Imagine someone asking you what logistics is, how does it work, and why is it important. Would you be able to explain the whole logistics flow from order to delivery in a way that the other person can easily understand and visualize the process? If not, then this post is for you.
When people hear the term logistics, what usually comes to their mind is trucks, warehouses, boxes, and delivery. The truth is logistics is a process that interconnects businesses, technologies, and markets worldwide. It is good to first have an overview of how logistics works before deciding to venture into a logistics career path.
In logistics, it all begins with an order. Sounds simple; a customer orders, you deliver. But before the customer places an order, there is a whole process that takes place at the back end to ensure that once the customer presses that order button, the process will be seamless. The system will check for the availability of the product, ensure that the customer has paid for the order, and then send the order to the warehouse for processing. At this stage, logistics kicks in.
Once the order is received in the warehouse, the warehouse staff will process the order which involves locating the product in the warehouse, picking it, packing it, and then preparing it for dispatch. This process has to be as efficient as possible because any slight delay in the warehouse can cause a ripple effect in the entire supply chain.
After the order has been processed, prepared, and is ready for dispatch, the next step will be to transport it to its final destination. At this stage, the business owner has to decide on the mode of transport; road, air, sea, or rail. The choice of transport depends on several factors such as the nature of the goods, the distance to the delivery point, and the speed of delivery required. For instance, if you are dealing with electronics, you will most likely transport them by air because electronics are generally light and you would want them delivered as fast as possible to beat any competition and to retain their value. On the other hand, bulk cargo can be transported by sea to reduce the transportation costs.
Transportation does not signal the end of logistics. There is a tracking process that has to take place to monitor the movement of the goods from the dispatch point to the delivery point. During this time, both the business owner and the customer can track the order in real-time. It is a stage in logistics that has become so essential because it keeps the customer informed of the status of their order at any given time.
During transportation, there are scenarios that may affect the movement of the goods. There could be delays, bad weather conditions, issues at the customs, or some goods may not be available as they had run out of stock. In such cases, logistics professionals have to intervene and resolve the problem as fast as possible to avoid any more disruptions. For instance, if there is traffic congestion on the normal route to the delivery point, logistics professionals may have to change the route to avoid the traffic jam.
Lastly, the order reaches the customer who is the final point of delivery in the logistics process. But even at this stage, logistics does not end because there are processes such as returns, exchanges, and customer service. All these are essential in logistics because they determine the level of customer satisfaction.
What’s fascinating about logistics is that it involves a combination of planning, technology, and problem-solving. It is not just about the movement of goods; it is about streamlining the logistics process to achieve efficient operations, reduce logistics costs, and reliable operations.
The logistics industry is evolving at a very fast rate. Technological advancements such as automation and artificial intelligence are being adopted into logistics to make operations faster and better. Logistics is now a data-driven industry where companies can predict the demand for certain products and plan accordingly.
The best time to join the logistics industry is now. Logistics is no longer operating behind the scenes; it is one of the fastest-growing industries in the world and will continue to evolve.
At LogiFlowPro, we take you through each stage of the logistics process to ensure that you not only know what logistics is but how logistics works from order to delivery.
