When you hear about logistics, you probably think of goods being transported from point A to point B. While it is true that logistics involves transportation, it’s merely one aspect of a bigger picture. There are other major functions that a logistic company in the Philippines can do for your e-commerce business. From the order processing down to getting your goods to your customers, it’s all part of the discipline of logistics.
1. Order Processing
The entry point in logistics, order processing is where orders are received and billing and shipping terms are processed. The logistic team is responsible for providing a quick and accurate way to process orders as this step is crucial for both the organization and the customer. The process goes all the way down to inventory control as a successful order involves deduction of inventory from the warehouse.
2. Inventory Management
How do you keep your inventory from being not too little, avoiding lost opportunity cost, and not too much, resulting in wasted investment? The key is balancing your inventory with the help of a logistic company in the Philippines. Inventory management is another major function of logistics that involves the continuous monitoring of supply to meet the demands of customers. It implements various production techniques that consider inventory carrying costs and generating sales and profits to come up with well-informed inventory decisions.
3. Warehousing
Location, number, size, layout—today, warehousing has become more complex than ever as more and more entrepreneur see the important role it plays in business. Warehousing isn’t just about storage of goods anymore. There are various factors you have to consider when making major decisions in warehousing, the most crucial of which is the accessibility of the warehouse. It should be close to the distributor to facilitate ease of transport, which can be a deal breaker for your customers. The good thing is: logistics offer warehousing functions, even providing computerized material handling systems to centralize the operation of your facilities.
4. Transportation
Transportation is a major function in logistics that greatly affects customer satisfaction. It has a direct influence on product cost and delivery performance—both crucial for the decision-making process of your buyers. Whether the goods arrive on time or get delayed, and are in good or bad condition all lies in the transportation mode a business offers.
5. Logistical Packaging
While the mode of transportation is a critical factor in keeping the goods in perfect condition, the packaging ensures it gets protected in the entire duration of the shipment. Aside from protection, it is also key to storage space saving and material handling.
6. Integration of Information Flow
What makes logistics a must-have for entrepreneurs is its technology. Since information is crucial in the operation of your business, having the right tools is necessary to effectively and efficiently manage your goods. From manufacturing to storage and transport, the IT tools that logistics offers will come in handy in your decision-making.
With the above mentioned functions of logistics, keeping your goods secured both in and out of your warehouse has never been this efficient. Definitely, logistics is one key to satisfying your customers. If you want a smooth operation for your e-commerce business, consider hiring a logistic company in the Philippines.
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