Effective logistics as an integral part of a company’s success
An important factor for a successful business is a well-thought-out strategy. It must be developed and implemented comprehensively, taking into account the main systems that form the basis of the company. Optimization of production processes, effective logistics and innovative approaches in marketing play an important role in this case. By maximizing the interaction of these systems, you can expect to increase profits and strengthen your market position.
If the need for proper organization of production is not in doubt, the other two systems often remain without due attention, which is a mistake. Marketing deals with the promotion of goods or services, organization of promotions, research of demand and needs of consumers. Logistics takes care of the processes for the physical movement of products, storage, provision of raw materials and material inventories.
For maximum efficiency, these systems must work together, difficulties in one of these areas can lead to a breakdown in the overall chain and damage to the company. For example, a meat producer has entered into a contract with a meatpacking plant to supply products. In this case, marketing ensured the promotion of goods to the buyer, set the price, profitable for each party, and prepared the contract. The production department undertook the provision of the required volume of meat, taking into account sanitary and technological standards, as well as the preparation of products for transportation – freezing the carcasses. Logistics has prepared a special transport, which provides the necessary temperature for the meat from 0 ° C to 4 ° C. If there are difficulties in any of these systems, then the fulfillment of the terms of the contract will be at risk, regardless of how effectively the other services work.
As for improving the efficiency of logistics, there are three divisions – the transport department, logistics warehouses and finished product warehouses. Sales is an area where marketing and logistics closely interact.
At first glance, it seems that the transportation of goods does not require a lot of attention from specialists, but this opinion is wrong. Before delivering products to the customer, it is necessary to determine the type of packaging for transportation, its quantity. In addition, it is necessary to correctly calculate the number of cars in terms of financial and time costs. An important factor is also the safety of the goods during transportation. Only if all of these conditions are met can we talk about effective logistics. When building a strategy for this direction, it is necessary to take into account the analysis of the market and its trends. The provision of resources must take into account the company’s objectives, in such an amount, which will cover the needs and will not create any surpluses. With the right organization of processes, logistics costs must be reduced at each subsequent stage of activity. This principle makes it possible to minimize the cost of logistics operations.
