level.

Packaging

Packaging includes all the activities that ensure the safety and quality of goods transported and delivered to the customers. It is vital as the products would be handled by several people and stored under various circumstances. It is one of the factors that determine delivery success.

Transportation

Transportation is required at different stages and types of logistics services. A company's transportation system defines the success of its supply chain management system. A few steps to increase the transportation system include a shipper's portal, route optimization with Estimated Time Arrival (ETA), customer notifications and live tracking, analytics, and proof of delivery.

Cargo handling

Handling packaged goods form the basis for safe and timely delivery. Logistics services must have an effective package and handling procedures. Customers should be delivered products of desirable quality. The procedures for return are quite extensive, and returns due to damaged products can result in a bad reputation.

Role of Logistics

Logistics is a complex service enabling the product to reach the right consumer. From the source of origin to order fulfillment, different types of logistics and aspects of logistics combine to make order fulfillment possible. Some of the major types of logistics with examples are discussed below for your reference:

Inbound Logistics

Inbound logistics is the process of executing the transportation between the companies and their suppliers (learn more about vendor management system). This area focuses on ensuring that the other departments or manufacturers have the necessary raw materials and supplies. Usually, a wide network and large trucks help companies transport goods at a lesser cost. An example would be receiving inventory products into your company's warehouse directly from the manufacturer.

Outbound Logistics

Outbound logistics can also be referred to as order fulfillment mainly because outbound logistics involves delivering goods to the customers. It focuses on moving the goods from one supply chain to another, like manufacturers to warehouses and warehouses to customers. A significant type of logistics is that it plays a vital role in building a good relationship with customers.

Reverse Logistics

One of the most complex and lesser-known types of logistics benefiting consumers is reverse logistics. It primarily deals with the returns. The reverse logistics supply chain involves procuring goods from the end-users and transferring them back to the source/ manufacturer/ warehouse. It is meant for products damaged in the delivery process or eligible for repairing, refurbishing, or recycling.

Types of logistics

Fourth party Logistics (4PL Logistics)

Third Party Logistics 3pl is the outsourcing of other operational logistics companies to carry out the company's logistics services. In 3PL logistics, all the logistics activities, including inventory management, warehousing, transportation, and delivery, are handled by a third party. Hence, the company gets to focus on other aspects of the business.

Third party Logistics (3PL Logistics)

Companies use a fourth party or 4PL logistics to outsource their logistics operations to a single partner. The 4PL provider is responsible for managing the entire supply chain, including assessment, designing, building, controlling, and tracking supply chain solutions for their client.

Green Logistics

Green logistics or eco-logistics is the curating and executing sustainable policies and measures to reduce the environmental impact caused by the logistics operation or services. It aims to achieve sustainable environmental, cultural, economic, and social advantages and reduce the impact caused by different types. For example, using eco-friendly packaging, reusing the returned products, reducing the number of packages, etc.

In a broad sense, the types of logistics systems comprise the following four kinds of logistics management focusing on the varying aspect of the supply process:

Logistics Systems

Any business, small or large, requires continuous efforts to achieve better efficiency and management. Improvement is a constant process, and it should never be butchered. Improving the logistics processes involved in different types of logistics smoothens the operations and ensures growth and business expansion. Here are a few tips for improving the logistics process:

1) Planning

Planning forms the basis of all logistics services. Proper planning is crucial for all types of logistics and related operations to run smoothly and successfully. From procurement to delivery, planning is integral in targeting different elements of logistics like cost, time, storage, and transportation. Regardless of the types of logistics, a proper plan improves the speed and efficiency of the supply chain by taking out and modifying redundant or repetitive processes.

2) Warehouse and Inventory Managements

Inventory Management is vital in ensuring a proper supply of goods matching demand. Smart warehouse management could project future needs with analysis and improve the logistics process. Warehouse management gives special attention to goods as different goods need to be stored in different ways. For instance, grains in a moisture-free environment and dairy products in refrigerators. Different types of logistics, but especially reverse logistics, operations can benefit from live tracking, real-time stock updating, and centralized information regarding warehouse and inventory to reduce wastage and cost.

Logistics Process

4) Value Relations

In today's world, digitization has become a key factor in the success of any business. Automation helps to increase efficiency as well as optimize several business processes. Day by day, the logistics industry is turning out to be technology-driven. Every logistics company should deploy software that provides details about the goods at various stages. It further reduces the manual labor and the errors that come with it.

3) Automation

The human workforce drives any organization towards success. Every supplier, warehouse manager, clerk, or delivery partner plays a vital role in logistics. Thus, managers must provide proper training and growth opportunities to increase efficiency. Furthermore, they need to be constantly motivated and updated with the latest trends in the industry. A wide network of value relations in logistics helps gain a competitive advantage.

5) Innovation

The human workforce drives any organization towards success. Every supplier, warehouse manager, clerk, or delivery partner plays a vital role in logistics. Thus, managers must provide proper training and growth opportunities to increase efficiency. Furthermore, they need to be constantly motivated and updated with the latest trends in the industry. A wide network of value relations in logistics helps gain a competitive advantage.

6) Transportation

The one thing that keeps any business ahead of the competition is innovation. It does not necessarily mean the technological aspect or production methods. Innovation can be brought in policies, analytics, and plans. The utilization of metrics, analysis, and feedback to incorporate better methods of production and supply has proven to be beneficial.