Logistics management companies play a vital role in supply chain management. The main roles and duties that third-party logistics companies provide in supporting supply chain management for various companies include: integrated logistics management, transportation and warehousing and distribution. In this article we will focus more on the role of logistics companies in warehousing and distribution, particularly as we enter a new year rich with industry changes and advancements in technology.
Innovative & Lean Production
Logistic companies provide an innovative and lean approach to management of warehouses thereby helping clients to engage employees and also to eliminate wastage, build-in-quality and shorten lead times. Besides that, logistics management companies also help to locate a perfect site for distribution centers, design a layout and also set up processes, equipment as well as visibility tools.
Apart from that, logistic and management companies also hire and train staff to ensure a smooth flow of goods and also to ensure that inventory arrives only when needed and in the exact quantity needed. To further support in supply chain management, logistics and management companies provide warehousing and distribution services which include, cross docking, reverse logistics, value added services, distribution management and packaging just to mention but a few.
Cross Docking & Distribution
Cross docking is one of the most important warehousing and distribution services. It helps to keep products moving and also reduces distribution cost. Cross docking synchronizes both inbound and outbound shipping activities, thereby ensuring that products flow directly from either a manufacturing facility or receiving end directly to stores or your distribution center. Besides that, cross docking also eliminates the need for picking, storing product inspection as well as traditional warehousing activities.
Cross docking also facilitates DC bypass as well as direct –to store deliveries. Additionally, cross docking also reduces standing inventory, storage space requirements, operating costs, distribution costs as well as the time taken by products from the manufacturing facility to customers. There are three main cross docking models which include continuous, consolidation and deconsolidation.
Inventory Management, Tracking, & Reporting
Another important warehousing and distribution service is the distribution management. Distribution management helps to streamline everything from inventory management, staff hiring, reverse logistics, packaging and value added services so as to keep products flowing.
From the design of distribution centers to implementation and operation management, logistics management companies like UniFac.com take care of all distribution networks, thereby allowing the client to focus on his business. To do so, such companies use varieties of distribution models which include product completion centers, temperature controlled facilities and new Greenfield facilities just to mention but a few.
Value Added Services for Supply Chain Management
Another critical role of warehousing and distribution is value added services. Value added services simply mean adapting products so as to meet unique customer needs. Value added services gives clients agility to respond to unexpected shifts, changing retailer requirements and consumer demands. One third-party logistics company is spearheading the industry standard of value added services in the sector.
Integrating such services, logistics management adds more supply chain flexibility and decreases operational costs. Such value added services include labeling, inventory management, system configuration, vendor compliance and even eco-inspection just to mention but a few.
Logistics warehouses and distribution companies also provide flexible, innovative and cheap packaging solutions. Since the demand of packaging is growing at an alarming rate, manufacturers as well as retailers have to manage their packaging operations if they are going to have a major impact. Logistics and management companies’ helps clients to achieve unique packaging goals by providing comprehensive designs as well as implementation capabilities in a wide array of formats. Such companies provide high-tech packaging solutions, thereby helping clients to achieve outstanding execution in their packaging operations.