The food and pharmaceutical industry, along with others, have an inseparable dependence on logistics support. For industries like these to run like well-oiled machines, their logistics have to be solid, sturdy and reliable.
Logistics transportation refers to the transportation of a product from point A to point B, and includes the planning process along with the storage of raw materials, inventory, finished goods and services. A big business speaks volumes about its logistics reliability. Think of Wal-Mart, a giant amongst the retail supermarkets. Bottom up evaluation of Wal-Mart might give us an insight into the importance of logistics in a business, as monumental as Wal-Mart itself.
Wal-Mart’s consistent quality is what makes it an enormous success, but what brings it this superior quality? Other than the production, it has an efficient logistics mechanism. Not many of us can claim to have come across spoilt or expired food in those aisles; certainly they can’t just stay as good as they were in production for as long as they do on the shelves. Well, they don’t. Wal-Mart’s impeccable supply chain management is a triumph in the retail business industry. With its products manufactured in more than 70 countries at a given time, as well as operations in more than 11,000 stores in 27 countries around the world, Wal-Mart is a monument of logistical efficiency and overall success with the structural support of smoothly running operations.
Every small operation is a link in the business that can affect the whole chain of operations, if obstructed. What a business needs is a continuous physical flow of goods in and out of its warehouses and to the market, for the business to achieve efficiency, alongside generating profits. However, with a lagging transportation service, you’re getting nowhere.
There are two types of Logistics: Inbound and outbound. Inbound logistics transportation refers to the transportation of raw materials to the plant where it can be manufactured into the product. Outbound logistics deals with the transportation of the finished final product to the market for the customers.
Both of these logistics require a clear communication within the supply chain counterparts to optimize the process. Needless to say it is essential for both of these logistics classifications to be working smoothly, to maximize the operational efficiency.
Well managed logistics clears the way for profit maximization, along with reduction in cost. This reduction is brought about by material handling of the workers. Handling could make or break your profit depending on where it lies on the spectrum. Well-handled cargos have minimal losses and fast transportation. This timely delivery ensures economical transportation as a whole.
Another significant factor that influences timely delivery of goods is the distance the cargo has to cover to reach its destination, so it is useful if the locations are near to each other. For this prime reason, Wal-Mart’s warehouses are conveniently spread out, and in exponentially high numbers.
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