Accelerating the Digital Supply Chain With Shipping and Logistics Management
The global pandemic puts a charge in the push to digitize, mobilize, and automate the world’s supply chain. This has placed shipping and logistics management in the limelight. The whole host of things happening in the world today demand efficiency in the logistics and supply chain process.
The recent year has maxed out delivery networks and carriers were forced to put volume caps on some large shippers. The year 2020 has been highlighted as “Peak Season all the time” in the shipping and logistics industry.
Fast forward to 2021 which hasn’t been a walk in the park either. The remaining challenges of the pandemic include logistics and shipping management as there is an increasing need for its services worldwide.
Let’s take a look closer at what shipping and logistics management is and why its role in accelerating the digital supply chain or any supply chain for that matter.
What is Shipping and Logistics Management?
In the military, the term ‘logistics’ refers to the process of getting and delivering equipment and supplies to troops. Because of the increasing complexity of supplying businesses with materials and shipping out products in the 1950s, logistics has evolved as a business concept.
Today logistics is referred to by the business sector as the efficient flow and storage of goods from point of origin to the point of consumption.
Shipping, on the other hand, evolved from its original relationship to ships and seaborne trade, to encompass any mode of transport that moves goods between two points. It involves the physical transport of cargoes from an area of supply to an area of demand, together with the activities required to support and facilitate the transport.
The three key components that are used for the movement of goods include:
- Fixed infrastructure such as ports or terminals
- Vehicles such as ships or barges using the fixed infrastructure to move cargoes
- Organizational systems are necessary to ensure that the vehicles and the fixed infrastructure are used effectively and efficiently.
Both shipping and logistics deal with the transportation of goods to consumers and the administration of the entire transportation process in order to make it efficient.
Shipping and logistics management aims to answer several questions in the shipping industry, including:
- What are the shipping markets?
- How are freight rates determined?
- What are the shipping cost structures?
- What are the patterns of sea transport?
- How do companies in the shipping industry operate?
The growing need to manage shipping logistics is increasing with the increased competition in the field of shipping. Hence, it is important that shipping and logistics management involve all of these processes to be able to satisfy the needs of customers:
- Resource planning
- Organization
- Management of trailers across the carrier’s offices
- Execution
- Control of the transportation of your shipped items
Challenges That Face Shipping Logistics Management
Because of the increasing demand in the shipping industry, shipping and logistics management is faced with big challenges to developing solutions for various shipping needs such as:
- Increasing labor and fuel costs due to the growth in freight transportation
- Negative environmental impact of increased consumption of fossil fuels.
- Safety and security of transported items
Shipping logistics management services extend beyond the transport of goods alone. It also involves the management of fleet vehicles used in the shipping process. Advancements in technology have provided shipping companies to automate shipping and logistics management to improve efficiency and effectiveness.
Why Shipping and Logistics Management is Important
Shipping and logistics have now become a vital part of supply chain management that is utilized to plan, implement, and control the flow and storage of goods and services in order to meet the needs of customers.
Here are the reasons why shipping and logistics management is important in keeping pace with customer demands and in staying ahead of the competition:
- Improves Efficiency
Information technology allows the use of free software to create visibility to utilize analyzed data and track the movement of goods in and out of a business. This optimizes the transportation management system and avoids potential disruptions.
- Seamless Delivery
Shipping and logistics management ensures that you successfully deliver your products to the right place on time.
- Key to a Successful Supply Chain
With efficient shipping and logistics, you experience increased sales and profits, thereby boosting the value of your business and your public image.
- Provides Quality Customer Satisfaction
Good shipping and logistics management creates reliable strategies that help provide superior services to meet customer’s needs. You will be able to consistently create goodwill and get repeat orders every time you meet quality and timely delivery for your customers.
Efficient and Effective Shipping and Logistics Management
Sure Logix is a logistics provider dedicated to improving their customer’s life and business.
You can get shipping and logistics services from reputable companies. They have the software that can control the work process and increase the productivity of your company’s systems through efficient and effective shipping and logistics management services.
