Integrated Logistics – Learn The Benefits And Get Started With Your Business
Do you know what integrated logistics is and how it can improve the processes in your company? Integrated logistics offers countless benefits to the efficiency of your business.
The needs of the market are constantly changing. Fortunately, new techniques and strategies are being developed to better meet these demands. To get ahead, it is essential that your business is always modernizing as well.
The integrated logistics is one of the concepts that arrives to optimize the processes in companies of all the segments.
Focused on improving the operation of the supply chain , this strategy understands the company holistically. That is, it takes all the details into consideration when it comes to standardizing and defining the rules of logistics .
Want more tips on how you can improve your business results? Also read this post about reverse logistics we have prepared! At Zoe Talent Solutions you will get detailed information about logistics management.
Below you will find all the information you need to start applying the integrated logistics in your company! Continue reading and check out:
What Is Integrated Logistics?
The integrated logistics consists of an intelligent system that aims to interconnect all logistics processes of a company. This set of operational strategies should include the monitoring of the logistics flow and the management of activities.
As I said, the idea is that logistics is holistically viewed . A specific sector of the company is responsible for overseeing and planning all logistics processes .
The operation of the company as a whole should be taken into account, allowing the integrated logistics sector to have a panoramic view of the logistics flow .
Because the industry in charge has a broader view of business logistics, it is easier to identify and rectify failures. Problems are often generated precisely by the fragmentation of these processes.
Integrated logistics includes everything from receiving the raw material to the reverse logistics, passing through all stages of transporting the products, including:
Receipt of suppliers;
Processes of the purchasing sectors;
Production;
Storage;
Distribution of goods;
Processes of delivery of products to customers;
Monitoring the activities of its Suppliers and Partners;
Reverse logistic.
Previously, the responsibility of logistics professionals was strongly linked to operational processes. However, with the arrival and popularization of integrated logistics, this becomes a much more strategic position .
It is necessary to have trained professionals to identify the best decisions, diagnose failures and problems in the project and present viable solutions to increase efficiency.
THE THREE AREAS OF INTEGRATED LOGISTICS
Integrated logistics, as you have already learned, encompasses the logistics processes of the company as a whole. To facilitate the management and monitoring of these processes, however, the industry is divided into three main areas: inbound; outbound and industrial.
In order for it to work properly, integrated logistics requires them to act together and harmonize. Next, you know a little more about each of these areas. Check out:
Inbound
The inbound expression comes from English, and means ” receiving ” or refers to something that is ” intended for entry .” This integrated logistics area therefore deals with the processes of receiving and stocking products. Here you can include:
The relationship with suppliers;
Acquisition and quality control of raw materials;
Transport of raw materials;
Storage of raw material or product.
That is, it contemplates all communication between the company and the supplier. Strategies in this area of logistics are related to reducing costs and maintaining a good relationship with suppliers and partners.
Outbound
The outbound expression also comes from English, meaning ” delivery ” or referring to something that is ” destined for exit .” In this way, we can understand this area as one that contemplates the processes of product distribution. For example:
Distribution of products to points of sale;
Delivery of products to the final customer;
Relationship with customers and distributors.
To be efficient, this integrated logistics area must focus on customer satisfaction. It should encompass strategies that guarantee the reduction of costs in deliveries, as well as quality and agility for customers.
Industrial
Integrated industrial logistics encompasses mainly the supply of production processes. That is, this area is responsible for ensuring that the production lines receive the products, that they go through a quality control and are stored properly until the moment of sending. It includes:
Supply of the production line;
Control of materials used;
Warehousing of products ready for delivery;
Quality control.
Benefits That Integrated Logistics Offers For Your Company
Investing in the integration of logistics can ensure countless advantages for a company. It is interesting to remember that it is possible to outsource this type of management , making its implementation much simpler and more efficient. By having an outsourced sector only for integrated logistics management, your company will be in the hands of professionals who specialize in making these processes as efficient as possible.
Here Are Some Examples Of The Benefits That Integrated Logistics Offers:
Reduction of operating costs ;
Greater control over logistic flow;
Optimized and organized processes ;
Agility of the production area;
Reliability of Information;
Minimization of productive waste ;
Early diagnosis and solution of failures and errors , which can generate costs;
Reduction of time of movement of products;
Alignment of all processes;
Effective and intelligent planning ;
Better relationship with consumers;
Best image for the company.
Conclusion
Implementing an integrated logistics strategy in your company can offer numerous advantages. These include greater process control, increased product and service quality, and improved relationships with suppliers, distributors, and customers!