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Category Archives: Freight Solutions

How to pick and pack in a warehouse

Picking errors and slow picking times are among the most common warehousing inefficiencies. Such issues can slow down operations, leading to reduced productivity and increased costs. Packing issues can also cause serious problems for businesses. From using the wrong type of packaging to failing to void fill correctly, packing mistakes can lead to damaged goods and customer dissatisfaction. This can result in reputational damage and lost business. 

As warehousing experts, at Freightline Carriers, we’re well placed to help you to optimise your pick and pack processes. In this article, we explore exactly what’s involved in this vital order fulfillment activity and provide advice on how to do it as efficiently and effectively as possible.

What does pick and pack mean?

Pick and pack is an essential part of fulfilling customers’ orders and moving stock from one location to another. 

In retail, for example, when a customer makes an online order through an ecommerce website, order details are used to generate picking lists. These lists tell warehouse operatives the unique identifiers of the products required and their locations in the warehouse. Operatives travel to the item locations using the quickest routes possible. Once the items have been found, the correct quantities are picked. 

After this, the products are packed using suitable packaging materials. For example, corrugated protective sleeving may be used for glass bottles, waterproof mailing bags might be used for clothing and post storage tubes could be used for art prints and posters.

Pick and pack workers perform a critical function in the overall running of a business. They are responsible for ensuring that goods are shipped on time, that packages contain the correct items and that products are packaged in a way that prevents damage and reduces waste where possible. Their ability to be fast, accurate and judicious can have a significant impact on customers’ experiences. After all, an item being shipped on time and arriving at its destination in good condition can be the difference between repeat business and a bad review.

A warehouse operative carrying out pick and pack.

How to pick and pack

So now you understand the pick and pack process and the important role it plays in your businesses’ success, how do you ensure it’s done properly?

Outsourcing this part of your business to logistics and warehousing specialists like Freightline Carriers can be hugely beneficial. Whether you’re a manufacturing company shipping components or a retailer shipping products, by allowing an experienced warehousing logistics expert to manage what can be highly complex processes, you can ensure that your suppliers and customers will receive the best experience possible.

When it comes to picking and packing, there are a number of steps you can take to improve operational efficiency and customer satisfaction levels. Here are some of the most important:

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What is stock control?

In order for a business to run smoothly, stock control is essential – but what exactly does this mean, and why is it so important? In this article, we take a closer look at how your business could benefit from better stock control and what you need to do to gain a tighter grip on the products you sell.

What does stock control mean?

In a nutshell, stock control means having clear visibility of all the products you sell within your business so that you have enough stock for your customers to buy. It also means having full knowledge of every product type in your warehouse, the value of your stock and how much of each product you need at any given time. 

Sometimes referred to as inventory control, stock control is the process of maintaining a suitable quantity of stock to ensure that your business meets customer demand without delay, as well as keeping the costs of holding stock to a minimum.

How does stock control work?

There are many different stock control methods. The right one for your business will depend on a number of factors, such as the size of your business and how many products you sell, so it’s worth doing your research to figure out which one will work best for you.

Generally speaking, your stock control system should encompass everything, from purchasing, product turnover and tracking, to shipping, receiving products and re-ordering them. Stock control is all about management and maintenance so that you can see what products your customers are buying and where and when you need to replenish your stock. 

A warehouse operative performing stock control in a warehouse.

Why is stock control important?

As a business owner, stock control should be a priority, and there are a number of reasons why it’s so important. First and foremost, keeping tabs on your stock levels will ensure that you don’t run out of the products that your customers want to buy. If a customer is unable to purchase a certain product, you could run the risk of damaging the reputation of your business and in turn, losing the sale to another company who has the same or similar product available. 

Stock control can also significantly improve the efficiency of your business, especially behind the scenes, and you should also find that productivity among your staff improves too, freeing them up to take on other tasks. Keeping on top of your inventory in this way can also help keep your warehouse more organised, making it easier to locate specific items.

