Integrated logistics solution is a service offered by an integrated logistics company to its clients and offers an end-to-end solution to meet client needs. Integrated logistics would involve all of the following:
1. Warehousing: One of the most aspects of integrated logistics solution offerings, warehousing refers to effective storage of products, and management of inventory with the twin objectives of cost-effectiveness and secure storage. Storage of products plays an important part in an organization. Timely availability of products is a critical factor for the success of an organization. This depends on warehousing, where the right quantity of products can be stored. Inventory ensures reduction of costs and timely product delivery to customers.
2. Transportation: Logistics is about storage of the products and its delivery to clients. Transportation plays a major role in the success of a company. Most companies prefer to use integrated logistics services that would ensure a professional integrated logistics company manages transportation. Transportation needs to ensure that the product is picked up from the warehouse and delivered on time to the end destination. There are many processes in-between that include handling taxes, tollbooths, checkpoints, and other issues. A good system would allow for tracking of goods at all stages of the process. It involves selection of the transport mode – railways, road, ship, air.
3. Automation: For effective management of logistics, automation is essential. A good company would use a warehousing management system, an inventory management system and a transportation management system. These systems would allow for timely and accurate management of processes. It would ensure the ability to track the shipment at all stages using a real-time system. Even the client can track the shipment online. A proper inventory management system would ensure effective order fulfillment, and proper control of inventory systems.
4. Reverse Logistics: This is an interesting feature in integrated logistics, which is provided by most companies. This has become a predominant feature in e-commerce where products returns and exchanges are common. Logistics system needs to account for return of product for replacement or refund. Systems need to be in place for keeping track of customer requests and fulfilling them in a timely way. This would involve more effort, planning, and time management by the logistics service provider.
Integrated logistics is a popular service offered by many companies. This is a complete solution offered for clients who can focus on their core activities, while leaving the entire logistics operations to professionals.