Logistics is an extremely systematic and organized process to which goods and merchandises are transferred from the manufacturing plant to point of consumption. Keep in mind as well that there are set of functions that a logistic company should meet. These functions are never to be taken for granted for it plays a vital part in making the storage or movement convenient and of course, promptly.
Following are these functions that any company in this industry should meet.
Number 1. Order processing – generating orders that the clients have asked is one of the essential functions that these agencies have. The orders are made based on specifications that were asked by clients such as payment methods, delivery payment, time period, product descriptions and a lot more. The orders received online are modifiable in relation to the customer’s preferences.
This function is vitally important for organizations because they can ascertain future requirements a lot easier such as stocks that have to be consumed and many more.
Number 2. Manage stocks – for any of the leading and established logistic company, it is essential to keep enough amount of goods or stocks to have contingencies or to meet shortage. This function helps in striking a balance between stock availability and customer’s demand. Some costs ought to be evaluated as well including inventory costs, carrying costs and so forth.
Number 3. Warehousing service – the warehouse is the place to which the finished goods are held temporarily until the time comes that people order them. In here, there are multiple things to be considered such as the number of warehouses, the design, ownership, location and layout.
Number 4. Transport facilities – the next function that these companies have is to choose the reliable and steady source of delivering goods to end users. Decisions such as mode of transportation as well as cost to be incurred are checked. Some other factors to be looked at are nature of goods and finding an appropriate method depending on urgency.
Number 5. Handling of product or material – other function that logistics company have is to give assurance that the products to be delivered are safe and is well protected. Things including handling automation, volume of materials to be protected, speed requirement for movement of goods are something that must be analyzed.
Number 6. Packaging – yet another essential function that agencies have is preparing secured package of the material while efficiently dispatching it to wholesalers or retailers. It is vital to cover commodities with careful and proper packaging so by that, they would not be soiled.