How to do stock control

How you carry out the process of stock control will most likely depend on the size of your business. For example, a small business may find that sticking to a basic system of manually keeping track of its stock levels in a stock book or using spreadsheets works best. However, as a business grows, this simplistic style of stock control system may end up becoming inefficient.

Instead, an automated stock control management system which is capable of offering real-time support and can keep track of inventory as it moves may be a better option, especially if you’re running a large business that sells a vast number of products.

When you’re looking for a suitable stock control system, you may even want to consider using a warehouse space where you can also benefit from using in-house stock control solutions. At Freightline Carriers, we offer stock control services whereby we can help ensure an efficient flow of your products or materials, controlling the transfer of items to make sure that your stock levels don’t get too low. Opting for a service like this will mean that your business will operate smoothly and prevent potential fulfillment problems.

What is lead time in stock control?

In terms of stock control management, ‘lead time’ refers to the lapse in time between when an order is placed, to replenishing that inventory, to when it is received. An easy way of working out the lead time is by calculating the supply delay plus the reordering delay.

To work out lead time, you will need to take into account the time it takes for a purchase order to be delivered by your supplier, factoring in the time it takes the supplier to first accept then process your order too. 

For example, if you run out of a particular product, you will need to reorder it from your supplier. However, if your supplier only takes reorders once a week, and you place your order three days before it will be received by the supplier, this is known as the reordering delay. You will then need to take into consideration the amount of time it will take for the order to be processed and delivered to you, also known as the supply delay. If this takes a further three days, the total lead time will be six days. 

The truth is, lead time can impact your stock levels, and the longer your lead time is, the more stock you will need. Once you have worked out your lead time, you should put measures into place to reduce this.

What is the golden rule of stock control?

In short, stock control can be the difference between making a profit or a loss. If you get it just right, it can help make your business run smoother, keep costs down and, most importantly, increase your profitability and growth.

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What to look for in a storage facility

If your business doesn’t have enough storage space for its stock, or you simply require overflow space while you are in the process of moving to a new premises or expanding, your best option is to find a storage facility to rent. From small individual storage units to entire warehouses that can be integrated into your supply chain processes, these facilities can be vital to ensure your business continues to operate smoothly. However, with so many options out there to choose from, what features should you look out for in a new storage facility?

In this article, we explore the key criteria to consider when choosing a new storage facility for your business and what you have to bear in mind. 

How safe are storage facilities?

Although it may sound obvious, security is an aspect that is often overlooked when it comes to looking for storage facilities. Remember, regardless of how good of a deal you may think you have on price, if your goods are not secure, there is no point. Before making your final decision, make sure you do some background research on the storage company in question. Check if there have been any reports against the company regarding lost or stolen goods, or whether any of their facilities are prone to break-ins. 

Once you are happy with the company’s history, it’s also a good idea to check out the actual location you will be renting yourself. Look to make sure security cameras are in place, competent and experienced security guards are used and the state of building is acceptable. If anything doesn’t look right, don’t use that facility and look for another company. While most storage facilities are safe nowadays, it’s essential you do these checks just in case. Afterall, storing your goods in a facility that is not safe could be hugely costly in the long run. 

What is the cost of storage facilities?

Once you have located a storage facility that you are satisfied can keep your goods safe, naturally the next thing you need to look out for is the cost. As a rule of thumb, when looking for a new facility, instead of looking at the overall price, you should look at the cost per square footage of the space you are looking to rent. As well as giving you the clearest idea of the size of space you are actually getting for your money, in the long term having this clear idea of size allows you to accurately predict how much expanded storage space you might need should your business grow. Without having the cost per square foot available to you, you may be limited to storage spaces that may not be compatible with what you require. 

a warehouse worker prepares a package for distribution

When it comes to cost, this will obviously depend on the location of your storage facility, how accessible it is and what additional extras you require. As a rough guide, a small 50 square foot unit will cost around £140 pcm – £2.80 per square foot. At the other end of the scale, a large commercial warehouse of 5,000 square feet could cost around 85p per square foot. The bigger the unit, the smaller the cost per square foot. However, it’s also crucial to remember that you may also be responsible for the cost of maintaining and repairing your storage space during the duration of your contract, and you may also have to factor in gas, electricity and water costs. Always make sure you read all the terms and conditions included in your rental agreement before signing a contract. 

