Movement activities have already been viewed by many managers as a strategic area. Within an organization that focuses on optimizing processes and results. In this context, integrated logistics emerges, which seeks to improve communication between people. Partners and departments through technology.
After all, what is integrated logistics?
The development of integrated logistics was driven by the need to manage the supply chain in a more strategic way, achieving ever-better results. Today, the movement of goods is considered difficult because it depends on the participation of logistics operators. Autonomous drivers, distribution If previously responsibility was only assigned to more operational processes.
Such as inventory and transportation management, then integration is aimed at ensuring good management of procurement areas, production process, collection, distribution and even flow of information. …
Does it work in practice?
Simply put, the functions of integrated logistics are performed in two different directions: material flow: it is understood as the circulation of resources. Spare parts and goods in warehouses and their distribution among suppliers and customers; information flow: represents the transfer of information. Regarding the progress of delivery, cargo tracking and payment for cargo services.
These two terms help to understand which basic principles are taken into account when implementing integrated logistics. The tool used to make this action feasible is a management system that tracks the logistic flow in its entirety. Thus, all participants have access to information relevant to their stage of the strategy and can track the progress of actions.
How can this be applied in companies?
The first aspect of using integrated logistics is communication. To enable and benefit from true integration, there is a need to maintain a continuous, clear and objective flow of process information so that areas can make more informed decisions quickly.
A good example of this is when the procurement sector keeps track of stock levels and knows exactly when to activate a supplier by purchasing the appropriate quantity of products – sufficient to meet demand, avoiding shortages and surpluses.
What are its main benefits?
Often, the process of introducing a new technology or work methodology can be challenging. However, the benefits achieved help demonstrate how this change can bring positive results.
Promotes decision making
Strategic planning and long-term vision are important factors for the growth of the company and the development of new business opportunities. In this scenario, this integration plays an active role in managerial decision making.
In other words, this change provides access to management reports and performance metrics that help provide an accurate picture of business progress. In this way, decisions can be made regarding financial. Operational and commercial aspects.
Improves material management
Logistics is responsible for inventory management. It is important to ensure that demand is met and at the same time reduce operating costs. This area is responsible for obtaining resources, supplying the production line and shipping finished products.
With integrated logistics, management is not limited to warehouse operations: it starts in the purchasing sector (with related acquisitions) and continues until the customer receives an order. Monitoring each stage allows the manager to identify disruptions and actions necessary to optimize product flow.
Increases productivity
General, the introduction of new processes and technologies helps to identify bottlenecks that can affect performance. In order for the integrated logistics process to be fully utilized. The workflow needs to be reviewed and improvements made.
Fixing failures and streamlining processes throughout the supply chain helps determine the best method of operation. This includes modifications to the environment (like changing the layout) and eliminating unnecessary steps (which don’t add value to the customer), for example. Thus, teams become more productive and efficient.
Domestic Transportation – Reefer, gen-sets, heavy-duty tractors and chasses
Delivery trucks and vans in China, Hong Kong, and Macau & Taiwan equipped with in-cab reporting units
Reefer and gen-sets are available
Transportation Management System developed for managing fleets of tractors and trucks
Daily deliveries to stores and shopping arcades in China, Hong Kong & Taiwan
Daily airfreight and long-haul deliveries to major cities in China
E-Fulfillment Division
CN Logistics can manage the complexity of order fulfilment as well as the differing supply chain requirement of merchants from production to end customer. We can also manage the supply of inventory from a single warehouse for both offline and online sales at the same time.
Experienced e-fulfilment services in China and Hong Kong
- Handling and Re-processing of Returns
- Interfacing between eCommerce Platforms with our CN Warehouse Management System (CN WMS) through CN Order Management System (CN OMS)
- Experience in e-fulfilment packaging
Provides process flexibility
Improved communication provided by the exchange of information makes processes more flexible and reduces errors. This is due to the fact that the most relevant data is available for consultation and can be used to track the progress of the company.
Likewise, decisions are made on the basis of rich and reliable information, which promotes flexibility and therefore increases the chances of creating a competitive advantage.
Leads to process transparency
Most cases, companies treat their logistics information as confidential. However, data exchange is essential for the successful movement of goods.
This accessibility is even an element that creates a sense of transparency, especially in customer relationships. Today it is expected that systems to monitor order processing and product delivery will be available for consultation.
Help reduce costs
With all the benefits mentioned, it’s safe to say that cost savings are also one of the reasons demonstrating the value of integrated logistics in organizations. This can be achieved through increased productivity, fewer errors and rework, less waste and other positive changes.
This optimization can also be seen at work using tools that facilitate the delivery process, such as routing. It is one of the main systems for those looking to make travel more flexible and at the same time save fuel. Improving the products and services offered to the client, coupled with the speed and accuracy of decision making, and are fundamental to creating a competitive advantage as they allow the company to stand out from the competition.
Integrated logistics can be seen as an evolution of traditional logistics, in which everyone seeks to control every stage of the order’s life cycle. This includes tracking the processes of suppliers and telecom operators, managing end-to-end activities in the supply chain.