Role of Logistics Sector in Supply Chain

Role of Logistics Sector in Supply Chain

The supply chain is the backbone of any industry. Having a proper, efficient supply chain system makes it easier for the company and the stakeholders. There is a huge role of logistics sectors in the supply chain. The reason behind this is that logistics support the supply chain sector. If your logistics are smooth, then your supply chain is efficient, and so is your company’s performance.

What is The Role of the Logistics Sector in the Supply Chain?

The logistics sector deals with transporting goods from one place to another. This includes raw materials, manufactured goods, and everything on the list. Proper management of the logistics sector highly depends on the efficient structure of the supply chain. Both industries are highly correlated. Some of the roles of the logistics sector in the supply chain are described below:

  • Transportation of Goods

Logistics plays its part in the movement of goods from one place to another. This includes all the types of goods, be it manufactured or raw materials. If the transportation is handled well, then the other interlinked supply chain procedures also run smoothly and efficiently. Hence, this sector demands immense importance.

  • Documentation of Procedures 

All the procedures should be properly documented and efficiently handled. This includes efficiently managing the contracts and the dealings that have several things. For example, a formal agreement of payment and carrier/shipper details, etc. Documentation is a must! Never skip on this in any case.

  • Inventory Management

Every industry has a warehouse or storage area to place their extra inventory. This team efficiently sees through the stock and moves the goods required to carry in team logistics.

  • Warehousing

A warehousing facility is a life savior. If, for example, your goods are delayed, or any emergency has occurred, and you can not move your goods right then. In this case, the warehousing facility helps. It provides your goods a proper environment. In this, you can leave your goods in the warehouse and proceed with your other tasks. Gillson Trucking ensures that your goods are kept safe and secure.  

  • Drop Trailers

The drop trailer facility is then again a game-changer. The logistics company leaves the trailer outside the pickup point a day before the shipment or surrounding the time of shipment. This gives the shipper enough time to load his goods and see if he needs to make any changes. 

FAQs

Q. How does logistics add value to the supply chain?

Logistics adds value to the supply chain by finding efficient transportation and the competent movement of goods from one place to another. This helps smoothen the process of supply chain. 

Q. What are the six functions of logistics?

These functions include: 

  • Processing of orders
  • Handling of material 
  • Packaging 
  • Transporting goods
  • Inventory management 

Conclusion 

Logistics services play a major role in supply chain management. The reason why the supply chain runs smoothly is that the logistics are efficient. The correlated sectors of the industry help manage the inventory properly. Moreover, logistics provides the drop trailer facility along with transportation.  For more information, you may visit Gillson Solutions.