Storage facilities with additional extras

Aside from simply keeping your goods safe, finding a storage facility that offers a range of additional services is also worth looking out for. From stock control solutions that make sure the flow of your goods leaving and entering storage is as efficient as possible, to pick and pack services that make sure your goods are dispatched with ease, warehouse and supply chain management can be so much more than just storage. 

Deals can even be put in place with your logistics providers to ensure complete synergy between the storage, packing and delivery processes of your business. This can not only make life easier and make operations run seamlessly, it can also save you a lot of time and money in the long run.

Why use our warehouse storage facilities?

Here at Freightline Carriers, as well as being experts in the field of road and air freight solutions, we also offer state-of-the-art warehousing and distribution services. These services incorporate a range of processes involved in typical supply chain management – from finding suitable warehouse storage facilities to meet even the most niche requirements to sophisticated stock management techniques and pick and pack distribution services. 

Whatever your warehouse storage requirements, you can rely on Freightline Carriers to provide an experienced warehouse and distribution team to meet your every need.

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What industry is logistics part of?

Although traditionally part of the broader transport industry, logistical services now play a crucial role in today’s fast-paced and consumer-driven business environment, not only here in the UK but also across the world. 

Is logistics an industry?

In short, yes. Working alongside other industries, such as retail, pharmaceuticals, events, automotives and more, logistical services have become one of the most vital aspects of modern commerce. As such, this sector has been able to carve out a significant and lucrative area of the economy to operate within in recent years, becoming an industry in its own right.

As a dedicated logistics specialist, here at Freightline Carriers we work with a broad and diverse range of different industries and understand the logistical needs, challenges and best practices associated with each. In this article, we take a closer look at some of the largest industries we collaborate with and specifically how our logistical services work in each field and why they are so vital.

 What does logistics mean in retail?

Logistics play a huge role in the retail industry. Impacting every phase of the retail supply chain, logistical processes are needed for everything from ensuring the transportation of goods and products from warehouses and stores directly to customers takes place on time, to making sure these products are stored correctly.

With multichannel commerce platforms, increasingly demanding customers and hyper-competitive markets, the need for seamless logistical processes in the retail industry has never been greater. After all, even the slightest freight damage during transportation, delivery or storage can cost retailers not only money, but also their reputation, which can lead to a loss of business. At Freightline Carriers, our retail logistical services allow us to oversee the entire logistical process of your retail business, improving every phase of your supply chain. 

a warehouse manager discusses logistics with a colleague

 What does logistics mean in events?

When it comes to events, logistics are essential. Impacting everything from procurement and operational planning to transportation, freight carrying and disposal, logistical processes are needed throughout the entire lifecycle of an event to ensure it runs smoothly and exactly as planned. 

Whether you have stands, promotional materials, AV equipment and other gear to transport to and from a physical location or you are looking for facilities to store and house exhibits before and after an event, event logistics has a solution. At Freightline Carriers, for example, our services can be used at every stage of an event and include ensuring that shipments arrive at the destination safely and on time, complete with shipment tracking features that allow event managers to get real-time journey information from collection to delivery.

What is automotive logistics?

Success in the automotive industry is largely driven by the speed, timing and cost-effectiveness of your processes. This means that when it comes to getting the components and vehicles where they need to be, having a trusted and reliable logistics service in place is paramount. These processes are known as automotive logistics. 

