Logistics is a big word, that applies to a lot of concepts. If you are new to the world of logistics, you might be confused about what it all means, exactly – we don’t blame you!
We have put together this post to help you understand the different types of logistics management services, and how they can help your company’s logistics.
What is Logistics Management?
Let’s start with the most basic definition. Logistics management refers to a service that handles one or more aspects of a company’s logistics – that could be supply chain and distribution, warehousing, freight services, and even budgeting.
Every company deals with logistics in one way or another. Those who have a more complex supply chain or have to handle a lot of complicated deliveries regularly often choose to outsource their logistics to a 3rd party logistics management service, or 3PL.
Below are some of the most common logistics management services that companies will utilize through a 3rd party company.
Supply Management Logistics
Supply management logistics involves coordinating the transport and delivery of supplies. What that entails exactly will vary depending on the company in question – some businesses have much more complex supply chains, that require a lot of oversight and complicated steps.
In most cases, supply management logistics will coordinate storage and shipping supplies from one place to another. It is important to handle supply logistics in a timely manner and avoid any mistakes – otherwise, the entire supply chain could be thrown off.
Distribution and Material Movement
While supply management brings supplies to storage areas for further manufacturing or refining, distribution and material movement generally involve moving finished products to where they need to go. This kind of logistics involves a lot of tracking and keeping stock of stores. It also involves tons of material movement – loading and unloading trucks, shipping and delivery.
Just like with supply management, distribution management can require a lot of oversight, and time is always an important factor.
Production Logistics and Management
Production logistics involves coordinating all the different stages of production. That means movement between factories and warehouses, managing production spaces and sticking to a strict time schedule. For a manufacturing company, production logistics are one of the most important logistics management services.
Another industry in which production logistics is crucial is construction – this can often involve the delivery of time-sensitive raw materials to construction sites. A professional logistics service can be a huge help in making sure that a project is completed on time.
3PL is another term you will often hear associated with logistics management. This refers to a 3rd party that will coordinate logistics for a company, working with both the company and shipping or warehousing services to ensure that everything runs smoothly.
Unlike other logistics services, 3PL can help to manage your entire supply chain. That means that the right 3PL company can actually take all of the logistics aspects mentioned above off your hands, allowing you to focus your energy on more important matters.