Supply chain and Logistics are like Batman and Robin!
Supply chain is Batman that makes the strategy from the start to finish while Logistics is Robin that works on it and adapts on the fly. The most important part of logistics is warehousing. There are multiple warehousing service in Karachi that can help meet the increasing demand of this metropolitan city and instead of buying a warehouse many companies have opted to outsource their warehousing.
Supply Chain and Logistics are the same but different!
The supply chain deals with the production side of the business as well as the distribution. It is a process that starts from procuring a supplier for raw material to making a finished product.
While all this is happening our friend logistics is not Netflix and chilling. Logistics starts to plan routes, transportation and warehousing services for the product. In easier terms logistics is the movement of good from point A to point B. So we can say that the supply chain is the entire mapping of the production process from raw material to the retailer while logistics is an important part of ti that handles the transportation from factory to retail.
Here’s why Logistics is important for Supply Chain Management.
Logistics maps out the routes or transporting goods to the market and here is why it is crucial to plan a proper logistic strategy with the conditions of the road in mind.
1. Creates good Brand Image and Interaction!
If your company is new in the market and does not have a name for itself you can use a good outsourced logistics company. Good companies might charge more than your estimated budget but they have a strong impact on your marketing. Associating strong brand names help.
2. Brings down Cost and Time!
Logistics helps the supply chain succeed in its business goals for reducing costs. Since logistics deals with the transportation of goods, effective fuel reducing strategies and warehousing facilities can bring down the transportation cost by a good margin.
Inventory management and efficient allocation of imported material also fall in the job of logistics. Through a software base, inventory management logistics and supply chain officers can reduce time and keep an eye on their product. Methods like smart logistics are being developed to monitor the products in the truck to further help the supply chain.
3. Last but not the least, increased sales!
Shelving your product in a metropolitan city like Karachi is a tough job. If the product is not visible to the customer when they need it you will lose sales. There are multiple warehousing services in Karachi. These warehouses store your product so the next time it’s off the shelves and sold out you don’t need to send a truck from your factory. Simply contacting the warehouse next to it would do the job.
Muhammad Ahmed is BS in Commerce from the University Of Karachi — Pakistan. And also a Marketing specialist at CFIPAK.