A logistics company, by definition, controls and improves various processes for moving goods from the point of origin to the point of consumption based on specific customer requirements. As a result, logistics entails a complex set of processes that necessitate a high level of coordination in acquiring, storing, and transporting resources and goods on a global scale.
In a pandemic-stricken world, logistics became increasingly important. Because of the safety concerns and restrictions imposed by COVID-19, the reliance on integrated logistics company in Malaysia has grown exponentially. Despite several challenges, logistics companies are still ensuring timely deliveries, even to the most remote locations, and are continuing operations despite supply chain disruptions to meet rising demand, even after the covid pandemic.
- Logistics strategies and execution
Every aspect of logistics, from transportation to packaging, inventory management, and warehousing, requires smooth operation and is interconnected. It functions as a relay team to ensure coordination among functions.
- Handle Materials
Even though it appears to be a routine task, it is critical and must be completed on a regular basis. It is simple to move one of 100 items in a small shop with 100 items. If the shopkeeper is unsure where the products are kept, he or she will have to look for them each time an order is received.
- Provide Warehouse
Consider LG or Samsung, two long-lasting consumer brands with a global presence. While their products are made in a single location, they are distributed globally. As a result, warehousing has a significant impact and is a critical ogistics activity. It is critical to note that in order to deliver goods quickly, the warehouse must be located near the retailer or distributor. If it takes a week for a branded product to arrive, it may not sell as well as a competing unbranded product that arrives in two days. As a result, it makes sense for the branded company to establish a more convenient warehouse so that the products can be delivered as soon as possible.
This happens all the time. Logistics centres are strategically located to avoid crowding the main warehouse (large warehouses that stock the majority of products).
- Manage Inventory
One of the most important functions of a logistics company is inventory management. Inventory management is all about keeping enough inventory on hand to meet client demands while keeping carrying costs to a minimum. It boils down to a balancing act between providing excellent customer service and avoiding market share loss at all costs. If a company has 100 units on hand but only needs 10 to meet demand, it has wasted money by purchasing 90 of the products. A different company ordered 500 units, but only produced 200 because they expected lower demand. As a result, they’ve lost sales and missed out on opportunities.
That’s what a logistics company does!