From logistics solutions designed to dovetail with the ‘just-in-time’ manufacturing and delivery methods common within the industry to ensuring that your components and parts arrive at the right time and in the correct sequence, even the slightest error in automotive logistics can throw a whole operation off balance and cost an automotive company a lot of money. Luckily, specialist logistic firms, such as Freightline Carriers, offer bespoke automotive logistic services capable of transporting items from point A to B as part of a fast and seamless process, allowing business to run smoothly.

What is pharmaceutical logistics?

Pharmaceutical logistics refers to the management of the flow of medical and healthcare resources between their origin and their final destination. As well as the transportation of these items, pharmaceutical logistics also covers any specialist storage requirements and real-time monitoring technologies needed to ensure no damage occurs. 

Whether talking about moving standard medical devices, drugs and pharmaceuticals from a supplier’s warehouse to a hospital, or transporting biomaterials, such as organs ready for human transplant or hazardous bio-waste that needs to be disposed of at a specific facility, specialist pharmaceutical logistics processes need to be put in place. This is because hospitals, clinics, surgeries and other healthcare centres not only have to ensure the business aspect of their operation runs smoothly, but they also need to guarantee the safety of their patients/clients and comply with any relevant laws and regulations.

Typically, pharmaceutical logistics processes are outsourced to specialist logistics companies who will manage and oversee all aspects of the supply chain. Here at Freightline Carriers, our comprehensive healthcare and pharmaceutical logistics services use real-time monitoring technology to make sure that the process of transporting items is quick, safe, easy and cost effective.

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What is third-party logistics?

An umbrella term that covers an array of different logistical systems and procedures, third-party logistics, also commonly abbreviated to 3PL, refer to the processes involved in outsourcing an organisation’s storage and logistical services. This can relate to everything from a business’ distribution and delivery systems to warehousing, inventory management and fulfilment services. Whether a business is looking for external help when it comes to small day-to-day logistical processes, such as delivery or warehouse management, or more comprehensive and all-inclusive solutions that operate in tandem and are capable of ensuring the external management of an organisation’s entire supply chain, a third-party logistics provider can help.

But what is a third-party logistics provider, what do they actually do and can 3PL services be useful for your business? In this deep dive into third-party logistics, we answer all these questions and more. 

What is a third-party logistics provider?

To put it simply, third-party logistic providers incorporate their own specialist services into their clients’ respective supply chain processes. When doing this they take into account any specific logistics needs their client may have, as well as any industry norms. They are independent businesses that typically specialise in solutions relating to their clients’ storage, warehousing, transportation, shipping and general logistic requirements. 

Typically, to achieve this, a 3PL provider will put in place an integrated and tightly-managed strategic approach in order to independently oversee all aspects of a client’s supply chain. However, larger organisations that manage certain aspects of their own storage, transportation and fulfilment services in-house may only use a third-party logistics provider for specific needs in which very specialist knowledge and expertise is required. This could include overseas shipping services, difficult one-off liaison services between numerous carriers, shipments with potential customs issues, and storage/transportation management of hazardous, unusual or oversized products or materials.

What does a third-party logistics company do?

A third-party logistics company is simply an independent extension of their client’s organisation that is paid and brought in to consult on, devise and implement a strategy to manage the transportation and/or storage aspects of the business’ operation. 

Regardless of what specific logistical functions they are being paid to manage, a good 3PL provider will have a complete understanding of their client’s entire supply chain processes, from their shipping and delivery procedures to their inventory management systems and warehouse stock control processes. This 360-degree view allows them to improve each and every aspect of a business’ logistical operation by optimising loads, forecasting freight fluctuations, identifying new efficiencies to save money and reducing transportation costs. To achieve this, third-party logistics companies typically focus on four key areas of their client’s business. These are:

A distribution warehouse with trucks awaiting loading

Warehousing and inventory management – Most 3PL providers have the capability to implement new warehouse management systems for your business. If your business owns its own warehouse, this could involve, for example, devising a strategy that makes the inventory management more coherent and enables more efficient and cost-saving methods of loading and unloading deliveries. 

