What is understood commonly about logistics is that it refers to the inbound and outbound of storage goods, services, and information between organizations and within them. It is a supply chain management that organizes, executes, and is in charge of the flow and storage of items, and services between where it’s from and where it is headed. This is done in order to satisfy customers’ needs and requirements. Read more to find out about the processes of logistics in Malaysia within the best shipping company in Bintulu and Malaysia.
As it is an enabler in all forms of trades and distribution activities, a lot of details of the supply chain need to be cared for so that the logistics are safe and cost-effective. This is to avoid unnecessary penalties. Aspects included that need to be focused on are planning and strategizing.
The main activities in logistics overall include warehousing, transportation, packaging and unitisation, inventory, and information and control.
Supplies can be unpredictable as manufacturers always operate efficiently. However, consumers tend to not buy items at the same pace as the manufacturers. Hence, warehouses come into play by storing items produced by manufacturers until the items are in demand.
Warehouses require their own equipment such as shelves and ranks and material carriers; such as delivery vehicles to move the items where it needs to be stored.
- Packaging and Unitisation
The care and the state of items depend on the packaging process. It is essential to keep the state of items in mint condition. Unitisation is important as this helps in the storage and transportation department. It is also easier to move items around when it is all packed in terms of sizes and shapes of products.
This comes hand in hand with warehousing since it is about keeping track of where the items are, which items to store, and how many items to store. In other words, it is about controlling the flow of items stored in the warehouse.
This is done by observing the sales data of past orders and predicting how many items will consumers demand. This is an important process to manage the proceedings of goods.
The process that the public is most familiar with regarding logistics is transportation. There are various modes of transportation. For example, road vehicles, freight trains, air transport, and cargo shipping. Transportation is an indispensable process as items would not be able to be delivered where it needs to be.
Items, such as food, are not able to travel far due to their short supply chain. Complex items with various components can be transported across the world.
- Information and Control
This process act as a switch to different operating procedures. The following step after the mentioned processes above is information and control – which is to help design the information system that can control operational procedures. This process also assists with predicting the demand and inventory.