7 Key Functions of Logistics Company

A logistic company is an entity that designs, manages and controls another company's supply chain. The logistic company can operate during supply procurement, transportation, distribution, storage and order fulfillment depending on the commercial agreement between the two involved parties.

Logistics entails a wide range of functions and responsibilities. Following are the key functions of a [url]logistics company in Kerala [/url]

Order processing

This is an essential task for a logistics company. The logistics activities begin with order processing, which may be the responsibility of the logistic company’s commercial department. The commercial department ensures that the delivery and payment terms are met before processing orders within the company.

Materials handling

Materials handling is the act of moving goods around the warehouse. It entails managing the inventory in a way that allows the warehouse to fulfil orders accurately and quickly. This is one of the important parts of the supply chain. It includes diverse equipment types and storage systems like muti level and single-level storage and conveyor belt systems.

Warehousing

It is the process of storing physical inventory for sale or distribution. Warehousing is used by all different types of business that needs to temporarily store products in bulk before either shipping them individually to end consumers or to other locations. The warehouse must be close to the distributor or retailer to deliver goods quickly.

Inventory management

It is one of the most critical functions of a logistics company. Inventory management is all about maintaining sufficient inventory to meet the demands of the client while keeping the carrying cost to a minimum. It's essentially a balancing act between providing excellent customer service while avoiding the cost and losing market share.

Transportation

This is one of the most critical activities performed by the logistics company, which is also one of the most revenue-generating and resource-intensive logistics segments. Transportation is expensive for a single reason- fuel, whether it's gasoline, natural gas or diesel. It s the responsibility of the logistics company to procure FTL or LTL as required for the order shipment.

Packaging

It is the most important outer cover that protects and keeps the product safe from any damage. It may be a container or a wrapper that holds the item. If necessary precautions are not taken, end consumers may get damaged goods, resulting in severe losses for both the end client and the logistics company.

Monitoring

Warehousing, inventory management and transportation must all be kept up to date by logistics companies. Each site requires ongoing information about its future commitments, current supply status and replenishment capacity. It is necessary to monitor and track information on logistics such as work schedule, space utilization, order request and delivery.


Logistics is the process of moving goods throughout a company's supply chain and consists of various functions that must be managed appropriately to improve the organization's supply chain’s efficiency and effectiveness.

As it is a complex process, choose the best[url] logistics company in Kochi[/url].

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