Alternatively, some 3PL providers operate out of their own warehouses. If your business has outgrown its own storage premises or you need a specialist warehouse that can safely store potentially hazardous or oversized products or materials, for example, you can make use of these third-party, off-site facilities.

Transportation services – If you are looking for a 3PL provider to help with transportation and delivery services, typically you will select a company that will use their own trucks and logistics equipment – these are known as asset-based 3PLs. Although handing over complete control of your distribution services to a third-party company can be tough at first, a good 3PL provider is likely to lower freight costs, thanks to their expertise in finding economies and ability to optimise loads. This service is usually combined with 3PL warehousing and inventory management services. 

Overseas transportation – Designed for businesses that trade and deliver goods internationally, 3PL providers that specialise in international freight forwarding can make the process of shipping in and out of the country much easier. Using their specialist experience and professional links with other internationally-based 3PLs, these services can help take the stress out of international transportation and allow your business to improve and optimise its overseas distribution network.

Industry technology services – An often overlooked service offered by many 3PL providers, industry-specific Transport Management Software (TMS) solutions can be an incredibly useful tool in collecting and utilising financial and transportation data. Using this data to improve auditing, better monitor inventory and load movements, and update accounting practices, a good third-party logistics company can help optimise a business’ entire logistics network, saving you money and improving your customers’ experience in the process.

Why use third-party logistics?

Now you know exactly what third-party logistics is and what a 3PL provider does, the question remains, why use a third-party logistics specialist? Well, to put it simply, your business can make use of third-party logistics to optimise its transport processes and storage management systems with the help of an independent industry specialist, resulting in overall cost-cutting and improved customer services. 

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Logistics in events management

As a dedicated logistics specialist, we work with a wide range of different industries and understand the logistics challenges and best practices associated with each. In this article, we take a close event management, exploring what logistics means in this field and why it’s so important.

What is event logistics?

The term ‘events logistics’ refers to a wide range of complex processes that take place in order to ensure that an event, such as an exhibition, seminar, conference, or charitable auction, runs smoothly. It involves processes across the whole events lifecycle, including procurement, operational planning and scheduling, transportation, freight carrying, storage, distribution, tracking, management, retrofit and disposal. The term can be applied to physical events, as well as online ones. 

What does event logistics include?

Events logistics encompasses the preparation that goes into an event (including contingency planning), as well as logistical management on the day (or days) of the event. It also includes post-event reviewing. Here we look in detail at the type of considerations that need to be taken into account when managing event logistics:

Venue scouting

Hiring a venue can take up a lot of an event’s budget so it’s important to get this right. Creating a shortlist of venues may involve sending out Requests for Proposals (RFPs). An RFP may include details such as the proposed date and time, capacity requirements, catering needs, parking, overnight room requirements and transportation. This can help you to compare venues and their quotes like for like.

warehouse distributor walks and talks with event manager in warehouse

Warehousing

Large events can require a significant number of assets and these will need to be housed somewhere until the date of the event. It’s often not possible to keep infrastructure on site, especially as big events can involve year-round planning. In these cases, you will need to find and manage a warehouse. 

Transportation

Do people or equipment need to be transported to or from the event? Is transportation required during the course of the day? What kind of transportation is needed? These are some of the questions that will need to be answered to ensure everyone and everything gets where they need to be in a timely manner. 

If you have exhibits, stands, promotional materials, AV equipment, large processing machines or other equipment, you may need to hire a specialist freight company to handle your transportation. At Freightline Carriers, we ensure that your shipments arrive at their destination safely and on time. With shipment tracking, customers can also get real-time journey information from collection to delivery so whether you are planning an exhibition in the UK or a concert in Europe, you can get on with the job of organising your event, knowing that transportation is taken care of.

