Logistics and supply chain management are terms that are often used interchangeably, but they actually refer to two aspects of the process. Logistics refers to what happens within one company, including the purchase and delivery of raw materials, packaging, shipment, and transportation of goods to distributors, for example. While supply chain management refers to a larger network of outside organizations that work together to deliver products to customers, including vendors, transportation providers, warehouse providers etc.
All businesses focus on the design and quality of their products to best meet customer needs. But if those products cannot reach customers, the business will fail. That’s the major role that logistics plays. But logistics also impacts other aspects of the business, too. The more efficiently products can be purchased, transported, and stored until used, the more profitable the business can be. And on the customer side, if products cannot be produced and shipped in a timely manner, customer satisfaction declines, impacting your businesses bottom line.
It might seem like taking care of logistics is the cheaper option for you, but that’s a short-term view. It might save a few dollars, but that time it takes you is time which could have been better spent increasing your sales. It’s well worth it to spend the little extra streamlining your logistics so you can focus on bringing in more revenue and be well set up for scaling to the next level. Contact us to discuss if we are the right fit for your business.