Supply chain logistics for a freight forwarder business

Do you know what supply chain logistics means? In general terms, it can be defined as a system of organizations, people, activities, information, and resources involved in the activity of transporting products or services from suppliers to customers. Therefore, managing this structure efficiently is a good way to guarantee an effective final result.

Well, but what is the importance of supply chain logistics for freight forwarders? It’s actually extremely important! The logistics chain englobes all the stages from supplying the production line to when the final product reaches the consumer market. So understanding it and optimizing it is essential for a freight forwarder to deliver a good service, and that’s exactly what we’re going to talk about in this post.

Supply chain logistics – what freight forwarders need to know

To understand how the logistics supply chain works, firstly you need to know all of its phases. Usually, a logistics chain is composed of the following steps:

  • Supply planning;
  • Demand planning;
  • ERP;
  • Manufacturing;
  • Inventory management;
  • Logistics stage;
  • KPI’s for continuous improvement;

The supply chain in freight forwarders business, whatsoever, usually involves operations developed in a more specific way, aimed only at the logistics stage (transportation, storage, and reverse logistics).

Therefore, managing this chain involves managing the flow of goods, finances, services, and information that make up an integrated logistics chain.

But how does this work in practice?

The techniques may vary depending on the size of the supply chain, the type of product, modal of transportation, or the cargo’s origin/destination, but the process is always aimed at aligning everything between transporting orders from suppliers to the manufacturer and from there to distribution centers or final customers.

As an example, some general steps that can be listed as part of the chain that the freight forwarder could be responsible for:

– Finding the best raw material suppliers

– Order loads

– Store goods

– Deliver goods

– Receive customer feedback and improve processes

Technology in the supply chain logistics

The availability of information must be at the heart of any supply chain. Through some technological tools (specialized software, for example) the communication of the whole chain can be better organized, which improving the alignment between everyone involved in an operation. This makes it easier to control the process and issue reports, which leads to greater reliability, agility, and efficiency.

Therefore, technology is the future of the supply chain. After all, companies that have already adopted a technological approach will force other companies to adapt to digital realities in order to remain competitive. A digital operational model is all about implementing digital resources across the organizational layers of governance, processes, data management and performance, and IT.

Logistics marketing + supply chain management = good results

Having a good operating system and managing a good chain is, for sure, one of the key steps to keep your customer satisfied. However, there are other very effective strategies, especially when it comes to attracting and retaining customers in the long run, which can only be done with the help of an effective marketing campaign.

LoGo has a team of professionals specialized in developing marketing solutions for logistics companies. We are ready to align all your needs with your goals. Got interested?

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Luiza Lima

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