Creating loading schedules

It’s important to ensure that your suppliers and freight handlers have the space and time required to unload goods and equipment. Avoid queues, parking issues and general confusion by creating a loading schedule for suppliers and freight carriers. This might involve a plan detailing each suppliers’ or freight carriers’ loading bay number, their unloading time, security clearance information and details of staff members they will be working with.

Sourcing and managing suppliers

From AV equipment and signage to catering and entertainment, there are a variety of things that you may need to source suppliers for. Once the right suppliers are found, they will need to be managed to ensure you receive optimum value and any performance targets and deadlines are hit. 

Planning and reviewing schedules

At a corporate event such as a conference, for example, a lot of planning will need to go into scheduling and agenda. Decisions around when the event begins and ends, the total duration of the event, how long each speaker has, how many breaks there are and when lunch is served will need to be taken carefully.

Managing the flow of people

Large events pose challenges when it comes to crowd management. Careful planning needs to go into creating a steady flow from the entrance through the event to the exit. This plan needs to take safety, staffing numbers and event timings into consideration. Where possible, registrations should be streamlined to avoid queues and congestion. 

Collecting feedback

Finding out how attendees feel about an event can help you to make improvements when it comes to your next function. There are numerous ways you can collect feedback from delegates. For example, you might decide to use comment cards, events apps, facial recognition, feedback buttons, email follow-ups, surveys, feedback walls or live polling. 

Collating and reporting feedback

To really learn from your event, all feedback should be collated after an event and a report should be drawn up. This can help you to understand what went well, what didn’t go well and how you might be able to improve future events.

Balancing the books

Revenue and invoices should be reconciled afterwards to find out how successful the event was financially. 

What does logistics do in an event?

Logistics helps to ensure that you achieve maximum value from your event and your wide objectives are supported. Whether you’re aiming to raise money for charity, create networking opportunities or get clients on board, the logistical planning of your function should help you to do just that. This kind of planning helps to ensure your event runs smoothly and that everyone is where they need to be at the right time and everyone has access to the things they need in order to get the most from the event. 

Why is logistics in event management important?

If you don’t carry out proper logistical planning, you’re putting yourself or your organisation at risk in a number of ways. Not taking logistics seriously could result in financial loss, loss of reputation, equipment damage, accidents or injuries, resource wastage and overworked staff. 

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How does logistics work?

Whenever goods need to be transported from one location to another, logistics functions to ensure that this process works in an effective and efficient manner.

The ineffective management of logistics is likely to lead to significant problems in a supply chain, potentially causing difficulties so severe that the entire supply chain breaks down.

In this blog, we look at what logistics management is, how it works, what it consists of and why it’s so important for businesses in many industries.

What is logistics management?

A crucial part of the supply chain process, logistics management is needed for the movement of goods and services via road, air, sea and other methods of transportation.

Effective logistics management involves in-depth planning of all aspects of the movement and storage of goods throughout the supply chain. It’s purpose is to find the quickest, most reliable and most cost effective methods of ensuring goods are in the right place at the right time.

What does logistics consist of?

While logistics covers a wide variety of specialisms and tasks, it can typically be split into five different categories. They are:

Information –

At every stage of the logistics process, information and control are needed to plan and implement relevant processes. By ensuring a sufficient level of attention to detail, logistics service providers can ensure that the movement of goods and services happens without delays or any significant issues.

Transport –

The transportation of goods is the most recognisable part of logistics, and without it, the shipments wouldn’t be able to get from supplier to buyer. Various different types of transport are used by freight service providers in order to ensure that goods get between point A and point B safely and within the necessary timeframes.

A visual representation of logistics management using various freight services.

For example, road freight is often suitable for domestic shipments or journeys being made via ferry. Alternatively, rail freight can be used for domestic or regional transportation. Meanwhile, sea freight is ideal for the transportation of goods between two ports, and air freight is traditionally utilised for moving goods at speed internationally.

Storage –

Through the use of warehouses and other storage facilities, goods can either be stored temporarily during the process of transportation to the desired destination or businesses that sell goods can rent or buy their own warehouses to store these goods and simply ship them out when necessary.

