Shipping And Logistics Management: What Does It Entail?

by | Nov 11, 2014 | Health & Medical

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Any product-based business seeking growth needs to have a plan for shipping and logistics management. Without a strategy, businesses will find themselves easily overwhelmed by orders due to low stock, lack of storage space, and disorganized shipping procedures. A thorough strategy must be in place from the business’s first day, and building such a strategy requires knowledge of the three supply chain links each business interacts with directly. If your business is in need of shipping and logistics management, it’s recommended you begin planning immediately.


How Your Supplier Fits in Your Shipping And Logistics Management Strategy


A steady partnership with a supplier is vital in ensuring your business gets the parts or raw materials needed to create your products. To achieve this, you will need to regularly research the market to assess possible demand, schedule orders accordingly, and plan for any possible irregular increases in demand. As a whole this process is known as “Procurement Logistics,” and sometimes involves bidding and price negotiations to ensure both the supplier and your business reach a mutually-beneficial deal.


How Storage Options Fit in Your Shipping And Logistics Management Strategy


Once your materials have been ordered, you’ll need a place to store them. Small businesses sometimes store raw materials in offices or personal garages, but a growing business will soon outgrow this kind of solution, requiring more space. Renting a bigger storage space and moving your materials or preexisting stock can be an expensive and time-consuming endeavor, so it’s suggested you take care of this sooner than later. Once your storage is in place, you can have your supplier ship materials directly to your new location.


How Shipping Services Fit in Your Shipping And Logistics Management Strategy


With your raw materials stored and ready, you’ll need to turn your attention to “Distribution Logistics,” the process of getting your products into the hands of customers. This entails taking and organizing orders, having necessary product assembly completed, building the package, and shipping safely and quickly. Multiple orders can become confusing, so your business will need a very specific plan for organizing this aspect.


Can Order Fulfillment Centers Help With Shipping And Logistics Management?


Managing an ever-growing business can be difficult, and it’s easy for a small operation to feel overwhelmed. Order fulfillment centers can be a huge benefit to businesses like this, providing warehouses for storage and handling all aspects of shipping. When you partner with a center your supplier delivers right to their warehouse, where your product is then assembled and shipped anywhere in the world. If you own a small business, order fulfillment centers should be a serious consideration for your shipping and logistics management needs.

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