Did you know that competition is one of the biggest challenges to logistics business growth?
Shipping is one of the most profitable segments of the logistics industry. It’s also one of the most competitive.
Spending just a few minutes on the internet researching logistics transportation will give you a headache trying to figure out who to call or what service to use.
If you’re looking for the right logistics company to move your goods from point A to point B, keep reading to learn more about what services you need to think about.
The two terms logistics and supply chain management are often used interchangeably. However, the two are very different.
We’ll start with logistics. Transportation logistic is the planning and coordination of transporting an item from the source to the customer.
When you talk about transportation & logistic services in a business, you are referring to two main components, which are:
Supply chain management is a component of logistics concerned with the flow of raw materials and components from one location to another.
The main focus of supply chain management is being able to forecast and adapt to changes in demand. Logistic transport is the component of the supply chain that’s concerned with transporting goods from the source to the customer.
To sum it all up, supply chain management deals with materials, logistics deals with transporting materials, and supply chain management maintains the infrastructure through which materials get transported.
To put it even more simply: Logistics is transportation + supply chain management.
Distribution logistic services include any service related to the delivery of goods, paperwork, etc. It is a method of managing the flow of goods from the source to the customer.
One of the most popular services provided by distribution companies is the use of temperature-controlled transportation. Temperature-controlled transport logistics are essential if you are shipping perishable goods.
These goods need to be able to remain at a specific temperature to prevent spoilage. This can get done with cold chain transportation.
Some items that could need this type of logistics include:
Global logistics is the process of transporting goods from one country to another. This process is necessary for many reasons.
It is vital for companies to invest in global logistics because it is a way to reduce their import/export transportation costs. Not only that, but it can also help reduce the risk of extreme weather conditions, which can cause damage to the products and delay delivery times.
Global logistics services include:
Transloading is the process of transporting your goods to a different vehicle and then shipping them to a different location. This process is usually done by truck but can also be done by rail or ship.
The term’s derived from the words trans, which means to move, and loading, which means to load. Transloading can be done for several different reasons.
One reason why companies use transloading is to reduce transit time, as well as to reduce shipping costs. The other reasons why transloading is done is to reship the goods to another customer or to consolidate the goods with other goods going to the same place.
Warehousing is the process of storing goods for any amount of time. In the process of warehousing, goods are moved to another place from where they arrived.
Typically, goods in the warehouse are stored on pallets and are located in racks or on shelves. It is important for companies to invest in warehousing because it can provide many different services for companies, such as distribution and storage.
Distribution is the process of transporting goods from the warehouse to where they will be sold.
There can be different types of distribution. Some standard methods of inbound and outbound management are FIFO, LIFO, and ABC.
FIFO means First in, first out. This distribution method means that the goods that have been in the warehouse the longest are the first to be shipped out.
LIFO means Last in, first out. This method of distribution means that the goods that have been in the warehouse the shortest are the first ones to be shipped out.
ABC stands for Average, Boghold, and Cost. ABC distribution is typically used for products that have sensitive Expiration Dates.
A transportation management system (TMS) is a piece of software used by transportation and logistics managers. A transportation management system can track all the essential information regarding a shipment.
The software helps with the management of transport services by providing key information.
This will include the shipment’s location, the date of delivery, and the shipping costs. A TMS is very beneficial because it can also help a company plan shipments in the future and provide up-to-date info for customer service and order fulfillment.
TMSs can also be customized to fit the needs of the company. Some companies that benefit from a TMS include:
Getting your goods from point A to point B with a transport and logistic company shouldn’t give you a headache. Consider the logistics transportation services above and how they can meet your needs.
Amertrans Logistics values transparency, clear communication, and accountability. We want to provide you with the best logistics services. Contact us today for an estimate or if you have questions about how we can help your business.