Logistics Operations & Their Importance For Streamlined Business Operations

Logistics is an important part of supply chain management. It is essentially the process that begins well before the product is ready. Logistics operation starts right from the procurement of the raw material and continues till the finished products reach the end-user. It undergoes a series of processes in between. It includes raw material processing in a factory, storage in warehouses, inventory planning, packaging, cargo movement, last-mile transportation and reverse logistics.

With the increase in the e-commerce industry and the opening of cross-border trade, international logistics has increased tremendously. So are the expectations of customers in terms of quality and quick delivery. It has put a lot of pressure on digital freight logistics, freight forwarders and other digital freight forwarding platforms. It is thus mandatory for them to optimise logistics operations to offer better customer service while maintaining decent profitability.

Logistics Operations:

Logistic operations are a set of activities that manage and oversee the flow of material from point of origin to the final point of distribution. It involves logistics operations like order processing, inventory and warehousing, distribution planning and transportation. These operations are broadly classified into two categories; forward logistics (denoted only and logistics) and reverse logistics. Logistics operation majorly involves sourcing of materials, order processing, management of inventory and storage, warehousing, packaging and dispatch of products to the customers. The selection of mode of transportation (air, sea, road, railways etc.) and the route is also included in it. Whereas reverse logistics encompasses the return of cancelled orders, management of damaged shipments, repair and recycling etc.

Let us Discuss the Important Logistics Operations:

• Initial Order Management:
  The initial order is the first contact between the company and the customer. Hence it is important for securing the customer and converting them into loyal ones. Order management starts with checking and verifying it. It involves the use of a software system for keeping track of the inventory. Order management is responsible for accepting the payment through various gateways, billing and confirming it with supporting paperwork.

• Inventory Management:
  Managing the inventory is a complicated job because of its dynamic nature. The inventory keeps on changing and thus it is difficult to keep up-to-date track of it. Inventory management is basically keeping a record of the available products for sale at a given instant. It monitors receiving the products, storing and dispatching them. Inventory management is done with the use of sophisticated software because it is difficult to manage a large volume manually or on a general-purpose spreadsheet. These tools help in maintaining the required balance of the inventory, displaying the current status and automatic re-ordering.

• Warehouse Management:
  Warehouse management is one of the important logistic operations. It involves receiving the product, segregating them, storing them, fetching them according to the orders and dispatching them for the final delivery. Warehouse management involves managing heavy material handling equipment and scheduling their maintenance regularly. It also ensures all the safety norms are followed to avoid any mishaps along with staff management which involves managing the leaves, salaries, working shifts, insurance, bonuses and training of the employees.

• Transportation Management:
  Transportation is the main part of the logistics. Transportation management is responsible for the movement of goods from one point to another. It involves the planning of the transportation means and modes according to the nature of the cargo and the destination it must be delivered. This logistics operation finalises the route of the cargo movement and the vehicle or vessel for achieving greater productivity with less cost.

• Reverse Logistics:
  This comes into play when a customer cancels a particular order or refuses to claim a damaged shipment. Reverse logistics manages the transportation of the rejected product for repair or recycling back to the producer.