Inventory –

Although closely related to storage, inventory focuses more specifically on the management of storage rather than the storage space itself. For instance, it focuses on what stock is being held, and in what quantities. Freight forwarding companies may offer specialist pick and pack services that include full stock control and handling.

Packaging –

Every shipment of goods needs to be packed and unitised as efficiently, securely and methodically as possible. More often than not, goods in freight shipments are packaged as cubes so they can then be stacked up next to and on top of other units.

Why logistics is important in business

Effective logistics solutions are crucial for businesses in a range of industries.

For example, in a retail business, items may be shipped en masse from another country and a quick, seamless and cost effective service will mean that the goods will be ready to be sold without delays or unnecessarily high fees.

Alternatively, in an industrial setting, assets like specialist machines may only be available from suppliers based far away. Through reliable logistics that get these items to the intended destination quickly, businesses can be spared potentially disruptive delays.

As such, the impact of well-run logistics is often pivotal to the performance of businesses across the world, and without this, businesses may not be able to operate properly or may even struggle to function at all.

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What is transportation logistics management?

From the perspective of a consumer, the movement of goods from one location to another may seem like a simple process that requires little planning. But in fact, there are many moving parts that need to be accounted for and managed in order to prevent any issues from arising and to ensure that the movement of goods is as quick, simple and cheap as possible.

Logistics is the process of planning and implementing the transportation of items. Whether it’s taking place on a local, regional, national or international level, it’s vitally important that this process is suitably formulated and put into action in the most effective way possible. In this blog, we explain what exactly transportation logistics management is, the various considerations there are in terms of cost and how logistics service providers can look to reduce the costs of the services they provide.

What is logistics and transport management?

Transportation logistics management plays a crucial role in getting goods from their source to their designated destination. It is a vital part of supply chain management, and without it, the movement of goods would be inefficient, potentially leading to significant delays to delivery or even a complete breakdown in the transport process.

Another concern that could arise if transportation logistics isn’t managed properly is the effect it could have on the overall cost. Simply put, it is incumbent on logistics service providers to keep transport costs to a minimum.

How to calculate the transportation cost in logistics

As there is an extensive list of considerations and processes that go into transportation logistics, it’s to be expected that a vast number of different costs will arise. It’s important for logistics companies to keep costs low in order to attract business and at the same time make a profit. However, certain expenses are unavoidable and simply part of moving goods from A to B.

The main costs involved in transport typically include packing and shipping expenses, as well as storage and handling costs. The amount businesses need to pay for these services will vary depending on a wide range of factors, including what they need to transport, the quantities involved, the mode of transport and the distances involved.

Two logistics service providers managing the transportation of goods.

How to reduce logistics cost on transportation

When a logistics service provider is spending too much money on the transportation of goods, it’s important that they identify any unnecessary spending and implement cost effective alternatives. They may look at:

  • Consolidating shipments
  • Using different modes of transport
  • Preventing any loss or damage to goods by hiring a warehouse as a hub for temporarily storing shipments
  • Investing in specialised software to monitor areas to improve
  • Proposing a partnership with another logistics service provider.

With any process as extensive and subject to variables as transportation logistics, it can be difficult to identify and remove unwanted additional costs, but with some methodical analysis, it may be possible to reduce the expenses involved.

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What is international logistics?

In order for shipments to move between two points across the globe without there being damage to the goods or lengthy delays along the way, effective transport processes must be put in place and adhered to. While this is true of all logistics, international logistics requires even more planning as the shipments will be travelling further, passing through different countries and may even require multiple methods of transportation to reach the desired destination.

In this blog, we look at what international logistics is, how it is managed, how it differs to domestic logistics and how it impacts international trade.

What is global logistics management?

Global logistics management is an all encompassing term that refers to the considerations and duties required to facilitate the movement of goods from the original source to their eventual destination. Although similar to the transportation of goods across local regional and national areas, global logistics management is far more complex due to the greater number of variables that need to be considered to get the shipment from point A to point B.

The primary aim of logistics as a whole is to move a shipment between two locations safely and securely without incurring unnecessary expenses or delays. In essence, logistics deals with all the practical steps required to get shipments to where they need to be without any issues arising along the way. However, when it comes to global logistics, additional considerations may apply, such as:

  • customs duties and other international shipping fees
  • different expectations in terms of the quality of service
  • complex insurance regimes
  • varying laws and standards across different countries
  • more moving parts (such as a larger number of vendors and suppliers).
Global Logistics Map

How logistics is applied in international trade

Logistics is a key part of international trade as it enables both companies and individuals to import and export goods. By incorporating effective logistics into international trade, the flow of goods from supplier to customer can be carried out in an efficient and effective way.

Recognised as an essential part of supply chain management, freight forwarders and other relevant parties within this industry must have an in-depth understanding of how this process works both in theory and practice. It’s also vital that they’re aware of any and all factors that could hinder, delay or bring the process to a complete halt during the transportation of shipments.

Without functioning logistical processes, the supply chain management of international trade wouldn’t work as effectively or it may even fail to function at all. For instance, without the use of effective logistics in international trade, issues that could arise include:

  • Expensive shipping costs
  • infrequent or limited shipping opportunities
  • unnecessarily elaborate shipping routes
  • inaccurate track and trace systems
  • significant delays to handling and clearance
  • reduced or complete lack of port storage facilities
  • poor coordination across different countries in regards to border procedures
  • no quality assurance.

As logistics allows the supply chain in international trade to function effectively, it’s important to understand exactly what tasks it involves. For example, areas of logistics within supply chain management include the management of materials, inventory control, purchasing, warehouse management, distribution and all forms of necessary transport from source to destination.

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How is logistics related to supply chain management?

Supply chain management and logistics both play a crucial role in global commerce, helping to get goods from suppliers to consumers efficiently and reliably. But is there a discernible difference between these two disciplines?

In this blog, we look at both logistics and supply chain management, exploring whether they’re simply different terms for the same process or whether they differ from one another. We also delve into why they’re important for getting a shipment to its destination.

Are logistics and supply chain the same?

While similar and often confused with one another, logistics and supply chains are not the same thing. Instead, logistics plays an important role in allowing the supply chain to function effectively. The supply chain is the overall process of sourcing, processing and delivering goods to the end user, whereas logistics focuses more specifically on the movement and storage of goods in the most effective and efficient manner possible. In this way, well-planned and executed logistics is an essential part of a strong supply chain.

That said, different companies around the world may decide to use these terms in a way that suits their particular services and way of operating, and as long as every employee is on the same page, there’s consistency throughout and it doesn’t affect interactions with external parties, there’s no reason why this should be an issue.

What is the relationship between logistics and supply chain management?

In short, many companies may simply regard supply chain management as referring to the bigger picture. As such, this term relates to everyone involved in the process of sourcing goods, processing them and making sure they get to the intended recipients. Meanwhile, logistics is more narrowly focused on keeping a quick, cost effective, efficient and sustainable delivery process that provides the people or organisations receiving the shipment with the best possible service.

A supply chain could include various different types of logistics, and logistics businesses, within it – all of which play their part in the smooth running of the chain.

Parcels On A Sorting Belt

Why is logistics so important for successful supply chain management?

Logistics is a crucial factor in supply chain management. When done correctly and in an effective manner, it will meet the demand of customers and help to keep the service provider ahead of its competitors.

Whether it’s for goods being transported regionally, nationally or globally, effective logistics is important to ensure that the supply chain is as quick, cheap and universally efficient as possible to benefit everyone involved.

When a supply chain is let down by poor logistics, the delivery of goods may be delayed, unnecessary expenses may be incurred or the chain could break down entirely.

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